Question

How does project construction risk differ from project management

risk? Explain relevant strategies for these two types of risk with examples

Answer 1

Project construction risk refers to risks during construction while project management risk relates to broader risks faced by project managers. Strategies for construction risk include developing a risk management plan and regular monitoring, while strategies for project management risk involve setting clear objectives and building a skilled team.

Step-by-step explanation:

Project construction risk refers to the potential risks and uncertainties that may arise during the construction phase of a project. These risks are typically associated with the physical construction activities, such as delays, cost overruns, and safety concerns. On the other hand, project management risk relates to the broader risks that project managers face in leading and coordinating a project, including risks associated with budgeting, scheduling, and stakeholder management.

Relevant strategies for project construction risk include:

1. Developing a comprehensive risk management plan: This involves identifying potential risks, assessing their likelihood and impact, and implementing measures to mitigate or manage them. For example, a construction company may conduct regular inspections to identify safety hazards and implement safety protocols to minimize the risk of accidents.
2. Regular monitoring and communication: Keeping a close eye on the construction progress, schedule, and budget can help identify and address potential risks early on. Regular communication with stakeholders, such as contractors, suppliers, and clients, is essential to ensure effective coordination and collaboration.

Strategies for project management risk include:

1. Setting clear objectives and expectations: Establishing clear project goals and expectations helps align the team and reduces the risk of misunderstandings and unnecessary delays. For example, a project manager may clearly communicate the desired quality standards to the construction team to minimize the risk of rework.
2. Building a skilled and motivated team: Assigning competent and motivated team members to the project significantly reduces the risk of errors, delays, and conflicts. Regular training and development programs can help enhance the team's skills and knowledge.