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Capital Programs Are Risky Business

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Kahua | www.kahua.com 03 FIGURE 2: Risk can be found in every phase of the capital-planning process. Understanding, and planning for, risk is just as important as understanding where and when risk could jeopardize the program. Planning RIGHT OF WAY Contract negation timelines Land/parcel cost negotiations ENVIRONMENTAL Wildlife impact Noise and air quality implications Historic impact Water quality Community impacts Hazardous materials ORGANIZATIONAL Lack of internal communication and real-time data sharing Inexperienced teams Disparate data/systems PROJECT MANAGEMENT Scheduling/contractor delays Change orders Approval processes Failure to follow contractual obligations DESIGN Approvals Design changes and/or errors Stakeholders' late changes Failure to follow contractual obligations CONSTRUCTION Weather Changes in work contract estimates and time Delay in materials Funding EXTERNAL Lawsuits Stakeholder changes Political differences Tax changes AWS and/or local standard changes Design Procurement Construction Operations

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