Regency Plaza Case Study - Risk Management Process, Review of the Options
3. Risk Management Process of the Regency Plaza Project
Regency Plaza is a mixed-use multi million US dollar project carrying quite high stakes. So the risks of it should be evaluated beforehand and managed well in order to make sure that the project wouldn’t over run budget or time and end with a successful result. Here we use the “Four Stage Risk Management Process” to evaluate the risk management happened in Regency Plaza project.
3.1 Risk Identification
Evaluation: how well the project was analyzed and source of the risk identified.
In the below table we will take a closer look at how well the risk was identified by Kris Hodgkins.
Description | Identified/Not | Constraints and Remarks | Size the layout of the floor plate | Identified | Complicated due to condominiums lying over the hotel rooms over a parking garage, which resulted in fixed column spacing and elevator core locations. | Number, mix and size of the condominium units | Identified | BRA approved maximum number of units to be built was 96, which Hodgkins chose opposing Farley, the marketing consultant’s idea of building spacious 72 units because of Hodgkins’ expected performance targets of $134.4 million gross sales and $26 million net profit out of the project. | Time Constraints | Not identified | Project was on a tight schedule as Kelly Constructions was convinced to cut off 03 month from the estimated 32 months of the project duration, with a promise of minimal changes to the original design. Eventually with the allowance of individual customization in the units, customers (i.e Millers) required drastic changes. | Manpower deficiency | Not identified | Neither RHG nor Hodgkins expect customers to require big alterations. But customers did, causing constant changes in the project design decreasing manpower and efficiency of the construction. | Extra Costs and Delays | Not identified | RHG allowed customers to modify their units as they please as long as they pay for
Regency Plaza is a mixed-use multi million US dollar project carrying quite high stakes. So the risks of it should be evaluated beforehand and managed well in order to make sure that the project wouldn’t over run budget or time and end with a successful result. Here we use the “Four Stage Risk Management Process” to evaluate the risk management happened in Regency Plaza project.
3.1 Risk Identification
Evaluation: how well the project was analyzed and source of the risk identified.
In the below table we will take a closer look at how well the risk was identified by Kris Hodgkins.
Description | Identified/Not | Constraints and Remarks | Size the layout of the floor plate | Identified | Complicated due to condominiums lying over the hotel rooms over a parking garage, which resulted in fixed column spacing and elevator core locations. | Number, mix and size of the condominium units | Identified | BRA approved maximum number of units to be built was 96, which Hodgkins chose opposing Farley, the marketing consultant’s idea of building spacious 72 units because of Hodgkins’ expected performance targets of $134.4 million gross sales and $26 million net profit out of the project. | Time Constraints | Not identified | Project was on a tight schedule as Kelly Constructions was convinced to cut off 03 month from the estimated 32 months of the project duration, with a promise of minimal changes to the original design. Eventually with the allowance of individual customization in the units, customers (i.e Millers) required drastic changes. | Manpower deficiency | Not identified | Neither RHG nor Hodgkins expect customers to require big alterations. But customers did, causing constant changes in the project design decreasing manpower and efficiency of the construction. | Extra Costs and Delays | Not identified | RHG allowed customers to modify their units as they please as long as they pay for