Cmpt 302 Week One Assignment

Risk Management Plan Keystone Construction LLC

Richard Brown

CPMGT/302

1/12/2015

Geri Markely

Risk Management Plan Keystone Constructions LLC

During the planning phase of this contract in the risk assessment and during the registration of risks and opportunity, through developing of the scheduling, it became apparent that a high risk factor for one of the suppliers for key materials will not be able to meet supply delivery dates. This will become an untenable situation that will need to be analyzed finding a solution that will enable the contract supply schedule and completion date to be fulfilled on the project schedule and time line. It has a high risk factor to affect not only time but cost of the total budget in the contract, completion criteria, and penalties that will apply for not meeting the time requirements for completion of the contract within the time constraints of the performance clause.

Assessment 1; The Company that is a preferred supplier has stated that they cannot provide the widget as needed, there is a too long lead time. They have offered to expedite the widget if additional funds are paid for the extra service required by this supplier to get the part delivered in the time constraints required by the contract.

Options 1: pay the additional cost to get the widget delivered when the schedule will require it.

Option 2: Delay the project, which is not an option in that the time constraints put to complete the project on time will cost additional penalties for not getting the project done on time

Option 3: There is another supplier that has the widget in stock and can ship widget and get it to the site in the required time frame. The cost is about 10% higher than the preferred supplier and there will be the process of getting this supplier on the preferred buyer list and arrange for the approval to purchase from the supplier. The cost for processing the supplier is 1% of the cost of the widget.

Assessment 2; Paying additional cost...