Halcrow Group Ltd and the
UK Environment Agency Manage the Risk of Flooding using @RISK
Around five million people, in two million properties, live in flood risk areas in England and Wales. It is believed that changes in the climate, such as sea-level rise, more severe storms, and wetter winters will increase that risk.
The UK government’s Environment Agency is the leading public organization for protecting and improving the environment in England and Wales. Through flood risk management, the Environment Agency can reduce the probability of flooding from rivers and the sea through the management of land, river systems, and flood and coastal defenses. They also work to reduce the damage floods can do through effective land use planning, flood warning and emergency responses.
Halcrow Group and the Environment Agency
For many years Halcrow has undertaken contracts that form an integral part of the Environment Agency’s Flood Defense program, with work including:
The Role of Risk Management at the Environment Agency
All suppliers to the Environment Agency must therefore adhere to a proactive level of risk management. Their selection and procurement is carried out under Environment Agency Frameworks1 by the National Capital Program Management Service (NCPMS), which is responsible for the nation’s capital flood defense program.
To further encourage effective use of budget through risk management, the Environment Agency administers an incentivized contract scheme that is increasingly standard in the construction industry. If suppliers meet the agreed terms of the contract they receive a pre-agreed share of the project budget. If however they do not perform as well as expected, their revenue is reduced.
@RISK for Portfolio Optimization and Budgetary Compliance
For example, severe weather could lead to a delay in the collection of survey data, with knock-on effects for related work. Or poorly articulated project outputs can result in tasks with weak focus that lead to inefficient resourcing and the need for reworking. Equally, novel techniques might fail to deliver robust results, again leading to abortive work and an overall delay to the program. Other hazards that can potentially affect NCPMS projects include: increases in material costs; changes to the team; equipment failure; delay for required approvals; unforeseen ground conditions and errors, etc.
Using @RISK for ongoing risk quantification on individual projects allows Halcrow to monitor progress against original budget incentive thresholds and potentially allows the NCPMS to make strategic decisions on allocating funds across the whole portfolio of Flood Defense projects.
@RISK Shows “Most Effective Use” of Public Funds
1. The National Engineering & Environmental Consultancy Agreement No. 2 (NEECA2) and the National Contractors Framework (NCF).