Examples

Risk Title
Poor workmanship by the Contractor resulting in the necessity for
repairs and unduly high maintenance, or the presence of latent defects

Default, or abandonment of the contract by the Contractor, or

insolvency of the Contractor.
Failure by the Contractor to adhere to the construction programme
and/or late
completion of the contract
Negligence of Professionals resulting in faulty design and contract
documentation, or
poor contract supervision and administration.
Contractor cash flow problems
Inadequate project scoping and scope creep

Inaccurate assumptions during the planning phase

Incomplete cost estimate

Insufficient Budget allocation: Funding is less than estimated

construction cost and/or its stability is highly uncertain
Approval and decision processes cause delays
No fixed programme/schedule for the project

Availability of materials
Possibility of Power failures
Inadequate access control
Inclement weather
Ineficient budget management

Diminished quality of work / deliverables

Failure/ Inability to secure funding

Failure of project

Fruitless / wasteful expenditure

Inability to make informed decisions
Inadequate financial management
Increased levels of customer dissatisfaction
Insufficient budget allocated
Ineffective / inappropriate management of project
Ineffective and/or inefficient budget management
Lack of apporpriate resources
Loss of institutional memory
Non compliance with applicable internal policies and procedures
Non compliance with applicable laws and regulations (OHS Act)
Non compliance to service level agreements (Service Providers)
Non/ inadequate reporting
Possible interruption / disruption of operations
Theft

Risk treatment actions can one, or a combination of the

following options:
Risk Avoidance avoiding or terminating the activity that gives rise to the risk identified;
Risk Reduction new or revised preventative controls are put into place to reduce the likelihood of
Risk Transfer The impact of the risk are transferred to a third party (e.g. insurance); and
Risk Acceptance Accepting the risk within the accepted risk tolerance

Contributing Factor Titles

Absence of / poor change management

Absence of / poor clarity of legislation

Absence of / poor customer relationship

management
Absence of / poor decision making

Absence of / inadequate resources (Financial)

Absence of / poor Framework, Policies,
Guidelines, Processes and Procedures
Absence of / poor governace practices
Absence of / limited mentoring, training &
development (specialist functions)

Absence of / poor mechanism to identify and

document customer needs and expectations
Absence of / poor performance management
(EPM)
Absence of / poor programme / project
management
Absence of / poorly defined scope of work
Absence of / poorly defined service levels
agreements
Budget planning, allocation and
management
Capacity / capability of service providers
Inconsistent application of Acts, Regulations,
Frameworks, Policies, Guidelines and
Procedures
Ineffectiveness / inadequate control
environment

Poor compliance / adherence to Acts and

Regulations (external)
Poor compliance / adherence to Frameworks,
Policies, Guidelines and Procedures (internal)
Poor coordination of projects / initiatives
Poor delivery of service
Project delays / failure
Scope change / scope creep
Unrealistic expectations
Incompetence
Inexperience
Insufficient skill, training, management or
supervision
Lack of accountability
Lack of control
Service Provider Performance monitoring/
enforcement
Theft/Misappropriation/Embezzlement
Control processes
Lack of activisties planning schedule

risk identified;
o reduce the likelihood of the risk;
insurance); and

Mitigation Plans/ Controls

Accenture retains risk, but withholds retention money for maintenance over a limited period.
The possibility of action against the Contractor at a later stage in respect of latent defects is
not precluded. Ensure propoer supervision and monitoring of works

Accenture retains risk, but requires Contractor to furnish surety for part of the contract value to
be invoked in the event of default.
Require some penalty from the Contractor. Identify clear milestones to check that the project
is on schedule. Communicate status reports on regular basis
Require insurance from Consultants

Monthly progress payments paid timeously to the contractor

Identify needs and implement propoer change/scope change requests control systems

Proper planning
Proper coordination and communication between the consultants and the contractor. Put an
aggressive cost tracking and monitoring plan in place. Communicate status reports against
baseline estimates on regular basis
Seek additional required funding. Communicate status reports on regular basis

Proper planning. Identify clear milestones to check that the project is on schedule
A programme of phased work is to be discussed and agreed with the stakeholders. Certain
work will have to be carried out after hours
Ensure contractor is appointed sooner so as to ensure proper lead times for the sourcing of
material
Unlikely to occur, but a plan for alternative power to be made by contractor as stipulated in the
tender documents
To be planned and monitored by Project Manager.
The works are internal, within covered areas.
Cost tracking and monitoring plan in place.

Having quality managements tamplates and standards

Having a value adding business cases

Ensuring that the relevant protocols and project procedures are adhered to
Having change scope control and payment schedules
Ensuring thet there is meetings and comunication procedures
Having payment and invoicing management procedures/standrds
Having signed scope document and managing client's unrealistic requirement
Having preliminary bill of quantities
Having project management procedures
Having a payment management procedures
Having resources schedule and allocation plan
Having information inscrption
Having non-compliance penalties and disciplinary standard
Having non-compliance penalties and disciplinary standard
Having non-compliance penalties and disciplinary standard
Having communication control process
Ensuring that desruptive activities are done after hours or on weekends