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58 how these risks would be allocated in the design-build proj- 6.5.5 Programming Phase Risk ect delivery method. The decision makers will need to know Allocation Tips what delivery methods are available under state laws or agency policies and then determine how the risks can be allocated Risk allocation affects the amount of contingency that must optically under the method. be included in a project estimate. Explore alternatives to traditional risk allocation tech- 6.5.2 Programming Phase Risk niques in both delivery and contract packaging strategies. Allocation Tools Gain industry input concerning risk allocation whenever Table 6.4 lists Programming Phase tools discussed in this possible. Follow the four fundamental tenets of sound risk allocation: Guidebook for risk allocation. The Delivery Decision Support (D1.2) tool includes descriptions of numerous alternative Allocate risks to the party best able manage them. project delivery methods. Allocate the risk in alignment with project goals. Share risk when appropriate to accomplish project goals. Ultimately seek to allocate risks to promote team align- 6.5.3 Programming Phase Risk ment with customer-oriented performance goals. Allocation Outputs The likely output of the risk allocation step at the Program- 6.6 Programming Phase Risk ming Phase will be a final project delivery decision and plan for Monitoring and Control developing a contract packaging strategy. However, the output will vary with the nature of the project. At the highest level of The objectives of risk monitoring and control are to 1) sys- detail, a project delivery decision report can be generated that tematically track the identified risks; 2) identify any new risks; analyzes risk allocation in terms of project characteristics (e.g., 3) effectively manage the contingency reserve; and 4) capture cost, schedule, and quality issues); agency characteristics (e.g., lessons learned for future risk assessment and allocation ef- available staffing level, staff experience, etc.); market character- forts. The strategy for risk monitoring and control is devel- istics (e.g., market availability, market experience, etc.); and oped in the Programming Phase, but it is not implemented in stakeholder characteristics. Detailed risk allocation decisions earnest until the Design Phase. Therefore, only a concise de- may be discussed in this phase, but when the contract method scription of risk monitoring and control is presented in this is finalized the allocation will be set in the design phase. section. 6.5.4 Programming Phase Risk Allocation 6.6.1 Risk Monitoring and Control Inputs Relationship to Project Complexity The key inputs to risk monitoring and control are the Risk Minor projects tend toward the use of traditional delivery Management Plan (R3.1) and Risk Register (R3.12). These and contract packaging strategies. Typically, risk allocation in tools provide a framework for managing risks through a for- minor projects requires only a cursory review of the risks to en- malized monitoring and control process. On moderately sure that they are allocated properly in the contracts. Moder- complex and major projects with a high degree of uncer- ately complex and major projects require careful consideration tainty, an agency may invest in a Risk Management Informa- of both delivery and contract packaging techniques. Alterna- tion System (R3.13) to better monitor and control impacts. tive delivery methods should be explored on moderately com- plex projects and are becoming common for major projects. 6.6.2 Programming Phase Risk Monitoring and Control Tools Table 6.4. Programming phase risk allocation tools. Table 6.5 lists the risk monitoring and control tools sug- gested for the Programming Phase. More information on the Tool tools can be found in Appendix A. Moderately Complex Minor Major 6.6.3 Programming Phase Risk Monitoring and Control Outputs D1.1 Contract Packaging The key output for risk monitoring and control in the D1.2 Delivery Decision Support Programming Phase is a formal strategy or plan that will