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2. 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

3. PURPOSE Developed an Understanding of the Importance of Risk Management 10 Foundations of Risk Management Tools for Risk Management

4. 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

5. HYATT REGENCY KANSAS CITY July 17, 1981 Dance Contest 2 nd and 4 th Floor Walkways Collapsed 144 Dead, 200+ Injured

6. HYATT REGENCY KANSAS CITY During Construction Design was Modified New Design was Inadequate Poor Communication Poor Quality Control/Assurance Investigation

7. HYATT REGENCY KANSAS CITY Engineers convicted of gross negligence, misconduct and unprofessional conduct Engineers lost their licenses Company lost license $140 Million in Damages Aftermath

8. 10 FOUNDATIONS OF RISK MANAGEMENT Business Practices 1.Culture 2.Prevention and Proactivity 3.Planning 4.Communication 5.Education Business Practices 1.Culture 2.Prevention and Proactivity 3.Planning 4.Communication 5.Education Project Management 6.Scope 7.Compensation 8.Contracts 9.Contract Documents 10.Construction Phase Project Management 6.Scope 7.Compensation 8.Contracts 9.Contract Documents 10.Construction Phase

9. Create a Culture of Managing Risks and Preventing Claims CULTURE 1 1 Involves all levels of Staff and even Clients A conscious commitment that leads to unconscious actions Tool: Guide to Create Culture

10. ***Tool: Guide to Create Culture*** CULTURE 1 1 Artifacts Shared Values, Knowledge, and Learning Basic Unspoken Assumptions

11. ***Tool: Guide to Create Culture*** Artifacts CULTURE 1 1 Meeting Agendas Post Reminders – Screen Savers, Posters Risk Manager

12. ***Tool: Guide to Create Culture*** Shared Values, Knowledge, and Learning CULTURE 1 1 Horror Stories and Statistics Tie Risk to Monetary Value Role Play Presentations

13. ***Tool: Guide to Create Culture*** Basic Unspoken Assumptions CULTURE 1 1 Developed through Artifacts Developed through Shared Values, Knowledge and Learning Employee Interviews

14. Act with preventive techniques, don’t just react PREVENTION & PROACTIVITY 2 2 Risk Management Plans Develop Process and Systems Tool: Employee Interview Guide Tool: Project Risk Evaluation Checklist

15. ***Tool: Project Risk Evaluation Checklist*** PREVENTION & PROACTIVITY 2 2 Microsoft Access Program General Company Questions Client/Owner Questions Project Questions Responses to Answers that Trigger Risk

16. ***Tool: Project Risk Evaluation Checklist*** PREVENTION & PROACTIVITY 2 2

17. ***Tool: Project Risk Evaluation Checklist*** PREVENTION & PROACTIVITY 2 2

18. ***Tool: Employee Interview Guide & Template*** PREVENTION & PROACTIVITY 2 2 Hard Skills, Talent & Soft Skills Outline / Agenda Sample Questions Template

19. ***Tool: Employee Interview Guide & Template*** PREVENTION & PROACTIVITY 2 2 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.

20. ***Tool: Employee Interview Guide & Template*** PREVENTION & PROACTIVITY 2 2 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

21. ***Tool: Employee Interview Guide & Template*** PREVENTION & PROACTIVITY 2 2 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

22. ***Tool: Employee Interview Guide & Template*** PREVENTION & PROACTIVITY 2 2

23. ***Tool: Employee Interview Guide & Template*** PREVENTION & PROACTIVITY 2 2

24. Plan to be Claims Free PLANNING 3 3 Staff Hiring & Retention Client & Project Selection Training & Quality Assurance Project Planning Tool: Corporate Risk Management Plan

25. ***Tool: Corporate Risk Management Plan*** PLANNING 3 3

26. Communicate to Match Expectations with Perceptions COMMUNICATION 4 4 Communications Plan Templates (correspondence logs, etc) Protocols (telephone, e-mail, etc) Tool: Project Status Report Template

27. ***Tool: Project Status Report*** COMMUNICATION 4 4 Activities Completed Action Items Schedule Comments / Announcements

28. ***Tool: Project Status Report*** COMMUNICATION 4 4

29. Educate All the Stakeholders EDUCATION 5 5 Staff Training Mentoring / Coaching Communication with Owner / Client / Sponsor Tool: Guide to the Practice of Structural Engineering

30. EDUCATION 5 5 CASE Document Guide for new Engineers Searchable, Electronic Document Test Questions ***Tool: Guide to the Practice of Structural Engineering***

31. Develop and Manage a Clearly Defined Scope of Services SCOPE 6 6 Provides Understanding Serves as a Basis for Negotiation Work Breakdown Structure Tool: Scope Template

32. ***Tool: Scope Template*** SCOPE 6 6

33. Prepare and Negotiate Fees that Allow for Quality and Profit COMPENSATION 7 7 Effort or Value Based Don’t be Afraid to Walk Fee Proposal Template Sanity Checks Tool: Revenue vs. Profit (Client Evaluation)

34. ***Tool: Revenue vs. Profit (Client Evaluation)*** COMPENSATION 7 7

35. ***Tool: Revenue vs. Profit (Client Evaluation)*** COMPENSATION 7 7

36. ***Tool: Revenue vs. Profit (Client Evaluation)*** COMPENSATION 7 7

37. Negotiate Clear and Fair Agreements: Risk Should be Fairly Proportioned to Each Party CONTRACTS 8 8 Standard Templates Insurable? Standard of Care Tool: Red Flag Word Search

38. CONTRACTS 8 8 Best Certify Guarantee Insure Warrantee ***Tool: Red Flag Word Search*** Total All Approve Complete Every Indemnify Liquidated Damages Ensure Full Defend

39. ***Tool: Red Flag Word Search*** CONTRACTS 8 8

40. Produce Quality Construction Documents CONSTRUCTION DOCUMENTS 9 9 QA/QC Procedures Quality Management Plan Guidelines / Codes Tool: A Guideline Addressing Coordination and Completeness of Structural Construction Documents

41. CONSTRUCTION DOCUMENTS 9 9 CASE Document Guide for new Engineers Searchable, Electronic Document Test Questions ***Tool: A Guideline Addressing Coordination and Completeness of Structural Construction Documents ***

42. Provide Services to Complete the Risk Management Process CONSTRUCTION PHASE SERVICES 10 Provide Timely Responses Establish Good Relationships Keep Good Records Lessons Learned Tool: Site Visit Cards

43. CONSTRUCTION PHASE SERVICES 10 ***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

44. CONSTRUCTION PHASE SERVICES 10 ***Tool: Site Visit Cards***

45. CONSTRUCTION PHASE SERVICES 10 ***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

46. Questions? Corey Matsuoka, P.E., PMP, LEED AP SSFM International, Inc. (808) 531-1308 CMatsuoka@ssfm.com

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