RISK MANAGEMENT IN THE CONSTRUCTION INDUSTRY

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RISK MANAGEMENT IN THE CONSTRUCTION INDUSTRY

• Dominic Vaccaro
• November 28, 2001

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Risk Management in the Construction Industry

• Risk Management Basics
• 10 Steps to Help Ensure Success

• In the 1990s, over 90,000 contractors failed
  with liabilities of 23 billion. (Gorke, 1999)

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Risk Management Basics

• Insurance Concept
• Relatively small amount of time and money up
  front to save future costs
• Historically Low-Margin Industry
• Potential Problem Areas
• Economic downturn, labor shortages, material
  shortages, equipment problems, and poor
  management

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10 Steps to Success

• Multiple Project Management
• Planning
• Financial Management
• Document Mgmt. Control
• Change Management

• Forecasting/Risk Analysis
• Cost-Schedule Integration
• Reporting
• Program Close-Out
• Claims Mitigation

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Risk Management in the Construction Industry

• Realize the Need
• Take the Steps
• Successful in the Long Run