Construction Risk Management (20 points) one of the oldest sewage treatment plant in the Miami-Dade County, the Central District Wastewater Treatment Plant in Virginia Key has been pumping out most of the 300 million gallons of treated waste generated each day miles out into the Atlantic Ocean through outfall pipes. In recent years, the pipes and pumps carrying the raw sewage and the facility that treated the county's waste has been badly corroded and decayed to such an extend that Miami-Dade illegally discharged waste more than 260 times between 2006 and 2012. To avoid further pollutions, Miami-Dade County is faced with the dilemma of whether to upgrade the facility, relocate the facility to inland, or do nothing. 1) Identify at least 5 risks (threats and opportunities) for upgrading the facility, and at least 5 risks (threats and opportunities) for relocating the facility (5 points) 2) For each option (upgrade the facility and relocate the facility): prioritize the risks identified in question (a) based their likelihood and impact on the construction schedule and cost (e.g. which of these risks should be given high/medium/low priority and why?) (5 points) 3) The construction and environmental compliance costs for each option are shown in the below table: Environmental Compliance Cost S8M S3M 0 Construction Cost Do nothing Upgrade Relocate S4M $15M Due to the location of the facility, it may experience severe flooding damage. For each option, the probability of flooding within the next 10 years and their respective recovery costs are shown in the below table: Probability of Flooding within next 10 Years 50% 50% 10% Recovery Cost S20M $20M S15M Do nothin perade Relocate Draw the decision tree diagram based on the above information, and which option do you recommend? (10 points) Construction Risk Management (20 points) one of the oldest sewage treatment plant in the Miami-Dade County, the Central District Wastewater Treatment Plant in Virginia Key has been pumping out most of the 300 million gallons of treated waste generated each day miles out into the Atlantic Ocean through outfall pipes. In recent years, the pipes and pumps carrying the raw sewage and the facility that treated the county's waste has been badly corroded and decayed to such an extend that Miami-Dade illegally discharged waste more than 260 times between 2006 and 2012. To avoid further pollutions, Miami-Dade County is faced with the dilemma of whether to upgrade the facility, relocate the facility to inland, or do nothing. 1) Identify at least 5 risks (threats and opportunities) for upgrading the facility, and at least 5 risks (threats and opportunities) for relocating the facility (5 points) 2) For each option (upgrade the facility and relocate the facility): prioritize the risks identified in question (a) based their likelihood and impact on the construction schedule and cost (e.g. which of these risks should be given high/medium/low priority and why?) (5 points) 3) The construction and environmental compliance costs for each option are shown in the below table: Environmental Compliance Cost S8M S3M 0 Construction Cost Do nothing Upgrade Relocate S4M $15M Due to the location of the facility, it may experience severe flooding damage. For each option, the probability of flooding within the next 10 years and their respective recovery costs are shown in the below table: Probability of Flooding within next 10 Years 50% 50% 10% Recovery Cost S20M $20M S15M Do nothin perade Relocate Draw the decision tree diagram based on the above information, and which option do you recommend? (10 points)
