Risk Assessment and Allocation for Highway Construction Management

8. Conclusions: What's Next?

8.1. Vision of Risk Assessment and Allocation in the Highway Sector

The construction management scan provided insights into the advanced awareness of risk assessment and allocation techniques in other countries. The case studies conducted in the development of this document revealed that these techniques are just now evolving in some U.S. highway agencies, but are not yet standard practice. It is hoped that this guidance document, which was developed as part of the scan implementation plan, will help raise awareness of risk management techniques and begin the process of incorporating elements of risk management into the institutional structures of State highway agencies.

It is the taking of opportunities that will yield the greater gain, and to do so requires rigorous analysis capability, as well as an understanding of the implications of associated management actions. The proposed framework outlined in this guidance document is built on a foundation of organizational changes, modified behaviors, analytical tools, and an overall commitment to "living risk management" within State highway agencies. Through the use of formalized risk assessment and allocation techniques, the team members from the construction management scan believe that State highway agencies will allocate risks in a more appropriate and transparent manner and thereby better align team goals to customer goals.

8.2. Next Steps

The FHWA/AASHTO Construction Management Expert Technical Group (CM ETG) plans to facilitate a series of workshops to assist in implementing risk management. The hands-on workshops will use local case studies and include both DOT and construction industry participation. The CM ETG will use this guidance document as the outline for the workshops. The intent of the workshop is to establish risk management in three to five States and then to adopt a lead State approach to spread the technique to other States.

The ETG will work with three to five States to conduct risk analysis in each State as a followup to the course. These States will commit resources in the form of personnel to develop and implement the risk management process in their States. Each State will conduct a minimum of three pilot studies, and it is hoped that an overlap of subject matter will allow States to compare results.

The first pilot study will focus on program topics, such as inspection levels or innovative contracting, using a qualitative assessment similar to the example from the Federal Lands Highway Division provided in Chapter 3. The second study will focus on a qualitative assessment for an appropriate construction project. This study will use the tools and techniques described in Chapter 3. The third and final study will involve a rigorous risk analysis using the analytical tools and techniques described in Chapter 4.

All three case studies will employ the mitigation and planning techniques described in Chapter 5 and the monitoring and updating tools and techniques used in Chapter 7. Finally, the project pilot studies will employ the risk allocation concepts and techniques in Chapter 6.

The CM ETG plans to provide instructors who can conduct the workshops and be available to help manage and oversee the case studies. The instructors will capture each case study, written by the host State, and compile them in a report to complement this guide. At that point, the CM ETG will revise this guide or create a risk manual that includes the case studies as appendixes.

The CM ETG encourages all States to begin development of a risk management process, with or without participation in the workshops. This guide has been written as a standalone document. The bibliography, case study information, checklists, and example charters can be used as reference materials to get started. The CM ETG hopes that this guidance document will help raise awareness of risk management techniques and begin the process of incorporating elements of risk management into the institutional structures of State highway agencies.