Cost Overruns
Payment Delays
Cash Flow Issues
Contract Disputes
Material Price Fluctuations
Other Financial Risks
Risk Factor | Preventative Measures | Response Strategies | |
Client Financial Instability | Credit checks, financial references, pre-qualification | Payment bonds, front-loaded payment schedule | |
Unclear Payment Terms | Detailed contract language, milestone definitions | Regular payment status meetings, escalation procedures | |
Disputed Work Quality | Clear quality standards, regular inspections | Prompt resolution processes, third-party verification | |
Administrative Bottlenecks | Streamlined invoicing, documentation requirements | Electronic submission systems, designated payment contacts |
Probability Score
Impact Score
Risk ID | Risk Description | Category | Probability (1-5) | Impact (1-5) | Risk Score | |
R-001 | Material delivery delays from primary supplier | Supply Chain | 4 | 4 | 16 | |
R-002 | Unexpected groundwater during foundation work | Site Conditions | 3 | 5 | 15 | |
R-003 | Skilled labor shortage for electrical installation | Workforce | 4 | 3 | 12 | |
R-004 | Permit approval delays from local authorities | Regulatory | 3 | 4 | 12 |
Mitigation
Transfer
Acceptance
Avoidance
Best Case
Most Likely
Worst Case
Action ID | Description | Related Risk | Responsible | Due Date | Status | |
A-001 | Develop alternative supplier list for critical materials | R-007 | Procurement Manager | 15-May-2023 | Completed | |
A-002 | Conduct additional soil testing at eastern foundation | R-012 | Site Engineer | 22-May-2023 | In Progress | |
A-003 | Revise scaffolding safety procedures | R-015 | Safety Manager | 29-May-2023 | Not Started | |
A-004 | Negotiate weather delay clause with client | R-003 | Project Manager | 05-Jun-2023 | Not Started |