Risk Management: An Essential Part of Strategy
As the VP of Comin Asia Contracting, risk management is a factor I think about continuously.
|| General Manager visit one of the several on going projects in Lao
Working in the Mechanical & Electrical engineering and construction business where risk has a broad range, from health & safety of our employees, brand perception and of course financial management it is essential to have a risk management strategy at the forefront of every business decision.
Risk Management in construction is a topic that often leads to heated debate in the industry. I’ve been involved in my fair share of these debates through the years. Views can vary differently from contractor to contractor and even more variance from a developer’s point of view.
I recently had a conversation with a developer who advised me he’d awarded a lump sum contract to a contractor and was satisfied that all his risk had now been passed on to the contractor.
My experience in the industry has led me to the conclusion that he was very much mistaken. If his only risk was financial he may have been correct. But risks in construction are never purely financial. In my opinion financial failings are a lag indicator and a result of failures in other areas. Risks cover all aspects of construction and these should be the concern of every stakeholder. Safety, quality, time and environmental risks are but a few examples. Failure to manage these risks will result in a financial impact on the bottom line.
|| Comin’s top management visit a potential site in Phnom Penh
No developer, for example, will be unconcerned if a contractor on one of their projects has a major safety incident. This can affect the brand and reputation of all stakeholders. Similarly, no developer will look back with satisfaction to financial savings at the start of a contract and be satisfied if the project over-runs on time and is delivered with poor quality.
Contractors, and I would say especially MEP contractors, take on huge risks with lump sum projects. We have numerous supply chain partners to work with in our efforts to successfully deliver projects for our clients and we have to ensure our risk management processes are robust, fit for purpose and adhered to. We have to maintain the highest safety standards in complex, bespoke situations. We must ensure the quality and timeliness of our project execution and work closely in coordination with main contractors and end users.
|| Site inspection during installation
So how do we do it? For me there are four few key aspects to risk management.
1. Understand the Scope
Scope Management is a topic on its’ own. It sounds too obvious but it happens time and again that two parties can have different interpretations of the contract. Understanding the technical drawings will take you so far but it’s imperative that project execution teams fully understand the contract and specifications.
Only when the scope is understood can the risks be fully identified. It’s good to get input from all departments. Risks can come from every department involved in a construction project – engineering, safety, planning, procurement, HR etc. etc. There are several commonly used formats and these can be tweaked easily to suit different companies to ensure the right escalation path is followed.
3. Understand the potential impact
The impact may be a straightforward financial impact, like scope gaps, incorrect quotations etc. Or they may be items which have non-financial impacts. Understanding the potential impact and the importance of that impact to all stake-holders is key to deciding on what, if any, mitigating action should be taken.
4. Track and mitigate
It’s important to review the status of each risk regularly. Some can be closed with straightforward actions – eg. if a projected delivery date will impact critical path the procurement team may be able to expedite with the supplier. It may be prudent to pay more now to ensure on time delivery or it may be possible to accelerate future works to retain completion schedule. With the risk identified, the potential impacts understood the management team has the best opportunity to make the right decision.
Other risks may be impossible to close out until the project is completed. It’s still important that these are regularly reviewed. They may require actions under the contract on an ongoing basis. Just because a risk can’t be closed does not mean it cannot be mitigated.
Risk management is a key aspect for everyone involved in the construction industry. From developers, contractors, engineers, suppliers – understanding the financial and non-financial risks and making decisions with all of them taken in to account must be an essential part of the strategy and the project execution process.
M&E Knowledge Sharing
Last weekend on Saturday 10th February Comin Khmere prepared and conducted a full-day (7:30am to 5:00pm) workshop, Knowledge Sharing, at Phnom Penh Hotel.
|| Group Photo before the workshop start
Our Contracting Division Manager, Mr. Foong, was the host and trainer of this program supported by the team of Project Managers. There were a total of 84 participants ranging from Site Supervisors, Site Managers to Project Managers and other related functions.
The purpose of this workshop was to share the knowledge and experiences to all staff regarding the process, structure, and workflow in M&E Contracting and for them to understand their role and the role of other departments in the business as a whole.
In addition, we wanted them to have the opportunity to share best practices, learn from their colleagues and develop their overall level of professionalism. It was also a great opportunity to get all the site teams together and further develop our strong culture of team spirit.
|| The total of 84 participants and full day workshop
According to the survey after the workshop, it was a great success as most of the staffs enjoyed the program, and at the same time gained new technical knowledge of how to control and site activities more effectively.
The workshop was a lively interactive session. Foong advised at the outset that the atmosphere was informal and encouraged questions from the floor at any time. There was a very high level of participation from all attendees and questions raised were answered from different perspectives by Foong, the various senior PM’s and managers in the room.
|| Question and answer during the workshop
Comin Asia run various formal training courses throughout the year and this type of informal Knowledge Sharing workshop compliments the formal training while enhancing our team spirit, collaboration and sense of ownership of all employees. It was a great success and has encouraged the management to ensure more of these will be organized in the future.
Kone Lift Product Seminar 2017
Product Seminar 12th July 2017
We had a great success conducting KONE product seminar on Wednesday 12th July 2017 at Sofitel Phnom Penh Phokeethra hotel with participant from our dignity guest over 50 peoples. The event organized by Comin Khmere cooperated with KONE regional offices from Thailand and Singapore. Our guests from various professions such as designer, architect, consultant, constructor and property developers, are very happy to acquaint new knowledge about product feature and new technology. KONE provides new ways of working and serving users smarter and more exciting ways in respond to the growth of urban life and modern building to achieve better design, better eco-efficiency and better ride comfort.
Comin Khmere has been an exclusive distributor of KONE products in Cambodia more than 10 years. We installed around 370 units of elevators and escalators in many commercial, Residential, hospitality, transportation and industrial buildings mainly in three locations, Phnom Penh, Siem Reap and Sihanoukville. Our main projects such as AEON shopping mall, Casa Meridian condominium, Gred One Park mixed use development, Phnom Penh international airport, just to name a few.
Comin Khmere technicians received training from KONE specialist regularly and capable to conduct installation, maintenance and service with focus on Safety and Quality that are the main commitment from both companies, KONE and Comin Khmere.
TVET’s Day 2017 at Koh Pich
Career Forum by TVET
On 3rd July 2017 the Ministry of Labour & Vocational Training held a TVET (Technical Vocational Education and Training) ‘day at KohPich Convention and Exhibition center in Phnom Penh, Cambodia. Attendance was very good with the participation of around 7000 job seekers. The event was presided over by HE ITH SAM HENG, Minister of state at the ministry of labour and vocational training.
The TVET fair is a platform offering job opportunities to students and other job seeker’s, giving them the opportunity to meet with preferred employer’s and companies looking for staff.
TVET’s day 2017 was organized by the Ministry of Labor and Vocational Training, and co-organized by the Cambodia ministry of Education Youth and Sport, AYRA, NEA, Union of youth federations of Cambodia, supported by Ministry economic and finance, Comin Khmere and 31 private companies.
According to TVET’s the event had nearly 2,500 positions available. Comin Khmere received many CVs during the fair, and a number of CVs have since been submitted via its web site every day.
KONE Lift PRODUCT SEMINAR
Over 300 Units we sold in Cambodia
On Thursday 7th July COMIN KHMERE and KONE organized a product seminar featuring ’’KONE Elevators and escalators’’ at PHNOM PENH HOTEL. KONE were represented by a team from the Regional head Office in Thailand. The seminar covered company history, latest technology and new releases and discussed the benefits of KONE products and support tools. The event was very great success welcoming over 50 clients. For the past 10 years, COMIN KHMERE has been the exclusive authorized distributor of KONE lift products in Cambodia and Laos. CK’s team trained and certified technicians provides installation as well as preventive and corrective maintenance in compliance with KONE guidelines up to highest standards.
COMIN KHMERE’s trading division have successfully sold over 300 units of elevator including AEON Mall Phnom Penh, Cambodia largest’ shopping complex with over 66,000m2 of retail shopping space over four levels, where only the best international players and suppliers were used.
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