Risk Assessment Plan
Construction and Deployment of Deep Water Oil Rig

6/12/2011
Keller Graduate School – PM595

(Oil rig photos, 2010)

Table of Contents Introduction 2 Sources of Construction Project Risk 3 Systems to Address Construction Project Risk 7 Catastrophic Failure Fault Tree – Construction Crane Malfunction 10 Discussion of Catastrophic Failure Fault Tree 10 Smaller Failure Fault Tree One – Construction Crane Failure 15 Discussion of Smaller Failure Fault Tree One 15 Smaller Failure Fault Tree Two – Construction Fire 17 Discussion of Smaller Failure Fault Tree Two 17 Conclusion 19 References 22

Introduction To quote Anthony Mills from his article, A systematic approach to risk management for construction,
The construction industry is one of the most dynamic, risky, and challenging businesses. However, the industry has a very poor reputation for managing risk, with many major projects failing to meet deadlines and cost targets. This is influenced greatly by variations in weather, productivity of labor and plant, and quality of material. All too often, risks are either ignored, or dealt with in a completely arbitrary way: simply adding 10 per cent contingency onto the estimated cost of a project is typical. In a business as complex as construction, such an approach is often inadequate, resulting in expensive delays, litigation, and even bankruptcy (2001).
For this reason, this Risk Management Plan for the construction and deployment of a deep-water oil rig project has been developed. The subsequent sections of this plan include some sources for construction risk and systems for addressing these risks. Since sources for construction risks can be quite a long list, in an effort to keep this report from being hundreds of pages in length, only the most common risks that may arise have been included.