Risk management

Waimea Water Limited will encourage a culture that is risk aware and will seek proactively to understand and mitigate risk where it is identified.

Best practice

We have adopted a best practice risk management procedure and have inherited a comprehensive risk assessment from the project investment appraisal, which sets a baseline that will be regularly refreshed and maintained through an active risk management process. This has formed our risk register including operational risks, which we will actively maintain and regularly update. Both management and the Board will be involved in managing risks.

A core competence will be the governance and control of the project to mitigate delivery schedule and cost overrun risk. Because WWL inherited the design, contract framework and the main contractor (Fulton Hogan Taylors Joint Venture) following an extensive and rigorous process, the framework going forward is to have a strong project office populated with a small number of senior, experienced project delivery professionals, deploying project delivery assurance best practices with the wider project team.

Project team

Professional design and assurance engineering consultants will be appointed to provide design change management and construction observation assurance; this will ensure that the dam is built in accordance with the approved design and that any necessary changes due to site conditions are properly quality controlled.

Professional quantity surveyors have been engaged and the engineer to contract (ETC) appointed; together they will provide robust mitigation to the risk of incorrect cost claims and reduce the likelihood of costly contractual disputes.

A monthly contract management meeting provides operational supervision and performance management across the construction activities.

Project governance

A Project Governance Board is in place, which will be chaired by WWL’s CEO, with membership comprising senior leadership from WWL and the joint venture parent companies.