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Risk Management
MBP Services
MBP provides risk management services before project inception and throughout the construction process. We believe that construction projects do not exist in a vacuum. Rather, their complexities are greatly influenced by external factors of the project environment, which in turn affects the magnitude of risk for stakeholders. We also believe that acknowledging risk as an integral part of project management enhances the success of a construction project. MBP's risk management team, while recognizing the changing intricacies of construction processes, applies proven risk management methods and procedures throughout project implementation.
Why Risk Management?
The objectives of construction management, to implement a quality project within the estimated budget and time, are subject to some degree of risk arising from the uncertainties that are inherent in construction. A realistic project manager uses experience and foresight to identify those risks, propose actions to eliminate them before they occur, or make provisions to mitigate their impact should they occur.
Traditional and Project Risk Management
Traditional construction risk management involves taking steps to ensure proper allocation of risks to the respective parties via the contract documents, and having appropriate construction insurance in place. It also involves implementing a safety plan on the jobsite, adopting formal or informal programs for partnering, acting in ways to avoid claims, and making provision for a claims resolution process.
Project risk management on the other hand, starts where the scope of traditional risk management ends. While traditional risk management covers the insurable risks, project risk management deals with both insurable and uninsurable risks and proactively finds ways to treat any known and unknown risk or threats to the project which would have an impact on the project schedule, cost, or overall program objectives.
MBP's Risk Management Process
While several variations to the risk management model exist in the industry, there are essentially five steps in implementing the risk management program MBP recommends to its clients, as shown in the following chart.
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