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Managing Risk in the Construction Industry
AGC ColoradoJuly 19, 2017
Denver, CO
Stephen JonesSenior Director, Industry Insights Research
Dodge Data & Analytics
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSpeaker
2
Stephen Jones
• BA: Johns Hopkins University; MBA: Wharton
• 19 years in Architecture/Engineering• Principal and Board of Directors of major A/E firm Burt Hill (now Stantec)
• 3 years in Construction Technology• Vice President, Primavera Systems (now Oracle)
• 14 years with Dodge Data & Analytics (formerly McGraw-Hill
Construction)
• Senior Director, Industry Insights Research
• Focus on how technology advances and process improvements are impacting the global construction industry
Dodge Global NetworkLeading source of data, forecast and analysis
about global construction
SweetsLeading source of information about
building products
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingIndustry Insights Research: Public Reports
3
Over 50 SmartMarket Reports & Briefs (free: analyticsstore.construction.com)
TECHNOLOGY/INNOVATION
Measuring BIM
BIM for ContractorsInformation Mobility
BIM for Owners
SUSTAINABILITY
Green Homes Green Schools
World Green Trends Design for Health
PRACTICES/PROCESSES
Managing Uncertainty
Lean Safety
Delivery Systems
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
4
analyticsstore.construction.com
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
5
analyticsstore.construction.com
Agenda:
• Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingFrequency of Disputes/Claims
6
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingFrequency of Disputes/Claims
7
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
8
#
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
9
#
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
10
#
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMost Frequent and Costliest Disputes/Claims
11
#
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: STRATEGIC
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Fewer than 10% of any
company-type identified
these as high risk Strategic
factors:
• Compliance
• Sufficient industry/market
expertise
• Choice of delivery
method
• Political risks
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: STRATEGIC
14
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: OPERATIONAL
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Fewer than 10% of any
company-type identified
these as high risk
Operational factors:
• Material procurement
risks
• Site acquisition or
environmental risks
• Influence of consultants
on owners
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: OPERATIONAL
16
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: OPERATIONAL
17
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: FINANCIAL
18
Fewer than 10% of any
company-type identified
these as high risk Financial
factors:
• Credit/surety risks
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: HAZARD
19
Fewer than 10% of any
company-type identified
these as high risk
Operational factors:
• Unsafe project planning
• Weather delays
• Risk of pollution or
environmental damage
• Emergency response
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingHighest Risk Factors: BY COMPANY-TYPE
20
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
21
analyticsstore.construction.com
Key Takeaways:
1. Risk looks very different based on
your project role
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
22
analyticsstore.construction.com
Agenda:
• Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingEvaluating Risk
23
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingEvaluating Risk
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
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Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
26
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
27
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
28
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingMitigating Risk
29
Reduced Change Orders (Mechanical Contractor)
Source: JC Cannistraro
Improved Productivity (3 Trades)
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
30
analyticsstore.construction.com
Key Takeaways:
1. Risk looks very different based on
your project role
2. Structured, ongoing collaboration
focused on risk generates tangible
benefits
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
31
analyticsstore.construction.com
Agenda:
• Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
33
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
34
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingTriggers for Increased Use of Risk Management
35
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
36
analyticsstore.construction.com
Key Takeaways:
1. Risk looks very different based on
your project role
2. Structured, ongoing collaboration
focused on risk generates tangible
benefits
3. Collaborative approach to risk
management vs. contractual
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
37
analyticsstore.construction.com
Agenda: • Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingManaging Risk in the Construction Industry
analyticsstore.construction.com
Agenda: • Profile of Risk in the Construction Industry
• Best Practices for Evaluating and Mitigating
Construction Risk
• Triggers for Increased Use of Risk
Management Practices
• Summary Recommendations
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSummary Recommendations
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSummary Recommendations
Kiewit. Driven by projects. Built by YOU.
2015 Annual MeetingSummary Recommendations
Managing Risk in the Construction Industry
AGC ColoradoJuly 19, 2017
Denver, CO
Stephen JonesSenior Director, Industry Insights Research
Dodge Data & Analytics
