Download our Free Construction Risk Assessment Template as we understand that managing risk is critical to every part of construction project. Assessing all the various risk categories can be a daunting prospect if a project manager does not have access to a library of templates and software to help them manage the process.
Every single construction project has risks that cannot be completely removed. Understanding and documenting historically identified risks can help to mitigate and prevent them from impacting on future projects. Creating a database of risks with templates can then be re-purposed for a new construction project.
Understanding your risks
Completing a free construction risk assessment template gives you a clear picture of the things that can cause project delays. A risk assessment template is a tool to help identify risks, the probability of occurrence and impact on the project.
By identifying risks early, you can be proactive in taking steps to avoid or prevent them. Record the following on the risk assessment template when you identify:
where each risk occurs
type of risk, and who or what it impacts
the probability of it occurring and the impact intensity
preventive measures to reduce or remove the impact intensity and probability of occurrence.
Risk assessment forms
To understand how to fill out a free construction risk assessment template (see Table 1), here is a guide to filling out the details in a risk assessment form:
Problem Area or Task. During this phase, identify all the problem areas or tasks where there are possible risks.
Identified Risk. This where you record each identified risk against each problem area or task.
Description. Add a short description of the risk and the damage it will cause if realized.
Probability of Occurring. Risk probability assessment examines the likelihood of each specific risk occurring. Rate risk probabilities and impacts according to predetermined definitions. Display them in a probability and impact matrix (see Table 2). What constitutes a high and low risk is usually an area determined by your organization:
High. High means there is a 70 to 100 percent of the risk occurring.
Moderate. Moderate means the risk has a 30 to 70 percent chance of occurring.
Low. Use Low for risks that have less than a 30 percent of occurring.
Impact Intensity. Risk impact assessment examines the potential impact that a risk can have on project objectives. For example, cost, schedule, performance or quality. It includes assessment of positive and negative risks (eg. opportunities and threats).
Risk Priority Level. Assign a risk priority level based on the probability of occurrence using a scale of 1 to 5. Number 1 means high priority and 5 the lowest.
Existing Measures. Consider what policies and procedures are already in place that prevent or reduce the impact of each risk.
Mitigation Strategy. Once the analysis of all risks is complete, the team needs to decide on mitigation strategies to deal with each risk.
Additional Measures. Only fill this out when a mitigation strategy has been determined to control each risk.
Contingency Plan. Create a contingency plan for high impact risks with a high probability of occurring. This is a back-up plan if mitigation strategies fail. Mitigation strategies include:
Deflection. Deflection is when a risk is transferred to a third party to manage.
Control. To control a risk, devise a plan to prevent or minimise the risk.
Avoidance. Use avoidance when there is little or no threat if the risk occurs. This is a strategy that ignores the risk and accepts the consequences if the risk is realised.
Using a free construction risk assessment template helps to identify and record risks. It helps your team to plan strategies to deal with risks in advance should the need arise.
Do you want free access to create risk assessment templates for construction projects to save you time and money? We’ve created one at Raptor PM and it's free and secure. You can save, review and edit your completed risk assessment(s) at any time. Try out the Raptor PM free risk assessment template now.
Table 1 Free Construction Risk Assessment Template
Table 2 Probability an Impact Matrix