Construction is an exhilarating as well as risky business. On the one hand, there is nothing compared to the joy of watching a building be created from scratch. On the other hand, each project’s construction risks are a constant source of stress for everyone involved. Knowledge and planning are the only ways to reduce risks.
Here are some risks for the construction industry and how you can overcome them:
Defects in construction can have extreme consequences, such as damage to property, personnel, and materials. Hiring people with excellent skills and experience is the only way to reduce construction risks due to defects.
The shortage of adequate, well-trained labor can offset the construction timeline. Using technologies that can perform specific tasks such as excavation, roofing, etc., with reduced labor is the only solution.
The chances of miscommunication are high in the construction business since multiple teams are working together. Miscommunication can result in additional costs and delays. Proper documentation and follow-ups with team members can help you overcome this problem.
Despite all the planning, specific unavoidable changes may pop up during the project. The contract that you create should hold accountability for these unpredictable changes.
Accidents can happen despite taking the necessary precautions. Apart from stringent safety checks to prevent such mishaps, worker’s compensation insurance is also a must.
Violating the terms of the contract, even unknowingly, can attract huge penalties. You must discuss the contract with the clients and subcontractors and ensure that there is no ambiguity with any of the terms.
Many of the risks of the construction mentioned above contribute to financial risks. However, appropriate insurance can mitigate the impact to a considerable extent.
Theft and Vandalism
Unprotected or unattended job sites can result in theft or vandalism of construction materials and equipment, causing extensive losses. Follow these tips to protect your job site:
- Store supplies as required
- Use theft deterrents or cameras
- Increase lighting in off-hours
- Secure your compound with fencing
- Practice effective inventory management
- Review security plan and process
If your job site is susceptible to environmental risks, as a construction risk manager you should consider the possibility of fires, floods, earthquakes, and hurricanes. It can be difficult to predict a natural disaster, but you should be prepared to reduce its impact on your site or project.
Document management is one of the biggest construction management risks. Construction projects require thousands of documents, which can be difficult to manage in a paper-based system. You can implement a paperless system to effectively manage your documents, reducing schedule delays and allowing your staff to access them whenever they need them.
Many of the construction risks can be reduced with the right coverage. Are you wondering what kind of insurance suits the needs of the construction industry? Contact the experts at Pittman Insurance Group. We will help you choose the right type of insurance to make sure that your interests are protected.