Question

So, Jason comes into my office and shuts the door (that’s a very bad sign!). Look, he says, I just got a call from the County inspector. She just got the results from the geological review. It is as bad as we feared and then some! We knew it was going to be a bit dicey building those homes carved out of the side of a steep hill. We knew the grading contractor had added thousands of tons of backfill. Now we find, all that backfill has to be removed and replaced with approved fill material. We had absolutely no idea this problem even existed until two weeks ago. My quick estimate is that the cost of the grading mitigation will suck all the profits out of this housing track build – before we even begin it!

Okay people what do we do about our dilemma? This risk does not exist in our Risk Register. Was that a failure of the methodology? Was that a failure of our execution of the methodology? And, in any case, we don’t have any review meetings in the near future, so how do we handle this?

Answer 1

We need to be ethical in the work we do and hence we need to replace the fill as it is our mistake to use it. The company needs to bear the cost for refilling even when it is a loss. Such kind of risks need to be added in our risk registers and when they are not there it is definitely a failure of the methodology . The company need to have a review meeting and discuss on the failure of registering and executing the risks and also they need to discuss on what needs to be done in the refilling issue. When there is not review meeting in near future, we need to call for an urgent meeting and discuss these issues immediately .