Construction managers face a number of challenges when trying a project to completion. On any a construction site, any one of a number of issues can arise which affect the budget, the timeline or even threaten the success of the project itself. Sometimes this is due to failure to clearly define the goals of the project or using unskilled workers. In many cases, these problems are the result of poor risk management practices.
The first thing to know is that even the smallest construction projects carry some amount of risk. Although this has been greatly reduced in recent years, factors which contributed to construction challenges included:
- High level of competition
- On site accidents
- Poor safety record
- Poor budget management
- Pressure to deliver returns on investment
Some companies create contingency plans to manage risk, but a few fail to address this issue. Usually it is the things that are not planned for that cause the biggest headaches in construction. An effective risk management policy should take cover potential losses from property damage, accidents and scheduling problems. The plan will list all the potential issues to better keep track of them and to minimize the construction company’s risk.
Technology in Risk Management
Construction companies now have a number of technological tools at their disposal to improve efficiency and productivity on job sites. It is not enough for any construction company to simply purchase tech products to use in their business activities. The company should have a comprehensive technology plan and platform in place to realize the benefits. Components may include:
- GPS tracking – this assist with fleet management and helps the company to respond to delays in a timely manner
- Mobile devices – everyone involved in the project can receive real time updates when any changes are made
- Apps – there is an increasing number of apps available to the construction field that help with the storage and processing of data that helps to identify risk and limit exposure
- BIM – Business Information Modeling allows for quick assessment of possible changes to a project by presenting a realistic 3D model of the structure, helping to keep the work on schedule
Proper risk management practices involve assessing challenges and devising control measures to protect the company’s interests. It should also entail an understanding of residual risk, which is any risk that may be present even after control measures are put in place.
The construction business is not without its risks; we all understand that. We simply do the best we can at mitigating risk by any means necessary. Call us at 407-316-8544 to discuss ways to improve risk management during your upcoming construction project in the Orlando area or in other areas of central Florida.