Introduction
The workload required for high-quality houses presents a challenge for contractors due to the multitude of non-static variables that may delay completion or significantly increase costs. The preliminary scope statement reveals the extent of work ahead of the Silver Fiddle Construction (SFC), whose expertise suits this task. By applying risk assessment models, it is possible to minimize the potential loss of resources and time during the proposed construction.
Analysis
The project has several weaknesses that must be identified and assessed before implementation. It is insufficient to acknowledge these aspects; leaders must monitor, evaluate, and control their impact (Chenya et al., 2022). To proceed with the building in question, one must outline a path forward that satisfies both parties.
It is the manager’s responsibility to identify which risks must be included in the assessment, given threats beyond one’s control, such as changes in government regulations, market fluctuations, and similar factors (Larson & Gray, 2020). Therefore, only the influencing aspects of this work must be incorporated into the analysis to avoid bloating the project with unnecessary variables. Table 1 in the Appendix explores these risks and indicates their likelihood, impact, and the difficulty of detecting them.
First, given the short time window, the company may need to hire subcontractors, which will significantly increase costs. While this issue is readily apparent, it inevitably leads to higher costs. Such a probability is unsatisfactory to both parties, and the plan to address it must be put in place before the project begins (Larson & Gray, 2020). While accountability is critical for a prominent firm such as SFC, it is essential to remain realistic about expectations, so a five-month window may be difficult to uphold.
External factors related to the environment and landscape can also pose challenges and increase construction costs. Earthwork is particularly prone to hindrance, mainly due to weather and the possibility of encountering obstacles during the digging process (Aarthipriya et al., 2020). Therefore, such a situation must also be taken into account, especially since it is easy to predict and prevent by planning and obtaining the proper equipment. Furthermore, the high-end materials required for this house may be inaccessible in the quantity demanded.
Customer-related issues are more troublesome for the contractor, and they must be placed on the list as well. During construction, the client may become dissatisfied with the trajectory of the building’s internal or external design. This may incur a significant resource expenditure, although it is easily detectable.
Finally, technical problems may hamper progress, including challenges with the complexity and quality of the proposed structure. The family has several high-end safety technologies on the list of items to be installed in the house, which may be unavailable at the time of construction. The worst outcome is that a flaw is detected during post-production, resulting in a significant increase in both time and materials (Larson & Gray, 2020). Thus, the manager must prepare ahead for such situations and get both the customer and their team ready for potential obstacles.
Recommendations
While it is impossible to negate all the factors described in this paper, it is feasible to consider ways to compensate for them. This project can benefit significantly from optimizing its planned expenses relative to the expected workload. One can implement protocols and contingencies to soften the blow of such problems (Larson & Gray, 2020). As seen in Table 2 in the Appendix, it is not always possible to mitigate the issue, which may force the company to seek alternative solutions.
First, geological surveys may mitigate some environmental risks, though weather can still cause construction delays. Thus, the team must be able to change the equipment to more suitable versions. Subcontractors may also pose a different type of challenge due to failure to negotiate prices or timeframes. Since the family is willing to extend the completion period to reduce project costs, this option may be a feasible approach.
It is possible to minimize the chances of exceeding the maximum given amount of funds by hiring a team that may work at a slower pace but for less money. Depending on the complexity of the construction, contractors should provide probability estimates of their project’s completion rather than exact dates, since it is often necessary to account for factors outside one’s direct control (Aarthipriya et al., 2020). Customer complaints can also derail operations, but they are preventable through early negotiations and continuous monitoring.
The technology is a hurdle that is more difficult to overcome, as it may be necessary to seek a different source for a device of such high standards as the one requested by the client. Problems arising from the complexity of the required technology can be alleviated by contacting the manufacturer or selecting a more suitable alternative for the team to manage. Finally, raw materials for a house with the requested parameters may be unavailable. However, this delay can be avoided by either purchasing them all at the outset or asking the client to lower the required quality (Larson & Gray, 2020). As can be seen, each obstacle can be addressed if identified promptly.
Conclusion
In summary, the project presents five risks that must be accounted for throughout the entire construction process. The identified potential issues can be resolved or their impact minimized through innovative mitigation strategies that must be prepared in advance. Thus, it is up to the project manager to construct a feasible plan to move forward with the project at its current state and limitations. However, the client must be notified regarding the possibility of delays stemming from these unpredictabilities. Since the costs are not elastic, the deadline will have to be the key variable affected by those risks.
References
Aarthipriya, V., Chitra, G., & Poomozhi, J. S. (2020). Risk and its impacts on time and cost in construction projects. Journal of Project Management, 5(4), 245-254.
Chenya, L., Aminudin, E., Mohd, S., & Yap, L. S. (2022). Intelligent risk management in construction projects: Systematic literature review. IEEE Access, 10.
Larson, E. W., & Gray, C. F. (2020). Project management: The managerial process (8th ed.). McGraw-Hill Education.
Appendix
Table 1 – Identified risks associated with the project
Table 2 – Risk response matrix
