How to Document Project Risks

In this blog post, we’re diving into a habit that can transform your approach to project management – documenting risks. While the topic might seem mundane, the insights shared in this post could save your project. Join me in exploring this specific aspect that often gets overlooked. 

The Key to Excellence in Construction

The cornerstone of excellence in any business or operational endeavor lies in the ability to identify, discuss, and solve problems. This principle, often abbreviated as IDs, is particularly crucial in the realm of construction. Unfortunately, human behavior tends to incentivize keeping problems hidden. However, on a construction project, avoiding problems doesn’t make them disappear; it only ensures they’ll resurface later, impacting the project’s outcome.

A great construction project thrives on transparency, bringing all problems and mistakes to the surface. This includes identifying risks, discussing them openly as a team, and collectively finding solutions. This blog post will guide you on the habit of using IDs – a practice that can significantly contribute to the success of your construction project.

How to Identify Risks While Doing Your Daily Habits

The three habits of a successful builder – studying drawings, reviewing schedules, and conducting project walks – form the foundation of daily routines. Beyond their apparent purposes, these habits are designed to trigger actions and, importantly, identify risks. Let’s explore how each habit contributes to the overall risk management process.

1. Studying Drawings: This habit is not just about understanding the project’s visual aspects but also triggering actions. Risks identified during drawing study sessions should be promptly addressed and logged.
2. Reviewing Schedules: Scheduling is not merely about understanding timelines; it’s about triggering actions related to labor, equipment, and potential pre-construction meetings. Risks found in the schedule should be acknowledged and documented.
3. Project Walks: On-site walks are not just for exercise; they serve to trigger actions. Whether it’s instructing a trade partner or addressing a specific issue, project walks can uncover risks that need documentation.

How to Create & Use a Risk & Opportunity Register

To effectively manage risks, it’s essential to have a centralized location for documentation. The risk and opportunity register, created during pre-construction, acts as the repository for identified risks. This register should be regularly reviewed in team meetings, with clear ownership assigned to each risk for mitigation or removal.

How to Document Risks in Your Schedule

Your project schedule is not just a timeline; it’s a tool for proactive project management. Risks identified during the planning phase can be logged directly into the schedule. This ensures that the entire team is aware of potential challenges and can work collaboratively to address them.

How to Document Risks in Your Budget

Financial considerations play a significant role in risk management. Risks, especially those with potential financial impacts, should find a place in your budget. By forecasting and projecting these risks, the team gains a clear understanding of their consequences, fostering motivation for proactive risk mitigation.

How to Document Risks in Your Exhibits

Exhibits accompanying GMP submissions and bid packages are valuable communication tools. Including risks in these exhibits ensures that all stakeholders are aware of potential challenges associated with the project. This transparency encourages collaborative problem-solving.

How to Document Risks in Your List of Assumptions & Clarifications

In addition to standard assumptions and clarifications, consider creating a dedicated section for risks in your project documentation. Clearly state the assumptions around risk mitigation, making it an integral part of the overall project plan.

How to Document Risks in Your Planning Boards

Visible planning boards in your conference room serve as daily reminders of project status. Risks identified during daily huddles can be prominently displayed on these boards, fostering regular discussions and collaborative solutions.

Learn More with These Resources

To delve deeper into effective risk management and project excellence, explore additional resources provided by Elevate. Whether you need consulting, training, or support for project recovery, Elevate offers valuable insights and assistance. Check out the linked blog post for more details.

In conclusion, understanding where and how to document project risks is a critical aspect of successful construction project management. Embracing the habit of identifying, discussing, and solving risks as a team will contribute to a more transparent, collaborative, and ultimately successful project outcome.