Assignment Sample on D31VR Value and Risk Management
Introduction:
Value management is the creative and problem-solving process that use the methodical approach included with working together and achieve the best solutions for value from construction. Value management has a significant role to design and develop the project. The proper planning and right decision are needed to design and plan the project. Right decision optimized balance of benefits, risk, and costs. Value management RIBA has a significant function in construction. Value management is the business strategy tool to design the construction project with better facilities at the low cost. By the business strategy tool construction is build up with advance facilities at the low cost. So, customers are attracted to the project and the profitability of the project is developed. The aim of the study is to analysis the value and risk management.
Discussion:
Value management and RIBA stage 1:
Value management is the combination of tools and method to optimum the balance of project such as the benefit of the project and the cost and risk of the project is balanced. Value management use the RIBA to design and plan the project as all of the facilities are provided to customers as well as beneficial for the project management. Besides that, the risk should be minimized by the process of value management and low cost is provided to customer. Value management is the planning and review process to design the proper construction at the low cost and reduce the risk. Value management design the work plan to achieve the best value for facilities and best value for money (Schöfer et al., 2018).
Benefits at the RIBA Stage 1:
RIBA stage1 is used for the design the new construction. RIBA stage 1 is dependent on some factors such as site information, spatial requirements, budget restrictions, risk analysis and project outcomes. Before establishing the project, the project management should take information regarding the site as the site is appropriate to establish the project. Besides that, the project management should analysis the spatial requirement for the construction. The requirement of construction makes a budget and according to the budget, the management should determine the budget restriction. All of these factors are essential to analysis the risk and the risk management analysis the risk to overcome the challenges it helps to make a solution and provides the better outcome of construction.
RIBA is the global professional body excellence in architecture. Environmental aware and ethics are followed by RIBA. So, the construction by RIBA has advantage to develop the stronger community and better construction. There are seven stages of RIBA. At the RIBA stage 1 preparation and briefing of the construction is done. To establish the construction, the project management should analysis the site and determine the budget as well as risk is analysed. The key responsibilities of RIBA stage 1 is that project team assembly, defining the structure, and define the role and responsibilities of team (Bailey, 2019).
RIBA stage 1 has different types of benefits for the customers as well as project management. These factors are:
Explain the process to customer: The project manager is able to explain the design of the building to customer. RIBA stage 1 is used to design the proper design of building and a better outcome comes from the design so, it will be easy to explain the building design to customer as well as all of the facilities are explained by the project management.
Organize the output: The process helps to design the plan of work such as the project management can design the plan of the total construction, client, and cost management. The proper planning and cost management helps to develop the construction and a better outcome is provided by the process.
Clarity on fee structure: By the process of RIBA stage 1 fees structure is clarified to all members. The management can decide the total cost structure of the project as well as it is possible to make the proper budget for the project. Besides that, the project management can calculate the total cost price of the project and how much reduction or addition is needed to develop the construction. According to the budget, the divided the cost price to different sector. The process makes a clarity of fees structure (Sinclair, 2019).
Control the design process by expert: Generally, it is tough to design the proper building structure by architecture so, expert has a significant role to design the building as a proper way that provides the better planning of building structure as well as sustainability of environment is designed by expert.
Utilization of project strategy: The project strategy is utilized by the project management. Role and responsibilities of each team has been defined by the project management. So, the project strategy helps to develop the construction.
Information exchange: For the development of a construction RIBA stage 1 is needed to record and exchange the information. Through the site analysis all of the information is taken by the project management and record all of the information that helps to design and divide the work of plan to develop the project.
Encourage the whole process: According to the site analysis and budget, the project management form the team and distribute the work plan to each team. As well as architecture encourage to design the plan of wok and it helps to complete the construction (Akinade et al., 2018).
Agenda for the workshop:
RIBA is used to design the proper building plan as well as sustainable environment that provides the stronger community and better environment to the community. Some factors are related to design the project according to the RIBA. At the RIBA stage 1, different facilities need to be maintained such as:
Discussion about project: Before establish the construction, the management collect the data regarding the requirement of customers and according to the data the architecture design the project plan. So, analysis of client requirement is essential to design the work plan.
Sustainable development: The project management design the sustainable development of building an environment to make a stronger community. So, sustainable development is essential to provide the better outcome of project.
Budget: Budget is the major factor to develop the construction. Determination of budget helps of develop the project as well as reduce of budget or increase of budget is essential to develop the construction. Budget should be determined by the project management (Gunduz and Yahya, 2018).
Timing: The duration to complete the project should be determined by the project management that helps to divide the work between team and plan of work is developed by the project management.
Technical: All of the technical advantage should be arranged and service is provided from the management.
Safety and fire: The project management should focus on safety of worker and customers and for the emergency, fire safety should be provided by the management.
Site waste management plan: Waste management is essential to develop the construction and provide the better outcome.
Outline architectural: Structure of the building and service should be designed by the expert to provide the better service to customer.
Risk Register: The risk management should maintain the risk register to collect the data of risk that helps o analysis the data and overcome the challenges.
Planning: The expert should design the building and make plan to develop the construction and provide the better outcome.
Energy management: the project management should consult with head of energy management to provide the service of energy.
Maintenance: For the maintenance, the project management should consult with head of the maintenance, engineering manager, and head of building operations. The proper maintenance is essential to develop the construction (Keers and van Fenema, 2018).
Workshop participants:
For the development of workshop different functions are maintained by people. So, works are divided according to the role and responsibilities. From the site analysis to design the workshop, maintain all data and analysis the data is maintained by different team. So, each team has different function to develop the construction. The management of the construction company divide eh work that helps to complete the work on the time. Some participants are essential for the workshop such as
the project manager needs to develop the design of the project.
Employee are needed to complete the project.
Architecture need to design the project.
risk manager finds out the difficulties to develop the project and analysis the difficulties.
Builder helps to build up the project.
Worker helps to complete the project.
engineering manager helps to develop the and design the project.
head of the building operation control all management work.
head of the maintenance and investor need to solve the safety process.
The function of the RIBA is to design the better plan for the better building and better construction plan. As well as better community is formed by the plan of RIBA. Stronger community and the sustainable environment are formed by the plan of RIBA. RIBA is used to design the proper plan to reduce the risk and better design for construction (Holm, 2018).
Value engineering the design at RIBA stage 4:
Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering has a significant role to design and develop the construction. The right decision is essential to develop the project and right decision helps to make a balance among cost, risk, and benefit from the construction. There are mainly seven types of RIBA and RIBA is used to provide stronger community and better design of building. The aim of the study is to analysis the value engineering design at RIBA stage 4 (Park, 2017).
RIBA Stage 4:
Value engineering has a significant role to design and develop a better construction as well as provides a stronger community to the customer There are seven RIBA to design the construction and each RIBA has different function to develop the construction. RIBA stage 4 is used for technical design of the construction.
According to the RIBA stage 4, technical design is refinement of existing design. For the refinement of existing design, the drawing and documentation of tendering is required. Sub conductors are needed for the technical design of the building. The work is maintained by the tender at the RIBA stage 4. At that stage, according to the customers need the existing design is refined and modified by the expert. The documentation and drawing of the building are designed (Holden, 2019).
Application of RIBA stage 4:
The architect should submit the details for tendering. These documents are:
Drawing of the building: The details of drawing that helps to find out the changing position of the construction as result, the budget of customer and the budget of project will be varied. For the reduction of the cost the design of the building should be modified such as reduce the space size. So, according to the budget, the drawing of building is modified by expert.
Work schedule: According to the budget, the management should determine the work schedule. To reduce the cost of the construction, the management should schedule the work among all employee. According to the role and responsibility, the work is divided that helps to complete the construction within the certain time. So, the cost of construction reduced. The contractor of the building recruits more employee to complete the work within the time so, the cost value for hiring of employee is reduced. It is the benefit to the management as well as benefit for customer.
Specification: The contractor follows the documents to complete the construction. Expert design the construction to develop the better community and construction. According to the analysis of data the construction is designed. Documents are followed to develop the construction.
Maintenance: Technical design is used to control the safety for the construction as well as all data are maintained for safety in future. Advanced technology is used for the safety of worker and customers also. The risk management inspect to the environment and construction site to find any risk and collet the data. The data is analysed by risk management to overcome the risk and maintain the safety of the construction. So, advanced technology helps to reduce the cost price of construction that reduces the time to complete the project as well as reduce the work force. So, contractor should use advanced technology to develop and reduce the cost of the construction (Fletcher and Satchwell, 2019).
Proposal of value engineering elements to reduce the budget:
Value engineering has a significant role to develop the construction. RIBA is global professional member with the excellence architecture. Value engineering is essential to balance the benefit, risk, and cost. There are mainly five element of value engineering proposal such as information, functional analysis, creative phase, evaluation phase, development phase, presentation phase and implementation phase (CFI Education Inc., 2021).
Information: Information phase is the initial stage to establish a construction. Initially, data are collected about area or site to establish the construction. The project management analysis the data and decide the perfect location to establish the construction so, according to the budget the location should be decided. The position varies the cost of the construction and reduce the budget of the project.
Functional analysis: According to the function of construction the budget varies. In some of the case, disinfected water is not available so, the project management should provide disinfectant water. According to the functional analysis the budget of construction differs. So, the functional analysis has a significant role to save the cost price of the construction.
Creative phase: Creativity of worker increases the features of construction. Brainstorming helps to develop the creativity of worker and helps to develop the features of construction. Creative phase has a significant role develop the features and save the cost price of the project. Creative phase reduces the cost price to develop the project. Value engineer design the project plan and construction process as well as safety and maintenance are developed by value engineer. So, the proper design of project plan reduces the cost price of project.
Evaluation phase: After the creative phase, the management focus on the evaluation phase. At the evaluation phase, advantage and disadvantage of the construction is analysed. The management analysis the advantage and disadvantage to modify the gapping of the project (Bailey, 2019). According to advantage and disadvantage value engineer redesign the project plan and construction process so, during the evaluation phase the value engineer design the project and construction to reduce the cost of project.
Development phase: In the development phase, examine the construction and creating sketch, cost estimate, and other technical analysis. The team member gives the recommendation to develop the design and save cost price of the construction. During the development phase the role of value engineer is to sketch the estimate cost and analysis the technical difficulties. So, value engineer designs the project plan and construction to reduce the cost of project.
Presentation phase: At the presentation phase, the management present the whole project to stakeholder to present the final report. The cost, benefit, and potential challenges are described in the final report. In the presentation phase, total cost is presented and the role of value engineering is to analysis the benefit, total cost, and challenges and according to the budget modify the budget of project and change the construction process to reduce the cost price of project.
Implementation phase: At the implementation phase, the management approve the team recommendation. The requested changes are accepted by the management during the implementation of the project. The cost saving is determined based on the implementation of project. The role of value engineering makes a proper design a construction plan to modify or change the building design. As well as operation and maintenance are developed by value engineering and use the advanced technology to reduce the cost of project.
Drawing of the construction and maintenance of the project impacts on the reduce of cost price. The management should analysis the advantage and disadvantage of the construction and recommendations are included to implement the project. By the RIBA stage 4, the cost of the construction is saved. The value engineering helps to draw the plan of the project and the particular drawing helps to reduce the cost of project. The schematic design and construction process reduce the cost price of project. The value engineering design the proper plan for project and process of construction. As well as operations and safety procedure help to save the cost price of project by using the advanced technology. According to the requirement of customers, the value engineering design the project plan, construction, safety process that helps to reduce the cost price of project.
Risk Management Report:
The risks involved
There can be many risks that can be associated with the development of the project and as a project manager, it is very critical to understand each and every risk in an imperative manner. In the construction management domain, the critical risks can be quality risks, time risks, risks with the labor productivity and the procurement risks that is important to understand. And that is why, the financial performance of the projects can be in great danger if the procurement and the financial transactions with the contractors, the suppliers and the also the labors are not happening properly (Loosemore, Alkilani & Mathenge, 2020). With respect to the raw materials, it is critical to understand that the different raw materials might come from different sources which will be following the different types of supply chain management paths. And that is why, to implement the proposed project properly, the project manager should be having the right skill sets in pertinence procurement and supply chain management that is rather required as well. And as for a matter of fact, the painting services, the masonry services, and the carpentry services as well as the windows related services can be received from different suppliers and this is why, multiple transactions will be happening as well – posing different risks at different time windows (Siraj & Fayek, 2019). As a project manager, that is why, it is important to use the collect the information and use the information rightly and comminate the tasks clearly to the staffs in order to manage the goals in a proper manner. The different other kind of risks that are present in the construction process will include the abrupt climatic changes, the working conditions, the order management risks, and the inventory management done in an ineffective basis that is important to note and understand as well. Contract handling and contract related issues where the conditions and the terms are not properly mentioned or signed hurriedly – can also possess a series of threats to the project conditions that is cardinal to understand as well. A totally different kind of risks that can be happening in the construction management framework, is the risk of falls and injuries faced by the labors at the very site of the work that is important to understand as well. Health safety concerns becomes one of the highest risks, when it comes to the construction project management and that is why, it is important that project management looks after each and every area, simultaneously in order to avert the risks properly. The increased rate of injuries or illnesses of the workers will not only hamper the quality of the work but raise the ethical problems and the issues. That is why, it is a vital area of concern which is to be corrected and aligned with the work schedules. The lack of proper budgeting practices can seriously lead to the problems pertaining to the development of the financial losses during the construction related project management. This can cause and lead to a number of risks as well which is why, the project manager should also be having the good conflict management and resolution skills.
The risk assessment was carried out with respect to all the above-mentioned areas and then the results were found out.
Risk register –
| Risk | Likelihood of risk | Impact of risk | Severity | |
| 1. | Project purpose not defined well | Low | High | High |
| 2. | Project deliverables not given | Medium | High | Medium |
| 3. | Health safety issues | Medium | High | Medium |
| 4. | Contractor delays | High | Medium | High |
| 5. | Procurement delays | High | Medium | Medium |
Thus, from the risk register, it can be seen that the main problems with respect to this construction management project corresponds to the project deliverables, health safety issues, the contractor as well as the procurement delays. There have been major issues with the project deliverables as different floors are to be designed in a different manner that is raising the primary difficulty on the very first stage and is important to understand as well. Moreover, it is important to note that the lack of communication between the staffs of the construction project is very much problematic and this is why, the different conflicts are happening. These conflicts between the workers and the different personnel in the construction project are also, as for a matter of fact, becoming a hindrance to the cost effectiveness of the project (Demirkesen & Ozorhon, 2017). This is as major risks pertaining to the psychological and physical health of the labor are being posed. The principle of value engineering is based on the quality, performance and the costs improvement and using material management, effective transparent budgeting – the functionality of the project management will be improved that is important here. For the project management with respect to value management, it is important that the materials with lower costs but good quality along with experienced contractors will be chosen and these strategies will be primary to the reduction of the budget by 2 percent as well (Xie & Yang, 2021). With informed planning and analysis as well as decision making in the value engineering phases, the outcomes of the construction project will be bettered further that is important to note too. With respect to the fabrication and the electrical works, the problems and delays are building up very slowly that is indicative of the serious delays in terms of both communication and also in term of the procurement that is important to understand as well. There has been more a twice that the contractors have failed to deliver on time and there had been couple number of times on other occasions, when the wrong items were sent to the site for the construction work. And this was chiefly found be due to lack of communication. Moreover, a workshop will be done in order to give the right knowledge and the skill sets to the staffs who will be involved in the project management, pertaining to the value engineering related project management. And learning materials will be also given to them for them to perform better and add value. The stakeholders involved in the project will be the facilitator, project manager, structure engineer, Design engineer as well as engineers doing the surveys and quantitative measurements.
In order to address these above-mentioned serious conditions and risks, a number of risk control and avoidance measures can be taken and developing standard operating protocols is the first work in the list. With better work routines and task divisions on the visual board, the relationships as well as the interrelationships between the work can be seen effectively and this is how, every body in the project management team will know and be clear of their tasks and on how they need to collaborate with others. The project manager can be using the Kanban boards for better visualization and then the other technologies need to adopt as well, for better communication between the team staffs and the external stakeholders too. The group chat and team meetings can be done virtually which will not only save a great deal of time but also cause the risk levels and the impact probabilities to go further down that is critical important, given the issues being faced in this scenario (Mesároš et al., 2021). The team collaboration applications are present nowadays which are one click away from download and use and with this, the project manager can collaborate virtually without wasting any time, with every member of the team and also with the quality manager, whenever require. This will not only empower the voices of the others but also result in a stable team cohesion for a long period of time and a group decision making will be more possible without wasting any kind of time and this is very much vital as well. The needs of the staffs – phycological, work and skill related should be met in the work roles they are doing and in case of barriers, one to one counselling can be done by the project in order to solve the issue faced. Proper rest periods and team building activities can be given and done with the staffs in the team and this will keep them motivated as well, throughout the undertaking of the construction project. Moreover, the virtual team chat options are great ways of sharing details and work information and as most of the staffs in the construction industry, works with each other – there work is very related to each other which means ending of one task starts the other (Xie & Yang, 2021). And that is why, technology has such a critical role to play in the project management that will in this case, prevent the delays with the contracts, the contractors, and the procurement and at the very same time, will improve the aspects of communication as well.
Thus, the project manager needs to take up a lot of critical tasks and change management duties in order to control the risks that has been mentioned presented above. A team collaboration, motivational inspiration and technology empowered communication and perspective sharing can surely help the risks related to the project in great ways. And for contract and procurement, virtual platforms can be used as well, as digital innovation has been critical to the construction industry.
Conclusion:
From the part it is concluded that, RIBA has a significant role to develop a better construction and provide a stronger community to customer. For the new construction the management should follow the ethics and the project should be designed by the expert for better outcome. From the part, it is concluded that value engineering has a significant role to develop the construction and RIBA stage 4 is used for technical design. Elements of value engineering helps to save the cost price of construction. Thus, the project manager needs to take up a lot of critical tasks and change management duties in order to control the risks that has been mentioned presented above. A team collaboration, motivational inspiration and technology empowered communication and perspective sharing can surely help the risks related to the project in great ways. And for contract and procurement, virtual platforms can be used as well, as digital innovation has been critical to the construction industry.
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