FTA Oversight Procedures - Federal Transit Administration - U.S. ...

Construction Risk is subdivided into: Early Construction Risk (composed of Geotechnical/Utility
activities, usually associated with 20% complete), Mid‐Range Construction Risk (associated with
coordination of contractors, etc.), and Start‐Up/ Substantial Completion Risk (associated with 90%
complete).
Although each of these categories of risk is associated with a particular project phase, if a risk event
is not disposed of during a particular phase, it may survive as a risk exposure into a following
phase.
6.2.1.3 Risk Register
The PMOC shall develop enumerated lists of identified Risk Events (Risk Register), which shall
include a description of the potential risk event; its potential consequences and likelihood of
occurrence; Risk Category; contract package; source document(s); and potential actions to mitigate
the risk. The Risk Register is unlikely to be a collectively exhaustive representation of total project
risk. Therefore, the Risk Register alone is insufficient to quantify risk, where a project‐level risk
model is required.
6.2.2 Cost Risk Assessment
The Risk Assessment procedure consists of sequentially reducing, adjusting and conditioning
Grantee and third party cost or schedule data in combination with prior, programmatic experience
to empirically estimate parameters for the assumed risk distribution(s); and then utilizing these
parameters as necessary to simulate the magnitude of risk and establish the potential responses to
manage the risk. The PMOC shall obtain current documents, reports, and observations developed
through prior analysis of the Grantee’s organization, and the project’s scope, cost estimate and
schedule.
6.2.2.1 Project Milestones
Risk assessments shall be developed, at a minimum, for each of the following time‐based project
milestones, where such milestones reflect future events:
Entry in Preliminary Engineering;
Entry into Final Design;
FFGA award;
40% of the contracted value has been bid and contracted;
20% construction;
50% construction;
75% construction; and
90% construction.
Such milestones may be modified to reflect the specifics of the Grantee’s schedule, such as
overlapping project phases. Where such milestones are more than one year apart, the PMOC shall
develop supplemental milestones.
6.2.2.2 Standard Cost Category (SCC) Risk Assessment
Cost Risk Assessment Worksheet The FTA has developed a cost risk assessment worksheet
template that contains the required formats and bases of calculations to properly execute the cost
OP 40 Risk Assessment and Mitigation Review
Revision 0, June 2008
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