Key Biscayne Master Plan 043944000.18w_Key_Biscayne_MP(forJooMag) | Page 85

8.0 RISK ASSESSMENT
schedule risk for the project. Experience has shown that pressure applied
by municipal leadership on the utility companies can be effective in
expediting this process. A diligent Construction Manager has also been
effective in keeping the process moving forward.
Weather conditions, particularly in South Florida, can present a schedule
risk that is both difficult to anticipate and difficult to mitigate. Significant
storm events will not only hamper the efforts of the Village’s contractor
but utility owners will shift focus away from the conversion project and
onto recovery efforts in the aftermath of a storm. Work by utility owners
will not resume on the conversion project until their individual recovery
efforts are complete, which can take varying amounts of time depending
upon the magnitude of a storm event. Utility owners may also choose to
use stockpiled materials intended for conversion projects in the recovery
efforts and restock those materials only after recovery efforts are complete.
To mitigate this risk, the Village could request FPL provide materials for an
entire phase area at the onset of the phase’s construction. However, this
would require the Village provide a location to store these materials in a
secure environment. The storage location would need to consider some
of the materials needed for this project will need to be stored to avoid
exposure to the elements. For example, the underground conduit may not
withstand prolonged exposure to ultraviolet rays and would need to be
covered or stored indoors. The Village may wish to explore warehouse/
storage yard rental to evaluate whether it would be worth the associated
costs to mitigate against the risk to schedule.
and potentially agreements with property owners in the form of redesign,
additional landscaping, etc. During a project of this magnitude it can be
expected that some easements may need to be acquired through the
eminent domain process. This process can be expensive and is difficult to
quantify a budget for such expenses since the number of eminent domain
processes that may be required over the life of the program cannot be
accurately predicted.
Construction Phase
As with project schedule, the construction phase is where most budget
risks to the project are found. These risks include, but are not limited to:
 Delays in the project schedule can lead to delay claims where the
contractor seeks additional compensation, and when delays to the
project are significant the impact of inflation can become significant
relative to project budget.
 Material costs can vary significantly over the length of a project of
this scale. For example, an increase in oil prices can drive material
and equipment costs up. The cost of petroleum based items such
as asphalt, as well as HDPE and PVC conduits would increase
along with fuel costs for the construction equipment with an
increase in oil prices.
 Local and national economic and construction market conditions
can also influence project costs. When demand is high and
potential bidders are busy, labor and material prices are likely to
be higher than when the industry is slow and there is increased
competition to drive prices down.
Design and Preconstruction Phases  While cost overruns could potentially occur during the design phase, the
risk is relatively small, particularly given the size of the project. The most
likely scenario for design phase cost overruns would be a change or
addition to the overall project scope by the Village. Unforeseen sub-surface conditions including unknown/unmarked
utilities, unsuitable soils, contaminated soils, and/or rock conditions
can all add cost to the construction of the project.
 During the course of the project there may be the need to
implement specific landscaping requirements or specialized
pavement and driveway restoration due to unavoidable impacts to
existing elements or as a means to secure a required easement or
other private property impact. These special considerations can
add cost to the project.
Budget Risks
As previously discussed, the project will require the acquisition of
numerous easements over the course of design and implementation. Each
easement has the potential to add easement acquisition costs. These
costs may come in the form of staff labor, consultant labor, legal fees,
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