Risk Types & Safety
What is defined as "exposure to loss that can be encountered throughout the entire project duration including pre-construction, construction and project close-out phases"?
Construction Risk
What are "formal documents that outline adjustments or amendments that must be made to work at either the General Contractor or Subcontractor level"?
Change Orders
What are "funds that are deducted from the balance an Asset Owner owes a contractor as penalty for every day a construction project continues past the agreed-upon date of completion"?
Liquidated Damages
What type of construction delay occurs when "the delay is the fault of the contractor or third parties such as subcontractors or material suppliers for whom the contractor may be responsible under the contract"?
Inexcusable Delay
What risk management process involves making "a list of every possible issue that could arise," doing research, talking to the crew, and exploring historical data from past construction projects?
Identification
What environmental risk includes wildfires, earthquakes, hurricanes, flooding, tornadoes, and hailstorms?
Natural Disasters
What are "legally binding documents issued by government or state entities that have the power to halt some or all work on a construction project until remediation can be completed"?
Stop Work Orders
What financial risk occurs when "budget inaccuracies or estimation shortfalls can leave insufficient funds on the table for materials, subtrades, wages, and more"?
Inaccurate Project Estimation
What type of construction delay is "attributable to circumstances beyond the contractor's control" and is not caused by the contractor's fault or neglect?
Excusable Delay
What process uses a "risk assessment matrix, which charts the likelihood of each risk and the size of the impact it can have on your project"?
Assessment
What safety risk involves "a construction worker conducting work that they are not trained or certified to be conducting"?
Untrained Workers
What construction risk occurs when "plans are missing or incomplete," leading to change orders when contractors prepare to conduct work that is not properly defined?
Incomplete Drawings
What productivity risk occurs when material shortages prevent certain stages of project development from being completed, leading to major cost overruns and scheduling conflicts?
Trade Stacking
What type of delay was not anticipated when the contract was made and is due to some action or inaction for which the owner is responsible, allowing the contractor to recover extra costs and receive a time extension?
Compensable Delay
What process involves implementing "a contingency plan that will reduce the likelihood and impact of the risks you identified earlier"?
Mitigation
What environmental risk can affect how materials are used during cold weather, damage foundations during wet weather, and cause equipment malfunction during extreme heat?
Poor Weather Conditions
What construction risk occurs when contracts fail to provide provisions for certain things, such as allowable non-compensable delays for events outside the General Contractor's control?
Poorly Written Contracts
What productivity risk occurs when material shortages prevent certain stages of project development from being completed, leading to major cost overruns and scheduling conflicts?
Material Availability
What type of delay "occurs when two or more unrelated delays affect the work at the same time"?
Concurrent Delay
What risk response mechanism involves working with other stakeholders "to determine who on the project team is best suited to assume each risk"?
Transference
A construction site allows unwanted foot traffic to gain access, while an unlicensed laborer operates an excavator. What are the two specific safety risks present?
Unsecure Construction Sites and Untrained Workers
A project has missing structural engineering documents, causing change orders. Separately, the project boundaries were never clearly established, introducing uncertainty and potential legal action. What are the two construction risks, respectively?
Incomplete Drawings and Poorly Defined Project Scope
According to the lecture's New York City example, the worker's employer, permit holder, and Asset Owner are each charged $5,000 for a single unqualified worker. What is the maximum combined fine, and what financial risk does this represent?
$15,000; Regulatory Fines
An owner fails to provide construction plans on time. However, severe flooding independently prevents construction during the same period. According to the lecture, what type of delay is this, and who bears the resulting costs?
Concurrent Delay; the owner and contractor each bear their own delay costs
A contractor decides to turn down a project because its risks outweigh the potential rewards. In another project, the contractor obtains insurance, hires additional workers to reduce potential delays, and accepts a low-probability, low-impact risk without further action. What are the four risk response mechanisms demonstrated, in order?
Avoidance, Transference, Mitigation, and Acceptance.