Managing Risk: Navigating the Challenges of Office Refurbishments in a Live Environment

Co-authored by: Wade Russell, Director with Risk Factors Australia

The corporate real estate landscape is evolving rapidly, with many organisations reassessing their office needs for any number of reasons including increasing focus on collaboration, cost-savings, rise of hybrid working models, and an increasing focus on sustainability. This collective rethink on how offices are being used and factors driving workforce interest to return to office has opened a variety of opportunities for refreshing and refurbishing office environments to align with the changing nature of work.

More frequently, however, these refurbishments are being executed in live environments. One sector this scenario is particularly common is in the finance sector, where critical operations often run continuously with teams working to international time zones, making it impossible to vacate premises entirely during upgrades. This introduces a unique set of challenges for project management teams tasked with executing these projects while minimising disruption to the daily operations of the business.

Most commonly, the challenges faced when undertaking refurbishments in a live environment include the following, requiring careful consideration and strategic planning:

• Noise and Vibration: Disruptive construction noise and vibration can interfere with business operations, particularly in settings that require a high degree of concentration or quiet, such as trading floors or client-facing departments.
• Hazardous Chemical Risks: The use of chemicals, such as adhesives, in construction can pose health risks, especially in poorly ventilated areas where employees are working nearby.  In some cases, residual chemical can persist on surfaces even after the work has been completed and occupants return to an area.
• Dropped Object Risks: Projects involving work at height such as around atrium spaces require stringent safety measures to prevent objects falling into the void space and onto occupants or critical services below.
• Obstructed Exits: Ensuring that emergency exits remain accessible during construction (even with hoarding systems in place) is vital for compliance with Work Health & Safety (WHS) legislation.
• Loading Dock Interactions: Coordinating deliveries and managing space in a live environment where goods are regularly received, dispatched and in some situations stored, can be a logistical challenge that increases the risk of incident occurring.
• Unauthorised Entries: Maintaining security is crucial when construction areas cannot be completely isolated through hoarding systems such as during short term projects at night.  Without effective soft controls and supervision, unauthorised access can occur increasing the risk of incidents or data breaches.
• Service Isolations: Inadequate identification and lock-out of services during works in a live building can increase the risk of inadvertent contact with the service at the work front and/or at a distal location.  Inadequate isolation and contingency planning for fire services can cause fire systems to be triggered further interrupting tenant activities and tying up vital emergency resources.
• Insurance: Understanding who has control over the work front and therefore insurance obligations is an important part of ensuring that there are no gaps in insurance coverage in the event of an incident occurring.
• Project Delivery Timeframes and Costs:  Ultimately, the project timeframes and costs can be significantly impacted in the event WHS is not managed correctly and inadvertent injury or damage to the building can have a larger flow on effect to the normal operation of the business.

These challenges underscore the complexity of executing refurbishments in spaces that remain operational, with the key lying in balancing the needs of the project with ongoing business activities.

Within the context of a live refurbishment, conflicting priorities between various stakeholders can arise, creating tension. Clients are often focused on minimising disruptions to operations and ensuring the project stays within budget. Project managers are responsible for delivering the project on time, within scope, and ensuring the safety of all involved. Risk managers, on the other hand, are singularly focused on maintaining a safe environment, regardless of time or cost implications.

This delicate balance is often referred to as the “triangle” of time, cost, and safety. When these priorities conflict, a project can be compromised – an example being a delay in completing a project might increase costs, but rushing work could compromise safety. Similarly, cost-cutting measures that reduce safety provisions can lead to accidents, ultimately causing more significant delays and financial loss.

Therefore, it is crucial for all parties to align their goals and collaborate closely to ensure the project is delivered to a high quality, safely, on time, and within budget. Failure to adhere to these principles can result in project overruns, compromised safety, and potentially, damage to an organisation's reputation.

For all parties involved, success is defined by the seamless execution of the project with minimal impact on the workforce’s health and productivity. In a live environment, this means that business operations must continue uninterrupted, and safety must be upheld to the highest standards. A successful refurbishment project is one where employees can continue with their work without being adversely affected by noise, dust, or other construction-related disruptions.

Generally, when delivering projects in live environments, the earlier key stakeholders are engaged in identifying operational risks on the project the better. This should initially occur through the Safety in Design process but should continue through interface planning sessions, Project Control Group meetings and through monitoring activities such as audits and inspections.  Control measures to mitigate these risks can then be built into the project schedule to ensure that businesses have a realistic understanding of time required to complete the work and any impact that needs to be managed.

Managing risk in a live environment is a complex but essential task in today’s corporate real estate sector. By understanding the challenges, navigating conflicting priorities, and prioritising safety above all else, project teams can successfully deliver office refurbishments that meet the needs of all stakeholders. Ultimately, the key to success lies in collaboration, careful planning, and an unwavering commitment to safety, ensuring that business operations continue smoothly while creating a refreshed, modern workspace employees want to return to the office for.