May 20,2013

Inuvik to Tuktoyaktuk Highway (ITH) Project

Risk Matrix
[Reviewed as of 20 May 2013]

PROJECT GOALS
To provide a safe, secure and effective Highway from Inuvik to Tuktoyaktuk with a view to:
o Meet all applicable codes, guidelines and regulations to include technical, environmental and legal
o Deliver the Project on budget, using a cost effective method and with minimum impact on the Regions OandM budget
o Deliver the high quality Project by Nov 2018
o Develop Community Partnerships, Northern Companies by building capacity and providing meaningful and transferable skills and training
o Deliver a well run Project that can be a model for future major projects .
RISK MATRIX EXPLANATORY NOTES-
Every major project should acknowledge the risks inherent in the project- assess the risks and clearly articulate mitigation measures. This Risk Matrix attempts to accomplish this.
It is important to assess both the probability and the potential consequences of any event that may impact the project. A high risk of an event happening with a low consequence may be more acceptable than a
low risk event with severe consequences. In some cases we have noted some impacts. This is a difficult exercise and must be carefully reviewed.
Rating manual:
Level of Risk (how likely) - the assigned a rating of 1-5 corresponding to Low (1-2), Medium 3 or High/Unknown (4-5) risk or impact
Impact (magnitude of consequences) - assigned a rating of 1-5 corresponding to Low (1-2), Medium 3 or High/Unknown (4-5) risk or impact.
Ratings (level of risk *impact) - The resulting overall ratings can range from a lowest risk/lowest consequence rating of 1 to the highest risk and consequence rating of 25. The Project should pay attention to the
ratings of 15 or higher and is depicted in a red highlighting.
To some extent, the consequences of an event will impact all aspects of the project. However, the table notes who bears the greatest responsibility and liability for this event (the owner or the contractor). Our
Assessment is based on risks from the Govt point of view. In some cases risks can be cumulative in nature (if two or more occur then a third risk is likely) and risks can be compounded (if one happens then another
will occur). The GNWT will bear all the owner responsibilities.
It is important to note that Risk Assessment is subjective and can been seen differently by a variety of agencies and importance can be a point of discussion cost vs environmental issues for example.
o The level of knowledge and understanding of a given situation may increase or decrease the perception of risk.
o Contingency plans or mitigation plans are devised to deal with the what ifs; and
o Some risks have a defined cost attached and where possible an estimate is provided.
Risks will change or mature over the life of the project. This document is an ongoing assessment tool. A risk may increase, decrease or be eliminated. Reducing, increasing or eliminated risks are marked with a
(R), (I) or (E). New risks may be identified. Some risks may not be identified, until they are actually realized.
The following are the key risks to the project as perceived by the GNWT.

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 May 20,2013

Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
Project Management Risks
1 Project Experienced Project can be complex with many technical DOT GNWT 2 5 10 The department to assign a team to manage The project team needs to assess all
Management PM team and issues, legal issues, regulatory challenges the issues and have the proper checks and risk and all options.
consultants and budget challenges. balances to ensure proper oversight.
required An experienced team with sufficient depth The DOT to ensure any proponent and Clear contingency plans to be
and knowledge is required. consultants has the proper resources in developed, prepared and costed.
place to take on the project.
FMB, DM Infrastructure Committee and the Oversight must be timely and
ITH Oversight Committee can all fulfill an effective.
oversight function.
2 Contractor Experience of The Contractor and Sub Contractors lack DOT GNWT 3 4 12 Develop an Integrated Team approach and Studies of the Construction Industry
Competencies Contractors experience and knowledge reference best review all aspects of the project including pinpoint Contractor and Sub
and Sub practises regarding road and bridge design, construction sequence and risks. Contractor poor knowledge of best
Contractors construction. Inexperience leads to errors practises or that they may be
and potential violations of regulatory Pre-qualification of all Contractors and sub- unfamiliar with some aspects of
conditions contractors. construction. While pre-qualification
is a mitigation measure in itself, often
DOT to host a series of focused sessions to questionable competencies do not
share lessons learned on past projects. become obvious until the road
construction as well as its bridging
Recent experiences at source 177 has given and by-passing of obstacles is well
the DOT a good sense of future issues. into the project.
Contractors performance was measured and
found acceptable. There are not many contractors or
sub-contractors with experience in
building roads in a permafrost
environment.
3 Project Contractors and This project has a number of moving parts. Contractor 3 3 6 Integrated Team to address protocols and Research indicates that within the
Administration Subs are Poor Both the Contractor and the Sub Contractors Sub- expectations regarding administration and construction industry there is a
Administrators must follow sound administrative practices. Contractors document control. reported significant incidence of
Work, site investigations, surveys, soil DOT GNWT errors resulting in change orders with
sample results and invoicing must be DOT to host sessions on lesson learned. associated costs, delays and issue
meticulously documented and filed. DOT and Human Resources to assist in disputes directly attributable to poor
attracting experienced and competent front of office administration.
Many Contractors and Subs are proud of administrative staff for Contractors and Sub Document control is vital.
their construction techniques but may fall Contractors.
woefully short in organizing administration.

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Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
4 Initial Cost Important to The project is in the early stages and it is DOT GNWT 3 5 15 The Department must evaluate current Under budget may jeopardize the
Estimates and ensure important to evaluate the accuracy of estimates and make sure that enough delivery of completed project and
Budgets are accurate cost estimates available at this time; funding is contingencies are built in the cost estimates. pressure a contractor to make many
used to make estimates as being secured at this stage and if enough claims.
early decisions under bidding contingencies are not built in or the The DOT should have at least three
is a major estimates are not complete; it may be high independent costs prepared. The GWNT has Extremely high estimates may affect
concern. risk in the later stages of the project. notified the feds and the press the project is the project approval process.
As this is a joint project with the Feds estimated at $299m. Research indicates people like to use
committing to $200m and the GNWT low estimates initially.
committing $99m- all cost estimates must Design remains at 85% and risks remain.
be as accurate as possible. There is current getoech works underway
and work on the 100% to give the GNWT
more confidence.
5 Procurement Ensure a fair This is a mega project worth many millions DOT 4 5 20 The Project team and various Departments The project could get mired into a
Process and and the pressures to award will be great. involved needs to articulate a process and difficult and protracted process that
transparent The GNWT/DOT need to be extremely timetable as soon as possible. detracts from the actual work.
process that is careful in ensuring an approved process is There will be pressure to keep the work in
auditable and agreed to early in the project life and there the region and to also spread around the Lessons learned from other projects
makes sense is a clear and auditable trail for decision NWT. Alliance model or Early Contractor must be reviewed.
making and awarding work. Initial steps Involvement models can be used.
may lead to other decisions or force There are many examples from other
decisions which must be avoided. Recent negotiated contract for source 177 provinces/territories that could be
had significant local involvement. used as a model.

6 Legal Claims As a complex and multiyear project, early DOT 2 4 8 DOJ has been involved and will continue to Depending on the procurement
legal advice must be sought to ensure DOT monitor the project. option the legal issues could be
avoids costly claims, law suits and other extremely complex or simple.
complex legal issues.
A robust documentation control must
be used.
7 Project Delays and The project schedule will include a timetable DOT 3 5 15 Have a clear project schedule and logistics Permitting, weather, geotech, design
Schedule Claims for: planning, design, permitting, supply plan with enough time to do all the decisions, logistics and production
procurement and construction. Contractors key steps. Depending on the construction rates will all impact the schedule.
Possible Delays will lease/purchase equipment and delays contract the contractor may take the risk on
may cause equipment to stand still. the construction.
Opening the Hwy is not tied to any specific
date such as a major bridge. Delays for the
GNWT are not a huge issue.

Design and Technical

8 Design and Need to The project to be designed using current DOT GNWT 4 4 16 Efforts must be made to ensure all the Decisions made with erroneous data
pre- undertake all codes, standards and practices. Design relevant information is available before key or poor assumptions will add
engineering the proper build/P3 model may accelerate the project decisions are made (current geotech unnecessary risks. Poor design or
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Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
Works design steps completion. Missing a key step or rushing a program) . lack of information may increase the
and site process may add significant risk Poor information will lead to significant O & M costs in the life cycle of the
investigations errors in planning, cost estimates and infrastructure.
budgets and increase risk.
9 Design Team Team depth The GNWT must ensure the technical Design D 3 3 9 Ensure the Design Team has the necessary Any lack of depth and or experience
experience and and capacity Team is capable and has the necessary DOT GNWT backup to deal with issues to include RFIs may cause added costs or
depth of to respond depth of resources to carry this project to and technical questions. Track the exact construction risks.
knowledge completion and can react to all the project timeline of all questions and responses.
requirements.
Any contractor or JV must have a high Contractor must also be fully capable to deal
capacity team. with issues in the field as well.
Design team and owner must work in
conjunction.
Regulatory and Process Risks
10 Project Ensure project This is a complex project involving EIRB, Ensuring the proper information is provided Significant Oand M costs or very
Approval is properly Water Boards, Feds, local boards, all have DOT GNWT 2 5 10 to the various agencies. Ensuring the DOT is restrictive construction costs could
Process approved by their own process and all produce reports aware of the recommendations and any be added to the project.
the various and recommendations. The DOT must restrictions and all knock on effects are
regulatory ensure approvals are not given with a long assessed. All those involved need to be aware
agencies list of restrictions which may be impossible of the whole picture.
to comply with.
11 Skilled Labour Lack of Skilled The Contractor will require skilled labour Contractor 2 3 6 The Project Manager may facilitate an It is in GNWT best interest to see the
Labour (mechanics, welders, carpenters, heavy GNWT attraction plan by linking the Contractor successful attraction of both skilled
equipment operators, surveyors, techs, with other Ministries involved in the training and semi-skilled labour to the
engineers) for this project. (ECE). While attraction and recruitment is project. Where it is practicable,
primarily a contractor responsibility, the Contractors should be encouraged to
Failure to secure and retain skilled labour Government can offer assistance in shaping hire locally and offer employment to
reduces productivity. a training program/plan. It should leverage graduates of GNWT Department of
GNWT Department of Education, Culture Education, Culture and Employment
This is a 5-6 year project that will be in direct and Employment programs. This has certified apprenticeship programs
competition with our projects. commenced with ECE and Aurora College. such as Aurora College School of
Trades, Apprenticeship and Industrial
Training.
12 Promoting GNWT Non- Government Projects must reflect its policies Contractor 3 3 The Project Manager will facilitate linking The intent is to demonstrate the
local and Compliance regarding the promotion of employment GNWT the Contractor with the Ministry of GNWT is actively encouraging
Aboriginal with Policy among aboriginal peoples. Failure to do so Aboriginal Affairs and Inter-Government Contractors to support its policy of
Employment brings a lack of confidence and public Relations to ensure understanding of and Aboriginal Affirmative Action.
censure with the potential for litigation. compliance with these policies. See serial 11.
13 Permits Permits must Permit Control can be problematic. Given Contractor 3 4 12 Project Manager to be responsible to Project Manager to regularly review
be secured the expected duration of the project there is maintain a Permit Register, identify permit Permit Register and commitments.
and remain risk of either permits not being secured in requirements and coordinate permits.
valid time; or, equally troublesome, permits A regulatory Road Map is being developed
expire before work is completed. and should be ready 1 June 2013 in
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Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
consultation with ILA, AANDC, NWTTWB and
others.

Construction Risks
14 Project Delay, claims The Project Manager must have the DOT GNWT Ensure a Risk Analysis is conducted for each
Management geotech risk necessary resources (people and processes) 3 5 15 new company/team added to the Project Claims, time delays, court action,
and to be able to properly manage this $299 m and review work progress and quality of legal issues and cost overruns could
engineering project. This is a large and complex project existing team. occur.
risks that requires a high skill level and expertise Ensure the proper staff and processes are in
to successfully manage and execute. place and the key functions have enough Work to be redone.
Contracts, payments, planning, detailed depth to deal with a number of issues at the Work delayed due to capacity issues.
scheduling, accounting, quality assurance same time. Quality issues arise.
and proper on site leadership are all
functions that must take place to effectively Constantly review the organization and Public confidence would be affected.
execute this project. We need to ensure conduct post activity reviews to ensure all is
that GNWT has adequate resources and the being done to ensure success. This includes
time to handle these issues. weekly updates.
15 Project Project Risks Project oversight committee to oversee the DOT GNWT Ensure the proper staff and processes are in Significant political and financial
Oversight project at all stages. 3 5 15 place and the key functions have enough impact if project goes astray due to
and Quality In case of P3 project delivery, the depth to deal with a number of issues at the lack of oversight.
Assurance Concession Agreement to be drafted with same time.
complete risk assessment, risk mitigation Constantly review the organization and Public Confidence eroded. Media
and risk sharing aspects. conduct post activity reviews to ensure all is interest extreme.
For a standard construction contract late being done to ensure success.
completion, poor quality and not performing Respond quickly to the issues and ensure
to the permits need to be laid out. risks are eliminated or mitigated or clear
understanding of risk sharing.
16 Changes during Change Changes to design creates change orders GNWT 5 4 20 Comprehensive Design Review is critical to Change Order approvals must be
Construction Orders which bring either delays or added costs. ensuring a consistent construction plan. A reviewed expeditiously so that
increase Time defined control and approval process for construction work is not impeded or
and Costs change orders should be implemented. delayed awaiting decisions.

Project Manager may require the

services of a qualified consultant
(with the experience on similar
projects) to vet change orders.
17 Project Project Lack of oversight may cause problems that DOT GNWT 1 2 2 Single project Project Manager assigned Coordination of the oversight will
Oversight Manager`s come to have major consequences permitting him/her to dedicate their full need to be done to ensure effective
Time is spread attention. use of the various committees.
among several FMB/DMsand ITH Oversight committee to
competing provide oversight.

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Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
projects

Technical and Environmental Risks (Climate Change, Permafrost)

18 Environmental Environmental An Environmental Impact Study will support DOT GNWT 2 5 10 Ministry of Environment to be engaged in The EIRB is complete and has 44
Reviews and restrictions or
the construction project but will establish Risk Management Process. Both the Project recommendations. These need to be
Approvals new conditions, cautions and restrictions Manager and the Contractors will review all reviewed along with all the
conditions regarding construction. There is risk that environmental studies and conditions to commitments to ensure the GNWT
add to costs these conditions could be misunderstood ensure clarity and resp. has not committed to something that
(and therefore violated) by the contractor; has cost implications.
or, the Minister of Environment may submit Review will include highlighting of sensitive
addendums with further construction areas such as waterways, wildlife We await the federal response.
restrictions. In the first case, the contractor sanctuaries and no go areas along each
would risk penalties that could include phase of the route.
dismantling or redoing work and incurring
delays.
19 Work Spread Operating Ministry of Environment has stringent rules Contractor 2 4 8 Before any spread site, staging camp or Recent inspections by ILA and WSCC
Sites and Practises at and regulations regarding camp operations DOT GNWT equipment fleet site is established, the of the source 177 work indicated no
Environmental Spread Sites and equipment sites. Violations frequently Contractor will brief the Project Manager on major issues.
Impacts cited for result in fines (contractor responsibility) or the site location, concentration of personnel
environmental shut down/close orders. In the latter this & equipment, and review the Health, Safety
infractions delays project and could seriously jeopardize and Environmental Protection measures
work on road construction that will be in place. The Project Manager
will confirm that the Contractor will be in
compliance.

Project Manager is to be on distribution for

all cited infractions which will serve as an
indicator of compliance
20 Intervention of Agitation and The Arctic is a sensitive area with local, Contractor 2 4 8 The Project Team will develop a The impact of a poor report card
Special Interest confrontation national and global communities claiming GNWT Communications Strategy that showcases regarding environmental stewardship
Groups/ impacting the oversight. All will have an opinion on the the GNWT commitment to the environment is multi-facetted. Some
Environment Project practises of the contractor and the GNWT and the regulatory regulations to be consequences will be obvious such as
Lobby Groups regarding environmental stewardship. followed. fines and re-construct or redo orders.
Infractions and either perceived or The environment will be an identifiable and Others may be indirect but no less
confirmed misuse or abuse will negatively separate agenda at all Risk Management painful for both the Government and
impact reputations of both the government Reviews. The Communications Plan will the Contractor and could include:
and the contractors. This will invite even include concrete measures to the projects Reluctance of financial
greater regulatory oversight with the management as evidence that it is a strong institutions to lend to the
attendant demands for changes to environmental steward. contractor
construction. Equally important, should the Implementation of the ITH Corridor Working Reduced public support for
project fall into disfavour with the public Group will serve as a forum for info the Government because of
(both Territorial constituents and those exchange. an eroded confidence in its
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 May 20,2013

Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
external to the NWT) it could jaundice environmental protection
future projects practises
Greater intervention of
Environmental Advocacy
Groups
A reluctance of sub-
contractors to engage in this
project
21 Environment - Barriers to Wildlife migration patterns are disrupted Contractor 3 4 12 Review Environmental Impact Study. The global litmus test for an
Wildlife Wildlife resulting in government intervention, GNWT Ensure route design avoids sensitive areas. environmentally conscious public is
project delays and change orders with Build wildlife overpass/underpass facilities the construction projects direct and
increased costs to ensure wildlife migration routes are indirect disruptions to wildlife
respected habitat. The GNWT aim is to have
demonstrable measures that
safeguard both

These measures are to be included in

the Project`s Communication Plan.
22 Environment - Unanticipated High decibel or extended exposure to Contractor 1 2 2 Noise discipline practises to be enforced. Review the commitments made on
Noise Noise Impacts medium decibel noise affects both the this issue to ensure in compliance.
public and wildlife Confirm blasting plan and communicate it to
both the public and the Government. DOT
Blasting could be problematic, affecting both to facilitate this understanding with other
humans and wildlife. If not rigidly controlled Government Departments
it could result in public enmity.
23 Environment Exceeding Water use will be closely monitored to Contractor 1 4 4 Ensure permit limits are respected. Impact could be significant due to
Water Usage Water Limits ensure the ecological balance and issues sensitive nature.
permits to draw water from natural sources Violations monitored by both legal
with strict quantifiable limits. This will apply authorities and the public.
to winter works, camps and compaction.
Exceeding water limits risks fines, shut down Closely monitor the water useage.
orders and public censure.
24 Climate Change Ice Road and Risk of road and barge operations Contractor 4 4 16 Related to other serials concerning logistics Climate change can sometimes be
and Weather Barge commencing later and closing earlier. Risk of Sub- and monitoring. more dramatic in the arctic and will
issues operations lack of transport capacity to deliver Contractors need to be assessed.
and capacities materials to the job sites. Project DOT and Contractors will communicate on
as well as Manager the status of the transportation links.
work delays Staff work in inclement weather with:
and stoppages Reduce productivity
Spread of disease and illness
25 Difficult Road and Road and bridge building in permafrost is DOT GNWT 4 5 20 The Design team (using experts such as Don Increased costs/km of road. Damage
Permafrost Bridge technically challenging and must be properly Haley) and to use all available tools and to the area. Increased maintenance,
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Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
Region building in designed and controlled. information to make sure road design will be operation and lifecycle costs
including ice difficult This is a design challenge to build a road that effective in the environmental conditions.
polygons terrain is sustainable in the permafrost region A short test section has been constructed to
/permafrost without jeopardizing permafrost conditions confirm design issues and test proposed
to be or incurring major OandM costs. insulated areas.
considered
during design The QC and QA teams to ensure on site
and planning practices are being strictly adhered too.
Quality Control and Quality Assurance Risks
26 QA/QC Not QC/QA team ensure all design and DOT GNWT 3 4 12 Qualified companies and personnel who Redoing major components of the
All Special completing construction meet exacting standards. The have the knowledge and experience to add project.
Advisors the required Project places significant trust in and relies value to the project are doing this work.
due diligence upon the work and recommendations of
various experts and consultants involved. Proper processes are in place to ensure the Court action.
work is complete and proper checklists or
procedures are in place and nothing is over Loss of public confidence. Safety
looked or missed. issue

General Risks
27 Public The public see Lack of good and timely communications DOT GNWT 3 5 15 Concentrate on good communications and Poor press and a lack of
Confidence this project in and spreading of rumours may lead to the excellent coordination. communication will impact the
many public lacking confidence in the Project. project with added distractions.
Media different The Procurement process must be Clear communications plan in place prior to Develop a web site and
ways. Public transparent and accountable to the public. any work commencing. Establishment of Communications plan that:
confidence is Project Offices in Tuk and information Notifies the Public
important for offices in Tuk and Inuvik through the GSO Health & Safety tips
the project. will assist in passing key messages. Progress and Milestone
Achievements
28 Political Risks Political There may be opportunities for decisions to DOT GNWT 3 5 15 A clear and concise process for decisions and PM team to be fully aware of all the
Influence be influenced through the political process procurement are developed using the best issues and the impact of decisions.
practises for PM
Supply Chain Risks
29 QA/QC against Inferior Use of Inferior materials (geotextile, bridge Contractor 2 4 8 Establish product specifications and procure Gravel for base is quarried in region,
Inferior Materials are materials) risks the integrity of the DOT GNWT from reputable suppliers with experience in surface gravel is not.
Materials not to of construction and places public at risk. providing to the North
sufficient Delays and increased costs (both time and Almost all other materials and
quality money) to reorder/reship materials and Establish stringent quality assurance/ quality products must be imported from the
redo construction. Control measures that include inspections South (rail/road to Hay River then ice
and testing before products leave road/river barge to Inuvik.
manufacturer and on receipt and
installation.
30 Scarce Resources and Pre-fabricated steel products, attachments, Contractor 2 3 6 Project Manager to determine materials

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 May 20,2013

Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
Resources products not culverts and other materials required for DOT GNWT specification early and share supplier
available road and bridge construction may be in information
short supply creating delays in
construction Integrated Team to conduct a staff check of
availability and lead times.

Integrated Team to host a transportation

working group with ground and barge
service providers to confirm capacity

Finalize schedule and order materials well in

advance of requirement
31 Material Price Increased Prices may escalate over time or due to Contractor 5 4 20 Negotiate Fixed Price Contracts early. To do
Escalation Costs scarcity. so the Project Manager will provide a
comprehensive schedule.
32 Projects in Equipment There are numerous projects (Oil and Gas Contractor 3 5 15 Finalize Work Schedule and build in
Competition and Material drilling, communications cable and tower GNWT flexibility with road construction such that if
Scarcity construction, urban development, materials or equipment is not available at
infrastructure improvements and DND one job site, switch priority to other sites.
runway extension) all competing for
materials, leased equipment and cargo Consider pre-positioning quantities of DOT needs to assess the impact of all
capacity to bring it forward on rail (to Hay material in advance of need. other works in the region.
River) barge or ground transport. Impact of DND runway ext project in Inuvik
unknown at this time- but assessed as likely
Risk this Project may suffer lack of to be outside current ITH construction
availability of material and equipment window.
resulting in delays
Financial Risks
33 Project Funding Project is fully Project funding based on early estimates. Contractor 3 4 12 Obtain as much info as possible to assist in Dot will need to closely monitor the
funded jointly DOT, GNWT the design and cost estimates. budget and contract prices.
by Federal To date Feds commit to $200m and the
Gov and GNWT to $99m. Current estimates based on 85% design and Good experience gained through the
GNWT preliminary geotech results. source 177 project.
Cost overruns are the GNWT responsibility.
By fall 2013 the DOT will have more info to Bonding and securities to be in place
refine cost estimates and contingencies. to protect the project.

34 Compatibility Contractor The Contractor must pay out large sums to Contractor 3 5 15 DOT to develop a complete understanding While there is always some conflict
of Payment has Cash Flow secure labour, materials and transport for DOT GNWT of the Contractors Concept of Construction between the Contractor who wants
Schedule linked Problems and delivery to spread sites. and the Project Managers work and payment early and often as opposed

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Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
to Work fails to meet payment schedules. to the Government who must
Progress payroll and Insufficient cash flow could result in skilled exercise probity and due diligence
pay suppliers. labour quitting and suppliers and service and therefore only wishes to pay for
providers refusing service or litigation (verifiably) completed work
achieving a balance requires a
Worse Case Contractor becomes insolvent collegial resolution.
and project is jeopardized
35 Insolvency Contractor Contractor becomes insolvent with risk that Contractor 1 5 5 Organize the construction process such that Bankruptcy affects reputation of
Enters he ceases work and creditors cease GNWT it is a series of stand-alone projects with Government and Contractor.
Bankruptcy materials, plant and equipment. achievable milestones.
Protection
Develop a reasonable payment schedule and
ensure prompt payment (See serial 34)
Health and Safety Risks
36 Labour Health and The job sites incur a high incidence of Contractor 5 3 15 Integrated Team to collegially develop a Studies indicate Health and Safety
Safety accidents resulting in lost time, fines and the Sub Project Health and Safety Program which issues are the 4th Greatest Risk in the
Programs potential for criminal charges. Specific Contractors will include formal training. Construction industry. Workmens
injuries could be attributable to: GNWT compensation claims are increasing
Failure to wear Personal Protective All hired trades must have current while Sureties demand higher
Equipment certifications for handling of equipment and premiums and scrutinize claims.
Preventable Vehicle and Earth execution of duties.
Moving Equipment Accidents
Over exposure to the elements Recent source 177 project did note no major
Unsafe movement around water concerns with this area.
Failure to install guards, barriers or
hazard notices
Improper Storage of Hazardous
Materials
Failure to protect the public from
exposure to unsafe conditions

37 Public Health Public Risk of irritation/injury from roads not Contractor 2 2 4 Integrated Team to publish and place
and Safety Exposed to marked/barricaded close to public, DOT GNWT notifications with radio and on web site.
Job Site unprepared for blasting, vehicle accidents Working with co-mgt groups and various
Hazards from movement of oversized equipment. hunters groups will assist in this.
Establishment of the ITH working group will
serve as a forum for info exchange.

Culture and Heritage

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Level of
Risk Level of
Primary Rating
Serial (likely to Impact Actions - Mitigation/Risk Potential Impact Notes
Risk Area Risk Element Description Resp 1-25
occur) 1-5 Reduction/Contingency
15 is high
1-5
38 Impacts on Violation of Public surveys demonstrates there is Contractor 4 4 16 Crews must be educated for signs of these Could result in stop work orders or
Traditional Public support for the Road but conditional on Sub sensitive areas, note them and advise of the delays in the project as mitigation
Hunting and Trust/Change there is to be no disruption to bear and Contractors need for variations. plans are developed.
Fishing Order Risks carnivore denning, bird and fish breeding DOT, GNWT
grounds or the migratory routes of bison Staff working on the roads construction
and caribou. must be trained to recognize and respect
wildlife sensitive areas.
No all wildlife sanctuaries are known but as
they are discovered, the conditions must be Publicize Project efforts regarding respect
respected and change orders affected to by- for Inuit culture on web site.
pass these sensitive areas. Working with co-mgt groups and various
hunters groups will assist in this.
Establishment of the ITH working group will
also serve as a forum for info exchange.

39 Archaeological Change Order There are known archaeological sites within Contractor 4 3 9 Seek professional assistance in recognizing Indigenous people hold their heritage
Discoveries Risks the area through which the road will pass. Sub these sites such as the PWNHC. close to their hearts. There is a
Inevitably, other sites of archaeological Contractors resurgent interest in history and
significance will be discovered. These must DOT, GNWT Establish a protocol to investigate. these archaeological finds are a link
be by-passed and the road re-routed. to the past.
Risk of increased costs to address variations. Train and educate crews.
Potential risk of Public dissent should Violations may be seen as a blatant
violations occur. High risk of this occurring Experience with source 177 has shown local disregard for heritage and can
because staff and construction crews do not contractors can work successfully with become a major issue.
have the technical knowledge to interpret a PWNHC.
site of archaeological significance.

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