you are working in a renewed construction contracting company M/s Condur LLC and has never
worked with this structural steel fabricator prior. They have been marketing to your home office staff-
purchasing agent, and he has decided to try them and issued them a purchase order and handed it
off to you, as the main contractor's PM, to manage. This is a very complicated steel detailing project.
The fabricator has subcontracted the detailing out to a third-tier firm. There are numerous questions
and meetings with the detailer. The shop drawings show up relatively on schedule but require a
substantial amount of your time for review. There are numerous changes that are brought up during
the shop drawing process. Many of these will ultimately result in justifiable change orders to the client.
In short, you are totally engulfed in the detailing effort. The fabricator has invoiced you for detailing, as
well as the complete steel mill order material for purchase and some fabrication. You have been paid
and have paid them accordingly. You had no reason to suspect that anything was wrong. The
embedded steel members show up on time and have been fabricated properly. You have not visited
the fabricator's shop. Your first major shipment of columns and beams is scheduled for next Thursday.Answer the following questions,
1. How did this happen? What should you have done to prevent it from happening? Who in your
organization is at fault? (Minimum 200 words)
2. Do you try to keep the fabricator afloat? Do you buy the steel from the rolling mill directly? Do
you put your people in their shop to fabricate the steel? Do you employ their personnel and
pay them directly to perform the fabrication? (Minimum 300 words)
3. You decide to hold any additional payments that are already in the system from the steel
fabricator. There is some money due them for detailing and embeds. The supplier and detailer
both file liens on your project. Are they valid? How do you get them removed? Your client
discovers the situation and begins to pressure you to have the liens removed. Can the client
contractually withhold all further payments from the main contractor until this is resolved? How
could you have prevented this from happening? (Minimum 500 words)
4. How do you get the steel delivered to the project and still keep your project on schedule to
avoid the AED 1,000 liquidated damages (LDs) that are in your contract? Do you negotiate
with the second bidding supplier? Do you rebid the steel package to other fabricators? Assume
that the market has gotten tighter and all of the fabricators have plenty of work. Do you hire the
second bidder lump sum, time and material (T&M), or unit price? (Minimum 250 words)
5. Assume you find another fabricator. Will they want to re-detail the project? Will they accept the
detailing that already exists? Which is the best situation for you? What are your risks either
way? How do you mitigate these risks? (Minimum 250 words)
Answers
What is risk mitigation?
Risk mitigation refers to the process of planning and developing methods and options to reduce threats—or risks—to project objectives. A project team might implement risk mitigation strategies to identify, monitor and evaluate risks and consequences inherent to completing a specific project, such as new product creation. Risk mitigation also includes the actions put into place to deal with issues and effects of those issues regarding a project.
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Five risk mitigation strategies with examples
Appropriate risk mitigation involves first identifying potential risks to a project—like team turnover, product failure or scope creep—and then planning for the risk by implementing strategies to help lessen or halt the risk. The following strategies can be used in risk mitigation planning and monitoring.
Assume and accept risk.
Avoidance of risk.
Controlling risk.
Transference of risk.
Watch and monitor risk.