Construction Services     • Construction Management CM from the AIA design side Risk Management In design and construction, risk analysis can be described as a systematic methodology and ongoing process by which occurrences that may substantially affect the end product can be identified, quantified, modeled, managed, and monitored. This tool is especially useful as a method of good project management and planning, because the business of building is inherently risky—the risk mitigation methods can be applied to project cost, schedule, quality/performance, safety, and business operations, especially as construction risk increases with the size of the project. Good risk management procedures ultimately measure the team's confidence level in the project on an ongoing basis, and allow the introduction of corrective actions, monetary contingency, and schedule float in order to minimize losses to the project and increase the likelihood of the project being completed on schedule and within budget.   The application of risk management procedures in construction can give early visibility to potential "problem areas" and opportunities, where effort and money can be expended early in the design and construction phases to reduce vulnerability, insurance costs, business or mission interruption, and claims. Early risk identification ensures that design and team effort is concentrated in critical areas, focusing the project team's attention on actions and resources where there is a major risk exposure, or where the greatest time/cost savings can be made through reengineering and streamlined project management. The objective is proactive management of projects, where problems are reduced as they are identified, as differentiated from the traditional approach to construction, which waits until critical problems develop and then implements an immediate (and typically expensive) response which may reduce the impact to the project but likely does not avoid losses as effectively as early risk response. Over time, risk management allows the project team to build a historical profile of risk based upon experience and lessons learned, which will allow for better management of future projects. Risk management is an organized method of identifying and measuring risk and then developing, selecting, implementing and managing options for addressing risks. There are several types of risk that an owner should consider as part of risk management methodology. These include: • Schedule risk • Cost risk • Technical feasibility • Risk of technical     obsolescence • Dependencies between a new    project and other projects • Physical events beyond direct    control Risk management seeks to identify and ultimately control possible future events and should be proactive rather than reactive. To be effective, risk management must rely on tools and techniques that help predict the likelihood of future events, the effects of these future events and methods to deal with these future events. Risk management is the responsibility of everyone involved in a project.   Project Management Excellence in Project Management is achieved through effective management of a complex range of issues unique to each project. Contemporary institutions and organizations are increasingly realizing that traditional forms of management—based on the same approach to every project—cannot accommodate the ever-changing landscape of today's economic, social, and business environment.     Scope Management Project scope is defined as the work that must be done to meet a client's program goals for space, function, features, and level of quality. In many ways, scope management is the foundation on which the other project elements are built. From project inception, project scope defines the boundaries within which the delivery team and the external stakeholders work. Effective scope management requires accurate definition of a client's requirements in the Planning and Development stage and a systematic process for monitoring and managing all the factors that may impact or change the client's program requirements throughout the project delivery process.   Cost Management Project costs are measured and analyzed in many ways throughout a project, from planning and design to bidding, construction, turnover, and beyond. First costs, cost-benefit, and life-cycle cost are a few examples of how a project's cost-effectiveness can be evaluated. However, the control of costs requires continual systematic cost management. These cost management processes start with the establishment of budgets that align with scope and quality requirements and continue with milestone estimates, value engineering, procurement strategies, and change order management through to claims avoidance and negotiation. Schedule Management A project schedule defines the process and establishes a timeline to be followed in delivering the project. Avoiding schedule slippage is a key objective of schedule management. Comprehensive project schedules will identify all of the project's stages, phases, and activities assigned to each team member mapping them to a timeline that measures key milestones (dates) that are used to keep track of work progress. Schedule management interfaces directly with scope, cost, and quality management when team member roles and activities are defined, coordinated, and continually monitored. Quality Control Quality control starts with matching expectations about quality levels with budget and scope during planning and design reviews and continues through construction delivery with a program of inspections, tests, and certifications. It requires a coordinated performance among the entire project team in order for a completed building program to fully satisfy a client's expectations. Project Requirements Project inception and preliminary planning require thoughtful definition of goals and needs (Project Scope); master planning to accommodate anticipated future needs; evaluation of project alternatives; identification of site requirements; funding requirements; budget authorization cycles and/or financial impacts; and project phasing.   Delivery Methods There are many approaches to achieve successful project design and construction. These "Delivery Methods", which are driven by the project's scope, budget, and schedule, include Traditional (Design/Bid/Build), CM (also called CMc, or Construction Manager as Constructor), Design-Build, Bridging, and Lease/Build. The selection of a delivery method will in turn influence the Delivery Team composition, schedule, budget, and management plan.   Project Management Plans A Project Management Plan (PMP) is commonly used to document key management parameters in a central location and is updated throughout the project focusing on recognition of changes in program planning and management of those changes. It includes definition of an owner's program goals, technical requirements, schedules, resources, budgets, and management programs. Design Stage Management Once a design team has been assembled (procured), a high level of owner coordination is needed to manage the entire delivery team through the project's design phases. Design management requires oversight of schedules and budgets; review of key submissions and deliverables for compliance with program goals and design objectives; verification of incorporation of stakeholder review input; verification of incorporation of construction phase functional testing requirements; and appropriate application of the owner's design standards and criteria. Construction Stage Management   •  Project coordination/communication        •  RFIs        •  Change order management        •  Conflict resolution   •  Inspections   •  Submittal reviews   •  Schedules   •  Payments