The Commercial Risk and Complexity, assesses the commercial and financial risks associated with the project. This takes into account the project size and value, fee values and project control risks, which accounts for the amount of commercial risk exposure on the project, thus more disciplines, more commercial and financial risks.
To assess the Commercial Risk and Complexity for the Project - you must consider the following 3 items:
Project Value | Fee Value | Project Control |
This assesses the project value risk, thus larger scale projects have a higher risk as they require higher skill levels, management levels and administration, along with coordination and QA. | This assesses the project fee risk, thus larger scale projects have a higher risk as they require higher skill levels, management levels and administration, along with coordination and QA. | Project control assesses the Risks associated with Kirk Roberts control on the project. Inherently We assume increased project liabilities with increase exposure etc services. Thus low level risk are single discipline projects, high level risk are project were we have multiple services or capital involved. |
To assess the Commercial Risk - you select the value from the available options where you expect the project to fall. This then assigns a Risk Value, and together with the Technical Risk and Complexity is used to calculate an overall Complexity & Risk.
The image below shows the risk values based on the selected Component being assessed: