A hazard direction study was undertaken to find possible hazards that may happen alongside the renovation of Great Northern Hotel. The main executive of RAM-led pool, which has been selected by King ‘s Cross Central to renovate the Great Northern Hotel, appointed our squad to place, analyze and develop proper recommendations for pull offing possible hazards.Our squad used a cause-effect analysis based on a set of decisions identified after several meetings with experts and brainstorming Sessionss to foreground countries of possible concern for the undertaking. Another method used was to analyse historical records and studies from old building undertakings.The consequences of the study outline the fact that, without an accurate hazard direction applied before puting the baseline for the undertaking, assorted factors may impact the overall continuance and the necessary budget to renovate the Great Northern Hotel.
2. Introduction AND METHODOLOGYThis study was requested by the main executive of RAM-led pool, before the beginning of Great Northern Hotel renovation. Our squad was asked to subject its findings by 26th of May, 2010.
The intent of this study is to look into what are the possible menaces for this renovation undertaking and to analyse how their impact can be minimized. Our squad has responded to this petition by developing a list of possible hazards that might impact the renovation undertaking and by transporting out a thorough hazard analysis, as understanding the nature of hazards is a stipulation for a proper response, and besides by proposing appropriate recommendations for minimising negative impact on the undertaking. The aim of this study is non to extinguish hazard or uncertainness, but to take a cardinal expression into the hereafter of the renovation undertaking and to place possible menaces.By hazard, our squad understands the “ possibility of something go oning that can impact the chances of accomplishing undertaking ends ” ( Maylor, 2003, page 192 ) . However, our squad besides took into consideration several other hazard definitions, all of them underlying the same thought. Some illustrations of definitions our squad has worked with are listed bellow:Hazards are those factors that may do a failure to run into the undertaking ‘s aims ( Burke, 2003, page 253 )Hazard is the expected effects of an event and the chance that the event might happen ( Kendrick, 2003, page 2 )The possibility of enduring injury or loss ( Maylor, 2003, page 192 )Sing its restrictions of placing all hazards that might impact the renovation undertaking – as it is about impossible to anticipate all future events – our squad used these definitions in order to sketch major countries of hazards for building undertakings, particularly for the renovation undertaking.To undertake hazards, our squad applied the hazard direction program proposed by Burke ( 2003 ) , which included the undermentioned stairss:Identify and categorise hazardsQuantify and prioritise hazardsDevelop hazard response/managing hazardsHazard designation is considered to be the most important portion of hazard direction procedure ( Burke, 2003 ) , as hazards that are non identified can hold negative effects on the undertaking. For this measure, our squad chose to see multiple techniques in sketching major countries of hazard for the renovation undertaking.
Our chief method implied categorising hazards, as this method can take to the designation of specific jobs ( Kendrick, 2003 ) . Our squad chiefly looked at undertaking ‘s aims to specify possible external and internal beginnings for hazards.In making this, our squad focused on some of the methods indicated by Burke ( 2003 ) , such as holding meeting with experts and with members of the forces to portion hazards experiences – as old experience can lend to put on the line designation – , holding changeless brainstorming Sessionss and besides analysing historical records and studies on old building undertakings.
After roll uping consequences from the methods mentioned, our squad applied a cause-effect analysis to place hazards for the renovation undertaking.After holding identified a scope of possible hazards, our squad tried to mensurate the impact they could hold on the undertaking. Measuring how likely an event is to happen and find the extent of the consequence of the event ( Maylor, 2003, page 195 ) is known in undertaking hazard direction as hazard quantification process. Risk quantification besides implies set abouting a hazard precedence analysis ( Burke, 2003 ) , in order to set up what countries of hazards to turn to foremost. For this manoeuvre, a Probability/Impact Matrix has been created to mensurate the degree of hazard and to prioritise possible hazards.Concluding measure undertaken by our squad was to develop responses for the identified hazards. In hazard direction, after placing hazards, they can either be reduced or mitigated in some manner ( Maylor, 2003 ) . There are several processs to react to hazards ( Burke, 2003 ) , among which:Eliminate hazards – avoiding the hazard by taking cause ( Burke, 2003, page 262 )Mitigate hazards – cut downing hazard chance and impact ( Burke, 2003, page 262 )Deflect risks – transportation the hazard to another party ( Burke, 2003, page 263 )Accept hazardsAs extinguishing hazards wholly can non ever be a successful process, our squad has chosen to unite the above mentioned processs and offered solutions for extinguishing, extenuating and debaring hazards.
3.1 GENERAL CONSTRUCTION RISKS
Before naming the consequences of the analysis undertaken for the renovation undertaking, this study will sketch some of the hazards that are by and large impacting building undertakings.
This information will lend to a better apprehension of possible hazards a building undertaking may connote and it can act upon portion of the determinations refering farther hazard monitoring and control for the renovation undertaking.Based on informations collected from meetings with experts and with members of the forces, from brainstorming Sessionss and from the analysis of different studies of old building undertakings, out squad concluded that there are several ways of sorting hazards in building undertakings.Our squad has elaborated the following categorization to underscore possible countries of hazards for building undertakings:Fiscal hazards – which can include labour and material work or excess charges from contractors or providersTime hazards – which can include holds caused by different factors, major disagreements between estimation and existent continuancesTechnological hazards – which can include misinterpreted building processs or design premises or unplanned site conditionsSocioeconomic factors – such as environmental organisations or economic instabilityOrganizational factors – such as communicating between workers, contractual dealingssOperational hazards – such as building defects, labour hazards, quality inadequaciesBy and large, informations analyzed revealed the fact that building undertakings are more inclined to hazards, as they rely on multiple factors to accomplish their ends, such as stuff providers, labour force, site conditions, quality surveillance and fixed budgets. Furthermore, consequences besides suggested that building undertakings have a higher grade of uncertainness than other types of undertakings, as they can be easy influenced and affected by upwind status or political and economic clime.The decision our squad reached is that the renovation undertaking can besides be affected by the above mentioned factors and that a elaborate hazard direction program is mandatory to be developed for the undertaking to make its ends.
2 IDENTIFYING RISKS FOR REFURBISHMENT PROJECT
Consequences collected from our meetings with experts and forces members, from our brainstorming Sessionss and from the analysis of old studies on building undertakings indicated that for the renovation of Great Northern Hotel multiple countries of hazards should be taken into consideration.From the countries identified, our squad will sketch through this study the first major classs of hazards that could impact the renovation undertaking. These classs are:Time hazardsCostss hazardsQuality hazardsA cause-effect analysis has been undertaken in order to place clip, costs and quality hazards by sing the aims of the renovation undertaking.
The findings are listed in the undermentioned pages.For a better apprehension of our analysis, our squad included the aims of the renovation undertaking. The undertaking has three chief aims:Refurbish the Victorian-build Great Northern Hotel by early 2011Constructing a new dress shop hotel, with 94 luxury sleeping rooms, a saloon and a eating house by late 2011Open the hotel in clip for London Olympics 2012By using a cause-effect analysis, our squad identified hazards on clip, costs and quality, their causes and effects.
The hazards are listed in the undermentioned pages:
I. Time hazards
Severe holds in renovating the hotelMajor differences between estimation clip and existent clip in building the new dress shop, the saloon and the eating houseGrand gap postponed with two monthsWorkers work stoppage
Forces causes – unwellness, deceasesTechnical jobs – jobs with work equipmentProblems with providers – equipments non delivered on clipWeak communicating among forcesChanges in contract between client and contractorLack of hazard direction among workersOrganizational civilization strugglesWeather volatilityLack of item work programs from contractorNecessary blessings non given on clip
Severe holdsSlow advancementDelaies in money allotment for work equipmentUndertaking failure
II. Costss Risks
Insufficient budget for renovationHigher costs for building of new dress shopCurrency fluctuationHotel non opened in clip for the Olympics
Additions in labour and stuff costs from providersHigher measures from contractor on work advancementInstable economic systemEmergency state of affairs, such as excess equipment or excess forces
Over-budgetSlow advancementActivity stoppedUndertaking failure
III. Quality hazards
Poor edifice statusLow quality renovationWeak construction for new buildingLaw quality of stuff used
Unstable construction of old edificeLack of professionalismMisinterpretation of work undertakingsIncorrect design premises
Delaies caused by extra plantsAims non achieved on clipOver-budgetUndertaking failure
Following measure undertaken by our squad was risk quantification, in order to mensurate hazards chance and to set up their precedence. This study includes a Probability/Impact Matrix for the hazards identified.The Matrix has been developed utilizing the analysis consequences following our meetings with experts and staff members, our brainstorming Sessionss and from the analysis of old studies on building undertakings.
Risks Probability/Impact Matrix – Probability and Impact have been rated on a graduated table from 1 to 4, where 1 = Unlikely/Minor, 2 = Possible/Moderate, 3 = Likely/Major, 4 = Almost certain/Critical
1. Severe holds in renovating the hotel
2. Major differences between estimation and existent clip in building new dress shop, saloon and eating house
3. Grand opening postponed with 2 months
Workers work stoppage
5. Insufficient budget for renovation
6. Higher costs for building of new dress shop
8.Hotel non opened in clip for the Olympics
Poor edifice status
10.Low quality renovation
11.Weak construction for new building
12.Low quality of stuffs used
By evaluation Probability and Impact for the identified hazards, our squad besides prioritized them, as follows:
I. Major hazards ( Major Impact, Likely Probability ) :
Severe holds in renovating the hotelHotel non opened in clip for the OlympicsPoor edifice status
Moderate hazards ( Moderate Impact/Possible Probability ) :
Major differences between estimation and existent clip in building new dress shop, saloon and eating houseGrand gap postponed with 2 monthsInsufficient budget for renovationHigher costs for building of new dress shopWeak construction for new building
III. Minor hazards ( Minor Impact/Unlikely Probability )
Workers work stoppageCurrency fluctuationLow quality renovationLow quality of stuffs used
RISK RESPONSE AND RECOMMENDATIONS
Based on the consequences of hazard designation, quantification and precedence, our squad makes the undermentioned recommendations:
For extinguishing hazards, the client/contractor should:
Obtain necessary blessings before get downing the renovationCheck stuff quality before get downing the renovationBefore subscribing contract with providers, include statements on fixed costs and material bringing schedule/replacementHave more meetings between client and contractor before subscribing the contract, to clear up each itemBadly check workers background before engaging them
For extenuating hazards, the client/contractor should:
Name a hazard direction commission and include a hazard direction programCarry out status studies and step studies to set up edifice statusElaborate a hazard direction program focused on personsMonitor timetables and inquire for hebdomadal item work programs and cogent evidence on advancementInclude hebdomadal quality controlsAllocate excess money for unplanned events in the tendering periodInclude forenoon meetings with workers to explicate inside informations on undertakingsOffer common tiffin for workers to better communicating
For debaring hazards, the client/contractor should:
Hire an Audit company to maintain path of truth in Billingss and work advancement
This study outlines what possible hazards can a renovation undertaking brush alongside its continuance. By utilizing appropriate methods for placing the hazards and their causes, the study highlights what impact these hazards can hold on the undertaking and to what extent they can be measured and prioritized. The study besides includes a set of recommendations for extinguishing, extenuating or debaring possible hazards.By doing this study, our squad reached the undermentioned decisions:Most determinations in building undertakings are based on uncomplete information with an associated degree of uncertainness about the result ( Burke, 2003, page 252 )In construction/ renovation undertakings, degree of uncertainness can make a high degree in multiple countriesNo undertaking should get down before developing a hazard direction programPull offing hazards should follow fixed stairss – Designation, Quantification, Prioritizing and Risk response – and utilize as many beginnings as possible when making these stairssHazard response should unite different processs to extinguish, extenuate, debar or accept hazardsBefore make up one’s minding for one of these processs, a cost/benefit analysis should be undertakenFor refurbishment undertakings it is really hard to place all hazards, as they are more inclined to hazards than other types of undertakings and can be easy affected by political relations or by economic climeThis study besides includes end products from Microsoft Projects on undertaking programming, resources, undertaking and fundss developed by our squad, in the Appendices chapter.This study counts 2365 words.