RISK OF PROJECT CONFLICT
Answers to the following and similar questions
will indicate the probability of disputes that will increase the risk of cost
and schedule overruns.
The
owner’s project management organization
- Are they able to get along
with the contractor’s personnel to get the work completed as specified
without significant disputes?
The
contract documents
- Do the owner’s and
contractor’s teams have experience with the type of contract?
- Do the technical
specifications require state-of-the-art methods or materials?
- Are the plans and
specifications complete or will they be completed after award of
construction?
- Are there un-tried provisions
that could be problematic?
- Are risks fairly identified
and allocated?
- Are the contractual
requirements reasonable, or might the contractor consider them difficult
or beyond the current state-of-the-art?
The
contractor
- Has the owner worked with the
contractor before?
- Is the contractor familiar
with local conditions, labor markets, etc.?
- Is the contractor experienced
and capable in the type and complexity of work?
The
work
- Is the project exceptionally
large or are there internal milestones that could be hard to meet?
- Is the project adequately
funded with adequate budget for changes?
- Is the design exceptionally
complex or difficult to execute?
- Does the project have
features that are unique, requiring innovative construction methods?
- Are there risks of differing
site conditions?
- Does the owner have unusual operational
requirements that must be accommodated while the work is underway?
