By Evan Williams, Cambridge Companies
Managing Risk for Construction
Working with your design/build team to manage risk to the schedule and budget during the construction process.
Budget risks can develop from early phase design and due diligence gaps to drawing document issues, owner changes, changes required by the local governing authority, material cost escalation, and other construction issues. The schedule can be impacted by longer than anticipated design phase timelines, permitting delays, owner decision delays or changes, and General Contractor and sub-contractor issues. Only through a dedicated and consistent focus on controlling these risks can the project remain on schedule and meet the budget.
Budget Risks by Phase
Early in the project development, it is critical to involve the entire project team to confirm the project scope aligns with the owner’s needs. Scope development can be straightforward but typically involves weighing several options depending on cost and time to develop. Involve a construction team in the design scoping or preliminary design phase, so the owner and design teams benefit from their practical experience to help determine costs and constructability reviews.
In addition, the design/build teams perform due diligence with the owner. This task involves working through all the site and development-related items. The process involves a detailed survey and geotechnical exploration of the site. This confirms the appropriateness of the site for the planned improvements and can also identify onsite risks including:
- Unsuitable soils
- Buried waste
- Utility and access easements
- And other lot encumbrances that can impact the areas on your site that you can use
At this time, the owner and the design teams should engage with the local jurisdiction to confirm zoning and permitting processes and requirements.