Construction projects can be risky, with numerous factors that can impact the success and safety of the project. From labor shortages and productivity issues to health and safety hazards, subcontractor default, and change orders, many potential pitfalls can cause delays, increased costs, and even accidents. In this article, we'll look at these four common construction risk factors and explore ways to minimize their impact on your next project.
The construction industry has been facing a labor shortage for several years, and this trend is expected to continue. According to a National Association of Home Builders report, 80% of construction firms need help finding skilled labor. This shortage can lead to productivity issues, delays, and increased costs. To mitigate this risk, it's essential to have a solid project plan that considers potential delays caused by labor shortages. Additionally, investing in technology and automation can increase efficiency and reduce the need for manual labor.
Construction sites are inherently dangerous, with many potential hazards such as falls, electrocution, and equipment accidents. According to the Occupational Safety and Health Administration (OSHA), construction fatalities accounted for 21% of all private industry worker fatalities in 2020. To minimize the risk of accidents, it's crucial to have a robust health and safety program in place that includes training, personal protective equipment (PPE), and regular inspections.
Subcontractor default is a significant risk factor for construction projects. If a subcontractor fails to deliver on their obligations, it can cause delays, increased costs, and potentially even legal issues. To minimize this risk, it's essential to thoroughly vet subcontractors before hiring them and to have a solid contract in place that outlines each party's responsibilities and expectations.
Change orders can occur for several reasons, from design changes to unforeseen site conditions. While some change orders are inevitable, they can cause delays and increased costs if not managed properly. To minimize the impact of change orders, it's essential to have a robust change management process that includes clear communication with all parties involved, documentation of changes, and a method for approving and implementing changes.
At Parkwest General Contractors, we understand the risks associated with construction projects and have years of experience navigating these challenges. Our team of experts can help you mitigate these risk factors and ensure the success of your next project. Contact us today to learn more about how we can help you achieve your construction goals.
