Value and Risk Management in Construction Essay

Value and Risk Management in Construction - Essay Example The value management exercises are basically carried out first in order to determine an exact cause which is responsible for constituting the values to the business mainly from delivery of any project. A preferred option is also identified and together with all other risks, there is a great chance of it to occur if any particular option is implemented. (Office of government commerce, 2003) Risk management mainly includes all the activities that are required for the identification and control of the risks that are related to the option of the preferred project. Successful risk management also requires a senior management commitment along with ownership and a thorough understanding of the whole process and also an active risk management regime that is reviewed on daily basis in a much constructive culture. Attitudes to the risk are known to have a significant effect on the overall success of the projects being carried. For instance, the main objective related to ‘not failing†™ will surely have a low tolerance for the risks of all kinds. Conversely speaking, the objective of ‘succeeding’ will also encourage the participants to become more innovative and to take more risks where necessary and to make an effort for monitoring along with management of the recognized risks. (Office of government commerce, 2003) If the talk in detail about the risk management mainly in the construction projects of my country, USA, it mainly involves: a proper identification and assessment of the risks mainly in terms of its impact along with probability, proper establishment, and maintenance of the joint risk register, it should have the concept and assurance of agreement by all the integrated project team members, establishment of the procedures that are required for active management and monitoring of the risks throughout the on-going project and the during occupation on the completion, to make sure that the members of the team are having a proper opportunity for engaging in a dialogue that is eventually going to promote an agreement of the appropriate and accurate allocation of the risk, proper updating of the risk information throughout the project which would surely ensure the control of the risks by proper planning of how the risks will be managed through the on-going project so that it could have an acceptable limit and lastly efficient allocation of the responsibility for proper management of each of the risks with the suitable party that will best their job. (Office of government commerce, 2003) Now talking about value in detail particularly in much broadest sense then its main is to benefit the client or in simpler words the project that is worth doing and which could also quantify in the main business terms, for example, this can be done by creating a better and an efficient working environment or even by improving the overall experience of the associated people during their workings. In this respect, value basically means to e nsure that the correct choices and decisions are being made mainly to obtain the optimum and the best possible balance of the benefit mainly in its relation to the overall cost and its risk.