Download Construction Extension to a Guide to the Project Management Body of Knowledge (PMBOK Guide) — 2000 PDF

TitleConstruction Extension to a Guide to the Project Management Body of Knowledge (PMBOK Guide) — 2000
Author
LanguageEnglish
File Size3.1 MB
Total Pages173
Table of Contents
                            CONTENTS
SEARCH
LIST OF FIGURES
PREFACE
SECTION I
	Chapter 1
	Chapter 2
	Chapter 3
SECTION II
	Chapter 4
	Chapter 5
	Chapter 6
	Chapter 7
	Chapter 8
	Chapter 9
	Chapter 10
	Chapter 11
	Chapter 12
SECTION III
	Chapter 13
	Chapter 14
	Chapter 15
	Chapter 16
SECTION IV
	Appendix A
	Appendix B
	Appendix C
	Appendix D
	Appendix E
SECTION V
	Glossary
	Index
                        
Document Text Contents
Page 1

Project Management Institute

Construction
Extension to

PMBOK ® Guide—2000 Edition

Provisional

Page 86

Chapter 11

Project Risk Management

The PMBOK® Guide - 2000 Edition defines Project Risk management as "the
systematic process of identifying, analyzing, and responding to project risk."
Construction risk can be managed with the processes described there with
reasonable adequacy.

The PMBOK® Guide - 2000 Edition describes six processes for project risk
management:
11.1 Risk Management Planning.
11.2 Risk Identification.
11.3 Qualitative Risk Analysis.
11.4 Quantitative Risk Analysis.
11.5 Risk Response Planning.
11.6 Risk Monitoring and Control.

These processes can be executed beginning with the bidding phase or
even earlier of a construction project, to help assess the contingency and
management reserve that will be included in the bid total price.

11.1 RISK MANAGEMENT PLANNING

.1

.2

.3

.4

.5

.6

Project charter
Organization’s risk
management policies
Defined roles and
responsibilities
Stakeholder risk
tolerances
Template for the
organization’s risk
management plan
Work breakdown
structure (WBS)

.1 Planning meetings .1 Risk management plan

Inputs Tools & Techniques Outputs

.7 Contract provisions

©2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 75

Page 87

11.1.1 Inputs to Risk Management Planning
The inputs to risk management planning are discussed in the section 11.1.1
of the PMBOK® Guide - 2000 Edition. This extension will discuss only the
aspects of the inputs that are specific to construction projects.

.1 Project charter. Two additional sources may apply to construction: during
the bidding phase, the charter can be a Request For Proposal, Invitation for
Bid or a similar document that the bidding team will use to guide risk
analysis. When contract is signed, it should be considered, together with
the proposal and bidding documentation, as the project charter.

.2 Organization's risk management policies. According to the PMBOK® Guide
- 2000 Edition "Some organizations may have predefined approaches to risk
analysis and response that have to be tailored to a particular project." This
is to be strictly considered when operating under a Consortium.

.3 Defined roles and responsibilities. See Section 11.1.1.3 of the PMBOK®

Guide - 2000 Edition.
.4 Stakeholder risk tolerances. See Section 11.1.1.4 of the PMBOK® Guide

- 2000 Edition.
.5 Template for the organization's risk management plan. The PMBOK®

Guide - 2000 Edition says "Some organizations have developed templates
(or a pro-forma standard) for use by the project team." When the project
is performed by a consortium or joint venture, templates from all compa-
nies can be considered and a particular template for the project can be
developed, or the project team can decide to use one or none of them.

.6 Work Breakdown Structure (WBS). See Section 11.1.1.6 of the PMBOK®

Guide - 2000 Edition.
.7 Contract provisions. The contract may contain clauses or other provisions

that affect the contractor's project liability.

11.1.2 Tools and Techniques for Risk Management Planning
.1 Planning meetings. See Section 11.1.2 of the PMBOK® Guide - 2000 Edi-

tion.

11.1.3 Outputs from Risk Management Planning
The inputs to risk management planning are discussed in the section 11.1.3
of the PMBOK® Guide - 2000 Edition. This extension will discuss only the
aspects of the inputs that are specific to construction projects.

.1 Risk management plan. The PMBOK® Guide - 2000 Edition describes the
risk management plan and the topics it should include. In construction proj-
ects, some specific issues should be addressed in those topics. This exten-
sion approaches those issues, taking the PMBOK® Guide - 2000 Edition as
the reference.
■ Methodology. The methodology addresses topics such as which phases

to perform. Individual risk management processes and how its outputs
will be linked to the overall project risk management. For example, in
an EPCM (Engineering, Procurement, Construction & Management)
project the engineering and construction phases may have individual
risk management processes while procurement and management phases
can be treated together. It also addresses how safety and environmental

©2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA

Chapter 11—Project Risk Management

76

Page 172

outputs from, 32
tools and techniques for, 32

Scope definition
importance of, 28
inputs to, 29
outputs from, 29
purpose of, 28
tools and techniques for, 29

Scope management
for construction projects, 25–32

Scope planning
alternatives identification in, 28
definition of, 27
inputs to, 27
need for, 27
outputs from, 28
product analysis in, 27
tools and techniques for, 27

Scope statement, 46, 51, 86, 108–109

Scope updates
in environmental planning, 112

Scope verification
definition of, 30
inputs to, 30
outputs from, 31
phases of, 30
tools and techniques for, 30–31

Sellers (bidders)
qualified

lists of, 93
synonyms for, 85

Single sourcing
cases allowing, 94

Site
environmental characteristics of, 109

Socio-economic influences
on construction projects, 14

Solicitation, 92–93
inputs to, 93
tools and techniques for, 93

Solicitation planning, 88–92
inputs to, 89
outputs from, 91–92
project finance, 89
regulations and, 89
tools and techniques for, 89

Source selection, 93–94
tools and techniques for, 94

Staff acquisition, 55, 56, 58–60
inputs to, 59
tools and techniques for, 59–60

Staff assignments
negotiations for, 59–60

Staffing management plan, 57–58

Staffing pool description, 59

Stakeholders, 12
analysis of, 110–111

for communications planning, 67
feedback from, 115

Standard forms, 89

Standards and regulations, 51

Statement of requirements (SOR), 92

Statement of work (SOW), 92

Statistical sampling, 54

Strategic planning, 87

Subcontracting, 60

Subcontractor
selection of, 102

Supporting detail, 58

T
Task fronts

interference between, 78

Tax benefits, 119

Team-building activities, 61

Team closeout, 62–64
inputs to, 63
outputs from, 64
tools and techniques for, 63

Team development, 60–62
inputs to, 61
tools and techniques for, 61–62

Templates, 57

Time and materials contracts, 91

Time extension claims, 126

Time management, 33–43
activity definition in, 33–35

Training
for team members, 62

Trend analysis, 54

Turn-key contracts, 90

Turnkey, 87, 92

U
Unit rates contracts, 90–91

V
Value engineering, 52

for project plan development, 21

W
Weights

absolute, 40
relative, 40

Work
affected by claimed activity, 127
claimed extra, 126, 128

Work breakdown structure(s) (WBS), 19, 33, 34

Index

©2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 161

Page 173

Work package definition, 88

Work results, 68, 69
environmental impacts of, 115

Workforce
local, 59
union trades, 60

©2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA

Index

162

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