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SSFM International, Inc.
•Project Management, Planning & Engineering
•Hawaii, Pacific Islands & Asia
•Corey Matsuoka, P.E., PMP, LEED AP
•Civil Engineer by License
•Structural Engineer by Education
PURPOSE
•Developed an Understanding of the
Importance of Risk Management
•10 Foundations of Risk Management
•Tools for Risk Management
HYATT REGENCY
KANSAS CITY
•Constructed in 1978
•40 Story Building (MO tallest)
•Lobby with a Multi Story Atrium
• Suspended walkways
• Column-less Staircases
•A Triumph of Modern Architecture and
Engineering
HYATT REGENCY
KANSAS CITY
•July 17, 1981 Dance Contest
•2nd and 4th Floor
Walkways Collapsed
•144 Dead, 200+ Injured
HYATT REGENCY
KANSAS CITY
Investigation
•During Construction
Design was Modified
•New Design was
Inadequate
•Poor Communication
•Poor Quality
Control/Assurance
HYATT REGENCY
KANSAS CITY
Aftermath
•Engineers convicted of
gross negligence,
misconduct and
unprofessional conduct
•Engineers lost their
licenses
•Company lost license
•$140 Million in
Damages
10 FOUNDATIONS OF
RISK MANAGEMENT
Business Practices
Project Management
1. Culture
6. Scope
2. Prevention and
Proactivity
7. Compensation
3. Planning
4. Communication
5. Education
8. Contracts
9. Contract Documents
10.Construction Phase
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CULTURE
Create a Culture of Managing Risks and
Preventing Claims
•Involves all levels of Staff and even Clients
•A conscious commitment that leads to
unconscious actions
Tool: Guide to Create Culture
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CULTURE
***Tool: Guide to Create Culture***
•Artifacts
•Shared Values,
Knowledge, and
Learning
•Basic Unspoken
Assumptions
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CULTURE
***Tool: Guide to Create Culture***
Artifacts
•Meeting Agendas
•Post Reminders – Screen Savers, Posters
•Risk Manager
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CULTURE
***Tool: Guide to Create Culture***
Shared Values, Knowledge, and Learning
•Horror Stories and Statistics
•Tie Risk to Monetary Value
•Role Play
•Presentations
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CULTURE
***Tool: Guide to Create Culture***
Basic Unspoken Assumptions
•Developed through Artifacts
•Developed through Shared Values, Knowledge
and Learning
•Employee Interviews
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PREVENTION &
PROACTIVITY
Act with preventive techniques,
don’t just react
•Risk Management Plans
•Develop Process and Systems
Tool: Employee Interview Guide
Tool: Project Risk Evaluation Checklist
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PREVENTION &
PROACTIVITY
***Tool: Project Risk Evaluation Checklist***
•Microsoft Access Program
• General Company Questions
• Client/Owner Questions
• Project Questions
•Responses to Answers that Trigger Risk
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PREVENTION &
PROACTIVITY
***Tool: Project Risk Evaluation Checklist***
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PREVENTION &
PROACTIVITY
***Tool: Project Risk Evaluation Checklist***
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PREVENTION &
PROACTIVITY
***Tool: Employee Interview Guide & Template***
•Hard Skills, Talent & Soft Skills
•Outline / Agenda
•Sample Questions
•Template
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PREVENTION &
PROACTIVITY
***Tool: Employee Interview Guide & Template***
•Hard Skills
“Success in any business is 85% ability to relate to
other people and attitude and only 15% job knowledge
and technical skills.”
– Carnegie Foundation, 2005.
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PREVENTION &
PROACTIVITY
***Tool: Employee Interview Guide & Template***
•Talent
“People don’t change that much. Don’t waste time
trying to put in what was left out. Try to draw out what
was left in. That is hard enough.”
– Marcus Buckingham, First, Break All The Rules: What the World’s
Greatest Managers Do Differently
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PREVENTION &
PROACTIVITY
***Tool: Employee Interview Guide & Template***
•Soft Skills
“There is a growing recognition that interpersonal
(soft) skills are not simply helpful in business today;
they are essential…”
– Kelly Pierce, eSight Trend Watch: Increased Value of Soft Skills
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PREVENTION &
PROACTIVITY
***Tool: Employee Interview Guide & Template***
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PREVENTION &
PROACTIVITY
***Tool: Employee Interview Guide & Template***
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PLANNING
Plan to be Claims Free
•Staff Hiring & Retention
•Client & Project Selection
•Training & Quality Assurance
•Project Planning
Tool: Corporate Risk Management Plan
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PLANNING
***Tool: Corporate Risk Management Plan***
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COMMUNICATION
Communicate to Match Expectations
with Perceptions
•Communications Plan
•Templates (correspondence logs, etc)
•Protocols (telephone, e-mail, etc)
Tool: Project Status Report Template
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COMMUNICATION
***Tool: Project Status Report***
•Activities Completed
•Action Items
•Schedule
•Comments / Announcements
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COMMUNICATION
***Tool: Project Status Report***
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EDUCATION
Educate All the Stakeholders
•Staff Training
•Mentoring / Coaching
•Communication with Owner / Client / Sponsor
Tool: Guide to the Practice of Structural
Engineering
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EDUCATION
***Tool: Guide to the Practice of
Structural Engineering***
•CASE Document
•Guide for new Engineers
•Searchable, Electronic
Document
•Test Questions
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SCOPE
Develop and Manage a Clearly Defined
Scope of Services
•Provides Understanding
•Serves as a Basis for Negotiation
•Work Breakdown Structure
Tool: Scope Template
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SCOPE
***Tool: Scope Template***
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COMPENSATION
Prepare and Negotiate Fees that
Allow for Quality and Profit
•Effort or Value Based
•Don’t be Afraid to Walk
•Fee Proposal Template
•Sanity Checks
Tool: Revenue vs. Profit (Client Evaluation)
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COMPENSATION
***Tool: Revenue vs. Profit (Client Evaluation)***
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COMPENSATION
***Tool: Revenue vs. Profit (Client Evaluation)***
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COMPENSATION
***Tool: Revenue vs. Profit (Client Evaluation)***
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CONTRACTS
Negotiate Clear and Fair Agreements:
Risk Should be Fairly Proportioned to Each Party
•Standard Templates
•Insurable?
•Standard of Care
Tool: Red Flag Word Search
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CONTRACTS
***Tool: Red Flag Word Search***
•Best
•Total
•Indemnify
•Certify
•All
•Liquidated Damages
•Guarantee
•Approve
•Ensure
•Insure
•Complete
•Full
•Warrantee
•Every
•Defend
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CONTRACTS
***Tool: Red Flag Word Search***
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CONSTRUCTION
DOCUMENTS
Produce Quality Construction Documents
•QA/QC Procedures
•Quality Management Plan
•Guidelines / Codes
Tool: A Guideline Addressing Coordination
and Completeness of Structural Construction
Documents
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CONSTRUCTION
DOCUMENTS
***Tool: A Guideline
Addressing Coordination
and Completeness of
Structural Construction
Documents ***
•CASE Document
•Guide for new Engineers
•Searchable, Electronic
Document
•Test Questions
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CONSTRUCTION PHASE
SERVICES
Provide Services to Complete
the Risk Management Process
•Provide Timely Responses
•Establish Good Relationships
•Keep Good Records
•Lessons Learned
Tool: Site Visit Cards
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CONSTRUCTION PHASE
SERVICES
***Tool: Site Visit Cards***
•Prior to the Site Visit – What to Do
•What to Take
•During the Site Visit – What to Observe
•After the Site Visit – What to Do
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CONSTRUCTION PHASE
SERVICES
***Tool: Site Visit Cards***
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CONSTRUCTION PHASE
SERVICES
***Tool: Site Visit Cards***
•General Guidance and Rules of Thumb
•Composite Slab on Metal Deck
•Reinforced Concrete Flat Slabs
•Concrete Spread and Wall Footings
•Reinforced Concrete Masonry Unit Walls
•Structural Steel – General Framing
•Wood Framing – Sheer Walls
Questions?
•Corey Matsuoka, P.E., PMP, LEED AP
SSFM International, Inc.
(808) 531-1308
CMatsuoka@ssfm.com
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