Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual...
Transcript of Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual...
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Managing Risk in the Construction Industry
AGC ColoradoJuly 19, 2017
Denver, CO
Stephen JonesSenior Director, Industry Insights Research
Dodge Data & Analytics
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSpeaker
2
Stephen Jones
• BA: Johns Hopkins University; MBA: Wharton
• 19 years in Architecture/Engineering• Principal and Board of Directors of major A/E firm Burt Hill (now Stantec)
• 3 years in Construction Technology• Vice President, Primavera Systems (now Oracle)
• 14 years with Dodge Data & Analytics (formerly McGraw-Hill
Construction)
• Senior Director, Industry Insights Research
• Focus on how technology advances and process improvements are impacting the global construction industry
Dodge Global NetworkLeading source of data, forecast and analysis
about global construction
SweetsLeading source of information about
building products
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingIndustry Insights Research: Public Reports
3
Over 50 SmartMarket Reports & Briefs (free: analyticsstore.construction.com)
TECHNOLOGY/INNOVATION
Measuring BIM
BIM for ContractorsInformation Mobility
BIM for Owners
SUSTAINABILITY
Green Homes Green Schools
World Green Trends Design for Health
PRACTICES/PROCESSES
Managing Uncertainty
Lean Safety
Delivery Systems
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
4
analyticsstore.construction.com
![Page 5: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/5.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
5
analyticsstore.construction.com
Agenda:
• Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingFrequency of Disputes/Claims
6
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingFrequency of Disputes/Claims
7
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
10
#
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: STRATEGIC
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Fewer than 10% of any
company-type identified
these as high risk Strategic
factors:
• Compliance
• Sufficient industry/market
expertise
• Choice of delivery
method
• Political risks
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: STRATEGIC
14
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: OPERATIONAL
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Fewer than 10% of any
company-type identified
these as high risk
Operational factors:
• Material procurement
risks
• Site acquisition or
environmental risks
• Influence of consultants
on owners
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: OPERATIONAL
16
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: OPERATIONAL
17
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: FINANCIAL
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Fewer than 10% of any
company-type identified
these as high risk Financial
factors:
• Credit/surety risks
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: HAZARD
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Fewer than 10% of any
company-type identified
these as high risk
Operational factors:
• Unsafe project planning
• Weather delays
• Risk of pollution or
environmental damage
• Emergency response
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: BY COMPANY-TYPE
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
21
analyticsstore.construction.com
Key Takeaways:
1. Risk looks very different based on
your project role
![Page 22: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/22.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
22
analyticsstore.construction.com
Agenda:
• Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
![Page 23: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/23.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingEvaluating Risk
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingEvaluating Risk
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
25
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
26
![Page 27: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/27.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
27
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
28
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
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Reduced Change Orders (Mechanical Contractor)
Source: JC Cannistraro
Improved Productivity (3 Trades)
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
30
analyticsstore.construction.com
Key Takeaways:
1. Risk looks very different based on
your project role
2. Structured, ongoing collaboration
focused on risk generates tangible
benefits
![Page 31: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/31.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
31
analyticsstore.construction.com
Agenda:
• Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
![Page 32: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/32.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
33
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
34
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
35
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
36
analyticsstore.construction.com
Key Takeaways:
1. Risk looks very different based on
your project role
2. Structured, ongoing collaboration
focused on risk generates tangible
benefits
3. Collaborative approach to risk
management vs. contractual
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
37
analyticsstore.construction.com
Agenda: • Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
![Page 38: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/38.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
analyticsstore.construction.com
Agenda: • Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
![Page 39: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/39.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSummary Recommendations
![Page 40: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/40.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSummary Recommendations
![Page 41: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/41.jpg)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSummary Recommendations
![Page 42: Managing Risk in the Construction Industry...Managing Risk in the Construction Industry 2015 Annual Meeting 5 analyticsstore.construction.com Agenda: • Profile of Risk in the Construction](https://reader035.fdocuments.net/reader035/viewer/2022062917/5ecdc853ae8a0070877f099f/html5/thumbnails/42.jpg)
Managing Risk in the Construction Industry
AGC ColoradoJuly 19, 2017
Denver, CO
Stephen JonesSenior Director, Industry Insights Research
Dodge Data & Analytics