Tim East, Director of Risk Management at The Walt DisneyCompany, closed the 2017 IRMI Construction Risk Conference with adiscussion on relationships between risk managers and contractors,and managing project risks.

East's presentation, "Aligning Owner and Contractor Interests"elaborated on a central idea about how the best outcome of aconstruction project occurs when there is a shared vision betweenthese two groups of owners and contractors.

In this session, East shared his perspective on how to overcomedifferences so owners and contractors can align their interests onquality, schedule, price, safety, risk allocation, and other goalsto ensure the best project outcome.

As the construction industry faces mounting pressure to completeprojects "ahead of schedule and under budget," East said in orderto meet those demands while ensuring safety for their workers,creating a shared vision is more important than ever.

"One of the greatest challenges is this increasing pace of construction in the U.S.,"he said. "The compression of the project development schedule meanswe have to be talking earlier and more clearly to one another."

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Creating a shared vision

To make this partnership possible, East told theaudience there are three important steps to take on the part of therisk manager to create a shared vision with contractors beforebeginning any construction project.

The first is to establish clear expectations and objectives.Anticipate and define the key risks before beginning a project, andbe engaged during pre-construction planning.

The second step is to establish structure; define the insurance risk management and safety programsbefore construction begins.

Lastly, communication is the most critical component insuccessfully creating a shared vision. "If you communicate clearlyyour demands and expectations in advance," East said, "thencontractors are able to rationally incorporate that into theirplans."

Elaborating on these points, East discussed obstacles(not risks) that risk managers may face when creating arisk management plan on a job site of any size and in anylocation.

First, East said it's important to recognize any local andregional differences that could affect your project and yourrelationships. The risk manager elaborated his point by citingpersonal experiences working on construction projects at Disneylandin Tokyo. It was there, he said, that he learned the importance ofbuilding relationships face to face, and how being inattentive tocultural differences could have damaging effects on workrelationships.

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Additionally, East said to know the regulatory requirements andeconomic constraints, and establish clear safety rules andprocedures before beginning any construction project.

(Photo: Danielle Ling)

Align project interests

Elaborating more on the main mission of his presentation, Eastdetailed six key principles of owner and contractor alignment.

First: establish trust and build relationships early in theproject. "Be visible on the construction site. You only buildrelationships, I believe, face to face," said East.

Second: set expectations clearly from the start of theproject.

Third: define safety requirements. Integrate the insurancesafety programs.

Fourth: measure what counts: upstream and outcomes.

Fifth: stop demanding, and start asking for commitments. Seekand make more reliable promises.

Sixth: solve problems and create a resolution environment.

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Conclusions 

East wrapped up his remarks with a review of the sessions keylessons. "Problems are solved person-to-person," he said. "Buildstronger relationships between risk managersand contractors earlier on in the project." 

Adding to this point, East encouraged the audience to make morephone calls and prioritize face-to-face interaction over emails andtext messages.

As he concluded the session and the end of the 2017 IRMIConstruction Risk Conference, East ended with a story about hiscompany's founder and namesake, Walt Disney.

Long before the original Imagineer created the world of Disney,East related, Walt Disney dedicated every Sunday to time spent withhis daughters. In allotting this sacred time with his family eachweek, Disney had a vision that there ought to be a special placewhere parents can go with their children and create lifelongmemories.

Building the Disney empire left an extraordinary imprint on theworld, and East said each project contractors build has thepotential to have a similar effect. 

"What we build tells a story about who we are," East explained,"and sends a message about the kind of world we want to create.

"I'd like to encourage all of you as you are building the futureof our society, that you, in the same way, is telling a story," headded. "You are building cathedrals, not just laying bricks."

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