Value And Risk Report And Risk Essay Assignment Sample

1.0 Value Management at RIBA Stage 1

1.1 Introduction

The assignment is based on the design stage of the Quarry House Conference and Community Center. Therefore, value management and design are necessary using the RIBA stage. In this assignment, the benefits of this assignment at the RIBA stage 1 will be discussed that have been proposed by the consultancy. A proposed agenda has also been developed in this proposal for three days. The aim and objective of this research proposal are discussed in this proposal. Also, the participants who will participate in the workshop will be introduced in this research proposal. This research will be analyzed with the help of the VRM principal and to provide the best result for investment.

1.2 Research aim

The aim of this research proposal is to provide the importance of VRM analysis and to analyze the importance of this research by implementing VM.

1.3 Research objective

The objectives of this research proposal by considering VRM analysis are as follows:

To identify the most effective method for the construction.
To identify the benefits of VM in this construction project.
To reduce the cost of construction by implementing VM.
To identify the affected elements which save the budget and their impact on the construction.

1.4 Research methodology

This project will be done with the help of RIBA PoW. It will be done determining the strategy, design of the project, and the construction procedure of the project.

1.5 Benefits of VM at RIBA stage 1

Value management is a process that is done at the early stage of a project. It basically consists of multi-steps to make the success of the construction procedure through functional analysis.

Value management (VM) is very important for any construction project. For the construction of the Quarry House Conference and Community, the principal and methodology of VM are not only important but also improved team working is needed. The application of VM in the construction project is depended on the value of the project and the risks associated with this project. At RIBA stage 1, the process of VM will be discussed depending on the risks associated with the construction project of Quarry House Conference and Community (Tiwari, et al. 2018). For a critical project, VM will be applied along the life cycle of the project as per the RIBA plan of work 2007. By implementing VM in the case of this project, it will be helpful for both the clients and the users. It will help to provide a systematic way to make decisions with its lifecycle regarding its value and function.

Figure 1: Benefits of VM in Construction

(Source: https://www.researchgate.net/figure/Application-of-VM-and-VE-in-the-building-procurement-process_fig1_242349439)

At RIBA stage 1 there are a lot of benefits of VM by implementing this process for this construction project. The benefits are described as follows:

It helps to identify the tool that is used to make a balance between the needs and expectations of the clients.

VM provides a clear definition of value to the clients by giving an appropriate basis to make a decision during the construction of this project.

By implementing VM in this construction project, the most effective way that will deliver the benefits of this project and the clients will be satisfied with the needs.

A functional basis will be established to make the development of the design through a mutual learning process, improved communication at the RIBA stage 1.

It has a benefit for providing a clear brief of the project to the clients that help to meet up the expectation and priorities of the clients based on the function and value.

Due to the implementation of VM in this construction project, communication between all the stakeholders connected with this project can be developed. For that reason, every stakeholder can understand all the requirements and expectations of the clients.

One of the main benefits of VM in the building construction project is to make a clear definition of value to the client and end-user, therefore it will be easy to make decisions for the construction project throughout the construction time.

VM is very important for this project because it will help to provide the ‘best value’ option.

Providing a better technical solution to the construction project VM is necessary as it provides enhanced performance and good quality of work with the help of innovative solutions to save the budget of the total cost.

Besides that, the VM will be implemented in this construction procedure to provide value for money by taking benefits into non-monetary and monetary.

In spite of having the above benefits, there are also some benefits of the VM process in the construction project that will help to develop the construction. It is a very low-cost process with a high benefit. In this construction project of Quarry House Conference and Community, the client is considered to decrease the cost value minimum of 2% of the total cost and that is why VM is very important to make successful the project by considering the value of cost. By integrating VM in the construction process the life cycle and cost of this project may become negligible with maintaining the quality of the construction process. It is very profitable for any construction to reduce the cost without hampering the quality of the construction process (Ellis, et al. 2021). Moreover, it can be said that integrating the VM in this construction project will be very helpful for the stakeholders to make a mutual understanding and also for the client to make the construction within relevant parameters. The benefits of VM can be adopted if it will be adopted at the right time and if it will be maintained through the life cycle of this project.

1.6 Proposed agenda for workshop study for three days

Three days of agenda will be proposed for the workshop study of this construction process.

Day one VM workshop study.

Time	Activities	Required outcomes
9.00	The arrival of all the participants	Vehicles are kept at the parking.
9.30-10.00	Greetings and introduction.	The names and roles of the participants will be enrolled.
10.00-10.30	Discussion and drinking of tea or coffee	Participants will be understood about their roles and characteristics of the site.
10.40-11.20	Giving introduction of the construction process and the three days agenda.	An overview of the project and the future outcomes will be provided.
11.30-13.00	Survey of the project.	Participants will visit the site and collect information.
13.15-14.00	Lunch break.	Interaction among the participants.
14.00-15.00	An interactive session.	A discussion will be held on the survey of the site.
15.00-15.30	Possible outcomes of construction as an individual group.	The possibility of profit and future investment will be discussed.
15.30-16.15	Presentation of an individual group.	All the groups will provide their evaluation technique and consequently the result.
16.20-17.00	Question-answer session.	Solutions will be discussed.
17.00	Closure of first-day workshop.	Participants will give permission to take leave.

Time	Activities	Required outcome
9.00-9.40	Tea and coffee	Preparation for that day.
9.40-10.10	Provide agenda for the second day.	Activities of that day will be decided.
10.10-11.00	Gather the findings of day 1.	Discussion about the needs of stakeholders.
11.00-11.50	A clear idea about the objective of the project.	For the construction process, innovative ideas will be developed.
11.55-13.00	Identifying the issues.	Discussion about the issues.
13.00-13.30	Lunchtime.	Discussion about the project.
13.30-14.45	Group presentation individually.	Each group will provide its proposed findings.
14.45-16.30	Question-answer session.	Solutions will be provided to the question developed.
16.30	Closure of 2nd day.	Participants can leave the site.

Time	Activities	Required outcomes
9.00-9.30	Tea, coffee, and discussion	Get ready for that day.
9.30-10.10	Introduction of that day agenda	Activities of that day will be decided.
10.10-11.10	Discussion about the 2nd-day outcome and recommendation.	Outcomes and opinions of stakeholders will be provided.
11.10-13.00	Determine the design to minimize the value of construction.	Sustainable local materials will be provided instead of high-cost materials.
13.00-13.30	Lunchtime.	Interaction among the participants.
13.30-15.30	Add value if changes will be done.	The most effective way will be decided to add value.
15.30-16.30	Question-answer session.	A set of questions and answers will be provided.
16.30-17.00	Summary of the achievements.	An appropriate conclusion and recommendation will be developed.
17.00	End of the workshop study.	Participants will allow leave.

1.7 Identify the participants

The participants who will attend the workshop study for an effective study are the project manager, the value manager, service engineer, representative of the local community, and representative of the local authority council.

2.0 Value engineering the design at RIBA Stage 4

2.1 Introduction

At the RIBA stage 4, a value engineering proposal has been designed to save a minimum of 2% of the total estimated budget for constructing the Quarry House Conference and Community. The aim and objective of this proposal are also described for what the proposal is done. In the discussion chapter, the technical designing process is described for making the construction with a minimum cost of 2% of the total cost.

2.2 Research aim

One of the main aims of this VE proposal is to design the construction of the Quarry House Conference and Community in such a way that will help to reduce the construction cost by 2% of the total cost.

2.3 Research objective

To identify the importance of VE in the design of the construction.
To identify the design process of the construction at RIBA stage 4.
To reduce the construction cost minimum by 2% of the total cost.

2.4 Discussion

The design method of the construction will be discussed in this part of a proposal that is at the RIBA stage 4. In this stage, the different elements will be discussed that affect the construction process and will impact the construction process. The elements connected with the construction procedure are discussed below that are a very important part of this proposal.

Figure 2: Stages of VE

(Source: https://www.researchgate.net/figure/The-stages-of-value-engineering_fig1_261439443)

Cost plan

An updated plan of the cost will be developed in this stage instead of the previously designed cost. Detailed information on material costs will be provided to the clients. Instead of high quality of materials, sustainable quality of local materials will be decided to provide for the construction. A proper cost plan will be done where a detailed analysis of materials cost, a prepared bill of quantities required will be given for completing the construction by integrating VE in the designing procedure. The unit cost of every item and a final cost plan will help the clients to make the decision of implementing VE (Adedotun and Pye, 2020). Not only the cost plan of materials but also the rules and regulations for the construction and the cost required for monitoring the whole construction process will be provided in the proposed cost plan.

Fire safety

With the cost plan, the technical design will be given at the RIBA stage 4 including the final specifications. It is very important to give attention to fire safety during the construction of the Quarry House Conference and Community. An active fire safety plan will be developed in this stage. There must be facilities for fire frightening in the constructed building. With a final specification, a fire safety technical design will be implemented in VE that is required for a building (Jayawardhana, et al. 2019). The client will be provided with an improved technical design of the firefighting process and for its maintenance. The contractors will be proposed to reduce the costs including any alternative options for implementing the fire safety procedure to the construction.

Inclusive design

An inclusive design will be developed to reduce the construction cost by 2% of the total cost of the construction process. At the RIBA stage 4, an inclusive design will be designed with final specifications that will help to construct an inclusive construction. A coordinated design team and specialists will be engaged in the construction procedure and to develop an inclusive design of the building. Addressing the building rules and regulations, the client will be provided such an exclusive type of design so that it will reduce the cost and together with the attractive design. In the designing process, some changes will be done to the existing design.

Healthy and safety

The health and safety factors of the construction will be changed in this proposed study for designing the construction. The health and safety factors related to the construction of the existing design will be changed little if required that will reduce the total construction cost. Healthy and safe techniques are required for the construction so that the construction will not be hampered (Spellacy, et al. 2020). An alternative designing process for maintaining safety in the construction site can reduce the excessive cost approached in the previous construction design. It will be proposed to the clients if any person will get injured at the construction site then an emergency section will be there to maintain safety.

Sustainability

Marinating the sustainability of the construction is the main priority of this proposal. Since the construction is at the designing stage, so a technical design will be proposed to the clients, and by undertaking the design the cost can be reduced. The information that has already been designed for the manufacturing and construction, will be further designed. By maintaining the sustainability of the construction the design will be implemented in such an effective way that will help to reduce the total costs (Smith, et al. 2021). For that, a final specification will be provided to the clients to achieve a sustainable building at a low cost. It will be proposed to the clients depending on the recruitment of the employees the construction can be reduced. By identifying the project risks properly the construction cost can also be reduced.

Plan for use

An effective plan will be developed in this stage of VE that is also responsible for reducing the cost of construction. Record of everyday work will be kept after the completion of that day work, it will help to get in touch about the construction. An appropriate plan for use activities can help to give information about the update of the construction procedure. A useful plan will be provided to the client at this stage regarding the performance risks, sustainability outcomes, and the possible outcomes of the design process (Wong, et al. 2021). It will be proposed to maintain the new plan of action that will help to reduce the total costs of the construction process. A financial engagement team will be proposed to implement during the construction who will maintain the budget and provide the details of the estimated costs as per the requirement.

Risk

3.0 Risk Management Report

3.1 Introduction

It is one of the most important factors of a construction process to identify the risks related to the construction and the reasons for occurring the risks within this project. This report is based on the risk management process and risk register that has an adverse effect on the construction. With the help of VE and VM, these are examined and designed. The risks can be developed due to the project costs, quality, and time designed for the construction. In this risk management report, there are some risks that are assessed. By implementing the risk register in this report, the risks are managed effectively which is expected to reduce the costs as proposed in the above VE proposal.

3.2 Integration of risk management

Integrated risk management (IRM) in construction can be defined as a set of processes that develop the risk management system with the help of different technologies. IRM helps to improve the decision taken during the construction through performance in an integrated view to manage the risks. In construction management, risk management is done in a systematic way by identifying, analyzing, and responding to the risk hazards. In the case of the construction process, qualitative methods are basically used.

Figure 3: Integration of risk management

(Source: https://theconstructor.org/construction/risk-management-construction-projects/24873/)

Due to the uncertainty of functions in the construction site, a negative effect of the risks is developed on the construction. The time schedule for completing the work and the estimated costs are badly affected by the risks. During the construction period, there must be a risk management framework that can be used to integrate all the risk management processes with strategies, planning, management, maintaining the policies, etc (Bajjou and Chafi, 2018). By identifying the risks and the financial variables the risk management framework is developed. Risk management is implemented in the construction site through different stages. With the help of the RIBA stages, risk management can be implemented in the construction period. PoW is the most commonly used construction project document that is used in the construction process. The stages of the RIBA Pow are described below.

In the RIBA stage 1, justification of the construction is described. Development of the project brief and some necessary feasibility studies are executed in this stage. The details about the factors related to site information, requirements of materials, restriction of budget, and the risk analysis of the construction process are involved with this stage 1.

The RIBA PoW stage 2 is used to identify the most effective procurement route to minimize the problem happening at the construction site. In this stage, the initial concept of designing the construction is produced with a brief of the project (Chung, et al. 2021). The working team is also able to develop new strategies related to the project including the sustainability and security of the construction.

The concept of designing the structure is developed in the RIBA PoW stage 3. An initial concept of designing the construction and the architectural design is developed and the design related to the structure of the construction and building services are developed and checked in this stage.

In the RIBA PoW stage 4, the design process of the construction is further developed. It involves refining the design of architecture, building services, and design of the structure in detail. The technical design of the construction can be developed easily using this stage.

The RIBA PoW stage 5 provides a physical report on the construction process. It is adopted when the main process of design starts. In this stage, it is easy to get details about the site from the designer.

The risk associated with a construction project is connected with the time, cost, and quality of the construction process (Othman, et al. 2020). By integrating risk management in the construction site it can be developed if there is any adverse effect or damage in the construction.

3.3 Risk register

A risk register can be defined as a document that is used in the construction project. It helps to identify the risks that may be developed during the construction and to keep records of the risks that can affect the construction. In this risk register system the reasons for occurring the risks, their impact, and the mitigation process have been designed to minimize the effect of risks (Ahmed, et al. 2019). By integrating RIBA PoW stage 1, proper planning and preparation have been developed where the risks have been identified that can develop at the construction stage. In this project, there are basically five risks that are identified during this report. The five risks are described below that can arise in the construction site.

Pollution of the environment and potential damage may happen at the construction time.

There may arise a risk regarding the closure of the construction process and the maintenance of the materials used for the construction.

During the construction activities, there may be a risk of the provision in several diversions when a lot of workers will work together on the site.

A risk can be developed in the construction site if the construction site is surrounded by roads. There may be several Tower Cranes that also cause risk during the construction procedure.

The ecological environment may be affected due to the construction procedure. The agricultural environment and if there is any monument nearby the construction then a risk may be developed for the construction of the building.

Not only is the above risks but also there a risk of theft of the construction materials from the construction site (Ng, et al. 2021). On the construction site, if there is a lack of proper supervision then it happens sometimes that is a big problem to the clients.

From the above risk register, the risks are successfully identified and these are managed by the client during the construction period that will also help to construct the construction in an effective way. The construction process may follow the procurement route. With the risks, it is the responsibility to manage the risks through risk assessment.

Figure 4: Risk assessment and management process

(Source: https://iiardpub.org/get/IJEMT/VOL.%203%20NO.%205%202017/Value%20Engineering%20&%20Value.pdf)

3.4 Risk mitigation process

With the VRM analysis in the construction project, the risks can be mitigated in different ways. The risk mitigation processes are described below.

Plan and priorities: Before starting the construction process plans are evaluated correctly with a list of prioritized activities. It helps to mitigate the risks faced during the construction in the various stages of completion. By engaging a risk management team who are experienced in the risk in construction the plans will be done effectively to mitigate the risks.

Wok with the right people: Risks can be mitigated in the construction site by engaging the right people in work. The people who are experts in the construction field can mitigate the issues with their experiences.

Have options: There must be an option to mitigate the issues developed if it is needed to change the plan of action that has been already created. When there is a problem with the previous plan then it will be easy to replace the plan as per decided options.

Test and review: Before starting the construction procedure, all the tests are done very effectively. For a better construction project test and review is necessary to save the time of construction and to rectify the issues that may be developed later.

Stick to the law: During the construction procedure, by getting stick with the building rules and regulations the risks can be mitigated. The risks regarding health and safety during the construction period must be mitigated if laws and regulations are maintained well.

Ask for guarantees and assurances: By providing guarantees and assurances to the people who are connected with the construction process the risk can be reduced.

Using the correct material: The risks of the construction materials can be reduced by using the correct materials in the construction. Sometimes it has been seen that the construction is not built as per the materials used. So, the use of correct materials can mitigate this type of issue depending on the structure of the construction.

Besides that, the risks can be mitigated by using effective tools to analyze the project. The services of PE and PM with proper planning and design can mitigate the risks of maintaining the project cost.

3.5 Conclusion

From this risk management report, it has been seen that the value for money is very important for developing a construction project. During the construction procedure, different kinds of risks can be developed. By integrating the risk management process in the construction the risk can be mitigated. The risk management process can be developed using the stages of RIBA PoW before starting the construction. In this report, a risk register has been provided to the client for managing the risks through risk assessment. There are some risk mitigation processes described above that can control the risks happening in the construction site.

4.0 Risk Management Essay

4.1 Introduction

This risk management essay consists of the contribution of the UK construction industry to the change of climate emergency. The details about the reason for climate change in the UK due to the construction industry have been developed in this essay. An argument has also been developed on how the UK construction industry help to manage the risks for controlling climate change in the upcoming years. For managing the risks the construction industry must have to implement the risk management strategy.

4.2 Discussion

The UK construction industry has contributed to the climate emergency in the UK. As per the UK Green Building Council, approximately 10% of the total carbon dioxide of the country is directly connected with the construction industry. By taking the whole of the UK construction industry the rate of carbon dioxide emission is increased to 45%. The UK government has passed a climate emergency declaration that helps to achieve net-zero carbon in the year 2050. Now the moment has come to decrease the carbon emission in the environment. As per the council of the UK, the whole construction industry must have to implement such a way to reduce the carbon emission in the environment by maintaining climate emergency. The construction industry can change the climate of the UK in various ways. From the built construction most of the carbon emission happens (Diaz and Moore, 2017). Half of this carbon emission is caused by the energy used in the constructed buildings and from the infrastructure.

Figure 5: Impact on construction industry on climate change

(Source: https://www.researchgate.net/figure/Climate-change-impacts-of-the-building-construction-phase-across-the-three-case-studies_fig7_311806961)

There is no option to reduce the carbon emission in case of the existing construction. It is the responsibility to address the energy that is “in use” condition.

The UK construction industry contributes to damage to the environment both globally and locally. In various ways, the construction industry affects the environment as well as the climate.

Unlimited use of fuel: The UK construction industry has an adverse effect on climate change due to unlimited use of fuel during the construction period. In every construction project, it is caused due by the burning of diesel and gas as unlimited. For that reason, a huge amount of carbon dioxide emission is caused in the environment. Not only carbon dioxide but also methane has developed that cause’s air pollution. During the construction period, many waste products have also been there that are responsible for the change of climate, and with that global warming is also related.

Wastes produced in the construction: In the UK construction industry, it has been seen that there were more than 534 million tons of wasted construction materials in 2014. Sometimes, to demolish the wasted materials, they are disposed of to fill the landfills. It has a negative effect on both situations.

Emission of greenhouse gases: One of the major reasons for climate change due to the construction industry is the emission of greenhouse gases from construction. When the construction materials are exposed to the environment then carbon dioxide is produced due to the reaction with the materials (Hsiang, et al. 2017). There are also many constructed buildings from where carbon dioxide is emerged due to the reaction with air and it is directly involved with climate change.

For the above reasons the climate of the UK has been changed that has a negative effect on the environment. Besides, the above reasons there are also some reasons that are responsible for the climate change caused by the construction industry.

The interaction between the natural environment and the construction environment has also a significant impact on the climate change of the UK. This combined situation affects the environment very badly and for that, the absorbent levels of rainfall are reduced of the soil.

Risk management is a very important part of construction to mitigate the issues developed in the construction industry and to mitigate the climate changes caused due to the construction procedure. The risk mitigation process involves one or more options that will help to reduce climate change. A new risk management treatment must be implemented to assess the risk. In case of any residual risks, effective treatment must be taken from the UK construction industry.

After identifying the risks risk management process is developed to deal with the risks. Different strategies can be adopted to maintain the climate and environment. With the building rules and regulations, the construction process is designed. A framework is designed to manage the climate risks in the construction site (Mi, et al. 2019). Action plans are developed to ensure that the risks happening during the construction period are managed properly. As an example, climate change occurs from the constructed bridges where the material degradation happens from high heat and extreme weather, so a reaction of the air with the degraded materials causes that can change the climate. Not only maintaining the rules and regulations but also with a proper development technology that can mitigate the risks. Besides that, by increasing awareness among people and improving a positive incentive for the lower emission of carbon dioxide in the environment. With the help of a risk management system, a price can be added to the emission of greenhouse gases that can mitigate the risks to the construction industry.

The risks can be managed by reducing greenhouse gases emissions. There are basically four steps that the UK construction industry has to follow that can manage the risks in the upcoming years.

Identify the risks: First of all, it is very important to identify the risks faced by the UK construction industry. The construction industries can develop their project under consideration. After all, it is not possible to mitigate the issues without properly identifying and documenting the risks (Othman and Abdelwahab, 2018). There are many risks developed by the construction regarding the reaction of the air with the constructed materials that may cause a flood or increase the tendency of heavy rainfall. The construction industry must have to collect data regarding climate change so that they can maintain their proposed construction procedure.

Mitigating the risks: The risk mitigation process must be followed by the UK construction industry to mitigate the risks. A cyclical process of identifying and assessing the risks must be implemented in the construction period. It helps to determine the acceptability of the risks that are identified as residual risks. A risk management treatment can be adopted if the residual risks are not possible to tolerate and if those have a negative effect on the climate as well as the environment. Risk management is chosen in such a way that it will be effective for the climate and also for the construction process. The regulatory rules and regulations provided by the government must be followed by the construction industry. There are many options that are used to deal with the risks. The activities that are related to the increment of the risks in the construction period are lead to removing the risks (Fan and Stevenson, 2018). Besides, the use of the latest technology in the construction project may mitigate the issues developed during the construction period of any project. It is necessary to keep an open mind so that they can mitigate the issues in an effective way. From starting of the construction to the end of the project it must be under control by the construction industry.

Implementing a framework: During the construction work, a framework must be implemented in the construction industry. In the risk management framework, there are already many mitigating issues connected with the operational, financial, and strategic risks. With these risks, a mitigation strategy for climate change is also there in the risk management framework. It is the responsibility of the construction industry to adopt the framework with a clear motive and to establish a committee that will look after the risks regarding climate change. They will provide sufficient resources to make the development of the construction project with the help of a risk-ranking methodology that helps to identify the risks. The risks committee has to adopt many action plans to mitigate the risks and to monitor the result of the action plan taken for the construction project.

Communicate the findings: It has been recommended by the government to develop an approach to communicate with potential clients. Adopting a framework of risks happens in the construction industry to obstruct the changes in climate. It will help to identify the risks and analyze the mitigation process of the risks.

4.3 Conclusion

In the above risk management essay, it has been shown that there are many reasons for which the climate of the UK has been changed for a lot of construction industries present there. The construction industry has a contribution to the bad effect of constructed materials that are described above. The environment will be affected very badly if this continues and for that, it will affect the overall environment and pollution will happen. There also have been provided with some risk management strategies that the construction industries have to follow to mitigate the issues developed in the construction sectors. It may be concluded from the above risk management essay that if the management system is controlled in a systematic way then climate change can be controlled caused due to the construction process in the coming years.

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