WestCon Tribune

April 2001

April Meeting

RISK AND RECONSTRUCTION

Presented by: Steve Saarman, Saarman Construction, Ltd.

Risk is a dynamic element that intertwines itself with every aspect of life. Daily activities and decisions individually deal with risk parameters ranging from "tightly controlled" to "out of-control". Everyone has a different tolerance of risk. We vary in what we consider is an acceptable risk level to function and make decisions. Knowledge is the one big variable that moves the pendulum between these range limits to meet an individual’s or group’s comfort zone.

Risk is a pervasive partner in any reconstruction project. What we in the industry take for granted as part of any reconstruction project often seems very threatening and uncomfortable to the lay person. Our constant exposure can sometimes create both a heightened level of awareness and/or a desensitized indifference to individual liability risks. Many times, the true extent of liability is not fully realized by all participants until one is well acquainted with a project. With that realization, comes the game of shifting "risky elements" out of one’s court, if possible. Ultimately, these "risky elements " and their associated cost implications have to be addressed by someone, because they represent true costs to a project.

Who picks these elements up (or inadvertently accepts them)? What is the immediate cost or long term potential cost liability? How does this affect the final reconstruction cost paid by our client, the owner? Is our client sufficiently educated and enlightened to the dynamics of risk being played out within their reconstruction team to make decisions that ultimately affect their bottom line concerning both short and long term liabilities? How can these identified "risky elements" be handled equitably within the reconstruction team and still be fair to the client, thereby creating a real "win win" situation ?

We will follow this thread through a conceptual reconstruction project focusing on the perspectives of an Architect, a Contractor, and an Owner’s Representative.

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