Effective Construction Risk Management
Effective construction risk management is key to every successful project. It can be the difference between making a profit and suffering a loss. Due to the complexity of construction projects and the large number of unpredictable risks, it is vital that construction companies takes steps to properly manage the risks they face. Without proper construction risk management, contractors face project delays, additional costs, and potentially litigation.
TRUE has compile a list of some of the ways that TRUE Construction Management Software can help you better manage the risk of your construction projects:
Address Risks Early
Before you even bid on a project, it is important to identify all the potential risks that could arise on the project. Carefully review the all of the relevant bidding documents, plans and specifications. Once you have a full understanding of the scope of the project you can start identifying the issues that may arise down the line. Rely on information from previous projects. Get your project team to hash out the probable risk and potential opportunities. If you’ve never worked with a potential client, do your due diligence and conduct some research on them. Common risks include incomplete construction documents, site conditions, accelerated timelines, safety concerns, delays, change orders and unexpected increases in material costs.
The foundation for every project is proper documentation. Document control can significantly help with construction risk management. With TRUE, you are able to document any issues that arise like delays, changes, or design deficiencies during a construction project can show lack of negligence or wrongdoing by the subcontractor. It’s important to gather all documentation from the project before you can move forward. In many cases, construction disputes arise months to years after the project is finished. As time passes, memories fade and personnel changes. Being able to show written and photo documentation helps quickly resolve construction lawsuits because of indisputable evidence.
Risk management should be part of every aspect of your construction business, including the hiring and employment of your staff. This should begin with the training and onboarding of new employees and should continue throughout the employee’s career with your company. This training should include preparing employees to properly assess risk and teaching them the steps they should take to mitigate it. With TRUE Construction Software, you are able to track certification, licensing, and training in a central location with the ability to share and document Safety Talks.
The nature of the construction industry is that everything is constantly changing. Therefore, accurate and up-to-date information is vital when managing the risk of construction projects. When information can come from constant communication between team members using mobile cloud-based construction solutions everyone can be informed as information arises and changes are made that affect the project or its stakeholders.
When making decisions regarding construction risk management, they must be made swiftly and without much time to consult with the multiple stakeholders involved with a project. In order make fast, educated decisions that will move your project forward, you must have the appropriate information available to you. If the correct, relevant information is inaccessible in this moments companies can be left making poor decisions that can set a project severely off course. The use of incorrect information in key decision making is a slippery slope for project managers, because one tiny mistake can set off a chain reaction that can be catastrophic for the profitability of a project. In this article, you will see all of the ways that the real-time data provided by construction software can take your business to the level.
Risk management is necessary for controlling the cost, schedule, and scope of any project. By utilizing construction software, like TRUE, you will be able to better manage the construction risks involved when working on construction projects more effectively.