Project Management – Silver Fiddle Construction Case Study

Project Management – Silver Fiddle Construction Case Study

Project management is a comprehensive process that allows a project manager to conduct specific projects for various clients. In this case, the Silver Fiddle Construction company is responsible for overseeing the Czopeks’ dream home. Conducting this project within a five-month timeline and a $500,000 budget is challenging. At the same time, various risks may impede the completion of the project without any challenges. The team is responsible for identifying the various risks and potential solutions beforehand. This risk management process allows the project to run seamlessly and meet the required standards.

Case 7.2: Silver Fiddle Construction

As the president of the Silver Fiddle Construction (SFC) company, I am tasked with the responsibility of constructing a dream house for the Czopeks. SFC specializes in high-quality homes that are customized to meet the client’s needs and want. The company is based in Grand Junction, Colorado. As a general contractor, the company only has one bookkeeper who works part-time. SFC also contracts sub-contractors and is expected to complete 11 houses this year. The Czopeks are aware that their house’s final costs will not exceed $500,000. The timeline for the construction is five months after groundbreaking (Clifford & Larson, 2018). However, the client is comfortable with cost-saving delays.

The project’s deliverables include a home sitting on 2500 square feet, with three bedrooms, a complete garage, and 2 ½ baths. The complete garage should be sheetrocked and insulated. The home should have kitchen appliances such as an oven, dishwasher, range, and microwave. The gas furnace should have a programmable thermostat and perform efficiently. The milestones for the project highlight deadlines for permit approval, pouring a foundation, ‘dry in’ inspections, and the final inspection. The home’s construction, floor insulation, garage, ceiling insulation, exterior insulation, structure, as well as windows and doors must meet specific standards. The garage should accommodate at least two vehicles and a 28-foot Winnebago. The home’s specifications must meet the client’s initial blueprint. The owner will take care of the landscaping. SFC is not responsible for air conditioning, or refrigerator installation. However, SFC must prewire the home for air conditioning. The company has the right to contract out numerous services (Clifford & Larson, 2018).

Application of the Risk Management Process

            The application of the risk management process will take place in phases. Risk identification will start the process. This step is defined as ‘the process of analytically and constantly identifying, assessing, and categorizing the initial importance of the risks related to construction project and the interrelationships that exist among these risks’ (Bahamid & Doh, 2017, 2). Risk identification is essential for the successful completion of every project because it highlights the potential risks beforehand. This step should provide information on the most critical data, leading to better decision-making. In this case, checklists and experience will be used to identify any potential risks. The company’s historical data while constructing such homes will provide insight into things that could go wrong.

The second phase is risk analysis; the identified risks are analyzed quantitatively or qualitatively. At this stage, the company must assess the probability of each identified risk’s occurrence, the impact on the project’s goals, and the events’ size. These factors will be analyzed quantitatively because of the method’s accuracy as opposed to the qualitative analysis approach. Finally, responding to the risk is a crucial step that concludes the entire risk management process. The main objective is risk elimination, controlling or reducing the outcomes, transfer, sharing, or avoiding risk as a whole (Bahamid & Doh, 2017). The fiscal impact that the chosen strategy has on the company will be assessed.

Identify at least Five Potential Risks Associated with the project

The are various risks that the project could run into during implementation. First, the project could experience delays due to weather changes, lack of sufficient resources, untimely delivery of individual milestones, and natural catastrophes. Secondly, the project could exceed the budget because of inflation, which will likely affect the prices of materials or changes in labour laws affecting the payroll. Thirdly, failure to meet the client’s design requirements is also likely if the measurements are faulty. Fourthly, injuries are likely to occur as the contracted workers conduct their roles. This can lead to a shortage of labour and litigation against the sub-contractors and general contractors. Finally, the project could fail to meet the specified technical requirements. The technical specifications touch on the entire home, doors, windows, ceiling and floor insulation, exterior wall insulation, garage, and structure.

Risk Assessment Form for Selected Case 7.2

*Likelihood

1. Unlikely (low risk, no further action)
2. Seldom (medium risk, further action optional)
3. Occasional (medium risk, further action necessary)
4. Likely (high risk, further action necessary)
5. Definite (extreme risk, act now)

**Impact

1. Insignificant
2. Marginal
3. Moderate
4. Critical
5. Catastrophic

***Detection Difficulty

1. Easy
2. Moderately Easy
3. Difficult
4. Moderately Difficult
5. Extremely Difficult

The highlighted risks can have varied effects on the project. The delay in completion can be identified by comparing each milestone’s completion to the schedule. A delay in a single milestone is likely to cause a delay in the whole project’s completion. However, its impact is critical due to the likelihood of increasing the budget. This impact is likely despite the client’s lack of concern for the actual deadline if it reduces the costs. However, taking more time to complete the construction is expected to affect the prices as well. The budget can be checked by ensuring that all milestones have a specific allocation. A contingency budget is also essential to ensure that any unexpected elements that are essential to meeting the requirements are catered for when they come up.

 Risk Response Matrix for Case 7.2

The process of managing the identified risks demands a proactive approach. The identification process highlights the potential mitigation, reduction, avoidance, or control solutions. Some of the risks including natural catastrophes cannot be controlled or avoided. The effects can be reduced by adequately timing the construction to avoid harsh weather conditions. This creates an urgent need for constant weather forecasts. The main individuals responsible for managing the different risks include the project manager, HR manager, finance manager, and engineers. Regular communication between the managers is important in strategizing prior to and after the risks materialize. In addition, the contracts with sub-contractors must highlight the critical elements that they must meet to ensure that the risks are avoided. The need for compliance with the current regulations and labour laws is an essential element in ensuring that employees are safe. The OSHA regulations state precise requirements for a safe work environment (Compliance with ADA Laws Can Improve Small Businesses, 2017). In addition, the subcontractors are expected to provide employees who are well-trained and capable of operating various equipment safely. Finally, the company requires that all subcontractors negotiate and remit competitive remuneration for its workers. This ensures that all workers remain motivated during the project.

References

Bahamid, R. A., & Doh, S. I. (2017). A review of risk management process in construction projects of developing countries. IOP Conf. Series: Materials Science and Engineering, 271(01242). https://doi.org/10.1088/1757-899X/271/1/012042

Clifford, G. F., & Larson, E. W. (2018). Project Management: The Managerial Process. McGraw-Hill.

Compliance with ADA Laws Can Improve Small Businesses. (2017).

Stojcetovic, B., Misic, M., & Živče, Š. (2013). Quality Tools in Project Management. 7th International quality conference.

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Project Management – Silver Fiddle Construction

Risk is inherent to every project. Some risks are more likely to occur than others, and some will have a greater impact on the project if realized. Although you cannot account for every risk, a thorough risk analysis and assessment can help minimize the liabilities of the project and ensure that your projects are successful.

Refer to either Case 7.1 Alaska Fly-Fishing Expedition, 7.2 Silver Fiddle Construction, 7.3 Trans LAN Project, or 7.4 XSU Spring Concert of your text. Each of these cases presents you with a project scope statement for a fictional project. You are to pick 1 of these cases on which to perform a risk analysis. After picking a case of your choice, you should address the following:

Summarize the project.
Discuss how the risk management process will be applied.
Identify potential risks associated with this project (you must come up with at least 5 different risks).
Use a risk assessment form to analyze identified risks.
Develop a risk response matrix to outline how you would deal with each of the risks.
In conducting the risk assessment and developing the risk response matrix, you can either develop the risk assessment form and the risk response matrix yourself, you can use the templates provided in your text, or you can use the templates that are embedded in the assignment template for this IP. Your submission should be 5 pages in length. Be sure to cite your sources using APA; include your references and in-text citations.