There is often ample room for improvement when it comes to risk management in construction. Research carried out by PwC in conjunction with Nyenrode, NBA and the University of Groningen reveals that little has changed over the past five years with regard to risk management in the Netherlands in general, though especially in the construction sector. Compared to other sectors, the construction sector reports significantly fewer risks. And if risks are reported, this is predominantly at incident level. Construction firms rarely have a separate risk management department and sixty percent of construction firms do not issue an ‘in control’ declaration. Is this the case for your organisation too?
Clients are increasingly looking to transfer responsibility to the contractor for the end-to-end life cycle of a structure. Not only does this mean that the horizon for which you have to estimate risks will get longer. It is also the case that areas in which you have less experience as a contractor will fall within your risk profile. This and other factors will bolster the threat of risks to your performance. Will you manage to anticipate these and render new risks part of your quality management system?
The project-based character and the largely decentralised business models in construction often impede harmonisation and consistency. Standardisation and centralisation is another step still. Construction firms are suffering from inefficiency and excessive unnecessary errors, and administrators are struggling to keep their organisation under control. A well-organised risk management system can help you achieve robust operations.
"Attention to specific project moments reduces negative surprises, also helps to better understand the risk profile."
Our advisors have extensive experience within the sector and are familiar with your most significant challenges. We will help promote the quality of your internal processes so as to bolster this grip: on individual projects, your project portfolio and your organisation as a whole.
Attention to specific points in a project will reduce the incidence of nasty surprises. Consider such things as bid/no-bid decisions and important milestones throughout the process, from drawing up the programme of requirements to implementation and completion. Furthermore, better insight into the risk profile and the progress of projects will help underpin your position and safeguard your margins.
Feel free to get in touch with us to find out how risk management can be done better in your organisation.
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