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O P I N I O N
D esign firms are always looking for ways to increase revenues and decrease costs. This takes many forms, but one initiative that will clearly pay dividends is to manage risk on both a pre-claim and post-claim basis. Risk management Claims are not like fine wine – they do not get better with time. So take these four steps to assess and manage potential exposures.
3)Manage. Practice effective project management, in- cluding active communication and documentation. 4)Take action. Once any signs of trouble, or even potential trouble, appear be proactive in addressing any concerns or issues. PROJECT EVALUATION AND GO/NO-GO DECISION-MAKING. It is important to begin the risk management process at a very early stage. In fact, this work actually “It is important to begin the risk management process at a very early stage. In fact, this work actually starts even before considering a particular project or client.”
What do we mean by manage risk? Well, simply put, it is the process of identifying, quantifying (if possible), mitigating, transferring, or accepting risk. This is something we all undertake every day as we evaluate the risks of any action (or inaction) and move forward with life. Sometimes, we undertake this type of risk assessment and management informally; at other times, we employ a more disciplined approach. For design firms to address risk most effectively we encourage a formal process. FOUR-STEP PROCESS FOR BASIC RISK ASSESSMENT. Our expe- rience is that the best run architecture and engi- neering firms utilize a four-step process as follows: 1)Evaluate. Assess the project and client at an early stage and make a reasoned go/no-go decision. 2)Negotiate. Once the decision to go ahead is made, work actively to manage the contract negotiations.
Dan Knise
Rob Hughes GUEST SPEAKERS
See DAN KNISE & ROB HUGHES, page 12
THE ZWEIG LETTER February 20, 2017, ISSUE 1188
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