Why projects overrun
Time and cost overruns on infrastructure projects rarely have a single cause. Most often they result from an accumulation of known but untreated risks: an incomplete ground investigation, a poorly defined interface between two packages, a permit obtained later than planned. At FINC Solutions, risk management is an integral part of project support from the very first studies.
Risk management does not try to foresee everything. It aims to make uncertainties visible, decide which to address first and prepare responses before they become problems. Recognised frameworks, such as the ISO 31000 standard on risk management, set out its principles.
Identify early, and together
The most expensive risks are the ones discovered late. A risk identified at study stage can often be handled with an additional investigation or a design option; the same risk discovered on site may lead to rework, stoppages and claims.
Identification works best as a collective exercise. Workshops bringing together the client, designers, operators and, as early as possible, contractors: each sees risks the others miss. Lessons learned from comparable projects are a valuable source.
- Technical risks: ground, existing structures, utilities, interfaces between packages
- Schedule risks: permits, procurement, seasonal constraints
- Financial risks: price changes, contingencies, solvency of parties
- Regulatory and environmental risks
- Risks related to users, neighbours and operations
Assess, prioritise, decide
Each risk is assessed against two criteria: its likelihood and its impact on time, cost, quality or safety. A simple four- or five-level scale is enough in most cases; what matters is that it is shared and applied consistently.
For larger projects, the analysis can be supplemented by a quantitative approach: estimating ranges for costs and durations, then simulating how they combine, for example with Monte Carlo analysis. This expresses a budget or a date with a confidence level rather than as a single, misleading figure.
For each priority risk, a strategy is chosen: avoid it by changing the project, reduce it with a preventive measure, transfer it through a contract or insurance, or accept it knowingly with an appropriate contingency.
On the projects FINC supports, each risk is given a named owner, a treatment action and a deadline. A risk without an owner is a risk nobody manages.
A living register, not an archive document
The risk register is only valuable if it evolves with the project. It is reviewed at every steering meeting, updated when new information emerges and used as the basis for reporting to the client.
Some risks disappear once a critical stage is passed; others emerge as the project progresses. Tracking this evolution also allows contingency to be adjusted: released as uncertainties are resolved, or increased when the risk profile worsens.
The register can also record opportunities: a cheaper technical alternative, early procurement, a simplified approval route. Managing them with the same rigour as threats helps offset part of the contingencies.
The construction phase: the moment of truth
During construction, risk management translates into concrete actions: hold points before critical operations, coordination meetings, monitoring of interfaces between contractors, ongoing quality control.
On an occupied or operating site, coordination with the operator becomes a major risk in its own right. Phasing, prevention plans and regular communication make it possible to reconcile works with continuity of service.
Change control is the other area to watch. Every change requested during works, however modest, should be assessed for its technical, financial and schedule consequences before approval. Overruns often stem from a series of small decisions taken without an overall view.
Managing risk in Canada, Morocco and Africa
The projects FINC Solutions supports in Canada, Morocco and other African countries do not carry the same risks. The method — identify, assess, treat, monitor — stays the same; what goes into the register changes.
In Canada, a building season constrained by winter, labour availability and contractual and regulatory requirements often weigh on the schedule. In Morocco and Africa, other factors frequently come into play: import lead times for some materials and equipment, exchange-rate swings, logistics to remote sites, and coordination between funders, authorities and local contractors.
Being present on both sides of the Atlantic lets us anticipate these risks, rely on trusted local partners and apply the same monitoring standards whatever the country.
How FINC Solutions secures your projects
FINC’s project support covers planning, coordination, risk management and site supervision. It draws on our technical expertise to address risks at source: assessments, feasibility studies, options analysis.
Whether your project is still being set up or already under way, we can help you structure your risk management approach and embed it in your project governance.
Frequently asked questions
When should a risk register be opened?
At the preliminary study stage. This is when treatment options are the most numerous and the least expensive. The register is then expanded at each project phase.
How should contingency be sized?
On the basis of the identified risks and their estimated impact, rather than a flat percentage. It is then adjusted as uncertainties are resolved.
Who should own risk management?
The client remains accountable, but each risk should be assigned to the party best placed to deal with it. External support helps run the process and keep an overall view.
