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Phrase "Proceed at Risk"

Phrase "Proceed at Risk"

Phrase "Proceed at Risk"

(OP)
What does the the term "proceed at risk" generally mean in a construction project?

Yesterday in a meeting there was a discussion about a proposed change (adding some operator stations).  The end user has not approved this yet but GC said it we should proceed at risk.

At who's risk (mine, GC, or end user)?

What risk (financial, schedule impact)???

What if I do nothing until a decision has been made on  this proposed change?





 

RE: Phrase "Proceed at Risk"

What if you do lots of work until a decision has been made?

It is a bit of a vague question. Without much more context my best advice would be direct these questions to the right people!

RE: Phrase "Proceed at Risk"

For me, "Proceed at risk" means that you go ahead with a task without having proper design /drawings / approval / agreement / contract... and you will absorve any impact (cost, time ...) of any modification required afterwards to make it conformant.

For what you write it certainly does not seem clear at all whose risk it is. Why didn't you ask that during the meeting with GC?

 

RE: Phrase "Proceed at Risk"

Out of curiosity, what is GC?

RE: Phrase "Proceed at Risk"

"Yesterday in a meeting there was a discussion about a proposed change (adding some operator stations).  The end user has not approved this yet but GC said it we should proceed at risk."

The proper time to have asked the questions and gotten ALL the answers was before you left that meeting.

RE: Phrase "Proceed at Risk"

I assumed GC = General Contractor

RE: Phrase "Proceed at Risk"

(OP)
GC = General Contractor.

From experience I've found it can be dangerous asking that type of question during a meeting.  I'd rather get some background info on it first.  

There can be two or more meanings to the same thing sometimes and it's important to have a good response.

RE: Phrase "Proceed at Risk"

My view would be that in context there's only one likely meaning to the phrase 'proceed at risk', pretty much as kelowna says, the question is who is the one proceeding at risk.

I doubt it would be the end users risk so it's either yours or the GC, maybe shared depending on the context, which can't be told from your post.

Posting guidelines FAQ731-376: Eng-Tips.com Forum Policies http://eng-tips.com/market.cfm? (probably not aimed specifically at you)
What is Engineering anyway: FAQ1088-1484: In layman terms, what is "engineering"?

RE: Phrase "Proceed at Risk"

Proceeding "at risk" without end user approval means anyone's risk who's doing the work, except the end user.

Since you don't say who you are with respect to the GC, we can't help you more than that.  I'm guessing you're a subcontractor, but I would hate to proceed on the risk of that guess.

The risk is if the end user doesn't approve what was asked for--who's liable for going back and redo things?  If you have evidence that the GC said to proceed, you can include them in that liability.  If you have nothing but an oral instruction, then ultimately it's just you.  Get something in writing from your GC.

Hg

Eng-Tips policies:  FAQ731-376: Eng-Tips.com Forum Policies

RE: Phrase "Proceed at Risk"

(OP)
HqTx- thanks for your input.

Yes, we are a sub to the general contractor.

From the comments I believe the only one at risk is my company (either financially or schedule-wise).  Hardly seems fair.

 

RE: Phrase "Proceed at Risk"

Your choices are to wait for client approval, and potentially be held liable for lost time (which you might be able to come back to the client for if they are delaying response unreasonably), or get the GC to accept (shared) responsibility for their decision to push ahead.

Hg

Eng-Tips policies:  FAQ731-376: Eng-Tips.com Forum Policies

RE: Phrase "Proceed at Risk"

As HgTX points out, if you are waiting for a decision, review, approval from your contractor and they have not provided that within the time frames set out in the contract, you have a couple of choices:

1) proceed at risk
2) send a letter stating that you are waiting on a specific approval and you cannot proceed without it and that you will advise the contrator of the cost & schedule impacts once they are fully assessed.  You will need to state contract clauses

Without seeing the contract, I'm not sure what other options you would have, but there may be something in there.

I would also request the GC to provide the instruction in writing, don't accept or act on anything verbal.
 

Greg Lamberson, BS, MBA
Consultant - Upstream Energy
Website: www.oil-gas-consulting.com
 

RE: Phrase "Proceed at Risk"

There are risks, no matter which way you go:

>  Proceed on the new course; the client may veto, and you're stuck with undoing all the changes

>  Proceed on the original course; the client may elect to proceed with changes, forcing you to undo work that you've done in the meantime

>  Stop work; the client may pick either path, and you're behind schedule

TTFN

FAQ731-376: Eng-Tips.com Forum Policies

RE: Phrase "Proceed at Risk"

I've had at least one "proceed at risk" where interpretation of code requirements was the issue. The design-build" contractor followed their A-E and mechanical subcontractor recommendation for installing exhaust and controls based on ASHRAE 90A and COE guidance. I was of the interpretation of NFPA 45 requirements and BMBL. The contractor proceeded "at risk" with their interpreation while appeal was made to IMC. Contractor then ate the risk.

RE: Phrase "Proceed at Risk"

Usually, it means Proceed at (your own) risk.

Mike McCann
MMC Engineering
Motto:  KISS
Motivation:  Don't ask

RE: Phrase "Proceed at Risk"

CYA might be an appropriate term.

RE: Phrase "Proceed at Risk"

Hi,

It may mean
either
 - "Proceed at your own risks" (meaning Go but if you fail it's your only fault)
or
 - "Proceed at risk analysis before going"

Anyway, whatever it means, you must procced at risk analysis  who's risk ? => Projet's risk !
What risk (financial, schedule impact) ? => any risk

In risk management plan, you sould plan mitigation actions (what is to be done for the risk not to happen ?) and containgency actions (what is to be done to limit effect if risk occurs ?)

Good luck !

 Babynus
 Administrator of www.toolware.fr website.

  

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