No matter the size of your capital program, risks lurk around every corner. They will appear at the worst time and potentially derail your projects. When your projects go off track, you are robbed of time and money, preventing you from finishing on schedule and on budget.
What if you could plan for these inevitable risks and have a process to effectively manage them? With a Construction Project Management Information System (PMIS), you can empower your team to plan and react to any risk that comes your way.
First, you need to be aware of where the risks originate. Capital program risks are categorized as:
- Financial: Material cost, inflation, estimation errors, unmanaged cash flow
- Environmental: Weather, access to the site, natural disasters, pollution
- Socioeconomic: Changes in laws and regulations, increases in taxes
- Construction: Design changes, labor productivity, disputes
Once the risk is identified, engage your team members to map a risk management plan. When managed on a single platform, your team can collaborate during every step of the process, including risk assessment, risk mitigation, risk status and risk resolution. And, with every new risk you encounter, make sure to incorporate it into the overall project plan for complete visibility into the program’s status.
This complete transparency will show any ripple effect into other key milestones. Being able to predict the influence on a program reduces the chance you will be ambushed by budget changes or schedule delays later in the project.
Risk can occur across all stages of the life cycle, including planning, design, procurement, and construction. Sometimes, even with the best plan in place, risk can sneak up on you. If you are tracking all your project items in a single platform, you can detect the risk early before it poses a threat.
Organizations must define clear risk strategies and align them with their processes. Only then will your team have clear and defined guidelines to follow. Your team’s communication is key to the success of your program. You must create an environment where your team can collaborate, feel empowered and contribute to the risk abatement process.
The right technology platform will increase transparency, increase productivity and decrease risk.