PROJ 420 Course Project

Running head: PROJECT RISK SUMMARY REPORT 1
Project Risk Summary Report
Gagandeep Bedi
Project Risk Management/PROJ-420
February 21, 2016
Professor Hurst

PROJECT RISK SUMMARY REPORT 2
Contents
Introduction 3
Project Description 3
Objectives 4
Project Scope and Objectives 5
Scope ............................................................................................................................................... 5
J & J Custom Home Builders Objectives......................................................................................... 5
Risk Process Objectives 5
Project Sizing Tool 5
Stakeholder Analysis 7
Top Risks, Actions, and Owners 9
Risk Breakdown Structure 10
Probability-Impact Matrix 11
Risk Register 12
Project Status Summary 13
Conclusions and Recommendations 13
Appendix A 14
Risk Breakdown Structure with Metalanguage ............................................................................. 14
Appendix B 20
Probability-Impact Matrix............................................................................................................. 20
Appendix C 22
Risk Register for Project Jonathan family dreams home ............................................................... 22
Appendix D 25
Project Status Summary ................................................................................................................ 25
References 26

Introduction
The Jonathan family is currently living in a two-bedroom condominium which is no longer suitable for
their growing family. They have been working with an architectural firm to design their dream home on a two and a
half acre lot that is located on the outskirts of Fort Bend County, Texas. The Jonathan family has also secured a
$632,400 bank loan for the construction of their dream home.
To minimize risk, a risk management plan is needed for the Jonathan family dream home. The Risk
Management Plan will be employed throughout the lifespan of the project and will outline what responsibility the
project manager has during the project. It will also detail how to handle uncertain events that may affect or impact
the project cost,schedule or performance. A Risk Management Plan offers many management tools and techniques
that help the project manager track and monitor potential impacts that may affect the project.
The project manager will be responsible for schedule all trade workers, estimating the material needs and
inspecting the quality of all the product delivered to the construction site and the finished work. The project schedule
will be created in MS Project and will be used to help validate what work has been completed and what work still
needs to be done.
The project manager will provide construction progress reports to the Jonathan family after scheduled tasks
have been completed and discuss any necessary schedule impact with the Jonathan family so that project schedule
can be updated.
Project Description
This plan was created by a consultant who is working with J & J CustomHome Builders. Their main
purpose was to develop an efficient risk management process that can be implanted throughout J & J Custom Home
Builders projects so that J & J Custom Home Builders can reduce the construction time needed to build a new
customhome because competition has grown over the last few years. The Jonathan family has met with one of the J
& J Custom Home Builders sales representative to create their dream home.

The Jonathan family dream home will be will be 70 feet wide x 69 feet deep.
First floor Second floor
 formal dining room
 living room
 full bath
 coffered family room
 a gourmet kitchen
 breakfast nook
 an in-laws suite.
 three bedrooms
 two full bath
 master suite with sitting area
o master bath with vaulted ceilings
 Game room with attached Media room
Jonathan family will have 4,464 square feet of heated/living space.
 three car garage
 Front wraparound porch
 Covered porch which is accessible from the master bedroom.
Unheated/living space
Objectives
 High concern for the Jonathan family
o Having to find other accommodations if the construction is not completed on time.
o Staying within the $632,400 bank loan so there is no out of pocket costs.
o Rental expenditures because renting things like portable toilets and equipment can add to the cost
of the project.
o Carrying a risk and liability insurance while the house is underconstruction.
o Subcontractors that just don’t showup to do the necessary work.
o Meeting all local building codes.
 Moderate concern for the Jonathan family
o Bad weather that could delay the project. Weather needs to be monitored

o Finding mistakes in the construction work such as framing, electrical and plumbing. This is a
concern because the project cannot proceed till the mistakes are fixed and the inspectorapproves
the modifications.
o Utility connection delays such as water, gas,sewers
o Permitting and approval delays.
Project Scope and Objectives
Scope
J & J Custom Home Builders will manage all of the predictable risks in a proactive manner in order to
maximize the odds of achieving the project objectives while upholding an acceptable risk level. The acceptable risk
level will be defined in the risk management plan which will outline different scenarios that may occur in the
duration of this project. The risk management process is intended to engage all stakeholders appropriately and to
create ownership in the project. J & J Custom Home Builders will communicate all the risk-based and milestone
information directly to Jonathan family in a timely manner. The risk management process will allow J & J Custom
Home Builders to “monitor and control risk” (Method123.com, 2016) so that they meet the project objectives.
J & J Custom Home Builders Objectives
o Keep the project on schedule and on budget.
o Meet Jonathan family expectations.
o Use quality craftspeople and materials in the construction of the Jonathan family
o Be responsible for correct and accurate construction timetables.
Risk ProcessObjectives
To design a high-quality home for the Jonathan family and not to exceed $632,400 within six months
because their current living condition is no longer adequate for growing family and the risk level for this project is
medium
Project Sizing Tool
According to Hillson & Simon, the project sizing tool helps us divide projects into three classes which are
small, medium, and large. They use these classes allow us to take a project and assign the appropriate level of risk
management associated with that type of task such as "Projects with the value less than $50,000 are automatically

defined as small, and projects with the value greater than $5,000,000 million are defined as large. Projects valued
from $50,000 - $5,000,000 Million are assessed against the ten criteria below. The criterion scores of 2, 4, 8, or 16
are totaled to give an overall project score, indicating project size as follows" (Hillson & Simon, 2012).
≥ 75 Large Project An extended ATOM risk management process is required
35 – 74 Medium Project A standard ATOM risk management process is required
< 35 Small Project A reduced ATOM risk management process is required.
Information retrieved from (Pma.doit.wisc.edu, 2016)
Project Sizing Tool
Criterion
Value = 2
Criterion
Value = 4
Criterion
Value = 8
Criterion
Value = 16
Criterion
Value = 32
Criterion
Score
Strategic
Importance
16 16
Commercial
Complexity
4 4
Essential
Constraints
And
Dependencies
4 4
Requirement
Stability
8 8
Technical
Complexity
2 2
Project Duration 4 4
Project Value 4 4
Project
Resources
8 8
Total 50
The total project size equals 50 which classify the Jonathan family’s dream home as a Medium-sized project
according to ATOM risk management process.
At “every project’s start institute a project management control organization that is appropriately sized to
the complexity and risks of the project which also “includes legal, regulatory and reputation type considerations”
(Kaplan, 2016). By following this process, an organizational breakdown structure is made. The organizational

breakdown structure describes responsibilities and accountability for all contributors and it helps the project
manager control and maintains a systematic method for getting the work done on time and without any delays.
Following this process increases the likelihood that the project will be completed on time.
Stakeholder Analysis
The stakeholder analysis is a great way of classifying and analyzing the stakeholder by their power and
their interests.The stakeholder analysis systemallows the project manager to rank each of his or her stakeholders as
"high-interest stakeholders are Key Players. Low power and low-interest stakeholders are least important”
(Stakeholdermap.com, 2016).
Stakeholder Area of Interest Attitude
(+/-)
Power
(+/-)
Interest
(+/-)
Stakeholde
r Type
Homeowner Quality home built / timeline is
met
+3 +3 +3 Savior
Bank Construction loan / mortgage +3 0 +3 friend
City (building
dept.)
Permitting for construction the
home
+2 +2 -1 Sleeping
Giant
Utility (Power, Water,
sewer)
Permitting/Constructing
temporary and final utility
services
-1 +2 -1 Time bomb
Private inspector (hired
by the
Homeowner)
Checks the works all the General
Contractor Sub – Contractor
(work for homeowner)
+3 +1 +1 Savior
Builder Manages all trades and Building
codes Inspection
+3 +3 +3 Savior

Sub - contractors
Concrete Responsible for all foundation
work
-2 +3 +2 Saboteur
Framer Responsible for constructing the
shell and the roof of house
-2 +3 +2 Saboteur
Wiring Responsible for laying out
electrical outlets and switches
from the blueprints.
-2 +3 +2 Saboteur
Drywall Install all the required drywall in
the house and textures all the
walls if necessary.
-2 +3 +2 Saboteur
Painting Paint the house in the colors of
clients choosing
-2 +3 -1 Time Bomb
Finish Carpentry Install all the base
boards and trim
-2 +3 -1 Time Bomb
Landscaping Installs all the sod and the plants -2 +3 +2 Saboteur
General
contractor
Does the closing walk through
with the homeowner to make sure
that everything has been
completed to the homeowner's
satisfaction so that it can be
corrected before the house is
turned over to the homeowners?
+3 +3 +3 Savior
Escrow Company The escrow company will have
the homeowner to complete the
mortgage paperwork. After all the
+3 -1 -1 Acquaintance

paperwork is complete the keys
will be given to the homeowner.
There are many benefits of using a stakeholder analysis to help influence and shape your project:
 The stakeholders can influence the projects at an early stage because it allows the stakeholders to the
support project and this will allow the stakeholders to improve the quality of the project.
 Getting backing from the stakeholders can help the project win more resources by making it the more
successful.
 “By communicating with stakeholders early and frequently, you can ensure that they fully understand what
you are doing and understand the benefits of your project – this means they can support you actively when
necessary” (Mindtools.com, 2016).
 If the project manager can foresee the stakeholder’s reaction to the project he or she can build their reaction
so it is a win-win situation for everyone.
Top Risks, Actions,and Owners
Top Risks Actions Owners
The project has a firm budget of
$632,400 and if the costs exceed
the Budget
Avoid scope changes (gold plating)
Project manager
Scope definition risk
Inaccurate or incomplete Scope
definition
The Project manager will pass the overage to
the Jonathan family and get change orders
approved before the work is performed
Jonathan family
Design risk
Inaccurate or incomplete design
can cause rework construction
delays
The Project manager will transfer his or her
risks back to J & J CustomHome Builders and
hold them responsible for completing the work
and fixing any of their mistakes
J & J Custom Home
Builders
Resource risk
If the proper resources
(manpower and equipment) are
not available on site
Project manager should have an alternative
resource available and book all the manpower
and equipment as they are needed Project manager
Labor risk
Because of the housing boomin
Houston,there is a shortage of
craft workers
The project manager should have alternative
resources available and book all of the same
trades togetherso that all of the work is done
one right after the other.
Project manager
Communication risks
Communication is a vital part of
being a project manager this
The project manager should check with the
contractors every week to see the status and
update documents or else it will delay the
project.
Project manager

means that he or she needs to
know the work progresses and
when it will be done
Quality risks
The Jonathan family wants what
was designed so quality
compliance is a must.
Plumbing, HVAC, and electrical have to be
inspected so any code violation can be caught
and fix so it doesn’t cause delays in the
schedule
Project manager
Materials risk
The project manager will have to
check all the delivered materials
for damages
Contingency plan
The project manager identifies the damaged
products and reorders/returns the product when
needed.
Suppliers and Vendors
Construction risks
Stage 1:
The site excavation has to
complete by March 15, 2016
Contingency plan
The Project manager will transfer his or her
risks to the contractorand hold them
responsible for completing the work and fixing
any of their mistakes
Contractor manager
Insurance
Protects the property from damage
which is effective at the
commencement, procurement, and
transportation to the site.
Insurance claims and schedule relief from the
client of Force Majeure
Project manager
Contingency funds
Many project manager will setup
Contingency funds to help them
cover cash flow shortages,a debt
service reserve fund can be set up
by a line of credit
Avoid using the Contingency fund as much as
possible
Project manager
Risk Breakdown Structure
The risk breakdown structure (RBS) identifies, evaluate risks in order for them to be clearly understood
managed successfully.The risk breakdown structure aids the project manager/ risk manager and stakeholders in
identifying and comprehending how the risk is classified and assessed.The ris k breakdown structure “tends to
produce an unstructured list of risks that often does not directly assist the project manager in knowing where to
focus risk management attention” (Hillson, 2002).The risk breakdown structure uses a qualitative assessment for
prioritizing recognized risks that come from estimating the possibility of the impact, thus exposing the most
significant risks to the project manager. The risk register is shown in Appendix A.

RBS Level 0 RBS Level 1 RBS Level 2
0. Project Risk
1. Technical Risk 1.1 Scope definition
1.2 Design
2. Management Risk 2.1 Resourcing
2.2 Communication
2.3 Quality
3. Commercial Risk 3.1 Suppliers and Vendors
4. External Risk 4.4 Insurance
4.5 Contingency funds
There are many ways the J & J Custom Home Builders can identify the risks:
1. Previous project history J & J Custom Home Builders can use their previous project to identify the
potential risks that may come across in the previous project.
2. Brainstorming With the project management team “subject matter experts” to get analyze
what risk might affect the project.
3. SWOT Analysis The strengths,weaknesses,opportunities and threats (SWOT) analysis tool
helps the organization identify their strengths,weaknesses,opportunities
and threats within the business.The SWOT analysis tool evaluates what the
organization can and cannot do as potential opportunities or threats and
Once The SWOT analysis is concluded, and SWOT analysis controls what
may help the firm in achieving their objectives, and what difficulties must
be overcome or reduced to attain anticipated results.
4. Monte Carlo analysis The Monte Carlo systemis a quantitative analysis technique that lets people
use to comprehend the impact of risk, ambiguity in financial, budget,and
other estimating models in Forecasting Models
Probability-Impact Matrix
The probability and impact matrix seems to be the difficult concept,but in fact, it is actually something that
people use in their life frequently. The probability and impact matrix comes into play when the project manager or
team members define a specific task or activity that may contain a particular amount of risk which needs to be

quantified. In the probability and impact matrix, the different tasks are given two sets of criteria by rating each task
in the likelihood that it will occur and the probability and impact matrix is used because it allows the project
manager or project team to combine the probability and impact components on the same scale. The matrix lets the
project manager or project team to see the probability and impact of each task by ranking them low, medium or a
high-level risks so that they can handle accordingly. “The higher the matrix score, the higher the risk level
associated with the item that is being analyzed” (Mabutas,2016). The risk register is shown in Appendix B.
The probability and impact matrix is important because it helps the project manager figure out what task
might give him or her the biggest amount of trouble in acquiring the necessary resources for constructing the
Jonathan family dream home. This matrix will use contractor bids/quotes and factorin the availability of local craft
workers since both cost and time are major factors in this project. The project manager will create a ranking of
alternate contractors/workers so that if one cannot do the work an alternate can be pulled in quickly to do the work.
Risk Register
“All corporate and organizational projects face risk at one time or another” (CIO Staff, 2016). The risk
register plays an important role in the risk management process.This is because it is made up of risk breakdown
structures which contain the Risk Identification (Risk Event, Cause, Effect), Qualitative Risk Assessment
(Probability, Impact), Risk Response Plan (Response Strategy, Trigger, Response Actions),and Monitoring and
Control Plan (Risk Owner, Interval or Milestone Check, Status: Date and Review Comments). This process requires
the project manager to seek out input from team members as well as stakeholders for their identified risks, their
severity, and the actions steps that must be taken because the risk register is a control document that is created in the
early stages ofprojects. The register will play a vital role in the Risk Management Plan by helping the project
manager keep track of changes and address any problems as they arise. The Risk Register is commonly shared
between project investors to make them aware of any risk and issues that the project is facing thus providing a
means of tracking the solution to many risks and issues.It also helps in tracking new project risks and to make
recommendations on what course of action is needed to solve any problems listed on the Risk Register. The Risk
Register helps the project managers and the project stakeholders in making decisions the most appropriate way. “A
risk needn't be a threat to your project, it is simply an issue that can arise during the project; if effectively managed,
it shouldn't prevent your project from attaining its goals and objectives” (CIO Staff, 2016). The risk register is
shown in Appendix C.

Project Status Summary
The project status summary report allows the project manager or the project team to monitor and control
tasks that are performed throughout the lifetime of the project and will be used in the project status summary
meeting that will be conducted bi-weekly or more frequently if needed. The purpose of this report is to effectively
communicate project status at regular intervals to project stakeholders.It also helps guard against unforeseen
bombshells that may come up in the project and discusses items such as schedule, issues,scope,resources and other
project items and risks that needed to be addressed.The risk register is shown in Appendix D.
Conclusions and Recommendations
Jonathan family’s dream home has been finished in concurrence to Risk Management progress which was
implemented from the early stages ofthe project lifecycle. J & J CustomHome Builders is a growing company who
will utilize the Risk Management progress to develop new relationships with their design and sales team, craft
workers, suppliers and vendors to speed up the construction time and to minimize errors. It is been an experience for
J & J Custom Home Builders in using the risk management process especially in identifying the risk that can
endangerthe project timeline.
I highly recommend that J & J CustomHome Builders continue to use and practice the risk management
process in order to respond to different market conditions that will impact future projects and J & J Custom Home
Builders needs to hold Risk management workshops in order to train the rest of the project managers in the Risk
management process.

Appendix A
Risk Breakdown Structure with Metalanguage
 Cause – are all in yellow highlight
 Risk – The risk is in BoldFont
 Effect – impacts are in blue highlight
RBS Level 0
Project level risks
RBS Level
1
Risk Categories
RBS Level 2
Detailed risks
Project Risk - Budget Budget risk The project has a firm budget of $632,400 and if the costs exceed
the Budget the Jonathan family will risk finical impacts since
they will have to pay out of pocket.
Project Risk – Technical Technical risk Scope definition risk
Inaccurate or incomplete Design drawings can lead to Poor
Design Quality. Denotes that those who carry out the work
do not have the essential data or have the wrong information
to do the job. May put the project schedule in jeopardy.
Project Risk – Technical Technical risk Design risk
Inaccurate or incomplete design can cause rework construction
delays that may put the project schedule in jeopardy which
might endanger the homeowner’s closing date and increase their
out of pocket costs.
Project Risk –
Management
Management risks Resource risk
If the proper resources (manpower and equipment) are not
available on site on a time it can risk the project being delayed
and cause delays to all the other actives and incur additional
costs.
Labor risk
Because of the housing boomin Houston,there is a shortage of

craft workers which adds risk that the required trade worker
will not be available which could result in othertrades schedule
being schedule to otherjobs.
Project Risk –
Management
Management risks Communication risks
Communication is a vital part of being a project manager this
means that he or she needs to know the work progresses and
when it will be done if the project manager does not know the
status of the work it can delay the other trades and impact
the overall schedule and the project can collapse.
Project Risk –
Management
Management risks Quality risks
While the Jonathan family was designing their dream home want
it to be quality compliance but Quality is not maintained
making the home compliance can be very expensive and may
exceed the budget and have a high maintenance cost.
Project Risk –
Management
Management risks Materials risk
The project manager will have to check all the order materials
for damages if there is damage the project manager has to
have the product redelivered which can cause delays that can
impact the closing date.
Project Risk –
Management
Management -
Construction risks
Construction risks
Stage 1:
The site excavation has to complete by March 15, 2016 if the
excavation is not complete it will delay the entire project.
Stage 2:
The framers have 2 to3 weeks to complete all the exterior and
interior wall with all the exterior sheathing,vapor barrier,
windows, and doors installed. If the weather during this period

is too hot or cold the work will have to be delayed which
could cause a delay in all other phases ofthe project
Stage 3:
The roofer will install all the decking, flashing and shingles on
the roof rafter. If the weather during this period is too hot or
cold the work will have to be delayed which could cause a
delay in all interior house work.
Stage 4:
The plumber will have 1 to 2 weeks for running all the plumbing
throughout the house. If there are any plumbing violations
that were found by the municipality inspector this could cause
a work shut down the project which could cause delays in all
other phases ofthe project and it would have to fix before the
would be allowed to proceed.
Stage 5:
The electrical installer will have 1 to 2 weeks for running all the
electrical wiring in the house,placing outlets and the breaker
box. If there are any electrical violations that were found by
the municipality inspector this could cause a work shut down
the project which could cause delays in all otherphases of the
project and it would have to fix before the would be allowed to
proceed.
Stage 6:
The HVAC installer will have 2 weeks for running all the HVAC
equipment and the ducts in the house. If there are any HVAC
violations that were found by the municipality inspector this

could cause a work shut down the project which could cause
delays in all other phases ofthe project and it would have to fix
before the would be allowed to proceed.
Stage 7:
The bricklayers will get approximately 3 weeks to lay all the
brick for the first story.If the weather during this period is too
hot or cold the mortar will not cure correctly which will have
to be torn down again and redone.
Stage 8:
The siders will get approximately 2 weeks to install all siding for
the second story If the siders cannot complete the installation
of the siding this could cause a delays exterior painting.
Stage 9:
The Drywall installer will have 3 weeks for installing all the
insulation and the Drywall because there is a housing boom
there is a limited quantity of skilledworkers to finish the job
within the time allotted.
Stage 10:
Since there are shortage carpenters will arrive to install all the
interior doors,molding and any staircase railings and balusters
which should take 1-2 weeks the risk is that it will delay the
painters and the finishing trades which may push out the
closing date affecting their current accommodation.
Stage 11:
The painter will have 1-2 weeks for priming and painting all the
exterior and interior walls with the color chosen by the
homeowner. If the weather during this period is too hot the

work will have to be delayed since the paint will dry too
quickly and cause will a lot of rework.
Stage 12:
The cabinet installers will have one week to install all the
cabinets in kitchen and bathrooms if the cabinets are not
installed by their due date they can delay the finishing trades
which can schedule impact.
Stage 13:
The flooring company will have 2 weeks to install all the
required flooring throughout the house if the flooring is not
installed by their due date it will impact the finishing crew
such as installing all plumbing and light fixtures.
The project manager will have to order the required Materials at
different stages of construction the risk is that if the materials
are not delivered on time it can cause major delays in the
construction which will impact the closing date.
Project Risk –
Commercial
Commercial Risk Suppliers and Vendors
The Supplier or Vendor will enter into a new contract every time
they start a new project the biggest risk is that if the project
manager picks a Supplier or a Vendor who cannot meet the
project delivery date will mean that the project manager will
have to find new supplier or vendor to replace the one who
cannot perform while impacting the cost and schedule.
Project Risk –
Commercial
Commercial Risk Cash flow risk
Every time a suppliers or vendors enter into an agreement with a
project manager for a housing project they face the risk of not
getting paid for the Material that they provided and this

means that they want part of the money upfront and the rest
when it delivered which can impact the project cash flow.
Project Risk – External External Risk Insurance
Protects the property from damage which is effective at the
commencement, procurement, and transportation to the site. If
any of the goods gets damaged while being delivered or
shipped to the job site this means the project manager has to
reorder that part which may push the same schedule out thus
impacting the closing date.
Project Risk – External External Risk Contingency funds
Many project manager will setup Contingency funds to help
them cover cash flow shortages, a debt service
reserve fund can be set up by a line of credit the biggest risk is
that this money could be misused or overused impacting the
company’s cash flow

Appendix B
Probability-Impact Matrix
Negative impact Positive impact
P VHI 2.4(0.09) 1.1 (0.18) 2.2(0.36) VHI P
R R
O HI 4.2(0.28)
1.2
(0.56) HI O
B B
A MED
T 2.1, 2.3,
3.2,
4.1(0.40) O MED A
B B
I LO LO I
L L
I VLO 3.1(0.08) VLO I
T VLO LO MED HI VHI VHI HI MED LO T
Y Y
Green Risks Amber Risks
Red
Risks
Risk # Description Probability X Impact Total Type of Impact
1.1
construction delays can happen Inaccurate
or incomplete Scope VHI 0.9 X MED 0.2 0.18 Negative
1.2 rework can cause construction delays HI 0.7 X VHI 0.8 0.56 Negative
2.1 availability of skilled personnel MED 0.5 X MED 0.2 0.10 Negative
2.2
labor shortages can make it hard to keep the
project on track VHI 0.9 X HI 0.4 0.36 Negative
2.3
damaged goods could lead to construction delays
because it would need to be reorder MED 0.5 X MED 0.2 0.10 Negative
2.4 Unexpected weather conditions VHI 0.9 X LO 0.1 0.09 Negative
3.1 Failure of supplier delivering design materials VLO 0.1 X VHI 0.8 0.08 Negative
3.2 Cash flow risk MED 0.5 X MED 0.2 0.10 Negative
4.1 Insurance - for protecting the property fromdamage MED 0.5 X MED 0.2 0.10 Negative
4.2 the overuse of the Contingency funds HI 0.7 X HI 0.4 0.28 Negative
P ROB AB IL IT Y% = Total *100

+/ - IMP AC T ON P ROJ ECT OB J ECT IV ES COS T
S CALE P ROB AB IL IT Y TIME COS T QUALIT Y
VHI 71-99% >20 days >$200K
Very significantimpacton overall functionality
HI 51-70% 11-20 days $101K-$200K
Significantimpacton overall functionality
MED 31-50% 4-10 days $51K-$100K
Some impactin key functional areas
LO 11-30% 1-3 days $10K-$50K Minor Impact on overall functionality
VLO 1-10% <1 day <$10K Minor impacton secondaryfunctions
NIL <1% No change No change No change in functionality

Appendix C
Risk Register for Project Jonathan family dreams home
Risk Identification Qualitative Risk Assessment Risk Response Plan Monitoring and Control
#
Status
RiskCategory
Risk Event Cause Effect
Threator
Opportunity
Primary
Objective
Probabili
ty
Impact Risk Matrix
Response
Strategy
Trigger Response Actions
Risk
Owner
Interval or
Milestone
Check
Status:
Date and
Review
Comments
1
Active
Budgetrisk
The project has a
firm budget of
$632,400 and if
the costs exceed
the Budget
Jonathan family
will risk finical
impacts
Since they will
have to pay
out of pocket.
Threat
Cost MEDIUM MEDIUM
Probability
VH
Avoid Price increases
Avoid scope
changes (gold
plating)
Project
manager
weekly 3/4/2016
H
M X
L
VL
V
L
L M H VH
Impact
2
Active
Technicalrisk
Scope definition
risk
Inaccurate or
incomplete Design
drawings can lead
to Poor Design
Quality
Denotes that those
who carry out the
work do not have
the essentialdata
or have the wrong
information to do
the job.
may put the
project
schedule in
jeopardy
Threat
Time VHI MEDIUM
Probability
VH X
Avoid Change orders
The Project
manager will pass
the overage to the
Jonathan family
and change order
approved before
the work performed
The Project
manager
bi-weekly 3/19/2016
H
M
L
VL
VL L M H VH
Impact
3
Active
Technicalrisk
Design risk
Inaccurate or
incomplete
design can cause
Structure-Bid-
Plans
Modifications
that may put the
project schedule
in jeopardy
Which might
endanger the
homeowner's
closing date
and increase
their out of
pocket costs?
Threat
Time VHI HI
Probability
VH x
Transfer Change orders
The Project
manager will
transfer his or her
risks back to J & J
Custom Home
Builders
and hold them
responsible for
completing the
work and fixing any
their mistakes
J & J
Custom
Home
Builders
as needed
before
starting the
job
H
M
L
VL
VL L M H VH
Impact
4
Active
Managementrisks
Resource risk
If the proper
resources
(manpower and
equipment) are
not available on
site
on time, it can
risk the project
being delayed
Cause delays
to all the other
actives and
incurs
additional
costs.
Threat
Time VHI VHI
Probability
VH X
Mitigate
Shortage
manpower and
equipment
Project manager
should have an
alternative
resource available
and book all the
manpower and
equipment per their
need
Project
manager
bi-weekly
Review
manpower
loading
H
M
L
VL
VL L M H VH
Impact

5
Active
Managementrisks
Labor risk
Because of the
housing boom in
Houston, there is
a shortage of
craft workers
which adds risk
that the required
trade worker will
not be available
Job thus
delaying that
phase of
construction
till they
become free.
Threat
Time VHI VHI
Probability
VH x
Mitigate
Shortage of craft
workers
The project
manager should
have an alternative
resources available
book all of the
same trades
together so that all
of the work is done
house after the
other.
Project
manager
Monthly 4/29/2016
H
M
L
VL
VL L M H VH
Impact
6
Active
Managementrisks
Communication
risks
Communication
is a vital part of
being a project
manager this
means that he or
she needs to
know the work
progresses and
when it will be
done
done if the
project manager
does not know
the status of the
work it can delay
the other trades
Impact the
overall
schedule and
the project can
collapse.
Threat
Time VHI VHI
Probability
VH x
Avoid
work not completed
on time
The project
manager should
check with his
contractors every
week to see the
status his or her
documents or else
it will delay the
project.
Project
manager
weekly 3/11/2016
H
M
L
VL
VL L M H VH
Impact
7
Active
Managementrisks
Quality risks
While the
Jonathan family
was designing
their dream home
want it to be
quality
compliance
but Quality is
not maintained
making the
home
compliance can
be very
expensive
And may
exceed the
budget and
have a high
maintenance
cost.
Threat
Quality MEDIUM HI
Probability
VH
Avoid Inspection
Plumbing, HVAC,
and electrical have
to be Inspected so
any code violation
can be caught fix
their which can
cause delays in the
schedule
Contractor as needed
after the
task are
done
H
M x
L
VL
VL L M H VH
8
Active
Managementrisks
Materials risk
The project
manager will
have to check all
the order
materials for
damages
if there is
damage the
project manager
has to have the
product
redelivered
Which can
cause delays
that can
impact the
closing date.
Threat
Quality LO HIGH
Probability
VH
Mitigate Transportation
Contingency plan
The project
manager identifies
the damaged
products and
reorders the
product.
Suppliers
and
Vendors
throughout
the
construction
phase
as soon as
a product is
delivered
H
M
L x
VL
VL L M H VH
Impact
9
Active
Management-
Construction
risks
Construction
risks
Stage 1:
The site
excavation has to
if the excavation
is not complete
It will delay the
entire project.
Threat
Scope HIGH HIGH
Probability
VH
Transfer Weather
Contingency plan
The Project
manager will
transfer his or her
risks to the
Contractor
manager
as needed
Weather
and
workmen
ship
H x
M
L
VL

complete by
March 15, 2016 VL L M H VH
contractor and hold
them responsible
for completing the
work and fixing any
their mistakes
Impact
10
Active
ExternalRisk
Insurance
Protects the
property from
damage which is
effective at the
commencement,
procurement, and
transportation to
the site.
If any of the
goods gets
damaged while
being delivered
or shipped to the
job site this
means the
project manager
has to reorder
that part which
may push the
same schedule
out thus
Impacting the
closing date.
Opportunity
Time LO LO
Probability
VH
Exploit Weather
Insurance claims
and schedule relief
from the client of
Force Majeure
Project
manager
Monthly 4/29/2016
H
M
L x
VL
VL L M H VH
Impact
11
Active
ExternalRisk
Contingency
funds
Many project
manager will
setup
Contingency
funds to help
them cover cash
flow shortages, a
debt service
reserve fund can
be set up by a
line of credit
the biggest risk
is that this
money could be
misused or
overused
impacting the
company’s
cash flow
Threat
Cost MEDIUM MEDIUM
Probability
VH
Accept Emergencies
Avoid as using the
Contingency fund
as much as
possible
Project
manager
Monthly 4/29/2016
H
M x
L
VL
VL L M H VH
Impact

Appendix D
Project Status Summary
Jonathan family Dream Home Project Status Summary
Apr.-16
Project Information
Dashboard Project Manager: J & J Custom Home Builders Project Budget: $632,400
Rating Project Sponsor: Bank of America Project Costs to Date (Actuals): 60K
GREEN
Oversight Leader: Project Manager Project Start Date: Feb. 29, 2016
Lifecycle Phase: Implementation Project End Date: Apr. 26, 2016
Risks (Top 5) from Risk Radar
Rank ID Risk Statements Mitigation Impact Prob. Exposure
1 2.2
labor shortages can make it hard to keep the
project on track
VHI HI Red
2 2.3
damaged goods could lead to construction delays because
it would need to be reorder
MED MED ORANGE
3 2.4 Unexpected weather conditions VHI LO ORANGE
4 3.1 Failure of supplier delivering design materials VLO VHI GREEN
Status Summary
Category
Rating
SID
Action
Req.?
Comments (Focus on any issues or significant events within the
specific categories)
( * - changed from last period)
Labor shortages can make it hard to keep
the project on track
RED
Book trades in advance or has trade crafts database so that the project
manager can pull from when needed.
Damaged goods could lead to
construction delays because it would
need to be reorder
ORANGE
Check for damaged goods throughout the construction phase and
contact supplier or vendors to have it rectified immediately.
Unexpected weather conditions ORANGE
Give the trades incentives to finish the work on time such as bonuses
if allowed.
Failure of supplier delivering design
materials
GREEN Contingency plan and enforce on time deliveries.

References
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projects.html
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