Construction Risk Management
Construction Risk Management - Construction Process Management
The construction and civil engineering industry is characterized by projects with delayed schedules and budget overruns, and the quality sometimes fails to meet expectations. The challenge is particularly pronounced in mega-projects. So, if you're building something significant, the odds are stacked against you. 9 out of 10 mega-projects go over budget, and overruns of 50% or more are pretty standard - and Danish mega-projects are no exception.
Many reasons for these challenges lie in decision-making, competencies, and management methods. If you're interested in learning more, we have provided links to some informative articles on why mega-projects go wrong. Even if you're not dealing with a mega-project, these articles offer valuable insights into the issues.
Megaprojects are constantly “Over budget, over time, under benefits, over and over again”
– Iron Law of Megaprojects, Bent Flyvbjerg 2011.
Top Ten Behavioral Biases in Project Management: An Overview, Bent Flyvbjerg 2021.
Data-Driven Project and Risk Management in Construction
If you are interested in completing your project, we have developed a data-driven method for project and risk management. Our risk management differs from traditional approaches by being based on facts, without subjective assessments, and it is time-efficient to implement, as reporting and analysis are largely automated.
You know where your project stands about the plan daily, and risks can be mitigated promptly.
5 Steps for Project and Risk Management at Exigo
What is BIM Process Management?
BIM Process Management involves defining the goals, scope, and workflow for implementing BIM methods in a project. This is described in documents such as ICT agreements, process manuals, and delivery specifications, or Employer's Information Requirements (EIR), BIM Execution Plan (BEP), and Task Information Delivery Plans (TIDP), among others, following ISO 19650. These documents should align information requirements for data and geometry, digital deliverables, their development throughout the project phases, and who is responsible for each delivery and discipline.
2) Design Phase
Before construction commences, it's essential to thoroughly quality control all the 3D building models related to your project. This applies to the individual 3D building models and the interdisciplinary federated model, a collection of 3D models from all disciplines. Are the models geometrically correct? Are they named correctly? Has continuous clash detection been performed across disciplines?
In simple terms, your project should be able to be flawlessly built on the computer screen before starting the project in reality. If that's not the case, you should wait until the entire project is ready. It can be costly to rectify clashes on the construction site.
We assist you in ensuring that the 3D models, and thus the project material that forms the basis of the construction process, are of high quality, significantly reducing your risk of additional costs during execution.
Read more about our collision control and constructability
Why is constructability so important?
Research shows that the most crucial key to keeping costs down is to make the implementation phase as short and delays as small as possible [Flyvbjerg, 2017]. This can be ensured through prefabrication, standardization, and modularization. However, it is also essential that the project material is well-coordinated and, therefore, constructible within the planned implementation phase.
Why is a realistic plan for the entire project important – it won't hold anyway, will it?
The planning effort results in establishing both the formal performance baseline and the legal contract scope and insurance [Gil & Pinot, 2018]. Furthermore, planning mega-projects often tend to be overly optimistic, with limited learning from other mega-projects. It thus does not allow for sufficient unforeseen events of complexity and unplanned incidents [Flyvbjerg, 2017]. To handle the unforeseen, it's important to have a plan where consequences can be quickly understood in detail. It is, therefore, crucial to use a structured data-driven approach to break down the work and estimate the duration of activities. This is done by basing the execution planning on quantities distributed at locations and involving the contractors with deep domain expertise.
4) Execution Phase
Real-time cost and time control based on earned-value management, state registration, and management reporting with online dashboards.
During the execution phase, we continuously monitor whether your project progresses according to the plan. As soon as a deviation is identified, we ensure that corrective actions are taken immediately to minimize the consequences of the variations on the project.
How is financial management implemented with Earned Value Management?
Financial management is carried out using the location-based schedule, which provides an easily understandable structure for cost allocation. Ideally based on quantities from a 3D model, but otherwise calculated manually.
Ved at ”cost-loade” den lokationsbaserede tidsplan skabes grundlaget for at beregne det planlagte cashflow helt automatisk. Når fremdriften indtastes for hver aktivitet på de enkelte lokationer, kendes den aktuelle værdi skabt på byggepladsen. Det bliver herefter let at sammenligne med den månedlig staderapportering fra entreprenørerne og de enkelte teams på byggepladsen samt underleverandører. Dermed udnyttes Earned Value metoden til at monitorere og risikovurdere fremdriften. I Tactplan Production kan dette gøres på få minutter dagligt eller ugentligt for selv meget store projekter.
Fremskridtsrapportering i realtid sikrer desuden, at projektudbetalinger afspejler det faktiske arbejde på stedet, så den samlede projektudbetaling til enhver tid svarer til den samlede optjente værdi (earned value) af det udførte arbejde.
What competencies do I need?
Med de rigtige metoder såsom lokationsbaseret planlægning i Tactplan Schedule samt staderegistrering og ledelsesrapportering i Tactplan Control kan selv meget store projekter håndteres af 1-2 personer. Dette kræver imidlertid de rette kompetencer. De enkelte step i Exigo’s projekt- og risikostyringsmetode er enkle at forstå og lære. Det svære er, at få det til at virke med fuldt integrerede data i realtid på virkelige projekter. Her anbefaler vi, at du får vores hjælp på dit første projekt – herefter kan du med den rette indsats blive selvkørende på det næste projekt.
Construction Risk Management – We are also happy to assist you.
A lot is happening in risk management and digitalization, and plenty of opportunities. Many opportunities. Therefore, it can be challenging to see which pots at the end of the digital rainbow contain gold.
At an informal meeting, we offer our expertise and insights tailored to your company's specific needs.
Write or call Kristian Ekkersgaard ke@exigo.dk, 53 55 59 05 she will find a date in the calendar for you.
If, as a developer, you don't ensure that construction management and contractors have robust planning and management tools, you can't expect them to deliver good results. I see Exigo as part of my construction management. The Exigo team has expertise in location-based planning coupled with finance and 3D (4D+5D), and they have the experience, tools, and processes to perform that work precisely. The rest of my construction management and other consultants must gain that expertise. The advice and means I get from Exigo are precisely what I need to ensure that my construction management and contractors can plan and manage the project and deliver the desired results.