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    Assignment No. 2

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    Nathanniel Gonzales
    This document contains a class assignment submitted by Engr. Nathanniel P. Gonzales to Dr. Manuel Muhi for the course MSCM604 Construction Quality Risk Management at the Polytechnic University of the Philippines Open University System. The assignment addresses 5 questions related to construction quality risk management techniques. The questions cover topics such as: reasons for project scope changes; the Delphi technique for risk analysis; the probability/consequence matrix for risk ranking; defining risk thresholds; and calculating expected monetary value for different risk events. Gonzales provides explanations for each question demonstrating an understanding of key risk management concepts and techniques.

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    Assignment No. 2

    Uploaded by

    Nathanniel Gonzales
    29 views5 pages
    This document contains a class assignment submitted by Engr. Nathanniel P. Gonzales to Dr. Manuel Muhi for the course MSCM604 Construction Quality Risk Management at the Polytechnic University of the Philippines Open University System. The assignment addresses 5 questions related to construction quality risk management techniques. The questions cover topics such as: reasons for project scope changes; the Delphi technique for risk analysis; the probability/consequence matrix for risk ranking; defining risk thresholds; and calculating expected monetary value for different risk events. Gonzales provides explanations for each question demonstrating an understanding of key risk management concepts and techniques.

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    This document contains a class assignment submitted by Engr. Nathanniel P. Gonzales to Dr. Manuel Muhi for the course MSCM604 Construction Quality Risk Management at the Polytechnic University of the Philippines Open University System. The assignment addresses 5 questions related to construction quality risk management techniques. The questions cover topics such as: reasons for project scope changes; the Delphi technique for risk analysis; the probability/consequence matrix for risk ranking; defining risk thresholds; and calculating expected monetary value for different risk events. Gonzales provides explanations for each question demonstrating an understanding of key risk management concepts and techniques.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    29 views5 pages

    Assignment No. 2

    Uploaded by

    Nathanniel Gonzales
    This document contains a class assignment submitted by Engr. Nathanniel P. Gonzales to Dr. Manuel Muhi for the course MSCM604 Construction Quality Risk Management at the Polytechnic University of the Philippines Open University System. The assignment addresses 5 questions related to construction quality risk management techniques. The questions cover topics such as: reasons for project scope changes; the Delphi technique for risk analysis; the probability/consequence matrix for risk ranking; defining risk thresholds; and calculating expected monetary value for different risk events. Gonzales provides explanations for each question demonstrating an understanding of key risk management concepts and techniques.

    Copyright:

    © All Rights Reserved
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    Republic of the Philippines

    Polytechnic University of the Philippines


    Open University System
    Sta. Mesa, Manila

    CLASS ASSIGNMENT NO. 2

    MSCM604 Construction Quality Risk Management

    Dr. Manuel Muhi

    ENGR. NATHANNIEL P. GONZALES

    Master of Science in Construction Management

    June 24, 2023


    Republic of the Philippines
    Polytechnic University of the Philippines
    Open University System
    Sta. Mesa, Manila

    1. Explain briefly why the customers of the project have requested additions to the

    project scope. The project manager notifies you that additional risk planning will

    need to be added to the project schedule.

    Adjustment of the scope of the project is an official decision made by the project

    manager and the client to change a feature, to expand or reduce its functionality. This

    generally involves adjusting the cost, budget, other features, or the timeline. Scope

    change is necessary in order for the project to stay adaptable and the common causes

    for this change are: market changes, project site conditions, government interventions,

    client opinion and other factors that contributes to such adjustments. Whatever the

    causes are, scope changes can significantly impact the outcome of a project. Often, it

    can lead to a scope creep that causes diversions of your resources, disruptions to your

    budget, delays and compromised project quality. These are some possible risks of a

    project that undergoes adjustments of scopes.

    Project risk is the potential that a circumstance could arise that alters the outcome

    of a project, for better or for worse. These risks may affect the development of the

    project, so therefore may alter also the main purpose of the project after its

    completion. This is the significance of having additional risk assessment/planning on

    a project schedule prior to the adjustment of the project scope.

    2. You are the project manager for a project that will create a new and improved the

    construction company’s processes. You would like to poll experts within your

    company with a simple, anonymous form asking about any foreseeable risks in the

    design, structure and intent of the company. With the collected information

    subsequent anonymous polls are submitted to the group of experts. What kind of

    technique is this and please elaborate.


    Republic of the Philippines
    Polytechnic University of the Philippines
    Open University System
    Sta. Mesa, Manila

    This is a technique in risk management which is also known as the Delphi

    Technique. In risk management, it is the process of consulting field experts to predict

    how risky a certain action would be. Between a panel of experts and several rounds of

    feedback and response modification, a conclusion is reached by the panel. This

    method helps to analyze the risk and make strategic decisions from objectives and

    experience-based opinions of a group of specialists. Gathering data from a group of

    experts will always be of higher quality compared to the opinion of a single

    individual.

    3. Which risk analysis technique provides the project manager with a risk ranking?

    Elaborate how this technique is very important in risk analysis.

    The technique that provides ranking on the severity of the risks is called

    Probability/consequence matrix or also known as a tool for the conduct of qualitative

    risk analysis. It is a prominent method of assessing risk severity when conducting a

    qualitative risk analysis, and it can assess risks at all levels of the company. The

    probability/consequence matrix is a practical method of ranking the severity of

    various risks by calculating the risk's potential impact (multiplying the likelihood of

    risk occurrence against the impact of the risk). Not only does this allow companies to

    better determine the overall severity of a risk, but it also allows you to determine the

    main contributing factors to each potential risk.

    4. You are the project manager and the project team are actively monitoring the

    pressure gauge on a piece of equipment. Your engineer recommends a series of

    steps to be implemented should the pressure rise above 80 percent. The 80 percent

    mark represents what?


    Republic of the Philippines
    Polytechnic University of the Philippines
    Open University System
    Sta. Mesa, Manila
    The 80% mark is a risk threshold. A risk threshold is the point at which risk becomes

    unacceptable. Upper limit of the 80% mark of the pressure gauge may result to a high

    severity of risk that are out of organization’s control which will probably affect the

    productivity of the equipment and the safety of equipment operators. This may also

    lead to operational failure of the equipment. Thus, the project manager must have

    appropriate risk assessment and mitigation plans in order to not meet or exceed the

    risk threshold limit of 80%.

    5. You are presented with the following table:

    Risk Event Probability Impact Cost/ Benefit Expected Monetary Value


    (EMV)
    1 0.20 -4000 -800

    2 0.50 5000 2500

    3 0.45 -300 -135

    4 0.22 500 110

    5 0.35 -4500 -1575

    Contingency Reserve 100

    What is the EMV for Risk Event 3?

    a) 135

    b) -3000

    c) 45

    d) -135
    Republic of the Philippines
    Polytechnic University of the Philippines
    Open University System
    Sta. Mesa, Manila

    Prepare a Decision Tree. Choose the best answer. Please justify your answer.

    From the decision tree presented above, the risk event 2 which benefits of about

    $5000 and a probability of occurrence of 0.50, has the most favorable risk among the five risk

    events. Since risk event 2 has the largest expected monetary positive value, then the

    organization will probably gain from it. While risk event 5 has the smallest expected

    monetary value which means that the organization will lose a benefit from it. The positive

    risks which are risk events 2 and 4 play a crucial role in calculating the contingency reserve

    because this will lower the cost needed to cover all identified risks in the case scenario.

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