Table of Contents

i. Version Control

ii. Distribution Control

1.0 INTRODUCTION

1.1 INTERNAL CONTEXT

1.2 EXTERNAL CONTEXT

2.0 SCOPE OF PROJECT – 79 STATION ST BURWOOD

3.0 RISK MANAGEMENT APPROACH

4.0 HIERARCHY OF CONTROL

5.0 RISK CATEGORIES

6.0 RISK MATRIX

LIKELIHOOD RATING MATRIX

RISK ACTION LEVELS

RISK MATRIX

RISK CONSEQUENCES MATRIX

7.0 RISK REGISTER

8.0 REVIEW PROCESS

9.0 APPROVAL OF RISK MANAGEMENT PLAN

1.0        INTRODUCTION

NT Constructions Risk Management Plan into 79 Station Street Burwood project is to guarantee that NT Constructions completes all objectives and goals established out by the project management team through the completion of a risk management plan.

The main reason of our risk management plan is to guarantee that we surpass the client’s expectancies of the project, recognize preceding development, the dangers related with the venture, deal with the risks, meet task spending plan and timetable and surpass the organization’s objectives/goals by way that we convey the last item to the customer. We expect to guarantee that all dangers and unverifiable strategies are recognized before development and appropriately oversaw all through the undertaking to guarantee that the end conveyance objective is accomplished with least effect to our task. We will guarantee that dangers are controlled on 79 Station Road Burwood through our hazard administration approach which will distinguish, survey and oversee chances all through the undertaking while constantly observing the risks. By alleviating and controlling danger among our building site, we are further protecting the wellbeing and prosperity of all close to home on and off site while likewise conforming to the Word related to OHS Acts.

In making this risk management plan, we aim to get each goal set out in the scope of works, throughout the completion of risk management method as established out in ISO 31,000:2009 by creating the environment (company strategies) the ID of risks like constructional, financial, legal factors that will impact the project and analysis and evaluation of risks such as dealing and working around the risks, management of risks such as the insurances reviews, the monitoring and review of the risk management plan and the communication throughout the project implementing the risk management plan.

The risk management plan obeys all the necessities of the AS/ISO 31000:2009 and ISO/IE 31010:2009 risk management procedures. NT Constructions will follow to put in risk management culture on the project team and internal staff by providing all internal staff with the risk management plan and getting all staff to sign off on it once it has been read.  This will ensure that the risk management plan has been understood by the team and for any recommendations/questions/alterations to be forwarded to the project manager to further improve the risk plan prior to construction commencement.

1.1        INTERNAL CONTEXT

NT Constructions method to risk management is reliant on the internal and external context of our company. At (79 Station Street Burwood) is the top difficult and maximum project income construct we have done.

Our aims/image is to stay as a tier 2 construction company. Our projects will not be of more complexity to 79 Station Street Burwood of an apartment extension on a retail shop. We wish to stay as a key player in the tier 2 sector in terms of our build, but wish to increase our portfolio and profits annually by $2,000,000-$3,000,000. Our risks associated will that way be maintained as the project team and construction managers will be more familiar and experiences with the risks associated with the builds. Through the implementation of the risk management plan, specifically the monitor/review process of the plan, we will ensure that all the risks identified by the project team prior to the start of construction.

As we are looking to stay as a tier 2 company, we don’t plan to be expanding our company structure or changing the roles and responsibilities of our employees. As there is no change in the context of the objectives/vision of our company for the next 5 years, it is not deemed necessary to expand. The employees will be trained and have the experiences/knowledge to handle the risks associated with the construction of our future projects.

The risk management systems we have put in place for 79 Station Street Burwood are managed by the construction team and the project management team. It has been constructed in accordance with AS/ISO 31,000:2009 & ISO/IEC 31,010:2009 and will meet the needs of the project.

The systems, employees and processes we have put in place in accordance with the risk management standards ensures that we have carefully identified and planned for any risks that may arise on 79 Station Street Burwood and have put in place approach methods to any unaccounted risks.

1.2        EXTERNAL CONTEXT

17 Cardigan Street Burwood project’s external context in relation to our approach to risk management will be defined by the environment that our firm operates. As we operate in Inner Melbourne suburbs and our project is in the suburb of Burwood, external context that will affect our risk approach include;

• Whitehorse local council
• Victorian state government including the building codes of Australian and building standards
• Local public
• WorkSafe Victoria
• CFMEU
• Environmental Protection Agency
• Neighbouring retail shops
• Local suppliers and sub-contractors

MK Construct has a strong, steady relationship with our external stakeholders including our client for 79 Station Street Burwood, the suppliers and sub-contractors working on the project and the local council (Whitehorse City Council). The financials and funding of the project is through our client (James Harden) who will be funding the funds and processing our progress payments monthly. The project is situated within a busy strip of retail shops; therefore they impose threats through noise complaints, parking issues and possible disruption to business.

2.0        SCOPE OF PROJECT – 79 STATION ST BURWOOD

79 Station Street Burwood project is a two storey extension on an existing retail building which will consist of an additional 6 (six) apartments with 3 (three) on each level while retaining the ground floor retail.

The main objective of this project will be to ensure the smooth running of the retail shop and other shops along the strip with minimum construction setbacks.

Scope of the project in more detail includes;

• Solar panels will be situated on the roof and will supply the buildings Hot Water Systems and electricity
• Roof structure to be constructed out of Metal roofing
• Retail store that the new construction will be building on top of is of a single Brick Veneer construction
• The power supply services will be increased to service the extra 6 apartments
• Consists of I-Cube External Cladding
• Consists of Seam  External Cladding
• Single brick veneer construction
• Total building height of 11.045m
• Consists of 6 balconies (one servicing each apartment)
• Single bedroom apartments with one bathroom
• Fire rated concrete stairs servicing all apartments
• Boral wall apartment separation system
• Cantilevered entry canopy
• Replacement of existing retail glazing with new commercial grade glazing
• Bike and bin storage to be constructed at ground level
• Construction site is located amongst a busy strip retail shops
• Busy foot traffic and vehicle traffic (traffic management plan will need to be implemented)
• Gantries and hoardings will be set up along the border of the construction site
• Temporary power will be sourced from a temporary power pole conducted by CitiPower
• No demolition will be conducted
• The site is located on a corner block
• 3.0m high ceilings (standard height)
• 52 week project deadline (January 2018 start date)
• Defects Liability cost of $1,400 per week
• Project cost = $2,500,000
• Deliveries will need to be conducted under strict traffic management and site supervisor instructions to ensure no disruptions to public
• Construction of new apartments must not interfere with retail shop
• Retail shop will still operate during construction (therefore noise must be kept to a minimum)
• Extensive safety measures to ensure safety of retail shop below
• Minimise noise during shopping hours for surrounding retail shops

3.0        RISK MANAGEMENT APPROACH

Our company (MK Construct) will implement our risk management approach in accordance with ISO 31,000:2009. The project manager in charge of the project is Sam Hanna, who will have the responsibility of constructing and implementing the risk management approach and plan into the project.

ISO 31,000:2009 sets out a process overview for every step to be undertaken in order to identify and control the risks associated with the project. Our risk management approach will follow the process overview that is given below;

The process overview risk assessment of ISO 31,000:2009 and how we will implement each of the steps into our risk management approach

Establishing the context: The project manager (Sam Hanna) will assess the internal and external context factors in relation to our project (79 Station Street Burwood). He will assess the internal factors in relation to our company to such as the objectives and strategies we will put in place in order to achieve the objectives and policies set out, the capability of our project team and the structure and the risk tolerance and appetite that our company is capable of undertaking. He will also assess the external context factors associated with 79 Station Street Burwood such as the social factors, financial factors, business factors and the external factors of the company. This will determine the capability/tolerance of risks associated with 79 Station Street Burwood that our company is able to take on.

Identifying the risks associated with the project: The project manager, construction manager and project team will discuss/brainstorm prior to construction on the possible risks that may arise on the project. This is done through strategic analysis of the scope of works/work breakdown structure, the experience and knowledge of the project team, ongoing risk identification and through the review/feedback of previous projects.

Determining what control measures to implement: To determine what control measures we will implement for the specified risks associated with 79 Station Street Burwood, the project team will consult with the construction managers and site supervisors on the most effective control measures to be implemented to the associated risk. This will be determined on the results and feedback of previous projects, the cost effective analysis of the control measures will be considered and from the personal experience of the project team, construction managers and site supervisors of the effectiveness of the control measures. If no control measures can be determined, then the help from external experts will be sought out.

Evaluate and define their impact: The control measures that have been put in place to control the risk associated will be evaluated by conducting visual inspections by the project team to ensure that the control measures put in place have controlled the risks associated. If visual inspections can’t determine whether the control measures have worked, then feedback from the project team and construction management team will be sought.

Determining monitoring: Monitoring of the control measures will be discussed by the construction managers and project team. With their relevant experience, qualifications, previous project experience, the project team with the assistance of the construction managers and site supervisors will implement monitoring tools that will evaluate the control measures to be put in place. The construction managers will monitor the control measures of all construction works, with the project team monitoring control measures that are relevant to non-construction risks. The monitoring of the control measures will be brainstormed and discussed between the project team and construction team with the actions being put in place through the risk register.

Communication and consultation process: Communication of the risk management approach at each stage of the ISO 31,000:2009 over processes will be conducted by the project management team and construction team. Each meeting will be noted and minutes will track and list the discussions and processes agreed upon. The project team will implement all actions agreed upon into the project risk register and risk management plan. The minutes of the meeting will be processes and distributed by the administration staff to all the attendees of the meetings. The risk management plan at completion will be finalised and distributed to the relevant stakeholders by the administration team.

Monitor and review: Each step will be monitored and reviewed by the relevant persons with the responsibilities assigned. The project team will collect and analyse the information collected by the stakeholders. Feedback and audits will be conducted at each level for further improvement of the steps and overall plan. Factors such as cost, impact, reduction in likelihood & occurrence, delays, and quality issues will be addressed at every level. All information will be collected to further improve future risk management plans.

4.0        HIERARCHY OF CONTROL

Our risk management plan and our risks will be controlled through our hierarchy. Any risks that arise on 79 Station Street Burwood will need to be assessed according to the hierarchy of controls and will be assessed from the top of the pyramid down. We will control the risks that have been forecasted and any unforseen risks by way of;

Elimination: The first step to control any risk that arises on our project site is to eliminate it. By eliminating the risk (if possible) and physically removing it, it ensures that the hazards and impacts associated are eradicated. The elimination process of the hierarchy control is the most effective and should be used wherever applicable. If the risk cannot physically be removed, then the next step of substitution will be applied to the risk.

Substitute: If the risk cannot be controlled by the elimination approach, then the substitution of the risk will be initiated. This requires the replacement/substitution of the hazard with a different method/approach with a method that doesn’t produce a hazard.

Engineering controls: By implementing this method of risk control, we assume that the risk cannot be eliminated or substituted, so we must put in place engineering control to isolate any persons from the risk by putting in place protection controls. This can include barriers from risks, protection of fall barriers, mechanical aids, and machine guarding to ensure that the hazard has been isolated from the workers or public.

Administrative controls: This step is the last resort for physical control measures to be put in place before insurances. The administrative controls step in controlling risks by changing the workers/public exposure to the risk. This can include specific training for the risk, supervision of the risks, inductions, safe work method statements and maintenance.

Insurances: If we are unable to control the risks through elimination, substitution, engineering control and administrative controls, then we accept that there is a risk that cannot be controlled and must take relevant insurances on the associated risks in the case that they do occur. If they do occur, we will be covered with the insurances reducing the cost impacts associated.

The risk hierarchy that MK Construction will implement into 79 Station Street Burwood is defined below;

5.0        RISK CATEGORIES

The risk categories and their definitions for the project of 79 Station Street Burwood is defined below as;

6.0        RISK MATRIX

LIKELIHOOD RATING MATRIX

The likelihood rating risk matrix identifies the likelihood of a certain risk occurring and its probability.

RISK ACTION LEVELS

The risk action levels matrix identifies what actions will be taken for the severity of risks associated.

RISK MATRIX

RISK CONSEQUENCES MATRIX

7.0        RISK REGISTER

8.0        REVIEW PROCESS

The first step of the review processes is to ensure that the risk management processes that we have put in place for 79 Station Street Burwood are meeting the requirements set out and is reducing the impact and frequency of risks that we have planned for.

This will be done by;

• Meeting with project team members and discussing the outcomes
• Conducting external audits that will review the processes
• Conduct interviews/meetings to gather feedback from stakeholders
• Analyse data from measuring tools and techniques
• Questionaries
• Review of financial reports
• Key performance indicators review
• Quality audits
• Indecent report logs

If our findings show that we have not reduced or minimised the risks associated with the categories that are necessary for the construction of our project, we must pinpoint the reasoning why. The first step is to assess whether we are doing what we said we would do? If we are doing what we said we would do (processes) but the objectives still aren’t being met, this may be due to the following possibilities;

• Might be using the incorrect processes
• Setting our expectations to high
• Measuring wrong aspects
• Engaging people who aren’t skilled enough
• Use of wrong materials

If our findings show that our objectives aren’t being met due to the processes not being followed, then the following possibilities may be the cause;

• Staff don’t want to
• Staff aren’t capable
• Expectations of staff are too high
• Processes are too complex for staff to undertake
• Don’t have necessary equipment to undertake the processes
• Staff not made aware of the processes or not trained adequately

Before we put any new recommendations/changes in the risk management plan, we need to analyse the cost benefit of the changes/recommendations. This would be done by firstly brainstorming the costs and benefits. Secondly assigning a monetary value to the costs. Third step is to assign a monetary value to the benefits.

Fourth step is to compare costs with the benefits and assess if the costs outweigh the benefits, if so, then the changes are not in the interest of the company due to the reduction in profit.

The information gathered from meetings, questionaries, audits, review of reports etc. will further improve our risk management plans for the future. It will identify any new risks that may have occurs during the project that we did not account for, therefore know that this risk may arise again and the appropriate approach to managing the risk may be implemented in the future.

9.0        APPROVAL OF RISK MANAGEMENT PLAN

This document has been read, reviewed and signed off for implementation by the relevant bodies of MK Construct.

General Manager

Signed______________________________Dated:______________________

Miodrag Knezic

Project Manager

Signed______________________________Dated:______________________

Sam Hanna