Mitigation Plan Assignment: Risk Assessment for Lot Fourteen (Adelaide)

Question

Task: You are a project analyst at a large construction company. You have been asked to develop a risk analysis and mitigation plan for: Lot Fourteen (Adelaide)
• https://lotfourteen.com.au/

• https://renewalsa.sa.gov.au/projects/lot-fourteen/
Your mitigation plan assignment should cover the three parts as detailed below:

Part A: Project Overview
For each student’s allocated case study students must be able to identify the following information through their own research:

• The overall budget for the project (real or projected)
• Social and economic rationale: Including benefits and drawbacks for the project
• Key Statistics: Provide key information about the project:
• Scope and Size
• Budget and estimated cost
• Time required to complete the project
• Key construction elements or phases (e.g. if you are building a toll road one key element may be the tunnel segment or bridge segment)
• Environmental costs or benefits
• Funding mechanisms: How the project makes money or provides return to its promoters
• Identify the Key Stakeholders in the project

Part B: Risk Analysis
In this part students develop a risk assessment analysis in which they use both qualitative and quantitative measures to identify potential risks in the project and determine how they should be weighted.

The risk analysis should draw upon principles outlined in the Project Management Body of Knowledge (PMBOK) and material discussed in class in weeks 1 -5. Students would be expected to produce a risk matrix where the likelihood of potential risks events are mapped against their possible consequences. Other risk assessment and analysis activities might focus on a range of financial measures associated with the project.

Part C: Risk Mitigation Plan
In this part students will use the information collected and analyzed in the previous two parts to develop a risk mitigation plan and strategy. Based on information identified in the risk analysis students will be expected to develop a plan for how they deal with the various identified risks. The mitigation plan should outline which risks need to be address and in what order. The plan should also identify and potential risks that they believe do not require attention.

The plan should then explain how risks might be addressed and by what means. Where possible places should include the reference to time and resource (costs) implications. Students need to take into account commercial considerations when constructing the plan and identify whether the plan is cost effective or has any implementation issues.

Answer

Mitigation Plan Assignment Part A: Project Overview
Lot Fourteen is located right at the center of Adelaide, south Australia considered to be as the world safest and livable city(Fourteen 2021). At lot fourteen, team has been created for analyzing the possible effect for global impact by enhancing innovation, research, education, culture, and tourism.

Overall Budget
The budget of this project is 722 million dollars and is funded by south Australian and Australian governments(Kerzner 2017). Along with this extra 400 million are invested by private sector companies in this project.

Social and economical rationale
The possible benefits of Lot fourteen project are listed below like Trade and commerce: This new project will provide a greater number of jobs and diverse economy in the current scenario. Network of goods and services will help modern firms to exchange information which can result in growth.

Tourism: Adelaide need better transport system so that foreigners can be easily attracted. Lot Fourteen will evolve as the main south Australian destination for different visitors. They will be drawn by national significance attraction due to Aboriginal art and cultural center(Khameneh, Taheri and Ershadi 2016). In addition, mission control and space discovery center will be also taken into consideration.

Cultural impact: Lot Fourteen is exactly located on the cultural significant site for the people of Adelaide. It aims to center around river Torrens and Gum forest which is found to be important parameter for dreaming story. In the year 2019, Kaurna nation held a ceremony regarding smoking to clean the site of Royal Adelaide hospital.

The challenges of Lot fourteen are listed below like
Decrease in overall population: Decrease in rural population reveals the fact that there is shortage of produced agriculture. Due to this, there will be growing demand for feeding in this area. In addition, there will be dramatic escalation of solid waste production.

Overpopulation in the urban area: Overcrowding takes place when large number of people live in small area. Congestion in these areas will again increase the inflow of migrants and people will move to Lot fourteen. Much of the pressure is given on sanitation and water facilities.

Key statistics
Scope and size
The scope and size of this project is listed below like

• To capitalize on the culture of Adelaide, environment, and economic strength for the people
• To create blocks which can again drive value for South Australia economy along with placing extra-ordinary vibrancy.

Budget and estimated cost
For Lot fourteen project, state and Australia government will go for investment of 672 million dollars.

Time to complete the project
It is expected that lot fourteen project will be 35,000 sq meters in area beneficial for both start-ups and entrepreneurs and overall construction will be completed by the year 2023.

Key construction elements
Some of the important construction elements are listed below

• The project aims to offer geographical benefits being associated with retail and hospitality sector(Australia 2021).
• Economic uses will ultimately contribute to growth of south Australia.

Environmental cost or benefits
Lot fourteen will attract some innovative business and even some target firms around the globe by the year 2020 and there will around 1,000 people working on this precinct. The project will make money from 350,000 visitor’s individual year of project being completed by year 2028.

Funding mechanism
This project will be funded around 722 million dollars by government of Australia and 400 million by the private sector investor.

Identifying Key stakeholders of the project
Some of the vital stakeholders of this project are

• Government of South Australia
• Government of Australia
• Municipal Society

Part B: Risk analysis
The risk assessment is found to be vital for overall planning of the project. Within the risk analysis, the project manager of lot fourteen can understand the possible threat in project. The activity required for having a complete understanding of possible danger and issues involved in project(Marchewka 2016). Besides, this will also help in analysis of exact extent which can create effect on the output of project. Good risk analysis will help in analysis of some factor which can result in negative impact on project. It will again help in taking the proper measures to overcome all possible obstacles within project. It emphasizes on right the right steps so that they all possible kind of obstacles which ensures successful competition of project.

Qualitative risk analysis is carried out by giving priority to the identified risks within project by using both impact and probability. Right in the fifth edition of PMBOK, a method is used for guiding and identify priority to possible risk within project which need assessment(Meredith, Mantel Jr, and Shafer 2017). There is a list of steps which can help in availing qualitative risk assessment. A list of techniques for qualitative risk are listed below:

• Schedule used for risk analysis
• Impact and probability matrix.

Quantitative risk is expressed by taking into monetary schedules and values. With respect to PMBOK guidelines, quantitative risk is revealed as the exact method of risk analysis with exact aim of identifying possible impact on this urban development project(Papadaki, et al. 2019). It even needs numerical rating for risk along with understanding of possible probability for understanding. A list of ways for quantitative risk analysis are listed below

• Analysis of cost risk
• Break-even analysis

In this Lot fourteen project, the qualitative risk identified are listed

• Impact of people
• Impact on environment
• Impact on schedule
• Impact on business goals
• Corporate image of the company.

Risk Matrix

Part C: Risk Mitigation Plan
Risk evaluation
Some of risks in Lot fourteen project which needs to be taken into account like

• Safety hazards resulting in accident and injury to workers.
• Project manager for changing orders
• Incomplete design and poorly stated scope.
• Unacceptance design
• Written contract which is completely poor in design
• Increase in overall cost of materials.
• Overall shortage of labor
• Theft of tools and equipment’s
• Conflict among team members of other department like design.

Construction risk tends to vary and even found to be complicated one. These risks can be overcome by making use of list of steps like Avoiding risks: Contractor can easily refuse to build a project in specific areas which is found to be much more prone to natural disaster.

Transfer of risk: Insurance is the only way for handling this specific risk. There is need for establishing proper agreement with both subcontractor or supplier.

Mitigating risk: Safety hazards within construction industry will even exists. There is need for placing the equipment for safety and training purpose which can again reduce possible kind of risk.

Acceptance of risk: Weather is found to be as an uncontrolled parameter and which can result in delay for this Lot fourteen project. (Turner 2016) There is requirement for using suitable construction risk management for working with different issues within project. All this is followed by reducing the possible impact. Some of the possible risk which need to be addressed like

• Increasing conflict among the team members of Lot Fourteen project.
• Optimistic assessment requires to be carried regarding the employee workload.

Risk mitigation strategy
Lot fourteen project require to identify various people who are involved within risk by making use of suitable risk management plan. There is need for development of exact top technology which can be used for managing and mitigating possible risk within project(Willumsenet al. 2019). Certain number of tools and techniques can be used for identifying various steps of this lot fourteen project. Some of the risk mitigation strategy of Lot Fourteen project are listed below like

Using building information modelling: It uses a relational database were information for various elements for structure and relationship(Cunningham, and McCutcheon 2020). This is useful for calculating space, proper analysis of structure and design of documents.

Making use of big data technology: Big Data is evolving technology which can be used in project related to construction. During the instance of buying equipment for project, input of sensor can help in analyzing the exact active time(Fleming and Koppelman 2016). It is a growing factor with respect to costing and involvement within project.

Drone: This technology has been popular in last few years in various industrial sectors. Drone is a useful technology which can be used for reaching tough situation so that they can avoid sending worker so that specific position(O'Neil 2020). In this Lot Fourteen, Drone will evolve as a growing technology so that they have complete site overview thereby saving money.

References
Australia, S., 2021. Lot Fourteen. [online] Renewal SA. Available at: [Accessed 26 April 2021].

Cunningham, S. and McCutcheon, M., 2020. Australian Cultural and Creative Activity: A Population and Hotspot Analysis-Innovation Precincts in Adelaide. Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.

Fourteen, L., 2021. Home. [online] Lot Fourteen. Available at: [Accessed 26 April 2021]. Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Khameneh, A.H., Taheri, A. and Ershadi, M., 2016. Offering a framework for evaluating the performance of project risk management system. Procedia-Social and Behavioral Sciences, 226(226), pp.82-90.

Marchewka, J.T., 2016. Information technology project management: Providing measurable organizational value. John Wiley & Sons.

Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial approach. John Wiley & Sons.

O'Neil, T., 2020. The Built Environment and Well-Being: Designing for Well-Being in Post-Industrial Communities During the Age of Urbanization.

Papadaki, D., Bakas, D.N., Karamitsos, D. and Kirkham, D., 2019. Big data from social media and scientific literature databases reveals relationships among risk management, project management and project success. Project Management and Project Success (September 26, 2019).

Turner, R., 2016. Gower handbook of project management. Routledge. Willumsen, P., Oehmen, J., Stingl, V. and Geraldi, J., 2019. Value creation through project risk management. International Journal of Project Management, 37(5), pp.731-749.