The risk assessment process is intended to help Earthscape staff better understand the factors which contribute to project risk, and therefore threaten project performance. Similarly, it is intended to inform the strategies which are within our control to manage risks effectively.
Not all risks are created equal! We know from experience that some factors have a greater impact on projects than others. For example, the early appointment of a Project Manager can often bring a fresh perspective and pragmatism to a new project, heading off problems before they have a chance to grow. Similarly, our estimators, engineers and safety experts bring unique perspectives to bear on our designs, which can help us identify project challenges in time to solve them.
What makes this risk assessment tool unique is it takes into account the relationships which exist between different factors, when they combine. This process, called 'positive feedback', occurs when multiple factors occur at the same time and impact our projects by accelerating or amplifying the risks. Consider these two examples:
Example 1
Some sites are harder to build on than others (e.g., sloped sites or sites with buried services, etc), and these sites carry some risk. If we commit to a final price and sign a contract for a complex site before we develop an installation strategy, our risks go up significantly.
Example 2
Some designs are more ambitious or inovative than others. Highly custom projects often involve creating unique design solutions which need to be rigorously tested and evaluated prior to final fabrication and this takes time. So highly custom projects with short timelines carry very high risk.
Taking risks is an important part of our business. It is only through taking some risks that we can maintain our position as an industry leader. But these risks need to be undertaken wisely and strategically. That is exactly why we need to be expert at managing risks. This tool is designed to improve our understanding of risks and help us manage them effectively so we can achieve our Mission: to design and craft beautiful, innovative, and seriously fun play structures and community spaces!
Questions
Question 1 Is this project value more than $1-million?
The business risks associated with high-value projects are complex and require us to develop specific strategies to mitigate them; this must be done on a job by job basis. However, it is generally true that by "having more eggs in one basket" we carry more risk because high-value projects represent a larger portion of our annual revenue.
Question 2 Does the Owner have previous experience operating playgrounds?
Are we concerned about the Owner's capacity for performing good/regular maintenance? New owners may underestimate the commitment required to keep their playground looking and functioning at its best. This can reduce longevity and increase warranty issues.
Question 3 Does the LA or GC have above average expectations of our project management/admin?
We know from experience that challenging clients represent one of the greatest risks to our business. Our most experienced staff agree unanimously that "tough clients" are the top risk to profitability of projects. Challenging clients expect more frequent meetings, request more design changes, and require more site visits, etc. These projects always demand more time from our senior people. It is essential to vet potential clients carefully.
Question 4 Is this a high-use park?
High use parks require more attention to detail in the concept and detailed design stages. In service, parts/components wear out faster and must be replaced more frequently in high-use parks. These parks require more mainenance, so there is a relationship between high-use parks and other risk factors such as inexperienced owners, moving/spinning play equipment, etc.
Question 5 Is the project delivery schedule on an "as soon as possible" time frame?
ASAP projects are stressful for everyone involved. This can translate into high risk for the business when combined with other risk factors such as new/innovative designs, less experienced staff, or challenging clients. For example, during ASAP projects designers must sometimes leave important details unresolved, requireing fabricators to provide the necessary solutions.
Question 6 Will the project be installed on site within the next 24 months of the quote for initial design?
The longer a project takes, the more it will cost to administer, manage, and store. "The bottom three least profitable custom jobs are also part of the top five longest projects" - Laura. Projects with long lead-times carry risks associated with material cost escalation, and for international projects there is a risk of currency fluctuation.
Question 7 Is this project located in Canada/US?
Earthscape has robust systems in place for managing risks within Canada and USA. This is because we have more experience working in these markets and we are more familiar with the local requirements. International projects (i.e., outside Canada and the US) carry greater risks associated with containerized shipping, working in new/unfamiliar jurisdictions, permit requirements, working with new/unfamiliar subcontractors, and our ability to attend site quickly if problems occur.
Question 8 Have we built this structure 4 times or more previously?
It generally takes about four iterations of a structure for us to identify most of the problems and fully refine the details associated with it. We can be most confident in structures which have undergone more than four iterations, have been assembled at diverse site locations, and have undergone high-use park environments as part of their product evolution.
Question 9 Have we built a precedent for this structure within the past 3-years?
Earthscape has grown a lot during the past 5-years and our structures have undergone many evolutionary changes and improvements along the way. We are continually modifying our materials, developing our technical details, and building upon our observations of what does/doesn't work well on site. The most useful precedent projects are the ones that reflect these lessons-learned, and those are from the past 2-3 year period.
Question 10 Have we built anything like this before?
Innovation combines with some other factors such as ASAP project timelines or tough clients to create high business risk.
Question 11 Has there been a preliminary safety/compliance review yet?
There are many circumstances where preliminary safety/compliance reviews can help reduce risks, especially when shipping internationally. This question refers to a review that is appropriate to the current phase of a project's evolution. For example, confirming which safety standards apply to an overseas project is an appropriate early action, while detailed compliance can only be checked once a design is more fully evolved.
Question 12 Has there been a preliminary cost estimate from Estimating yet?
Designs and estimates must evolve in tandem to manage risks effectively. This means checking design aspirations against our extensive knowledge of how similar projects have performed financially in the past, and using that information to inform the scope of our designs before they are presented to clients. Sometimes this requires multiple iterations to find a good fit.This question refers to a review that is appropriate to the current phase of a project's evolution. For example, a quick "gut-check" might be appropriate during the early conceptual design phase, while detailed estimates underpinned by quotes from key suppliers and subcontractors might be appropriate upon final design.
Question 13 Has there been a preliminary review by Engineering yet?
Our engineers know better than any others in the business how to distinguish between what we have done previously, and what we have done well. This knowledge becomes very important when we modify a precedent project by changing its shape, ship it internationally, or install it under unusual site conditions. Preliminary engineering reviews reduce risks and increase the likelihood of a successful project. Like the previous two questions, this question refers to a review that is appropriate to the current phase of a project's evolution.
Question 14 Has a PM been appointed yet?
PMs bring fresh perspectives and a keen awareness of potential risks. They are highly invested in delivering successful project outcomes, and they are our "font line" in terms of risk management.
Question 15 Is there a site installation strategy yet?
Site installation strategies must be informed by knowledge of the site conditions (e.g., overhead obstacles, access limitations, temporary protection, etc.) and coordinated with the GC to check assumptions. Installation plans should always include a concept for assembly which matches the proposed equipment (crane, telihandler, etc.) and the circumstances on site. It is the GC's responsibility to create lifting plans, and it is our responsibility to provide information about lifting points, loads, and how to safely tilt/lift our structure, etc.. Installation strategies sometimes require external engineering. All installation strategies should be reviewed and approved in advance by our site supervisor Mike Larsen.
Question 16 Has a final contract been signed yet?
A well-balanced contract protects all parties but only when it is created at the right point during the project's development: committing to a contract too early or too late can increase cost risks.
Question 17 Is the site located in a high risk environment?
Examples of high risk environments include: Wood deterioration Zone 5, marine (coastal) sites, flood zones, areas of unusually high snow or wind loading, termite zones, seismically active zones, and dry-arid (i.e., desert) sites.
Question 18 Are there factors which make this a complex site assembly?
Factors which complicate site assembly include: limited/constrained access for equipment, limited storage space for components prior to assembly, restrictive site working hours, specialist sub-trades such as field-welding or electrical work for lighting, the need for temporary scaffolding or shoring, or the need for unusual equipment such as an extra large crane.
Question 19 Is this a sloped site?
Sloped sites represent design and assembly challenges.
Question 20 Are there below grade conditions that impact access or assembly?
Examples of below-grade conditions to be cautious of include: buried services, drainage, voids, archaeological deposits, and high water table.
Question 21 Does the structure bear on native soils?
Structures which bear on fills or existing structures represent design challenges and require extra engineering. In some cases we can't use our standard connection details and must create custom solutions.
Question 22 Is this modified Wheelhouse tech?
Experience has taught us to be extremely cautious when making small modifications to existing (i.e., precedent) structures such as our Collections pieces. What may occur to one person as a modest change can result in many hours of additional engineering and detailing by others. It is especially important with these sorts of projects to consult with our internal engineers and estimators prior to presenting pricing to clients.
Question 23 Does our structure physically connect to a third-pary structure?
This can result in additional design and engineering challenges. Bridges, ramps, and nets which connect to existing structures (or structures built by others) are some common examples.
Question 24 Are multiple structures linked together?
Linking structures (e.g., with bridges, nets, ramps, etc.) can introduce complex and dynamic loads which require additional engineering time. Resolving these loads can result in increased material costs and additional fabrication time.
Question 25 Does the primary structure use glulam timbers?
We only have one supplier option for curved AYC glulams and that puts us at their mercy in terms of price and schedule, with high risk associated with any defects we identify and/or need to replace. Straight fir laminations are a bit easier because we have more supplier options.
Question 26 Is there a complex metal structure required?
These always require extra engineering and should involve early communication with our external engineers.
Question 27 Is the structure over 10.4 m long/tall?
Custom timbers over 34-ft long are expensive and not many sawmills can cut them. Long or tall structures require end-to-end connectors, and these are always expensive to detail.
Question 28 Are there any spans over 6m?
Span means the full extent of something from end to end (e.g., a bridge or ramp with a span of 6m or more). These always require extra engineering and should involve early communication with our external engineers.
Question 29 Are there any cantilevers over 1.8m?
Cantilever means a rigid structural element that extends horizontally and is supported at one end only. These always require extra engineering and should involve early communication with our external engineers.
Question 30 Will the structure be shipped inside a shipping container?
Shipping with sea containers is inherently riskier because shipping environments are often damp and humid (i.e., Zone 5). Designers must spend additional time configuring loads and supports.
Question 31 Does the structure require fabricating compound curves/angles?
Complex
Question 32 Are there single post towers in the design (i.e., high moment connections)?
Single post towers require a higher degree of engineering and the consequences of "getting it wrong" are severe. Moment connections means a connection/joint that allows the transfer of forces between a post/column and beam/foundation. These can be challenging to resolve. When combined with some other risk factors, engineering requirements increase dramatically; for example when there is linking between single-post structures.
Question 33 Are there any square net to round net transitions?
These take extra time to detail and install.
Question 34 Are there any long lead-time components or materials required?
Glulams, stainless steel slides, and lighting are examples of materials and components which require long lead-times.
Question 35 Will we be required to provide the foundation design before the rest of the structure is fully designed and engineered?
Early foundation requirements are an increasingly common request. These projects require us to deviate from our typical detailed design workflow. This can constrain our design process by forcing us to commit to mounting support brackets at specific locations too early (this can take a lot of engineering time to resolve). Also, early foundation packages are generally conservative, meaning more concrete for the GC's.
Question 36 Are there any high maintenance parts required?
Moving, swinging, and spinning parts are examples of components which require high-maintenance.