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We used the checklists to implement a new quality program on my project site. We've reduced our deficiencies on average 25% since launching.
Risk is an uncertain event or condition that, if it occurs, has either a positive or negative effect on the project objectives.3 Parties to construction agreements, for the most part, do not spend significant resources attempt- ing to allocate favorable uncertainties; those risks that, should they occur, will favorably impact project execution or delivery (e.g., weather much better than average or a de- crease in some basic commodity prices). Nor do they pay large insurance premiums to cover the spectrum of possibilities that could, if they occur, result in lower proj- ect costs. Construction managers tend to focus on negative risk.4 Prior analyses have demonstrated that the interaction between different types of risk can cause a nonlin- ear impact on project outcomes.5 In other words, the cumulative or synergistic effect on project cost and schedule due to risks on a project may be greater than the sum of the discrete impacts caused by each in- dividual risk factor. In order to effectively control the project risks and their associated cost, project owners and managers utilize processes to identify, analyze, monitor, and mitigate risk. Collectively these processes are referred to as risk management.6