Mountain View Corridor Construction Risk Management
The Mountain View Corridor (MVC) Construction Management General Contractor process included a series of critical decision points during various design stages. These decision points involved reviewing the project schedule, opinion of probable construction cost and risks. To aid in evaluating risks, HDR implemented a series of cost risk assessments and risk management process The risk assessment process helped determine not only how much the project will cost and how long it will take, but also informed decisions about how to best mitigate and/or allocate risks between the owner and the contractor to minimize cost and schedule risks.
The process accounted for and managed uncertainty throughout the lifecycle of project budgeting and development and enabled management to reduce overrun and slippage risk to acceptable levels. This approach resulted in expanding the project's scope beyond its initial northern limit, thereby moving MVC closer to its ultimate build-out goal of connecting Interstate 15 in the south with Interstate 80 to the north. The monetary savings for MVC exceed $80 million in risk reduction in terms of cost and schedule. The process also has resulted in better financial planning for the corridor and established an efficient contingency management mechanism.