1. SSFM International, Inc. Project Management, Planning & Engineering Hawaii, Pacific Islands...

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SSFM International, Inc.SSFM International, Inc.

•Project Management, Planning & Engineering

•Hawaii, Pacific Islands & Asia

•Corey Matsuoka, P.E., PMP, LEED AP

•Civil Engineer by License

•Structural Engineer by Education

PURPOSEPURPOSE

•Developed an Understanding of the Importance of Risk Management

•10 Foundations of Risk Management

•Tools for Risk Management

HYATT REGENCYKANSAS CITYHYATT REGENCYKANSAS CITY

•Constructed in 1978

•40 Story Building (MO tallest)

•Lobby with a Multi Story Atrium

• Suspended walkways

• Column-less Staircases

•A Triumph of Modern Architecture and Engineering

HYATT REGENCYKANSAS CITYHYATT REGENCYKANSAS CITY

•July 17, 1981 Dance Contest

•2nd and 4th Floor Walkways Collapsed

•144 Dead, 200+ Injured

HYATT REGENCYKANSAS CITYHYATT REGENCYKANSAS CITY

•During Construction Design was Modified

•New Design was Inadequate

•Poor Communication

•Poor Quality Control/Assurance

Investigation

HYATT REGENCYKANSAS CITYHYATT REGENCYKANSAS CITY

•Engineers convicted of gross negligence, misconduct and unprofessional conduct

•Engineers lost their licenses

•Company lost license

•$140 Million in Damages

Aftermath

10 FOUNDATIONS OFRISK MANAGEMENT10 FOUNDATIONS OFRISK MANAGEMENT

Business Practices

1. Culture

2. Prevention and Proactivity

3. Planning

4. Communication

5. Education

Business Practices

1. Culture

2. Prevention and Proactivity

3. Planning

4. Communication

5. Education

Project Management

6. Scope

7. Compensation

8. Contracts

9. Contract Documents

10.Construction Phase

Project Management

6. Scope

7. Compensation

8. Contracts

9. Contract Documents

10.Construction Phase

Create a Culture of Managing Risks and Preventing Claims

CULTURECULTURE11

•Involves all levels of Staff and even Clients

•A conscious commitment that leads to unconscious actions

Tool: Guide to Create Culture

***Tool: Guide to Create Culture***

CULTURECULTURE11

•Artifacts

•Shared Values, Knowledge, and Learning

•Basic Unspoken Assumptions

***Tool: Guide to Create Culture***Artifacts

CULTURECULTURE11

•Meeting Agendas

•Post Reminders – Screen Savers, Posters

•Risk Manager

***Tool: Guide to Create Culture***Shared Values, Knowledge, and Learning

CULTURECULTURE11

•Horror Stories and Statistics

•Tie Risk to Monetary Value

•Role Play

•Presentations

***Tool: Guide to Create Culture***Basic Unspoken Assumptions

CULTURECULTURE11

•Developed through Artifacts

•Developed through Shared Values, Knowledge and Learning

•Employee Interviews

Act with preventive techniques, don’t just react

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

•Risk Management Plans

•Develop Process and Systems

Tool: Employee Interview Guide

Tool: Project Risk Evaluation Checklist

***Tool: Project Risk Evaluation Checklist***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

•Microsoft Access Program

• General Company Questions

• Client/Owner Questions

• Project Questions

•Responses to Answers that Trigger Risk

***Tool: Project Risk Evaluation Checklist***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

***Tool: Project Risk Evaluation Checklist***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

***Tool: Employee Interview Guide & Template***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

•Hard Skills, Talent & Soft Skills

•Outline / Agenda

•Sample Questions

•Template

***Tool: Employee Interview Guide & Template***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

•Hard Skills

“Success in any business is 85% ability to relate to

other people and attitude and only 15% job knowledge

and technical skills.”

– Carnegie Foundation, 2005.

***Tool: Employee Interview Guide & Template***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

•Talent

“People don’t change that much. Don’t waste time

trying to put in what was left out. Try to draw out what

was left in. That is hard enough.”

– Marcus Buckingham, First, Break All The Rules: What the World’s

Greatest Managers Do Differently

***Tool: Employee Interview Guide & Template***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

•Soft Skills

“There is a growing recognition that interpersonal

(soft) skills are not simply helpful in business today;

they are essential…”

– Kelly Pierce, eSight Trend Watch: Increased Value of Soft Skills

***Tool: Employee Interview Guide & Template***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

***Tool: Employee Interview Guide & Template***

PREVENTION & PROACTIVITYPREVENTION & PROACTIVITY22

Plan to be Claims Free

PLANNINGPLANNING33

•Staff Hiring & Retention

•Client & Project Selection

•Training & Quality Assurance

•Project Planning

Tool: Corporate Risk Management Plan

***Tool: Corporate Risk Management Plan***

PLANNINGPLANNING33

Communicate to Match Expectations with Perceptions

COMMUNICATIONCOMMUNICATION44

•Communications Plan

•Templates (correspondence logs, etc)

•Protocols (telephone, e-mail, etc)

Tool: Project Status Report Template

***Tool: Project Status Report***

COMMUNICATIONCOMMUNICATION44

•Activities Completed

•Action Items

•Schedule

•Comments / Announcements

***Tool: Project Status Report***

COMMUNICATIONCOMMUNICATION44

Educate All the Stakeholders

EDUCATIONEDUCATION55

•Staff Training

•Mentoring / Coaching

•Communication with Owner / Client / Sponsor

Tool: Guide to the Practice of Structural Engineering

EDUCATIONEDUCATION55

•CASE Document

•Guide for new Engineers

•Searchable, Electronic

Document

•Test Questions

***Tool: Guide to the Practice of Structural Engineering***

Develop and Manage a Clearly Defined Scope of Services

SCOPESCOPE66

•Provides Understanding

•Serves as a Basis for Negotiation

•Work Breakdown Structure

Tool: Scope Template

***Tool: Scope Template***

SCOPESCOPE66

Prepare and Negotiate Fees that Allow for Quality and Profit

COMPENSATIONCOMPENSATION77

•Effort or Value Based

•Don’t be Afraid to Walk

•Fee Proposal Template

•Sanity Checks

Tool: Revenue vs. Profit (Client Evaluation)

***Tool: Revenue vs. Profit (Client Evaluation)***

COMPENSATIONCOMPENSATION77

***Tool: Revenue vs. Profit (Client Evaluation)***

COMPENSATIONCOMPENSATION77

***Tool: Revenue vs. Profit (Client Evaluation)***

COMPENSATIONCOMPENSATION77

Negotiate Clear and Fair Agreements:Risk Should be Fairly Proportioned to Each Party

CONTRACTSCONTRACTS88

•Standard Templates

•Insurable?

•Standard of Care

Tool: Red Flag Word Search

CONTRACTSCONTRACTS88

•Best

•Certify

•Guarantee

•Insure

•Warrantee

***Tool: Red Flag Word Search***

•Total

•All

•Approve

•Complete

•Every

•Indemnify

•Liquidated Damages

•Ensure

•Full

•Defend

***Tool: Red Flag Word Search***

CONTRACTSCONTRACTS88

Produce Quality Construction Documents

CONSTRUCTION DOCUMENTSCONSTRUCTION DOCUMENTS99

•QA/QC Procedures

•Quality Management Plan

•Guidelines / Codes

Tool: A Guideline Addressing Coordination and Completeness of Structural Construction Documents

CONSTRUCTION DOCUMENTSCONSTRUCTION DOCUMENTS99

•CASE Document

•Guide for new Engineers

•Searchable, Electronic

Document

•Test Questions

***Tool: A Guideline Addressing Coordination

and Completeness of Structural Construction

Documents ***

Provide Services to Complete the Risk Management Process

CONSTRUCTION PHASE SERVICESCONSTRUCTION PHASE SERVICES1010

•Provide Timely Responses

•Establish Good Relationships

•Keep Good Records

•Lessons Learned

Tool: Site Visit Cards

CONSTRUCTION PHASE SERVICESCONSTRUCTION PHASE SERVICES1010

***Tool: Site Visit Cards***

•Prior to the Site Visit – What to Do

•What to Take

•During the Site Visit – What to Observe

•After the Site Visit – What to Do

CONSTRUCTION PHASE SERVICESCONSTRUCTION PHASE SERVICES1010

***Tool: Site Visit Cards***

CONSTRUCTION PHASE SERVICESCONSTRUCTION PHASE SERVICES1010

***Tool: Site Visit Cards***

•General Guidance and Rules of Thumb

•Composite Slab on Metal Deck

•Reinforced Concrete Flat Slabs

•Concrete Spread and Wall Footings

•Reinforced Concrete Masonry Unit Walls

•Structural Steel – General Framing

•Wood Framing – Sheer Walls

Questions?Questions?

•Corey Matsuoka, P.E., PMP, LEED AP SSFM International, Inc. (808) 531-1308 CMatsuoka@ssfm.com