The National Academies

SHRP 2 R09 [Completed]

Guide for the Process of Managing Risk on Rapid Renewal Contracts

  Project Data
Funds: $249,961
Research Agency: Golder Associates
Principal Investigator: William Roberts
Effective Date: 12/21/2007
Completion Date: 1/20/2011

Project snapshot. More details below.

(Project Number)
Impact on Practice
Product Status

Guide to using a formal risk management process that helps optimize performance for accelerated reconstruction projects, offering practical methods for identifying, assessing, mitigating, allocating, and monitoring risk. Case studies, a risk/action checklist, imple-mentation tools, and a training course for conducting risk assessments are included.
The innovative approaches and compressed schedules often involved in rapid renewal projects can amplify problems or risks. With advanced project management techniques, project managers can maximize opportunities, avoid poor project outcomes, and significantly improve the likelihood of project success.
The product was piloted on a project in North Carolina. A risk assessment workshop was held in Seattle, Washington.

The Guide is available at https://www.trb.org/Main/Blurbs/168369.aspx.

Staff Responsibility: James Bryant
Few transportation agencies currently use formalized risk assessment and management programs, but awareness is developing. Agencies that have adopted formal risk-based programs report the benefits have been substantial and multifaceted. However, risks can be magnified in rapid renewal projects—where accelerated environmental/permitting processes and construction methods, in conjunction with innovative contracting methods (such as project financing), are used. These types of risks and how they can be evaluated and effectively managed are not well understood and the stakes can be very large, including significant project delays and budget over-runs, as well as significant disruption during construction and poor longevity. Although guidance currently exists and is being developed for managing risks on transportation projects, this guidance has generally not included consideration of the unique features of rapid renewal projects. 
The project had two primary objectives: (1) address the general lack of understanding of risk and risk management associated with the unique aspects of rapid renewal projects; and (2) develop practical guidance and materials for the application of risk management methods to the rapid renewal project development process in a manner consistent with state transportation agency business practices. 
This project developed a guide for the process of managing risk on rapid renewal and associated materials needed to successfully implement that guide. The specific materials developed and tested successfully in two pilot applications include the following: (1) a comprehensive guide, including extensive checklists and a comprehensive example project application; and (2) associated implementation materials for conducting risk management on relatively simple rapid renewal projects, including annotated training materials, an animated presentation introducing the risk management process, forms for documenting the process, and a Microsoft Excel template (with User’s Guide) for both documenting the process and automatically conducting the necessary analyses. Implementation of the principles and practices in the guide and supporting materials is expected to help transportation agencies develop a culture of risk management and more successfully complete their rapid renewal projects, as well as other projects (for which the guide and materials are also applicable). 
Products: The guide is available as a prepublication document. The final report will be available at a later date.

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