THE EVALUATION OF RISK MANAGEMENT OF HAZARD: CASE …

THE EVALUATION OF RISK MANAGEMENT OF HAZARD: CASE STUDIES ON FLYOVER CONSTRUCTION PROJECT IN INDONESIA

Reno Bayuaji Kusprayogo

International Program, Civil Department

Faculty of Engineering, University of Indonesia

Email: [email protected]

Abstract The main objective of this project is to study the use of Risk Management in managing

hazard in construction project in Indonesia. The another objective regarding the feasibility

study analysis to evaluate whether the existing project which is Jalan Layang Non-Toll

(JLNT) Flyover construction project is capable in managing risk of hazard. The data analysis

is focusing on three main activities which are Excavation; Movement People and Vehicles;

and Work Equipment. The analysis of Risk Management of Hazard shows that, in theory, the

existing Risk Management Plan of PT. Wijaya Karya – Jaya Konstruksi would be effective to

implement the Risk Management theory and Occupational Health and Safety (OHS) theory.

Keywords: Risk Management, Risk Management procedure, Risk Identification, Risk Assessment, Risk

Control, Risk of Hazard, Quantitative Matrix, Risk Management Analysis.

Background & Problem The flyover construction project or road construction project is categorising into a big project

category because of the high total estimated cost of the project. The bigger projects are also

having the higher risk. Each work activity and equipment in a flyover construction project

has a different potential accident of risk for people including workers and employees as

human resources and the main role in construction industry. Due to the important role of

workers in construction, each company needs to improve the quality of labour with the

protection for them. The hazard mitigation can be reduced by following the Occupational

Evaluation of..., Reno Bayuaji Kusprayogo, FT UI, 2014

Health and Safety (OHS) concept and Risk management model. The OHS concept has

emerged since the period of the industrial revolution in England (Abrams, 2001). Safety is the

protection of people from physical injury (Hughes & Ferrett, 2012). The protection means the

protection to people when people are doing work activities.

A successful flyover or road construction must be managed and maintained in safe,

comfortable and convenient. However, The construction industry has the highest rate in

accident (Camino López, Ritzel, Fontaneda, & González Alcantara, 2008) and this area be

the most hazardous industry in many countries (Jannadi & Bu-Khamsin, 2002). According to

(Byung, 1998), Construction work has been described to be non-repetitive and

ergonomically dangerous, requiring heavy lifting and awkward positives, resulting in a high

proportion of injuries and fatalities. In the United Kingdom, there are 120 death cases and

3000 major injury cases in construction industries every year (Sawacha, Naoum, & Fong,

1999). A survey of 400 road workers experience conducted in 2004 showed the following

(HighwayAgency, 2006):

• 20% = the passing vehicles on the road construction cause some injury

• 3% = experienced in fatal injuries.

• 13% =experienced in minor injuries.

• 77% = suffered verbal violence from drivers.

• 40% = having objects thrown at them by road users.

• 54% = experienced a near miss with a motor vehicles.

Some researcher from different countries had investigate the problem to identify the solution

for construction failures, for instance Taiwan (Cheng, Leu, Lin, & Fan, 2010), Scotland

(Cameron, Hare, & Davies, 2008), Portugal (Macedo & Silva, 2005). As according to (Chen,

Gu, & Long, 2009) that there has been an increasing concern about excavation because of its

high frequency of accidents, work equipment (construction vehicle) in construction causes

many death cases (Hinze & Teizer, 2011) and movement of people and vehicle is one of the

most concern in urban road construction (Khatoon, Tiwari, & Chatterjee, 2013).In the

implementation of a Risk Management System, there are three initial steps which are

Identification Risk, Risk Assessment, and Response Plan or Control as can be seen in Figure

1 (Cretu et al., 2011).


Research Method The main method of data collection in these case studies was interviews and observation. The

first respondent of this interview was the Manager of Health and Safety Environment (HSE)

on PT. Wijaya Karya, Mr. Bayu Budi and the second respondent was Mrs. Julia who is

Manager of Health and Safety Environment (HSE) on PT. Jaya Konstruksi. The interviews

were conducted using structured questions, which were divided into four parts. The first

section was concerned with all types of activities that have hazard risk and what are the types

of activities that are more priorities for the company. The second section was the procedure

of the company to manage the hazard risk in their project. The next section was concerned

with how useful their procedure and the last one was concerned with is it necessary to held

the revision to their procedure.

The observation was conducted when the author was working in the project for 3 months.

The author was also being the safety officer in the company for couple of week. The

observation was started with safety patrol around project site on daytime and night day. This

safety patrol was useful to find all types of risk that occur in this project. Then, the

observation was continued with finding the document of the company that contain the Work,

Health and Safety Regulation.

Result

Risk Management Plan PT. Wijaya Karya – Jaya Konstruksi realize that the operational activities of the company are

not regardless of the various risk, risks are under control the company or risks are beyond the

company’s control. Therefore, the company recognized the importance of integration and the

effectiveness of Risk Management Plan. This document outlines the Risk Management

Practices and Procedures of Safety, Health and Environment Plan. The plan is developed with

specifics of the project included where appropriate. The company has some objectives in

managing Risk of hazard:

• Identifying, Assessing, Controlling the potential hazard and risk control are carried

out in order to not endanger the worker and interrupt the production.

• Decreasing the probability and potential impact for the outcome of this project

• Producing a high quality product, whilst also honouring all goals made, relating to

quality, safety and the environment


High level risk management is the highest priority of the company, and therefore is the main

force behind the working culture at JLNT Flyover Constructions project. One of the aspects

of risk management which aims to encourage and award the team is ‘Zero Accident’. The

company has own Risk Management Procedure method, they usually called HIRARC. The

purpose of HIRARC Hazard Identification, Risk Assessment & Risk Control is to:

• Define the management of risk process during the JLNT Flyover Construction;

• Provide guidance to all staff at JLNT project regarding their obligations to risk

management;

• Maintain a high level of risk awareness, identification and qualification;

• Define the risk response development and control plan;

• Outline how the Risk Management Plan processes will be assessed.

When developing the Risk Management Plan all stakeholders of the Project have been

considered and liaised with, including residents, road users, local business, the general public

and Indonesian Government. The Risk Management Plan aims to provide a system based

around the fundamentals of risk management. These include, but are not limited to Risk

Identification, Risk Assessment and Risk Control.

Structure and Responsibilities All team members at the JLNT Flyover Project (including office, project and field, and

managerial staff) are responsible for managing risk. This must be, however, within their

specific levels of control, whilst also encouraging the implementation of risk management.

This may be in the form of notifying contractors and subcontractors of the processes and

procedures developed by the company, which could impact the Project as whole. It is

anticipated that through regular inductions and training sessions, risk management will be

constantly reviewed, with all staff aware of the respective protocol.

Area managers (such as Site, Construction and Project Managers) are all responsible for

ensuring that risks are assessed, documented and hindered throughout the Project. This is in

the form of notifying the correct personnel of risks, having them quantified, and procedures

implemented to prevent accidents from occurring.

Regular meetings are held for the Area Managers, to continually update the Risk Action Plan,

and recording risk mitigation strategies and action plans. This collaboration will form the


Risk Management Committee. Representative will be appointed throughout the project, who

acts as points of contact for risk communication, coordination and awareness.

Further, a Risk Management Committee is required to:

• Coordinating the meeting of Area Managers and the review of the Risk Action Plan

and Risk Registers;

• Maintain and track all processes associated to risk control information;

• Identify areas where risk may not be appreciated such as external providers and sub-

contractors;

• Encourage risk awareness throughout the site through Pre-Starts and training;

• Analyse and report to the client on a regular basis (monthly).

As will be further discussed, regular audits will be carried out at the JLNT project, to ensure

that all of these responsibilities are honoured.

Monitoring It is prime objective of the Health and Safety Manager to continually monitor and reassess

the risk management system at JLNT Project. This is particularly important in the areas

where new-subcontractors are continually introduced and cycled. An overall analysis of the

Risk Management Plan will be performed biannually, in the absence of significant changes

and/or appointments to activities and procedures. An additional area to consider during this

review process is the effects of the Risk Management Plan upon other planning

Review Coinciding with the monitoring process is the aspect of review. During the monitoring

meetings (carried out biannually), the following will be reviewed:

• The rating levels (as will be discussed in the Risk Assessment)

All extreme risk and high risk must be accounted for planning and review processes

• Overall risk performance during the last six month period. Criteria will include

statistics relating to improvements in risk mitigation strategies.

Prior to each meeting an audit will be conducted by an independent party, to provide a

systematic review and assessment of the risk management strategies. Areas requiring

improvement, and those that are successful, will be noted, with the necessary changes made

to the Risk Management Procedures (HIRARC)


Risk Identification One of the most important aspects of the Risk Management Plan is the identification of risks.

In this stage, the company needs a scope statement as input to know the goal and objective of

this project. The main objective of risk identification is to determine which risks are likely to

affect the project and documenting the characteristics for each. This can include, but is not

limited to the risk, its possible cause, preventative controls, the party who is responsible, what

it will affect, the likelihood and the overall impact. Resource requirements and WBS are also

required to know what activities need to be conducted for this project and also who are going

to involved in it. In addition, the historical information of the organization to learned how

company a usually run a construction project. The Risk Identification in this company must

be reviewed periodically every six months or occurred following terms:

o Any change in the company’s operations

o New working methods

o After an accident, incident, and each time found near miss accident

The risk identification in this company must be compiled and organized before conducting

the activities and necessity distributed to all stakeholders.

Inputs As mentioned previously, when identifying risk it must first be defined (including the

possible cause and those who will be effected), but also consider mitigation controls. There

are several criteria to meet when determining and defining a risk, including: a product

description, planning outputs and historical information.

Researching a product (including materials, goods, equipment, services and labour) will assist

in identifying what risks are possible. Those that have been reviewed and/or reported upon by

reputable sources provide lesser risk, compared to those that may require innovation,

invention or additional testing.

Tools and Techniques There is a wide variety of risk exposures for a construction project. As outline in the previous

section, there are many elements to consider in the risk identification process. However,

correct tools and techniques must also be used to achieve a successful result. PT. Wijaya

Karya – Jaya Konstruksi uses three methods to identification risk of hazard such as checklist,

flowcharts and interviewing.


Checklists are a thorough analysis tool to adopt when identifying risk. The source of the risk

may also be found during this process, allowing for the elimination of further related risks

The use of flowcharts is also quite common. In this application, a cause-and-effect diagram

was used to better understand the processes involved within the project.

Interviewing is a less conventional method, however successful in identifying risk. It is

particularly helpful when including the thoughts and opinions of stakeholders (including the

general public). Often risks will not be identified in the initial stages of risk assessment;

however interviewing offers a way in which to cover all bases.

Outputs As initially mentioned, after a risk identified many aspects are obtained and used to develop

mitigation controls. These include, but are not limited to identifying the source of a risk,

further potential risk events, observing symptoms and providing further inputs to other

processes.

When identifying the source, as outlined in the previous section, later risks may also be

mitigated. There are many common sources that may be classified, including changes in the

initial requirements, design errors (and similar issues), poor definition (including roles and

responsibilities), poor estimates and insufficient skilled staff. Through this process, an

estimate of the probability and outcome may also be assessed.

Potential risk events are often those that are discrete in nature, however causing a significant

impact upon the project. This includes, but is not limited to, weather conditions (and its

associated outcomes) and the departure of staff members. Again an estimate of the

probability and outcome are simple to assess after the initial identification process.

Symptoms are a relatively subtle, but effective, way of identifying and assessing a risk. The

final aspect is related to assessing risk as an input to another process. In this case, a risk may

be classified as a constraint or assumption required for another process.

Risk Assessment The majority of the risks on this project will be assessed using a quantitative risk criterion.

Generally, all risks will be initially assessed and classified as a particular class or level. This

is the interpreted to assess the final level for the risk. This will be applied to the likelihood

and impact categories, whereby their values are summed to obtain the final reading.


Essentially, this approach determines which risks warrant a particular level of preventative

action or mitigation procedures.

As discussed in the identification section, aspects considered prior to this assessment include

the source of risk, other potential risk events, symptoms that may be observed and areas in

which a risk may act as an input into another process. A probability and impact category will

be both be applied. In some cases, varying impact areas will also be presented, to offer a tool

which compares and determines which area will be most affected if a risk occurs.

The responsible party for each risk has also been used, to assist in identifying which areas of

the project possess the highest levels of risk. These therefore become the areas where most

attention is paid, particularly during the auditing process. The parties who have been used in

the classification include the following managers: Commercials, Construction, Quality,

Project, Project Engineer, Design, Environmental, Health and Safety, Human Resources and

Stakeholder.

The risk probability is against risk impact to know which qualitative level the risk is. The

difference of each level shows a consistency and credibility. The probability describes the

measure of uncertainty that a risk able to occur. In order to prioritize the risk, expected loss

technique will be applied to ensure the optimistic, most likely and pessimistic impact of the

risk (Table 1). The risk will be quantified based on their rank in the matrix and will be

multiplied on another to ensure the expected loss (Table 2). The bigger the expected loss is

the one that to be maintained critically.

Table 1. Risk Analysis: Likelihood of Risk Occuring

Probability (P)

A Almost Certain

B Likely

C Might Occur

D Unlikely

E Rare


Table 2. Risk Analysis: Consequences of Risk Occuring

Impact (I)

1 No Injuries, Low Losses

2 Minor Injuries, Medium Losses

3 Working Day Loss, Substantial Losses

4 Disability, High Losses

5 Death, Extreme High Losses

It can be measured in number of ways; for this project is using low risk to extreme risk. Table

3 is defining the risk ranked on the basis of its effect on the project through the combination

of probability and impact. This matrix will assist decision making management.

Table 3. Quantitavie Risk Assessment Matrix

Probability Impact

1 2 3 4 5

A H H E E E

B M H H E E

C L M H E E

D L L M H E

E L L M H H

o Extreme Risk (E) = Expected to occur, quite common

o High Risk (H) = Will probably occur, has happened

o Moderate Risk (M) = Might occur at some time

o Low Risk (L) = Could occur at some time although unlikely

All risk with Extreme Risk and High Risk rate will be reviewed daily while moderate Risk

and Low Risk will be reviewed weekly. Any risk triggers that will affect the project need to

be notified to the responsible person as soon as possible. The decision of risk assessment

carried out in a team meeting from findings in the field. In addition, the risk assessment

measures should specified the existing risk assessment. After knowing the impact of the risk

using the matrix, the next step is Risk Control.


Risk Control PT. Wijaya Karya – Jaya Konstruksi always implement the integrated risk control and

management policy of the company in order to able the optimal profit production. For each

identified risk, a response must be identified. The probability of the risk event occurring and

the impacts will be the basis for determining the degree to which the actions should be taken.

The possible response options are:

• Avoidance – change several aspect of the project, such as scope or objective, to avoid

the risk

• Transference – shift the impact responsibility of a risk to a third party without

eliminating it

• Mitigation – reducing the probability or impact of the risk which might include

prototyping, adding tasks to the project schedule or adding resources

• Acceptance – Simply accept that this is a risk and will accept the cost, schedule,

scope, and quality impacts if it is occurring

The level of Low Risk that obtained from risk assessment matrix can be categorised to

Acceptable risk. If the risk is acceptable, it is only necessary be monitored to the condition or

the existing control.

Lastly, there are many aspects of the response management system that will be adopted by

PT. Wijaya Karya – Jaya Konstruksi for the JLNT Project. These include:

• Identify changes that may occur throughout the Project;

• Assist in the education of identify, quantify and respond;

• Ensure risk identification is an ongoing process;

• Ensure that the Risk Management Plan is regularly reviewed and updated to account

for any, or all, of the above;

• Observe, assess and document ‘workarounds’ – where an unplanned response is

implemented;

• Assess and document those responses which have been planned for – where they

adequate, necessary and/or does? And

• Assess the Risk Register and various characteristics, particularly the risk

quantification process.


Three Main Activities in Road Construction Respondents state that all activities in road construction were necessary to be considered

because they had all types of risk that can make bad influence to the project. However,

respondents underlined that there are three activities that will be important or need more

attention as these activities have higher risks than other activities in road construction which

are excavation work, work equipment and movement of people and vehicle work.

Excavation PT. Wijaya Karya – Jaya Konstruksi identified 3 specific hazards associated with excavations

are as seen on Table 4, the hazards is followed by rules & legislation in Indonesia.

Table 4. Hazard Identification of Excavation Activity

Activity Hazard Identification Rules & Legislation

Excavation

Fall of people or vehicles Permenaker RI into excavation No. Per. 01/MEN/1989

Accident due to disruption of utility Permenaker RI No. Per. 01/MEN/1989

Collapse of the sides of excavation Permenaker RI No. Per. 01/MEN/1989

There are two hazards was categorized into moderate risk because the chance of risk is

possible and their effects are minor injuries and the medium material losses (see Table 5). In

addition, the high risk level was identified in excavation activity which is ‘the accident due to

disruption of utility’. This hazard has possible chance and the effects are deaths and very high

material losses (see Table 5). Therefore, the high risk must be gave more attention to be

controlled.

Table 5. Risk Assessment of Excavation Activity

Hazard Identification Risk Assessment Acceptance Impact Probability Risk Level Risk (Y/N)

Fall of people or vehicles 2 C M N

into excavation

Accident due to disruption of utility 5 B H N

Collapse of the sides of excavation 2 C M N


The control of the High Risk in excavation is ascertaining the location of utilities and

securing the existing utilities during excavation process in coordination with the relevant

parties. The other risk control can be seen in Table 6.

Table 6. Risk Control of Excavation Activity

Hazard Identification Risk Control

Fall of people or vehicles 1. Providing appropriate safety sign, safety barriers and safety fence into excavation

Accident due to disruption of utility 1. Ascertaining the location of utilities and securing the existing utilities in coordination with relevant parties

Collapse of the sides of excavation 1. Shoring the wall of excavation with sheeting system

(Hughes & Ferrett, 2012) recommend that the lights are also required if the excavations is

also occurring in the night day because the construction of JLNT flyover construction is a

daily construction that works in a full time of the day. Moreover, (King & Hudson, 1985)

recommend that the risks to ground workers of tetanus (from special bacterium in the soil),

Weil’s disease (from rats’ urine) and other biological hazards should be assessed and, where

suspected, monitored by bacteriological examination of soil samples. Where risk of infection

exists, consideration should be given to immunization. Ground workers should be instructed

in personal hygiene and proper washing and adequate toilet facilities must be provided for

them. First aid boxes with antiseptics and sterile dressings for treating wounds and abrasions

should be readily available.

Moreover, the hazard of flooding in excavation should be added in HIRARC form, (King &

Hudson, 1985) also believed that the risk of flooding from heavy rain, rivers, tidal waters,

ground water, surface and underground streams and other water sources must be carefully

considered. This type of hazard is important because the project of non-toll flyover

construction is a multi year’s project which is the project has 2 seasons, rain season and dry

season. The accurate response plan must be taken to mitigate the hazard which is the floors of

excavations should slope down to sumps at low points where drainage pump can be used

(Hughes & Ferrett, 2012).


Work Equipment In the work equipment activity, the company was focused on 4 types of work equipment

which are welding, crane, grinder and painting spray. The company has identified three

hazards on welding equipment and one hazard on crane, grinder and painting spray

equipment (see Table 7). All types of hazard are also followed by the rules or legislation in

Indonesia.

Table 7. Hazard Identification of Work Equipment


Inhalation of Welding Fumes PP No.41 1999

Work Equipment

Eye Iritation PP No.41 1999 (Welding)

Scorch PP No.41 1999

Work Equipment Accidents when the crane lifting Permenaker RI

Crane the heavy material No. Per. 01/MEN/1989 Work Equipment Exposed to Hot metal flake Permenaker RI

(Grinder) Graze by Grinder No. Per. 174/MEN/1986 Work Equipment Inhalation of Paint Flumes Permenaker RI (Painting Spray) Fires due to Flammable material No. Per. 174/MEN/1986

All type of hazard was assessed with quantitative risk assessment that using multiplication of

Impact and Probability. The risk level in work equipment are categorised in Medium risk

level and High risk level (see Table 8). Therefore, the company was not accepting all hazards

and must prepared the risk control.

Table 8. Risk Assessment of Work Equipment


Inhalation of Welding Fumes 2 C M N

Eye Iritation 2 C M N

Scorch 2 C M N

Accidents when the crane lifting 5 D H N

the heavy material Exposed to Hot metal flake 2 B H N

Graze by Grinder 2 C M N Inhalation of Paint Flumes 3 C H N

Fires due to Flammable material 3 C H N


All work tools should be suitable for the purpose and location in which they are to be used.

Specific needs were designed for specific tools, thus the first step in safe used is using the

correct tool for the right job. In addition, the personal protective equipment is primary to

prevent all risk. The various controls have been prepared by the company to control the

hazard as can be seen in Table 9.

Table 9. Risk Control of Work Equipment


Inhalation of Welding Fumes 1. Circulation of air with enough ventilation 2. Welder position not facing wind direction

Eye Iritation 3. Using standard welding mask and welding clothing 4. Check instalation of welding cables

Scorch 5. Provision of eye drops medicine in first aid box 6. Using standard gloves for welding

Accidents when the crane lifting 1. Using standard procedure of bonding material on crane

the heavy material 2. Checking the condition of sling Exposed to Hot metal flake 1. Using protective chemical clothes

Graze by Grinder 2. Using safety glove Inhalation of Paint Flumes 1. Using standard safety of mask

Fires due to Flammable material 2. Restriction of smoking area

Movement of People and Vehicles The hazards of working with movement of people and vehicle on construction site are

numerous but PT. Wijaya Karya – Jaya Konstruksi identified three hazards in movement of

people and vehicles activity (see Table 10). The types of hazards are also followed by the

rules and legislation in Indonesia.

Table 10. Hazard Identification of Movement People and Vehicles


Hit by movement vehicles

Permenaker LH 2006 no.7 Movement of People

and Vehicles Accidents due to Dump Truck Driver Permenaker RI

Error No. Per. 03/MEN/1989

Traffic congestion due to the Permenaker RI

movement of heavy vehicle No. Per. 174/MEN/1986


All type of hazard was assessed with quantitative risk assessment that using multiplication of

Impact and Probability. The risk level in movement of people and vehicles activity are

categorised in Medium risk level, High risk level and Extreme High risk level (see Table 11).

The company must give more attention to the Extreme High risk level, because this hazard is

quite common and expected to occur.

Table 11. Risk Assessment of Movement People and Vehicles


Hit by movement vehicles 3 D M N

Accidents due to Dump Truck Driver 5 C E N

Error Traffic congestion due to the

3 C H N movement of heavy vehicle

The various controls have been prepared by PT. Wijaya Karya – Jaya Konstruksi to control

the all types of hazards as can be seen in Table 12.

Table 12. Risk Control of Movement People and Vehicles


Hit by movement vehicles

1. Traffic Management in coordination with relevant parties 2. Providing appropriate safety sign 3. Traffic cone, safety barriers and MCB (Movement Concrete Barriers) 4. Personal Protective Equipments

Accidents due to Dump Truck Driver 1. Driver with Licence

Error 2. Driver in healthy condition Traffic congestion due to the 1. Adequate traffic signage movement of heavy vehicle 2. Flagman with PPE


Conclusion In conclusion, there are three main activities in road construction that need more attention

which are excavation work, work equipment and movement of people and vehicle work.

These activities have more important than other activities because the risk of these three main

activities were highest in road construction. In order to prevent the high risk of three main

activities, PT. Wijaya Karya – Jaya Konstruksi has their own Risk Management Procedures

that called HIRARC (Hazard Identification, Risk Assessment & Risk Control).

Moreover, PT. Wijaya Karya – Jaya Konstruksi form a forum or risk management team

which provides consideration in decision-making, in order to handle the new job that has not

been done by the company in advance and all activities conducted in all work units. The

company uses the forum of Risk Management Plant to brainstorming the idea of hazard

identification with a product description, planning outputs and historical information. The

Forum also discussed the Risk Assessment with consider the multiplication of probability and

the impact of Risk. The decision of probability and impact are discuss in this meeting. The

result of Multiplication will be assessed with quantitative risk matrix. Then, Risk controls of

all hazard identification are also discussed in this meeting to find the right control of

response.

This Risk Management procedure or HIRARC was really effective because this procedure is

the implementation of Occupational Health and Safety theory which is the planning and

organization of all works to be performed by recognizing and identifying all high risk

activities, preparing preventive actions in order to reduce the potential risk of accidents. The

effectiveness of Risk Management procedure of PT. Wijaya Karya – Jaya Konstruksi was

proven with no accident or zero accident that occur in this project.


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