Running Head: SHORELINE CASE STUDY 1
Angela Kelly
BUSI 680-B02
Shoreline Case Study
March 6th, 2020
SHORELINE CASE STUDY 2
Overview
This case is studying a bid that G&E is placing for the construction of a 47,000-seat
baseball stadium. The president of the company is confident that they will be able to meet
deadlines and complete the project in time for the start of the 2020 season. The estimated cost of
the project is three million dollars with a penalty of $250,000 each day the project delays. The
success of this project will open doors for the company to acquire more projects that will bring
additional revenue to the company.
. “Risk management process starts with trying to identify a list of all the possible risks that
could affect a project”, (Larson and Gray, 2018, p.211). A risk assessment form is used to assess
these risks with a format of probability, impact and detection difficulty. A scale ranging from 1 to
5 is used to evaluate the likelihood of the risk where 1 means rarely occurs to 5- likely to occur.
On the other hand, when evaluating impact, 1 would mean insignificant whereas 5 would
represent the highest level of significance of the risk. Risk management helps to successfully
mitigate, avoid, or retain risk in a project, and ensure a contingency plan is in place when a risk
event occurs. Here are the possible risks associated with this project that could negatively impact
the trip and result in delays, cost overruns or cancellation.
Risk 1. Adverse Weather Conditions
Inclement weather conditions can throw a wrench to a construction project. Rain, high
winds, snow or tornados are examples of bath weather that may stall this project and result in
schedule delays. The mot efficient way of mitigating weather delays is to incorporate a clause in
the contract that documents that adverse weather conditions that cause schedule delays should be
excusable. This will grant the project team the go ahead to extend the deadline without incurring
SHORELINE CASE STUDY 3
a fine. This however may cause cost overruns. According to Belton, “companies need to improve
the efficiency of their planning and communication procedures to be able to deal with
emergencies such as adverse weather”, (2017, para.4).
Risk 2- Late material
Most projects have at least one dealt with a late material issue. This risk can negatively
impact the entire project by not only causing downtime, but it can delay critical path and result in
project delivery delays. The best way to mitigate this risk is to have multiple suppliers available
so that the procurement team can utilize backup vendors when the main suppliers are unable to
fulfil the material demand
Risk 3- Lack of resources
At some point a project may suffer from not having enough resources. This may be due to
having multiple activities occurring simultaneously. This can be triggered by unavailability of
resources to perform certain activities. “If any of you is planning to build a tower, you sit down
first and figure out what it will cost to see if you have enough money to finish the job”, (Luke
14:28, GNB). A project managers job is to plan accordingly while factoring in all the potential
risks to avoid the project from failing. To mitigate this risk, the project manager can look ahead
and outsource some of the non-critical activities to avoid any schedule delays.
RISK
EVENT
RESPONS
E
CONTIGENCY
PLAN TRIGGER RESPONSIBLE
PARTY
Adverse
weather
conditions
Mitigate
Have a clause to
excuse schedule
delays caused by
bad weather
Tornados,
Snow,
Tropical
storms
Project manager
Late
material Transfer Having multiple
vendors
Material
delivery
dates that
Procurement team
SHORELINE CASE STUDY 4
cause
schedule
delays
Lack of
resources Transfer Outsource
noncritical jobs
No workers
for a
particular job
Project manager
Figure 1, Risk Response Matrix
Conclusion
The above risks can be frustrating to both the project as well as the construction team.
Schedule delays result in cost overruns and delay in the project delivery. In my opinion, G&E
should not pursue this project as the schedule takes four years and eight months. The baseball
stadium will not be ready for the 2020 season. This also means that the company will incur a
penalty which will affect the budget. Therefore, pursuing this project has more cons than pros
and will tarnish the company’s reputation and decrease its revenue stream.
Reference
SHORELINE CASE STUDY 5
Belton, J., (2017). Extreme weather and the construction industry. Retrieved from
https://cmicglobal.com/resources/article-extreme-weather-the-construction-industry/
Lepage, M. (2017). What causes project delays? Retrieved from
https://yourbusiness.azcentral.com/causes-project-delay-16867.html
Larson, E. W., & Gray, C. F. (2018). Project management: The managerial process (7th ed.).
New York, NY: McGraw-Hill.
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