Workers and employers in the construction industry continue to face numerous emerging risks and challenges. Construction risk managers and contractors need to be at the top of their game. Know the risks involved and learn how to prevent them from happening. Whether its residential or commercial, Risk & Insurance believes a project needs a keen eye from start to finish.
- Shifting Workforce. The skilled labor shortage, an aging workforce and an influx of inexperienced workers is driving up costly accidents and injuries on construction sites.
- Construction Defect. With a less-experienced workforce, long-tail construction defect claims are on the rise. Construction defects refer specifically to any defect in the design, workmanship or in the materials used on a project.
- Contractual Risk. Owners continue to shift more liability to contractors via contract language. This is especially tricky when it comes to workers injured on a construction site.
- Overextension. Increasing demand may drive general contractors and subcontractors to take on larger or more projects than they have the capacity to handle. This not only acts as a huge safety risk, but overextension can also exacerbate defects and site accidents.
- Fire. Poorly managed hot work activities or shortfalls in site security, especially in wood-framed construction, can result in costly losses. A construction site fire isn’t that uncommon. A single spark from a sander, welder, a cigarette, electrical wire, temporary lighting and the like will easily set wood, solvents, packaging or gasoline — all found on construction sites — up in flames.
- Site Protection. Unattended jobsites can result in unknown damage from leaking or frozen pipes, smoldering hot work, and theft/vandalism of equipment and materials. A well-lit, fenced in construction site is less likely to be vandalized than one with nothing guarding it. Unfortunately, not all sites will have extensive security during off hours, and unattended projects are vulnerable to damage and vandalism.
- Natural Disasters
- Financing Big Projects
- Regulatory Change
- New Technologies
- Missed Deadlines
To learn about the five additional risks, visit https://riskandinsurance.com/11-critical-risks-facing-the-construction-industry/