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Possible financial impact of the dispute and risk to the project

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-To determine the possible financial impact of the dispute and risk to the project, estimate costs associated with proposed solutions. -Generate a summary of the cost estimates in Spreadsheet format (any type).
-Identify specific costs, how numbers were determined, and impact on the overall project.
-Explain assumptions, costing factors, and project impact for at least three (3) of the proposed dispute solutions.

My goal is to construct a Spreadsheet that accurately portrays cost estimation calculations for the contractor dispute in conjunction with a written explanation for assumptions, cost factors, and estimation methodology.

Goal is five (5) pages in addition to Spreadsheet.

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The expert determines the possible financial impact of the dispute and the risk to the project, estimate cost associated with proposed solution. The response addresses the query posted in 1692 words with APA References.

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The response addresses the query posted in 1692 words with APA References

//Risk management forms an essential part of the responsibilities of a project manager. This section illustrates the process of identification and assessment of risks and the relevance of these steps for project accomplishment.//

No project can be accomplished without managing the risks associated with it. The process of risk management includes a thorough analysis of the various risks and their impact and then devising a strategy to mitigate or reduce the probable impact of the risks on the project. The project manager not only needs to identify the possible risks that may arise during the preliminary or execution phases of the project, but there is also a requirement to assess the possible impact of the project. The process of assessing and identifying the various risks of the project is known as risk assessment. The process of risk assessment includes the identification and evaluation of risks for understanding the possible impact they might have on the profitability of the project. It is only at this stage that the project manager would be able to plan a strategy for mitigating the likely impact of the risks. There could be a variety of risks affecting the project costs and, thereby, may result in an increase in the overall project expenditure.

//The section illustrates the various kinds of risks faced by a construction project. It further elaborates the various factors giving rise to the various risks and the likely disputes that may arise during the execution of the project. The proposed solutions to the various disputes have also been discussed at the end of each risk factor.//

The success of any project is highly dependent on the management of the risks associated with the project. The risk factors also have a crucial role to play in the accomplishment of construction projects (Buertey, 2013). The risk identification process in the construction sector explores five major determinants that greatly impact the risks of such projects. The various risks mainly associated with a construction project can be categorized into the following categories:

(a) Risks of inadequate or poor-quality materials, equipment or increase in labor costs: These risks have the highest probability of occurrence and, therefore, the risk associated with raw materials is also referred to as construction risks. There could be a number of factors responsible for the construction risks in a project. The absence of a regular supply of the construction material, equipment or other machinery from the selected vendor, arising due to any contingent situations arising in the sector, could be one of the sources for this kind of risks. Apart from an inconsistent supply, the other risk that can greatly affect the project costs includes the risk of the late delivery of the material or ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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