FAQ
FAQ: Dealing with project risks
E.1 How is risk management organized in the project alliance?
With the invitation to tender, the client discloses the opportunities and risks it has identified in a risk register. The realization partners supplement this with their findings as early as the dialogue phase.
The joint risk register maintained by all alliance partners from the dialog phase onwards is the central risk management tool of the project alliance. It lists opportunities and threats and jointly assesses their impact on the project requirements. Where measures are to be implemented to control the risks, the measures are jointly defined and recorded in the risk register.
The measures to avert risks and exploit opportunities are determined by the alliance partners. The costs for the preventive measures are recorded by the implementation partners in the cost price. The residual risk value after implementation of the measures is appropriately taken into account in the financial risk provision for the purpose of target cost 1.
The forecast and continuously updated actual costs for the respective risks are recorded and managed in the opportunity and risk tables and compared with the financial risk provision in the alliance agreement.
E.2 How does a joint financial risk assessment work?
As part of the dialog process, the risks and opportunities are recorded in the joint risk register, backed up with measures and financially assessed. The financial risk provisioning recorded in this way is included in the target costs.
The financial risk assessment can be carried out using the deterministic approach or a probabilistic approach. The client announces the method to be used with its tender documents.
The risks are analyzed on an ongoing basis in joint risk discussions within the project alliance. Any risks that occur are charged to the financial risk provision.
E.3 Does the client have to make risk provisions that go beyond the financial risk provision in the target costs?
Yes, the client must make provisions in his cost budget for the risks for all those services that are not provided by the alliance or for risks that he alone has assumed in the alliance contract (e.g. excessive subsoil risk).
He must also ensure financing for his share of any possible target cost overrun.
E.4 How are risks dealt with when they occur?
Das Allianzmanagementteam legt anhand der Chancen und Gefahren im Risikoregister fest, wie die Leistungserbringung bei eintretenden Chancen und Gefahren zu erfolgen hat. Für den Fall, dass sich bisher unerkannte bzw. unbekannte Risiken realisieren, werden die entsprechenden organisatorischen Massnahmen vordefiniert (z.B. Einsatz einer Task Force).
Bei Unfallereignissen liegt die Weisungsbefugnis während der Ereignisbewältigung beim verantwortlichen Einsatzleiter.
E.5 Where are the risks of planners and contractors mapped?
The risks of the realization partners (= alliance members) are recorded in the joint risk register. This therefore includes the risks of the client, planners and contractors, provided they are alliance partners. The financial risk provision in the target costs therefore includes the risks of all alliance partners and not just the client risks.
Service providers outside the project alliance map their risks independently in the respective contractual relationship with an alliance partner. This partner informs all other alliance partners about these risks and their development.
E.6 What does an insurance solution for a project alliance look like?
Ideally, the client will take out a combined construction, assembly and liability insurance policy in the form of a construction site insurance policy for all alliance partners involved in the provision of services as well as for their contractually agreed or approved subcontractors and will disclose the insurance solution planned by the client with the tender documents.
Any additions to the insurance concept envisaged by the client shall be decided by the alliance leadership team at the request of the alliance management team.