Construction Risk Management Plan

Full Description

This construction risk management plan template is a spreadsheet for identifying project risks, scoring their cost and impact, and planning how you will respond if they happen. Risk is part of every construction project, and it is hard to control without a clear, shared record of what could go wrong.

What is a construction risk management plan?

A construction risk management plan sets out how a project team will identify, assess, respond to and monitor risks that could affect cost, schedule, quality or safety. At its core is a risk register: a list of each risk with its likelihood, potential impact, owner and mitigation or remediation actions. The plan is built during preconstruction and reviewed regularly so new risks are added and closed risks are retired.

When to use it

• During preconstruction, to capture risks before you finalize the estimate and schedule
• When setting contingency, so the amount is tied to real, costed risks
• At project kickoff, to agree risk owners with the owner, design team and key trades
• Before high-risk phases such as excavation, structural work or work in occupied buildings
• At monthly project reviews, to update scores and track actions
• When an owner or lender asks how project risk is being managed

What’s included

The download is an editable spreadsheet (.xlsx) set up as a risk management register. It lets you:

• Identify and list project risks
• Assign a cost and a potential impact score to each risk
• Assess each risk
• Prepare a remediation plan for each risk in case it occurs

How to fill it out

1. Run a short workshop with the project manager, superintendent, estimator and key trades. List every risk you can think of, grouped by type: design, site, commercial, schedule, safety and external.
2. Write each risk as a cause and effect, for example “late steel shop drawings may delay erection by two weeks”.
3. Estimate the cost if the risk happens and give it an impact score.
4. Assess each risk and rank the list so the highest risks get attention first.
5. For each significant risk, write the remediation plan: what you will do to reduce it now, and what you will do if it occurs.
6. Name an owner for every action and set a review date.
7. Review and update the register at regular project meetings.

Common mistakes to avoid

• Filling it in once at bid time and never opening it again
• Vague risks such as “weather” with no specific effect or action
• Actions with no owner or due date
• Keeping the register in the office and not asking the field team what they see

Related templates and guides

• Construction Risk Register Template
• Cost Risk Analysis (EMV)
• Project Specific Baseline Risk Assessment
• How To Manage Construction Project Risk
• Glossary: Contingency

Frequently asked questions

What are the main steps in construction risk management?

The usual steps are identify, assess, respond and monitor. You list the risks, score how likely and how serious each one is, decide whether to avoid, reduce, transfer or accept it, and then track it through the project, updating the register as conditions change.

What is the difference between a risk management plan and a risk register?

The plan describes how the team manages risk: who is responsible, how risks are scored and how often they are reviewed. The register is the working list of individual risks, scores and actions. On smaller projects, a well-kept register often serves as the plan.

What is a risk remediation plan?

It is the set of actions you will take if a risk occurs, or to reduce it before it does. A good remediation plan names the action, the person responsible and the trigger or date, so the team can act quickly instead of deciding under pressure.

What are common risks on construction projects?

Typical risks include incomplete design, unforeseen ground or existing conditions, material price increases and delays, labor shortages, subcontractor performance, weather, permit delays, scope changes and safety incidents. Each project has its own mix, so build the list from the actual job.

How often should the risk register be reviewed?

Many teams review it at each monthly project meeting and before major phases start. Review it sooner after any significant change, such as a design revision, a schedule slip or a new subcontract award.