The Owner's Role in Project Risk Management (2005)
Chapter: Front Matter
The Owner’s Role in Project Risk Management
THE NATIONAL ACADEMIES PRESS
Washington, D.C.
www.nap.edu
THE NATIONAL ACADEMIES PRESS
500 Fifth Street, N.W. Washington, DC 20001
NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.
This study was supported by Contract Number DEAM01-99PO8006 between the U.S. Department of Energy and the National Academy of Sciences. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations or agencies that provided support for the project.
International Standard Book Number 0-309-09518-2 (book)
International Standard Book Number 0-309-54754-7 (PDF)
Additional copies of this report are available from the
National Academies Press,
500 Fifth Street, N.W., Lockbox 285, Washington, DC 20055; (800) 624-6242 or (202) 334-3313 (in the Washington metropolitan area); Internet, http://www.nap.edu
Copyright 2005 by the National Academy of Sciences. All rights reserved.
Printed in the United States of America
THE NATIONAL ACADEMIES
Advisers to the Nation on Science, Engineering, and Medicine
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M. Alberts is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Wm. A. Wulf is president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Bruce M. Alberts and Dr. Wm. A. Wulf are chair and vice chair, respectively, of the National Research Council.
COMMITTEE FOR OVERSIGHT AND ASSESSMENT OF U.S. DEPARTMENT OF ENERGY PROJECT MANAGEMENT
KENNETH F. REINSCHMIDT, Chair,
Texas A&M University, College Station
DON JEFFREY BOSTOCK,
Lockheed Martin Energy Systems (retired), Oak Ridge, Tennessee
DONALD A. BRAND,
Pacific Gas and Electric Company (retired), Novato, California
ALLAN V. BURMAN,
Jefferson Solutions, Washington, D.C.
LLOYD A. DUSCHA,
U.S. Army Corps of Engineers (retired), Reston, Virginia
G. BRIAN ESTES, Consulting Engineer,
Williamsburg, Virginia
DAVID N. FORD,
Texas A&M University, College Station
G. EDWARD GIBSON, Jr.,
University of Texas, Austin
THEODORE C. KENNEDY,
BE&K, Inc., Birmingham, Alabama
MICHAEL A. PRICE,
Project Management Institute, Newtown Square, Pennsylvania
Staff
RICHARD G. LITTLE, Director,
Board on Infrastructure and the Constructed Environment (through November 2004)
MICHAEL D. COHN, Program Officer
DANA CAINES, Financial Associate
PAT WILLIAMS, Senior Project Assistant
BOARD ON INFRASTRUCTURE AND THE CONSTRUCTED ENVIRONMENT
PAUL GILBERT, Chair,
Parsons Brinckerhoff Quade & Douglas, Seattle, Washington
MASSOUD AMIN,
University of Minnesota, Minneapolis
RACHEL DAVIDSON,
Cornell University, Ithaca, New York
REGINALD DesROCHES,
Georgia Institute of Technology, Atlanta
DENNIS DUNNE,
California Department of General Services, Sacramento
PAUL FISSETTE,
University of Massachusetts, Amherst
LUCIA GARSYS,
Hillsborough County, Florida
WILLIAM HANSMIRE,
Parsons Brinckerhoff Quade & Douglas, San Francisco, California
HENRY HATCH,
U.S. Army Corps of Engineers (retired), Oakton, Virginia
AMY HELLING,
Georgia State University, Atlanta
THEODORE C. KENNEDY,
BE&K, Inc.
SUE McNEIL,
University of Illinois, Chicago
DEREK PARKER,
Anshen+Allen, San Francisco, California
HENRY SCHWARTZ, JR.,
Washington University, St. Louis, Missouri
DAVID SKIVEN,
General Motors Corporation, Detroit, Michigan
MICHAEL STEGMAN,
University of North Carolina, Chapel Hill
WILLIAM WALLACE,
Rensselaer Polytechnic Institute, Troy, New York
CRAIG ZIMRING,
Georgia Institute of Technology, Atlanta
Staff
RICHARD G. LITTLE, Director,
Board on Infrastructure and the Constructed Environment (through November 2004)
LYNDA L. STANLEY, Executive Director,
Federal Facilities Council
MICHAEL D. COHN, Program Officer
DANA CAINES, Financial Associate
PAT WILLIAMS, Senior Project Assistant
Acknowledgment of Reviewers
This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Research Council’s (NRC’s) Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We wish to thank the following individuals for their review of this report:
Philip R. Clark, Nuclear Corporation (retired),
Ernest L. Damon, Foster Wheeler Development Corporation (retired),
Fletcher H. (Bud) Griffis, Polytechnic University,
Henry J. Hatch, U.S. Army Corps of Engineers (retired),
Sam L. Savage, Stanford University, and
Alan Schriesheim, Argonne National Laboratory (retired).
Although the reviewers listed have provided many constructive comments and suggestions, they were not asked to endorse the conclusions or recommendations, nor did they see the final draft of the report before its release. The review of this report was overseen by Andrew C. Lemer, The Matrix Group, Inc. Appointed by the NRC, he was responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution.
Acronyms and Abbreviations
BICE
Board on Infrastructure and the Constructed Environment
CD-0
critical decision 0, approval of mission need
CD-1
critical decision 1, approval of system requirements and alternatives
CD-2
critical decision 2, approval of project baseline
CD-3
critical decision 3, authorization to complete implementation
CD-4
critical decision 4, approval of project completion and transition to operations
DOE
U.S. Department of Energy
EIA
Electronic Industries Alliance
EIR
external independent review
ES&H
environment, safety, and health
FMEA
failure modes and effects analysis
IPRA
International Project Risk Analysis
IPT
integrated project team
PDRI
Project Definition Rating Index
PERT
program evaluation and review technique
SOW
statement of work
WBS
work breakdown structure
