From Risk to Profit Benchmarking and Claims Studies

PROJECT

QUANTITATIVE

QUALITATIVE

RISK RESPONSE

1. PROJECT TYPE Certain project types have more risks than others. Residential, particularly condominium projects, large public-use centers, and land/site develop- ment projects bring about the highest number of claims. 2. PROJECT SIZE AND DURATION Does the size or duration of the project pose additional risks? In general, the larger the project or the longer its duration, the greater the risk will be.

3. ADEQUATE FINANCING Does the client have adequate funding or is it attainable? How does the client anticipate managing cash flow?

4. DESIGN COMPLEXITY Is your firm capable of managing the required complexity of the design?

5. CONSTRUCTION COMPLEXITY Is the project team capable of managing the complexity of the construction?

6. UNIQUE REQUIREMENTS Are there unique project requirements that could pose more risk? For example, is it a new or state-of-the-art project?

7. SCOPE OF SERVICES Will you be hired to provide the full scope of services you think is needed for the project? Will you be providing at least some construction phase services? Often, your presence at the construction site can help mitigate potential problems. 8. SCHEDULE Are there particular scheduling issues, such as meeting a developer’s projections for selling the property, that may increase the risk? Is the overall project timeframe adequate? 9. NEW PRODUCTS AND TECHNOLOGIES Will new products or technologies be required or expected in the design and construction of the project? Have these products or technologies been adequately researched and tested?

46 • From Risk to Profit - Benchmarking and Claims Studies

Victor

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