Risk management in the construction industry is a vital part of the project planning process. Managers should identify them to ensure their work is finished within a specific timeline and budget. Managers of construction projects should understand that every project comes with its own set of challenges and risks, so it is their duty to understand them correctly to avoid losses and delays. In case a risk becomes a reality, it has the tendency to derail the timeline of the project, and so here, risk management becomes an important component of the construction project to be executed successfully.
Kanat Sultanbekov – The role of the construction project manager in risk management
Kanat Sultanbekov is an esteemed construction project manager from New York with invaluable experience when it comes to risk management, safety, strategic planning, and operational processes for construction projects. According to him, every construction project manager should identify the potential risks that are likely to harm the project at the beginning of the project planning phase.
According to him, not all risks are bad, and if you are able to successfully identify and handle such risks can result in more profits. If you are able to manage them safely, you will establish solid relationships with your clients, giving into more projects. You can also expand into new sectors and markets as well.
Risks have a serious impact on the costs of the project
Every construction project manager should be aware of the different risks and their impact on the project. The different kinds of risks are financial, operational, contractual, and environmental, and they can be the result of external and internal sources. Examples of the common risks that managers face are contracts that have been written poorly, labor shortage, natural disasters, handling change orders, site conditions that are unknown, drawings that are defined poorly and incomplete, unexpected rise in material costs, damage to tools and equipment, safety hazards that lead to worker injuries, poor project management, the unavailability of building materials, and problems with suppliers and subcontractors.
Identify the potential risks and find solutions
When the above risks become a reality, they can seriously impact the construction project costs, schedules, and the overall performance of work, which will result in disputes and delays in the future. According to Kanat Sultanbekov, all of the above risks should be identified, and most of them can be managed and eliminated with correct planning and effective project management.
As a project manager, you should conduct brainstorming sessions with your team and stakeholders to identify risks and resolve issues, if possible. Suppose the stage of problem resolution has not arrived. In that case, you should identify the above risks that could negatively impact the project and ask your team to offer you solutions based on their knowledge, experience, and expertise. You should also review projects in the past and take solutions from them. In this way, as a project manager, you can identify risks and ensure they do not impact the timeline or the costs of the project in the future!
