Project Risk Groups

Project Risk Areas11

Project Risk Type Description

Procurement

Complexity of Contract Structure

Where the complexity of the contract structure is likely to result in a delay to the contract being signed or impact on works duration, costs and benefits achieved.

Late Contractor Involvement in Design

Where the late involvement of the contractor in the design is likely to lead to redesign or problems during construction.

Contractor Capabilities

Where the contractor's capabilities/experience of managing projects of a similar nature is likely to impact on his ability to perform the works programme on schedule and/or to the required quality.

Government Guidelines

Where existing government guidelines for procurement may not provide the Client with the necessary guidance to procure adequately.

Dispute and Claims Occurred

Where disputes and claims are likely to occur if no mechanisms exist to manage effectively adversarial relationships between project stakeholders.

Information management system

Where effective information management and communication methods are essential to enable the delivery of the project.

Other (specify)

Where other influencing factors that relate to procurement are likely to affect the project outcome.

Project Specific

Design Complexity

Where the complexity of design (including requirements, specifications and detailed design) is such that it needs significant management to reduce the impact on project outcomes.

Degree of Innovation

Where the degree of innovation required due to the nature of a project requires unproven methods to be used to deliver the project.

Environmental Impact

Where the nature of the project has a major impact on its adjacent area where there is a strong likelihood of objection from neighbours and the general public.

Others (specify)

Where other project specific influencing factors are likely to affect the project outcome.

Client Specific

Inadequacy of the Business Case

Where project scope changes are likely to occur as a result of the poor quality of requirement specifications and inadequate project scope definition.

Large Number of Stakeholders

Where project scope changes are likely to occur as a result of conflicting requirements or bad co-ordination of project stakeholders.

Funding Availability

Where project delays or changes in scope are likely to occur as a result of the availability of funding (i.e. departmental budget spent or insufficient contingency funds).

Project Management Team

Where the Client project management team's capabilities/experience of managing projects of a similar nature is likely to impact on the project outcome.

Poor Project Intelligence

Where the quality of initial project intelligence (e.g. preliminary site investigation, user requirements surveys, etc) is likely to have a significant impact on the likelihood of the occurrence of unforeseen problems.

Others (specify)

Where other Client specific influencing factors are likely to affect the project outcome.

Environment

Public Relations

Where a high level of effort is required to address public concern about the project, which may have a significant impact on the project outcomes.

Site Characteristics

Where the characteristics of the proposed environment for the project are highly sensitive to the project's environmental impacts (e.g. Greenfield site with badger setts, or contaminated brownfield site).

Permits / Consents / Approvals

Where there is a likelihood of significant delays obtaining necessary permits, consents or approvals.

Others (specify)

Where other influencing factors that relate to the proposed environment for the project are likely to affect the project outcome.

External Influences

Political

Where the project outcomes are sensitive to political influences.

Economic

Where the project outcomes are sensitive to economic influences.

Legislation / Regulations

Where the project outcomes are sensitive to legislation and regulation changes.

Technology

Where the project outcomes are sensitive to technological advancements.

Others (specify)

Negative influencing factors that are external to the project that have an impact that are not identified above.