Safety risk-benefit analysis; dispute resolution

Safety, risk and acceptable risk

A thing is safe if its risks are known and judged acceptable by reasonable people in the light of their values. Risk is the possibility of harm; it is commonly measured as the probability of an event multiplied by the size of its consequence. No engineering product is absolutely safe, so engineers must decide how much risk is acceptable. The factors that influence acceptance are: whether the risk is voluntary, whether it is controllable, how severe and widespread the harm is, whether people have full information, and whether the benefit is large.

Risk and benefit (cost-benefit) analysis

It compares the expected risk (harm, cost of accidents) with the benefit of a project or design and the cost of making it safer.

Steps

1. Identify the hazards and the people exposed.
2. Estimate the probability and consequence of each hazard (using FMEA, fault tree, event tree or HAZOP).
3. Estimate the cost of reducing the risk and the benefit obtained.
4. Convert harm and benefit into comparable terms (usually money), and compare them.
5. Decide, apply safety measures, monitor and review.

A useful principle is ALARP (as low as reasonably practicable): reduce the risk until the cost of further reduction is grossly more than the benefit.

Example: Deciding the height of a flood embankment: a higher embankment costs more but reduces the chance of a settlement being flooded. The engineer weighs the cost against the expected damage and loss of life.

Limitations: it is difficult to put a value on human life; the probabilities are uncertain; the people who bear the risk may not be the ones who get the benefit; and long-term harm to the environment is often ignored. Hence the engineer must also use safety factors, codes and standards, inform the public honestly, and put public safety first (NEC code of conduct).

Resolving conflicts and disputes

A conflict is a disagreement of interests; it becomes a dispute when claims are formally made and opposed. The methods, starting from the cheapest, are:

1. Prevention: clear contracts, communication, regular meetings, written instructions.
2. Negotiation: the parties talk directly and agree.
3. Mediation or conciliation: a neutral person helps the parties reach an agreement (not binding unless agreed). The Mediation Act 2068 supports this in Nepal.
4. Engineer's decision or Dispute Adjudication Board / Dispute Board: as per the contract (FIDIC or PPMO standard bidding documents).
5. Arbitration: a neutral arbitrator or panel gives a binding decision under the Arbitration Act 2055 and the contract.
6. Litigation: a court case, the last resort, being slow and costly.

The personal styles used to manage conflict are avoiding, accommodating, competing, compromising and collaborating; collaborating (win-win) is best where relationships must continue. The engineer should be fair, keep records, and follow the dispute clause of the contract.