Risk and Value Management(Construction Economics)

Kilby House is an existing building. It comprises of Block A, which is six storeys high plus a roof level plant room, and Block B which is eleven storeys high plus a roof level plant room. The two blocks are linked by a central stair and lift core. The proposed works comprise of the design, conversion, extension and defects rectification of Kilby House into 202 en-suite studio apartments, associated circulation areas and external works. As the team responsible for risk and value management of this project, you have been asked to brief the client on a range of risks and options that might affect its successful completion. You are required to produce a short professional report of approximately 4,500 words. Risk Management a. A short introduction explaining why risk management is important b. Identification and classification of the main strategic risks for the client c. A qualitative analysis of these risks and how they might be mitigated or avoided d. A strategy for managing risk throughout the duration of the project e. A simplified risk register summarising all of the above 2. Value Management a. A short introduction explaining why value management and whole life costing are important considerations at the design stage b. A detailed breakdown of costs for three energy saving options to be applied to Block A. c. Whole life costings using the Savings to Investment Ratio (SIR) and Discounted Payback Period (DPB) methods for periods of 10, 15 and 20 years. Note: you should include calculation details for both methods in an appendix. d. A recommendation and justification for your choice of the best option.