In the construction industry, your success depends on how well you can mitigate risks. As one of the most dangerous industries to work in, you already have to take safety measures to ensure that your contractors and workers are as safe as possible. Construction companies can be devastated by losses from lawsuits and other tragedies. Here are the top risks to the construction industry and how you can fight against them.
All industries need to be aware of cyber risks. Most people have heard of cyberattacks, phishing schemes and hacking about large companies. The reality is that a lot of small businesses are also at risk when it comes to cybercrime. Criminals could get a hold of your financial data, your workers’ personal data, client data and more.
To keep your personal details, project information and financial information safe, you need to invest in cybersecurity programs like Zero Trust. Cyber risk mitigation includes protecting your computer networks and ensuring that everyone who can log in to your databases has proper clearance.
All business owners have to consider financial risk. First, you have to think about market risks and how you compete for business. The construction industry is highly competitive and there has to be a reason for clients to choose you. If you want to thrive in the public market, you have to adapt to new clients and deliver service that your customers depend on. Your projects should be finished at the time you promised them and you should never overshoot what your company is capable of.
The construction industry has a lot of operational risks too. This is a risk that develops because of your everyday business activities. For example, if a piece of equipment falls and hurts a passerby or one of your contractors, your company could be held accountable for the injuries. Lawsuits from personal injury, fraud and business practices can completely break a company.
There are a lot of physical risks in the construction industry. Of all occupations, it is one of the most physically demanding and dangerous. As your team works throughout the day, the risks steadily climb. Worker safety should be a priority on-site. Do not rely on reactive measures. An accident on-site can be fatal to workers and guests. It’s better to be proactive and prevent an accident than to have a tragedy occur. OSHA has a series of standards and regulations to protect those who work in construction.
To keep your workers safe, you should have protective gear, fall arrest systems, safety nets, covers and guard rails on-site at all times. Falls are the number one cause of fatalities in the construction industry.
If your company does not complete a project by the agreed-upon date, you have to pay penalties. Regardless of the size of your team, it is common to run into issues during a project. Mistakes can happen, productivity could dip for any number of reasons and you may fall behind. The best way to ensure that you finish jobs on time and that you meet your deadlines is to use technology.
There are apps available for tablets, smartphones and computers that can allow you to enter data from the field. When you do this, you can track productivity and make sure that the team stays on track. You can also keep the project owner in the loop if it looks like you’re going to have trouble finishing the project, as explained in the contract.
Running any business comes with a lot of different risks. There is a lot of pressure to get everything right and to mitigate all risks. It is even more important in the construction industry because the stakes are higher than in most industries. To protect your business, you need to take into consideration physical risks, contract risks, financial risks and cyber risks. Once you invest in risk mitigation, you’re more likely to succeed.