Introduction
Construction firms have many reasons to rejoice if they implement risk management in their construction projects. They can help in the global programme on climate change, promote health for their workers and prevent accidents in construction sites. However, there is strong evidence that this is not what is happening in the UK construction industry.
In Britain alone, the construction industry has a poor record of promoting health and safety. Practices of issuing bonuses can be dangerous to workers because they tend ‘to cut corners’. Workers in constructions are also at greater risk than the people in the community of sicknesses like cancer. (Pritchard 172)
The United Kingdom has experienced a long period of industrialization. Sites have already been damaged, and there are unstable grounds and the presence of hazardous substances, creating poor working conditions on the present industrial workers. (Institution of Civil Engineers 4)
The UK construction industry is one of the most risk-related sectors. Risks are associated with environmental problems as a result of the generated wastes in construction sites. The health and safety of the workers are not properly addressed to. Reports of accidents are among the highest with fatalities ranked the third of all industries. (Pritchard 172)
A study on the attitudes of workers in construction sites by Dedobbeleer and German, revealed a remarkable relation between attitudes of employees to safety to attitudes and behaviours of management; this is with respect to on-site or off-site. The researchers concluded that management have a vital role to play in promoting the health of workers in construction sites. The study also found that workers in the construction industry in Britain were perceived unhealthy by the participants who were students. (Pritchard 173)
Construction activities produce construction and demolition wastes (C&DW), pollutants from the air, solid waste, and water, and other hazardous material. The construction industry is a major generator of waste, and accounts for 50% of the waste deposited in a typical landfill. (Institution of Civil Engineers 1) The Environmental Agency Online reports that the UK produces waste to around 330 million tonnes annually.
Most construction firms follow the ‘find and eradicate’ strategy for risk management; meaning they do not have definite method of risk management. Construction firms first identify risks and then find some effective and efficient methods to reduce the potential for loss. For any construction company, risk identification and risk management are the keys towards successful implementation of any commercial strategic plan. (Thompson & Perry, qtd. in Ahmed, Ahmad, and de Saram 225)
Risk management in the UK construction
Saied suggests that managing risks involves taking care of the safety and security of individuals or organizations (46). In the UK, ninety percent of demolition waste is recycled, and the UK uses the ‘3Rs’ which is reclaim, reuse, and recycle (House of Lords).
There is evidence that the government is now doing its homework. The government has enforced the site waste management plan, which should be implemented by construction firms before construction begins. All construction projects which started after April 2008 and which have a construction value of more than £300,000 must have a Site Waste Management Plan (SWMP). This provides a structure for waste delivery and disposal at all stages of the construction project (Department of Environment, Food and Rural Affairs). The regulations are enforced by the Environment Agency and potentially, both the HSE and local authorities. The fines range from £300 (fixed) up to £50,000 (court fines). (Booty 109)
A site waste management plan provides a framework to improve environmental performance, meet regulatory controls and reduce rising costs of disposing of waste. Adopting a site management approach based around an effective SWMP has brought benefits to construction firms including:
- Better risk management and control of wastes and other hazardous materials in construction sites;
- Provides a demonstration of waste management and cost and risk control;
- Compliance with laws and regulations, and constructions firms do not have to worry with requirements; and
- There is better management of supply of materials, including handling and disposal of waste, and other methods of the 3Rs. (Sunih 202-3)
The implementation of SWMP in the UK is a good example of risk management in the construction industry. This should minimize waste construction and demolition waste which has caused environmental harm and endangered the health and safety of the workers. Stricter laws should be formulated for its strict implementation.
The management of construction firms should do their part in health promotions of the workers and in preventing accidents in construction sites.
Discussion
Risk management aims to provide customer satisfaction (Turnbull, 1999), well-structured earning profiles (Cary, 2000; Cadbury, 1992), and a common framework for consolidating projects (Godfrey, 1996). (Holt 253)
Peter Bernstein (2000, qtd. in Holt 253) suggested that risk management involves analysing risks or surprises that are expected to happen in the course of undertaking a project and the management of the possible outcomes of such a project using laws and theories that have already been tested, for example, the laws of probability which utilize statistical measurement, regression, and the utility theory.
Distinctions on risk and uncertainty have been made by authors such as Frank Knight and Schumpeter (1997). The distinction states that a risk can be a probability and can be expressed in the example of tossing a coin. In the uncertainty example, probability cannot have a hold on it. Uncertainty can only be seen through estimates.
Design assumption risks occur when the structural design of a building is prepared without proper consultation with the client who invests in the development of that specific building.
Let us consider a scenario in which construction has started without the needed consultations between the client and the contractor. This is a total risk related project. There could be risks in the design and in the implementations. Further changes that may be applied in mid-construction may cause an irreparable damage. Value management and value engineering are some of the risk planning methods to avoid accidents. Functional analysis can help manage risks. The client and the value engineering team who conducts the study can confer with each other on some specific functions of the project. All loopholes and problems are discussed and given possible solutions before construction starts.
Conclusion
Man’s existence is plagued with risks and uncertainties. From the time he set forth on earth, he has encountered accidents and calamities. Many of these accidents are outcomes of discoveries, inventions and innovations. But an almost equal number can be said as natural accidents or catastrophes. Biblical history relates how our ancestors took risks to attain their goals. Instinct of self-preservation drove them to survive those risks which had threatened extinction. They avoided dangerous areas and situations. They made tools and learned to invent new things, no matter how crude. They learned how to plan their activities.
Risks can lead to peril and harm if they are not anticipated. Experience can help in the process of planning for new projects. Technological inventions provide areas for possible risk encounter, for example the industrial revolution characterised by major events which introduced a lot of changes in the workplace and organisations. Modern capitalism emerged after a transition period over several centuries, during which the conditions needed for a capitalistic market society were created. Risks account not only in physical terms, but also in abstract terms like financial and economic outcomes.
Environmental risks, accidents and deteriorating health of workers are some of the risks associated with the construction industry. Workers who are not provided adequate basic necessities will surely perform poorly and may injure themselves. Although risk management practices have been instituted by construction firms, to include the various stakeholders in the private and public sectors in the industry, there is still much to be done.
Risks multiply in the construction industry. If there are not enough measures undertaken, there will surely be environmental danger and harm which will add to the deteriorating environmental problem.
Constructions in the United Kingdom have always posed serious problem to the environment. It has generated enough a vast amount of construction and demolition wastes, environmental (chemical) hazards, and other problems that the community has to face. The government has instituted measures but there are many things yet to be done. A close partnership and cooperation between the private and public sector has to be instituted and continuously encouraged.
To manage risks, the UK government has instituted measures. Its programme of waste management in the construction industry has motivated the private and public sectors to implement the site waste management plan. This plan has been in effect for some time now. It enables the contractor and owner or client to agree on the practical ways to dispose of the construction waste and environmental hazards before construction project starts. Value management and value engineering are some of the activities that should help in managing risks in construction projects.