Paper Sample on Navigating Residential Construction Challenges: A Risk Management Analysis

Form the case study of Paul, a former commercial construction project manager who is aspiring into residential construction management, several risks can be highlighted. First, Paul has a very shallow understanding of residential construction management, given he deals in commercial developments. Inadequate experience in managing a project of this magnitude is dangerous since it can lead up to the risk of poor project management. Another risk is low labor, as all the quality local are hired or booked. Consequently, Paul and his team face yet another threat of quality, a risk that may arise if quality vendors and quality raw materials are not acquired on time (Fateminia et al., 2019). Due to his inadequate experience in residential construction and value estimation, Paul faces budget uncertainties, a risk that may significantly affect him in the future.

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The risk of poor project management brought about by Paul's limited experience in residential construction can be responded to using the mitigation strategy. The only way to acquire knowledge is to seek it from those who have it. Therefore, Paul should consult an expert in the residential construction business to mitigate the risk. If, by chance, Paul starts his project and fails to identify massive threat due to his minimal experience, the best way to move forward is to ask help from senior officials or rather experts in the residential construction business (Zhang, Y2016).

Both the risks of quality and labor inadequacy can be responded to through the avoidance risk response strategy. In the case of limited vendors to complete work on time, Paul should try to source other vendors who are not booked or hired from the surrounding districts rather than the local town. Vendors from different districts and towns who live and operate in the State of Florida are a perfect replacement for the few locals. If the projects start and after a few days, Paul realizes that he is shorthanded in the workforce, the ideal contingency plan would be to hire more non-locals. In the case where quality is at risk, the best response is to avoid the risk entirely. Paul can achieve this by ensuring that all the materials and tools needed are ordered earlier, which will give him time to find the right vendor (Chatterjee et al., 2018). Ordering materials like tiles and paints days before they are needed will reduce the risks that can come up with procurement delays, which can ultimately jeopardize the project. In case the risk happens, Paul can first procure a small proportion of the materials form the local stores, before receiving the rest.

The best risk response strategy for Paul's budget uncertainties is through mitigation. Since Paul has little experience if residential property valuation, the best approach is to consult an experienced manager. An experienced manager will accurately value the value of the work, significantly minimizing the worries of low budget (Chatterjee et al., 2018). In case the risk of undervaluation is made, which can lead to an inadequate budget, Paul should as well consult an experienced valuer before taking any other step.

As a result of Paul's limited experience in the business, consulting an experienced manager was the best option since they work hard to be done. For the risk of the inadequate workforce, hiring vendors from other towns seemed best since waiting for the local ones would affect the completion plans. Acquiring materials long before construction commences was decided since procurement firms/procedures can never be trusted. For the risk of budget uncertainties, the decision of consulting an experienced manager comes after Paul realizes that the correct valuation must be done, and an experienced expert must conduct it.

References

Chatterjee, K., Zavadskas, E. K., Tamošaitiene, J., Adhikary, K., & Kar, S. (2018). A hybrid MCDM technique for risk management in construction projects. Symmetry, 10(2), 46. "https://www.mdpi.com/2073-8994/10/2/46/pdf" https://www.mdpi.com/2073-8994/10/2/46/pdf

Fateminia, S. H., Seresht, N. G., & Fayek, A. R. (2019). Evaluating Risk Response Strategies on Construction Projects Using a Fuzzy Rule-Based System. In ISARC. Proceedings of the International Symposium on Automation and Robotics in Construction (Vol. 36, pp. 282-288). IAARC Publications. https://www.researchgate.net/profile/Nima_Seresht/publication/334127076_Evaluating_Risk_Response_Strategies_on_Construction_Projects_Using_a_Fuzzy_Rule-Based_System/links/5e0cda9f4585159aa4ab502b/Evaluating-Risk-Response-Strategies-on-Construction-Projects-Using-a-Fuzzy-Rule-Based-System.pdf

Zhang, Y. (2016). Selecting risk response strategies considering project risk interdependence. International Journal of Project Management, 34(5), 819-830 https://farapaper.com/wp-content/uploads/2018/10/Fardapaper-Selecting-risk-response-strategies-considering-project-risk-interdependence.pdf