Professional Documents
Culture Documents
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Category of Risk
Operational Risk Commercial Risk Commercial Risk Technical Risk Co-ordination and Technical Know-how Co-ordination and Technical Know-how Safety and Health Operational Risk
Risk Assessm
Risk Description
One Single Major Contractor will have over-dependency from all other specialised agencies Almost nil competition in award of other subpackages as Main contractor appoints all other specialised agencies. Oveheads and Profits of Main Contractor will be added over and above the cost of works by specialised agencies. Main contractor appoints a less experienced/expert agencies to maximise own profit margins One single major contractor may not be competent enough to provide specialised technical support to other stakeholders. Risk of inappropriate solutions for technologies that finally represent a small volume but will have high operational cost During construction, maintaining requisite safety standards becomes more important due to involvement of several agencies. Less real visibility on progress withing important specialty lots/packages progress
Probability of Risk Occurrence High High High High High High High High
Risk Assessment Potential Impact Cost Impact Moderate Moderate High High Moderate High Moderate Low Quality/SHE Impact High High Moderate High High High High Low Severity of Impact Risk Score
Remarks
Risk Assessment
Risk Description
The overall responsibility of carrying out main as well as other sub packages lies with the Single contractor leading to over dependency among all stakeholders. One Single Major Contractor will have over-dependency from all other specialised agencies Almost nil competition in award of other subpackages as Main contractor appoints all other specialised agencies. Main contractor will be paid additional fixed mark up on the Cost of all other Subpackages awarded by Employer towards the Monitoring, Co-ordination and supervision Main contractor appoints a less experienced/expert agencies to maximise own profit margins One single major contractor may not be competent enough to provide specialised technical support to other stakeholders. Risk of inappropriate solutions for technologies that finally represent a small volume but will have high operational cost During construction, maintaining requisite safety standards becomes more important due to involvement of several agencies. Less real visibility on progress withing important specialty lots/packages progress
Risk Assessment Potential Impact Cost Impact Moderate Moderate NA Moderate NA NA NA Moderate NA Quality/SHE Impact High High NA Moderate NA NA NA High Low Severity of Impact Risk Score
Remarks
The credentials and the testimonials for the appointed agencies are well verified by the Employer/Team Proper framing of Contract to mitigate the occurences of such issues All agencies will be specialist in nature to carry out their specific jobs