If you’re a construction contractor who hasn’t experienced anything go wrong on one of your projects, you’re either brand new to the biz or you’re not being honest with yourself. Things go wrong.
The wrong size gizmos were ordered. Your top hand falls and is injured. The weather is playing havoc with the job site. Your supplier is totally out of the widgets you must have today (and won’t be able to get them in anytime soon.) Change orders are raining down on you.
Turns out a mistake was made
For many mistakes made on a construction job what is often required is stepping to the plate and explaining any mistakes or delays to your customer. This gives you the added advantage of being able to tell what you plan to do to that will fix or make up for the problem area. Being upfront and honest concerning the problem adds to the ability your client has to put trust in you to complete the project for them.
Even when there has been a natural disaster you can stay ahead of the rebuild game through planning and preparation. Construction Executive offers these valuable tips concerning taking steps to minimize operational downtime after a natural disaster.
Still, there are ways you can help to avoid some of the common problems found on construction sites and in construction businesses.
Steps to mitigating risk
Be certain your contract covers all the details including who is responsible for what
Be sure to include information concerning how change orders will affect both the dollar amount as well as the time frame for the project.
Purchase the best insurance
Some things to consider are, general liability, workers’ compensation, commercial auto insurance, business owners insurance, project specific coverage, environmental legal liability, contractors errors and omissions insurance.
Hire and train your staff well
Build safety training into the routine of how your construction company operates. You can’t tack on the idea of safety training as an afterthought or a “once in a while” meeting that takes place following an accident. Putting safety at the top of your list of ways your construction company benefits both your employees as well as your clients is a sound way to keep the risk factor in control.
Establish formal policies and procedures concerning risk management
Identify the hazard, assess the extent of the risk, provide measures to control the risk and manage any residual risk. This article from Capterra offers much information concerning the identification and control of risks.
Develop relationships with more than one supplier
Having an excellent relationship with your suppliers is very advantageous as this article from Entrepreneur points out. And as the saying goes, don’t put all your eggs in one basket. While you may get the best deals and the fastest service from one special supplier, having more than one source is an excellent step to avoiding the risk of supply failure.
Join industry related associations and build relationships with others in your trade
Knowing you have a trust-worthy fellow tradesman who can step into the gap when your job is at a breaking point is a balm worthy of taking time to achieve. Of course, you’ll be there for someone else when they need help also.
Establish an emergency fund
From natural disasters to broken down vehicles there is always something which hasn’t been anticipated and which will cause problems or delays on your jobs. Having funds reserved just for these types of emergencies can be the one thing that will save your construction contracting business from going under.
What now?
Considering all the above, it is understandable that construction risk management is a tough nut to crack. You need all the help you can get when you are dealing with risk in construction. We, at Schulte and Schulte are here to help you gain the traction you need and are prepared to help you take the necessary steps to establish and maintain the emergency fund you’ve always wished you had but didn’t think you had the dollars for. We’ll show you how.
Call today 866-629-7735 or get in touch here.