Risk Management Of District Cooling Plant Construction Essay

Risk way Of Di unbending Cooling Plant device EssayRisk, which could be fructifyd as a hazard be for an event or an activity, is inherent in each activities and functions of each(prenominal)(prenominal) told placement. The disposal issues which would explicate from an organisations exposure to essay could take financial loss, disruption in movements, also-ran to meet the expectations of stakeholders and customers, substantially-grounded concerns, political and competitive failure and so forth. so it is heightsly necessary to follow up worry cognitive processs, policies and practices that would minimise the organisations exposure to peril.Tabreed DM.02, Al Rigga is puke for a rule chilling final causet to be constructed by SNC-Lavalin gulf Contractors LLC. Any failure at some(prenominal) phase of the drift could reflect on the reputation of the organisation as a whole. Thereby, do guess precaution highly essential at solely phases of the ascertain .The endangerment focus curriculum for the invent Tabreed DM.02, Al Rigga is detailed in the take, which adheres to the seek wariness constitution of SNC-Lavalin, followed by SNC-Lavalin disjuncture Contractors LLC.. The guess of exposures place are those that pertain to the edifice phase of the zone alter embed as SNC-Lavalin disjunction Contractors LLC., has a sector dedicated to the social structure of the partition cooling final causets in the character.The entry discusses the benefits of incorporating run a endangerment of exposure focal point in enunciate to achieve the merged objectives. For the purpose of the inventory, the Australian/New Zealand Standards AS/NZ 43602004 was employ in establishing the fortune way frame cash in ones chips.The take a chance precaution affectes for the district cooling plants are enter as common document for all cooling plants in the region considering the similarity of the construction and areas of cons truction. For the sick Tabreed DM.02, Al Rigga, the common set of fortunes was identified along with a few variances in relation to the construction of the cooling plant in one of the busiest areas of Dubai. The find of infection slaying is followed by the observe and suss out sessions in effectuate to achieve maximum impellingness and stomach lucky implementation of the find. alone information in the document has been obtained finished the corporate handbook, interview with the focal point and corporate web invest.IntroductionSNC-Lavalin gulf Contractors LLC., is a part of the global ne cardinalrk of the Canada based design and construction organisation, SNC-Lavalin. SNC-Lavalin operates in ab off 35 countries worldwide and would do get winds in about deoxycytidine monophosphate countries all over the globe. SNC-Lavalin disconnection Contractors LLC., operates in the United Arab Emirates with its head right in Abu Dhabi. In 2004, SNC-Lavalin disjunction Contrac tors LLC., expanded its expertise in district cooling technology by entering into a partnership with outside(a) and local service leavers forming a joint venture i.e. National aboriginal Cooling Co. TABREED. SNC-Lavalin disconnectedness Contractors LLC., take right mainly in the construction of the district cooling plant, either swayly or through outsourcing. roughly the project Tabreed DM.02 Cooling Plant, Al RiggaThe project for which the jeopardize perplexity plan is to be documented is a district cooling plant to be constructed by SNC-Lavalin disjunction Contractors LLC., for its client Dubai Metro. The cooling plant would be constructed at Union lusty, Al Rigga, Deira and is named as Tabreed DM.02 Cooling Plant. The project would hereafter be termed as per the naming of the centraliseors as Tabreed DM.02, Al Rigga.The contract for the construction was awarded to SNC-Lavalin Gulf Contractors LLC. SNC-Lavalin Gulf Contractors LLC., is one of the global branches of SNC -Lavalin, which is one among the giants in the construction and applied science science sector in the world.Cooling plants are one of the recent environment-friendly engineering informations. The cooling plants provide savings in power consumption in providing air conditioning and chilled water put up. Tabreed DM.02 Cooling Plant is a district cooling plant which would provide air conditioning and chilled water supply to three stations of the Dubai Metro namely Al Rigga Station, Union Square and Reef Mall Station. The total cost for construction of the project is estimated to be about AED 33.4 million which covers about 2637 square metres of land.The cooling plant would incorporate of four chillers, of which two would be operational and two would be standby as per client requirements. The plant would go a capacity of calciferol RT (Refrigerant Tonne) which would be needed for the chilled water supply for the three stations. Tabreed DM.02 would be constructed with two levels of basement considering the height restrictions.SNC-Lavalin Gulf Contractors LLC., have a sector which deals solo with the construction of the district cooling plants in and approximately the United Arab Emirates and Gulf Countries. Therefore, the jeopardize steering policy, movees and approaches are created to be suited for all types of district cooling plants that would be constructed, and so does not differ from project to project unless in case of major differences in sites.PurposeThe Risk commission Plan giveed in the document describes the methodology employ for discloseing, analysing, estimating, evaluating and ultimately treating the risks for the draw Tabreed DM.02 Cooling Plant, Al Rigga. The document would define the roles and responsibilities which would assist the project forethought team in effective risk wariness of the project. The risks that would arise in the course of the construction of the project are identified and analysed using the risk guidance processes. Treatment plans are surveyd for a few of the risks and the risk management implementations are discussed in the document for the project Tabreed DM.02 Cooling Plant, Al Rigga. ambitThe scope of the document pertains to the Tabreed DM.02 Cooling Plant, Al Rigga watch and its risk management processes and plan. The methodology used in the risk management is in concurrence to the Australian New Zealand Standards 43602004. The risks identified in the document subdues primarily on the risks pertaining to the construction of the cooling plant rather than all external and ingrained risks of the organisation. The risk management document would be used as origin through out all the phases of the project. The plan would be a deliverable along with the project management plan for the construction of the district cooling plant.The scope of the document would not include the risks relating to the organisation or the any other risks outside the construction phase as the contra ctors, SNC-Lavalin Gulf Contractors LLC., concentrate only on the construction of the cooling plant. The risks detailed in the document would encompass the engineering concerns of construction as well as the health, golosh and environmental issues in the project.Glossary of Terms all terms used in the document are as per the Australian/New Zealand Standards AS/NZ 43602004. However few terms used in the document in spite of appearance the organisation are as followsTermsDefinition/Description gambleEquivalent of riskImpactEquivalent of consequencePPEPersonal rampart EquipmentProbabilityEquivalent of likelihood vagabond Risk DatabaseCompilation of all the risks encountered in similar projects and those applicable to the current projectQA/QC and HSEQuality self-confidence/Quality Control and Health, galosh and Environment. The department that primarily operates the risk management processes deep down the sector of district cooling plants in SNC-Lavalin Gulf Contractors LLC..SNC-L avalin Gulf Contractors LLC.Abbreviation for SNC-Lavalin Gulf Contractors LLC.Tabreed DM.02, Al Rigga externalize documentedRisk counseling PlanRisk Management is a concrete, structured approach in creating a formationatic procedure to mention, analyse, evaluate, control and admonisher risk, thereby minify and maintaining risks within a level tolerable to the organisations risk passion. For the project, Tabreed DM.02, Al Rigga, these risk management processes are employed during all the phases of the project in order to minimise the exposure to risk especially during the implementation i.e. the construction of the project where most risks are prone to arise.As applicable to all projects at SNC-Lavalin, an effective implementation of risk management plan in the project Tabreed DM.02, Al Rigga would increase the probability of successful implementation of the project as a whole. For Tabreed DM.02, Al Rigga, it would assist in achieving the triple constraints of quality, cost a nd time. It would come across a major role in making decisions on keep priorities would also serve as a basis for identifying alternatives of the performance goals.An effective risk management plan would allow high adherence to the strict timelines of the project, which would inturn enhance the reputation of the organisation to meet project deadlines. The advantages of risk management would be creating value, providing lesser uncertainty, reducing capital cost, creating reliability of shareholders and assisting in successful accomplishment of objectives.Objectives of Risk Management PlanThe aims of SNC-Lavalin for introducing the risk management plan are mainly to set up a formatic process that would integrate the risks and control measures already implemented by the organisation, to provide an office to all stakeholders of the organisations experience of its exposure to risk and implementation of steps to lessen and manage the risks. It would also ensure that the organisatio n would consider risk management as a clientele turncock which would allow focus on all areas which require management of risk.For SNC-Lavalin Gulf Contractors LLC., the main objectives of managing risks would be toprovide maximum gum elastic to its employees at all levelsavoid any penalties for legal or regulatory non- formprevent loss in relation to fraternity assetsretain the reputation of the companydecrease costs cerebrate to fact of unfavourable eventsallow efficient allocation and utilisation of resourcecreates right for all activitiespromotes creativity in management practiceRisk Management PolicySNC-Lavalin Gulf Contractors LLC., is guided by the corporate approach on safety of the foster organisation, SNC Lavalin, in order to match corporate measuring sticks around the globe. Safety is embedded as a core value in the WE CARE Policy (See Appendix 1) in order to carry out its mandate to protect people, properties, the environment and sustainable victimisation of th e comm social unities while maintaining pee quality in pursuing its business objectives. The policy provides the guiding principles for SNC-Lavalin Gulf Contractors in achieving the Zero Harm goal.The Zero Harm objective has the elevated goal setting which would eliminate all dangers of health, safety and physical public assistance of the employees, through zero fatalities, zero occurrence of serious occupational health-related distemper in employees and zero environmental citations from authorities.Risk management is key tool in business decision making which would allow the controlling, elimination or minimisation of all potential forms of loss. Implementation of risk management within the business processes would be able to provide protection to all its employees, customers, stakeholders, environment, assets, earnings, able property as well as the organisations reputation which would maximise aptitude and effectiveness. Risk management procedures would need to be created, e ffectively implemented, kept up(p) and everlastingly improved to match with the goals of the risk management plan. Continual identification, synopsis and evaluation of risks are highly essential in order to make keen-sighted decisions of risks.The risk management policy at SNC-Lavalin focuses mainly on the legal profession and control of the occurrence of incidents that could result in personal injury, loss of life, disability to assets and properties, or any incident that may pose a terror to the environment.Although managers at all SNC-Lavalin offices have risk management as a core responsibility, all employees are to assume individual responsibility in executing risk management by reducing the likelihood and consequence of any losses or accidents. The managerial activities in implementing risk management includetraining for staff in project or organisational risk managementconducting surveys to facilitate identification of risks unvarying review of living policies and pr ocedures computer political platforming improvements in vivacious controls for the project or any of the business unitmaintaining up-to-date information of the latest technological developments on systems, tools and process guidelines calculateing to the higher management board on compliance and improvements of risksSNC-Lavalin Gulf Contractors LLC., as well as all subcontractors are to strictly follow the procedures relating to risk management in order to conform to the highest standards of safety in all processes of the project and organisation.The risk management processes for the document of the project Tabreed DM.02, Al Rigga would be in amity with the Australian/New Zealand Standards AS/NZS 43602004.Project organisationTabreed DM.02, Al Rigga is a project that would be handled by the sector for construction of cooling plants in SNC-Lavalin Gulf Contractors LLC. The highest responsibility is with the general manager of the sector. All the responsibility allocation is distri aloneed as per the organisational hierarchy as shown in human body 2.Figure Project organisation structureEach cooling plant project is handled by a project manager, who would have boilers suit dominance in decision making processes related to the project. The project manager would report to the project director on the military position and any issues of the project. For any boost management involvement with audience to the project, the general manager who is the managements representative would have the final authority. The risk management plan is created and monitored by the QA/QC and HSE Coordinators throughout the phases of the project, the present being Tabreed DM.02, Al RiggaRoles and ResponsibilitiesGeneral Manager (Top Management Appointee)Provide coordination with the government interfaces and policyTimely issue of permitsMonitor project security and compliance to policiesSupport corporate ready and policies by implementing applicable risk management curriculums Managing contracts and agreement to varying policies of subcontractorsMaintaining information pertaining to corporate risk and controlsLead the development of dynamic safety culture based on SNC-Lavalins core determineEnsuring all risk management procedures are conformed by all employees and subcontractors of SNC-Lavalin Gulf Contractors LLC.Verification and approval of risk assessments and update on risk management planConstant review and update of the risk management planReporting to the board of directors and parent company, for any risk management updatesaccountable for any failure in risk management processes to the board of directors and parent companyProject DirectorCoordination and regular updating of the project risk biographys and treatment plans, leading to a compilation of a master risk management planContinuous review and updating of the risk management plan, including risk identification and analysis processesReporting to the general manager on constant intervals re garding updates on the existing policies and procedures of risk management fade all risk management standards and processes to all SNC-Lavalin Gulf Contractors LLC. personnelProvide boilers suit direction and support for the implementation of SNC-Lavalins Risk Management Policies and Management Systems interpret project review meetingsEnsuring sufficient resources to support approved SNC-Lavalin initiativesLead the development of dynamic safety culture based on SNC-Lavalins core valuesSelection of contractors and compliance to the SNC-Lavalin Gulf Contractors LLC. practices of risk managementAccountability for overall project performance in compliance with risk management initiatives come in in risk assessmentsReview the risk assessment, elimination and control process resultsProvide documentation of updates on risk management plan probe of serious incidentsWorkplace inspectionsAccountable for failure of compliance or knowingness of risk management processes among the project teams Project Manager image that SNC-Lavalin Gulf Contractors LLC. operations comply with legislative requirements and best standards within the industry, and in reference to the standards of the parent companyReporting to the project director on constant intervals regarding updates on the existing policies and procedures of risk management, and any issues arising from risk managementCommunicate all risk management standards and processes to all SNC-Lavalin Gulf Contractors LLC. personnelEnsure that all contractors and consultants are informed of procedures, safety policies and safe construction methods prior to commencing a projectInvestigate on serious incidentsParticipate in escapeplace inspectionsProvide updates on the risk management proceduresReview proposals for practical and effective risk management initiativesAccountable for any failure in project, arising from lack of risk management complianceSite Manager (the house physician engineer would also comply with these responsibil ities)Ensure that all the risk management policies and procedures are implemented through all the phases of the projectAccountable for the overall direction and support of the implementation of the risk management processesAccountable for ensuring engineering specifications and method statements being critically reviewed in conformance to SNC-Lavalin Gulf Contractors LLC. policies pass on the proactive involvement of all personnel in managing the risk management programEnsure that project supervisors take an active role in promoting and enforcing health and safety protectionEnforce HSE procedures and practicesInvestigate injuries/illnesses, near misses and environmental incidents and propounds the lessons learned throughout SNC-Lavalin Gulf Contractors LLC.Ensure that Job Planning and Safety Analyses are completed and reviewed in the lead tasks are begunAccountable for provision of adapted resources, facilities and initiatives to effectively implement risk managementQA/QC and HS E CoordinatorsConduct plan and special inspection of work areas align visits to eliminate conditions and work practices that are savage to the excogitateCoordinate the thorough investigation of all incidentsReview and monitor parking brake Key ElementsEncourage hazard identification and inform by all site personnelMaintain a current knowledge of UAE federal standards and other applicable international standards or industry practices and communicate to the site manager and personnelDeliver internal training search in the site progress meetingParticipate in any investigations relating any risk issuesMonitor project risk policies and procedures, paying finicky attention to potentially hazardous operations and emphasizing proactive solutionsCoordinate contractor activities in reference to complying with the risk management policiesInitiate and implement programs for the accomplishment of project risk management objectives including site emergency repartee plansAssist employees with all risk issuesMaintain project risk recordkeeping systemRecommend safety disciplinary actions to the Site Manager for deliberate safety violations committed by individualsEstablish site emergency response plan, cabal emergency response team and conduct training and exercise for emergency responseDisplay and maintains tangibles on site bulletin boards as askEnsure that Job Planning and Safety Analyses are completed and reviewed before tasks beginConduct safety induction and site orientation to naked as a jaybird site employees including contractors, visitors, suppliers, etc. before mobilization to ensure that they understand and have agreed to comply with HSE policiesReport all hazards to the site manager and project managerCommunication FrameworkSNC-Lavalin operates a formally documented risk management system designed to clearly define policies, responsibilities, accountabilities and operational practices. This together with performance parameters to measure the effectiv eness of the management system in operation will direct the control applied to the implementation and maintenance of the companys risk management policy throughout the organisationThe System has four levelsThe policy manual, to clearly define company policy and its operating policiesRisk management operating procedures written as capture to the function to clearly define responsibilities, accountabilities and controls applied in the risk management systemWork instructions, comprising of specifications, checklists, externally sourced standards, technical directives, or government legislation.Forms, templates and reports necessary for effective communication, and constitute the records generated by risk management system planning, implementation and maintenance of the risk management system.Figure Documentation process modelThe risk management program would be communicated to all employees within SNC-Lavalin displaying it in offices and strategic places. The involvement of all empl oyees in the systems management ensures that they are involved in the development and review of policies, procedure changes related to the project risk matters by seeking feedback related to the same.External communication covers the followingLocal authorities (Government, Municipal authority)Suppliers arouse partiesCorporate head officeRisk Management FrameworkThe processes used in the risk management of Tabreed DM.02, Al Rigga are in accordance to the AS/NZ 43602004 standards as illustrated in Figure 4.Figure Framework for ontogeny risk management programCommunication during the projectCommunication processes would include developing documentation of risks applicable to the project in accordance to the standards to identify the risks, assess the likelihood and consequence of the identified risks, estimate the risk level, evaluate the risks and treat the risks accordingly.In order to establish criteria for evaluating risks, it would be essential to document the criteria for estab lishing the likelihood and consequence for the project. This would be based on the risk appetite and tolerance of the organisation. After the evaluation, the risks that are unacceptable to the organisation would be considered for creating treatment plan. Monitoring the risk in external situations, would allow further changes to the existing controls, if necessary. A periodical review and update on the risk render would allow for changes in the risks identified.The risk management plan for the district cooling plant is documented on common stance considering the similarity of locations all around the country. However, changes would be included depending on the variance of the area from the standard description.Internally, the risk management team, which is the QA/QC and HSE coordinators in the documented Tabreed DM.02, Al Rigga project, are recordd for meetings which have to meet on a monthly basis in reference to the project requirements, or as relevant to the demands of the proje ct.Training victory of the project would depend on the effective implementation of risk management through out all the phases of the project, which requires risk management training to be provided to staff, contractors and managers. The skills qualifications of all personnel within the organization are essential to achieving business quality and corporate objectives. Competence of the organization and people in identifying and managing risk requires a systematic focus on behaviours, risk perceptions and skills.Training material would encompass risk management policies, application of tools of risk management, assistance in identifying and analysis the risks which the project and the organisation is uncovered to, providing the profiling of risk and reportage of assurance.On recruitment, SNC-Lavalin Gulf Contractors LLC., provides induction training to all new employees in risk management involving safety measures, code of conduct and fraud sense. on-the-scene(prenominal) training is provided to all employees, site visitors, and vendors as a prerequisite to site deployment. Except for visitors and vendors, all site workers shall be assigned a SNC-Lavalin Gulf Contractors LLC. number identification in the form of helmet decal sticker signifying a worker had passed the orientation program. A regular refresher course is provided to all employees in risk management awareness on updating the risk register or every two years.Monitoring and ReviewThe risk management system operated by SNC-Lavalin Gulf Contractors LLC., is field of battle to documented procedure and systematic program of Internal Audits. The audit procedure will direct responsibilities and controls to be applied to planning, preparing, conducting, reporting and follow-up of the risk audits. The audit program, including the schedule will be based on the results of risk assessments of the companys activities, and the results of the previous audits. The audit procedure will cover the scope, frequency, methodologies and competencies, as well as the responsibilities and requirements for conducting the audits and reporting results.The project risk registers would formally be reviewed and updated every six months, but more regular reviews and updates are conducted in reference to any significant changes in activities. With the district cooling plant projects, the common risk register would be modified after evaluation of the work site and in reference to any changes in the work activities and areas.The audits will be conducted by suitably qualified personnel and by independent of those having direct responsibility for the activity being examined.The reviews would consist of a summary risk register which would provide the overall rating to identify all levels of risks mainly the high and the medium risks across the projects. It would also include a report of the implementation of the risk treatment plans made for the previous audits and its effectiveness in the management of risks in either reducing the risk, decrease in costs associated to risk management and the progress made in the controls of risk.The internal audits will determine whether or not the risk management system conforms to planned arrangements and has been the right way implemented and maintained. Where non-compliance or opportunities to improve systems or practice are identified, appropriate corrective or preventive actions or controlled changes will be implemented. All such actions will be assigned, time limited and upon completion, reviewed for effectiveness. Where considered necessary subject to audit results obtained, the frequencies assigned on the audit program will be updated.Figure Internal Risk Audit ConsiderationsThe results of the audits will be recorded, maintained and subject to further review as an integral part of the risk management review meetings, thus assuring the effectiveness of the audit program in achieving desired goals. The performance of SNC-Lavalin Gulf Contractors LLC., risk management system and its suitability and effectiveness to satisfy the requirements of the zero harm corporate risk management policy would be reviewed every six months.MeetingsMeetings are held at various levels in order to ensure that the project adheres to the organisations standards of safety, to create an awareness of SNC Risk Management Policy and to ensure that it is implemented in the project risk management process.MeetingWho are involved?How often?Project Executive Meeting(Overall review on the internal audits, changes in the existing risk management plan, any serious non-compliance issues)General Manager, Project Director, Project ManagerOnce in two months or as required by the project or in emergency situations.Project status meeting(Up-to-date information on the status of the project as well as review on conformance to the risk management procedure)Project Director, Project Manager, Site Manager, QA/QC and HSE CoordinatorsWeekly and in emergency situationsToo lbox dialog( Priorityissues, new instructions, lessons learned, or any job-related information that matters to the safety, health and welfare of employees, and the work environment)Contractor, SNC-Lavalin Gulf Contractors LLC., QA/QC Coordinators, SNC-Lavalin Gulf Contractors LLC., PersonnelWeekly at the beginning of the work weekPre-job task instruction(the risks analysed are discussed herein in order for the crew to be aware of the proper job steps, the hazards associated with each job step (or activity) and the appropriate control measures to eliminate or reduce the have-to doe with or the probability of the hazards)QA/QC and HSE Coordinators,SNC-Lavalin Gulf Contractors LLC., personnel on siteDaily, before commencement of the activityRecords are subject to systematic review and analysis as an integral part of SNC-Lavalin Gulf Contractors LLC. Internal Audit Plan, identify any apparent trends, prove the effectiveness of their application and identify the opportunities for pers istent improvement. The disposal of records at the end of their retention period will be carried out under controlled conditions designed to protect the status of any unavowed or exclusive information. During project closure and demobilization, obsolete and yet sort documents exclusive to the particular project shall be shredded and recycled. Other document files shall be labelled and delivered to designated store for safekeeping. Clients would be provided access to records pertinent to the contract regulations.Risk identificationRisk identification refers to the identification of potential risks exposed in a project. The deliverable of the risk identification process is the project risk register which involves the risks that could affect the ability of a project to hear its objectives. The process in which