Risk management in construction is vital as it plays a key role in the success and failures of the business. Without risk management, contractors are risking costly lawsuits, injured workers, lost projects and a bad record. Certified Site Safety is here to help manage and reduce risk through proper training of employees through safety training courses and on-site safety inspections.
Statistics of Failure in Construction
According to the industry analysis provider, BizMiner, there was a 23.6 percent failure rate of construction businesses with only 649,602 out of 850,029 still in business from 2004 to 2006. Every year, thousands of contractors find themselves out of business and up against tough problems because they failed to foresee and prevent risks on the job site.
The Surety & Fidelity Association of America (SFAA) analyzed 86 claims and unrealistic factors that attributed to the failure of certain construction projects. They found the highest percent of failures was due to unrealistic predictions on performance measures that accounted from mis-trained employees, inexperience in new technologies by employees and insufficient personal. This put a greater amount of risk on the job site adding to the failure. Safety Training Courses could have helped manage this risk and avoid failure based on performance.
Sources of Risk in Construction
It’s not always easy to avoid risk as some things are out of our control. But, understanding and being aware of the sources of risk can help eliminate a large number of issues on the job site. For example, some of the most known sources of risk on a construction site consist of occupational, financial, project risk, contractual, managerial, natural and competitive risk. Focusing in on project risk in particular can help ensure the maximum safety of your workers and the general public. This is because project risk includes what’s happening on the grounds of the job site. Using proper equipment and safety protocols will help improve your risk management
Benefits of Construction Risk Management
It’s easy to see how utilizing risk management can have a great impact on your business. The benefits run far and wide including maximum safety of your employees resulting in exceptional project results and happy clients!
Benefits of Risk Management
- Projects Finished on Schedule
- Recognize & Preventing Hazards
- Prepared Emergency Response Plans
- Ensuring Safety of Workers and General Public
- Decreased Insurance Premiums & Legal Fees
- Fewer Violations
- Fewer Work Site Holds & Setbacks
- Increase of Worker Ethical Standards & Awareness on the Job Site