Managing uncertainty in a wastewater project

This case study concerns a sewerage upgrade project in its pre-feasibility phase. It outlines a simple qualitative risk assessment for the project, the development of treatment actions, and an initial evaluation of commercial and pricing options.

The project was in its late pre-feasibility phase. Final technical options had not been agreed, although a tunnel option was clearly preferred. Commercial and procurement arrangements had not been finalised and no contracts had been drafted.

The objectives of the risk assessment were to identify and set priorities for the risks associated with the project and to develop action plans for treating the most important ones.

A separate assessment of commercial options was required, to contribute to the operator’s strategic planning for its commercial future. The outcomes required from the assessment were:

  • A list of the main commercial options for delivering the project
  • A preliminary analysis of the benefits and costs of each option.

The case draws lessons about the value of risk management for procurement, and some of the pitfalls of residual risk calculations.

Read full case study here.