How to manage risk from the start

[Buzz]

• Looking for opinions on how to manage the risk on a new build , if i had very deep pockets i would just hand it over to the best contractor i could source to do the design and build supported by lots of mood boards and trips to high end suppliers looking at shiny stuff for finishes , unfortunately money is an object that cannot be ignored for me , but i also need to manage the risk of starting something i no experience of doing , in your view what is the best balance between a turnkey contract and lots of individual trades needing to be co-ordinated effectively , basically cost vs risk where was your tipping point ? what did you do and what would you change ?

[dnb]

Writing well specified work packages and employ a "critical friend" (your architect might be a good call for this) to make sure all bases are covered as far as possible mitigates a lot of risk to my mind along with a robust QA process by either you or someone you trust. I chose to do a lot of this myself. I have a professional engineering background so am used to risk management to some extent.

 

The rest of them can be written down in a risk register (something simple like a notebook is fine) and then discussed with relevant contractors etc to cost the risk and find out if there is a cost effective mitigation activity to reduce the likelihood or cost/timescale impact.

 

It's easy to give this sort of advice but quite another to follow it... I have mostly done the above but I never thought to include material and labour shortages, and lockdowns caused by a pandemic in my list of risks!

[Carrerahill]

24 minutes ago, Buzz said:

• Looking for opinions on how to manage the risk on a new build , if i had very deep pockets i would just hand it over to the best contractor i could source to do the design and build supported by lots of mood boards and trips to high end suppliers looking at shiny stuff for finishes , unfortunately money is an object that cannot be ignored for me , but i also need to manage the risk of starting something i no experience of doing , in your view what is the best balance between a turnkey contract and lots of individual trades needing to be co-ordinated effectively , basically cost vs risk where was your tipping point ? what did you do and what would you change ?

Depends on your background and knowledge level to be honest.

 

If you need guided then I'd contemplate speaking to a consultant project manager who for a fee will look after your build, manage it, shout at the contractors for you when they make mistakes and solve issues for you, the will probably save you double to 3 x what their fee will be. 

 

Other option is to find some good trades, spit them out a bit but give one the sort of main contractor role, if you feel confident & skilled enough then manage it all yourself and bring everyone together, however, you will need to deal with issues that arise from, contractors blaming other contractors and saying jobs are not theirs and should be done by the next contractor etc.

 

Then there is simply the option of get people in, but beware is all I will say. 

 

Did you have a good architect? Would they help to manage it on site for you?

Edited September 30, 2020 by Carrerahill

[Buzz]

@dnb I work in just in time chilled logistics but the whole industry is risk averse ot the point of fines being charged if outside 30 minute windows . I like the idea of a risk register for each part of the build and potentially adding financial and time buffers at critical milestones. 

[Buzz]

@Carrerahill will investigate the option of our architect as he has so far been extremely helpful and competent , I am quietly confident i could bring all the trades together its getting them to play nice with each other that concerns me , and who picks up the bill for delays when one falls behind and affects the other , I think I know the answer ? 

[nod]

Individual trades are the least expensive way But will take longer and give you more hassle than bringing in a Single contractor

 

Ive just started plastering a large barn conversion for a young lady that has managed the whole process with no experience 

She was gifted barn so had a good start 

She was given our number and she waited eight weeks for us to start 
 

 

[Buzz]

Thanks @nod I think my biggest concern is bitting off more than I can chew or ambition exceeding talent! Going trade by trade does worry me as one let down could cause major issues although I am under no time pressure,  but main contractor route may prove costly, just trying to get the right balance for a novice