Risk management is an essential part of business planning. This applies whether you’re creating a new product or setting up a construction site. If you do the latter, it’s vital that it remains safe and secure at all times. You’ll be investing large amounts of money into your project, and be responsible for the lives of others. If you’re looking for a further explanation as to why this is so important, read on because this article will tell you.
Because Of Theft
The chances are you’ll be keeping lots of expensive equipment and materials on site. Theft is a huge issue in construction, and it can take away from your profits, slow things down, and damage the overall quality of the work. It’s important to ensure that there are locks on the storage containers, proper fencing, and a gate fence if you’re working in an open lot site. You should maintain records of all equipment purchases and serial numbers for any items that could be easily stolen, such as power tools or generators.
There are many companies you can find online that specialize in construction site security. It’s possible to employ security guards who are dedicated to safeguarding people and estate. You can also use CCTV, access control, mobile patrols, and more. Security dogs can provide an additional level of security to deter trespassers.
Because Of Vandalism
Construction sites are often in vulnerable locations, making vandalism a big problem. Some examples of building site vandalism include:
- breaking windows
- spray-painting and graffiti
- people damaging equipment and materials
One way to address this is by having security cameras installed. This will help deter vandals, and should they commit a crime, you will have video evidence to use in court against them.
Because It’s Dangerous
Working on a construction site can be a risky business, especially if proper safety precautions aren’t taken. There are many potential hazards that can occur, such as:
- toxic materials and gas leaks
- falling debris and electrical hazards
- faulty equipment and no First Aid Kit
- lack of safety equipment and clothing
- lack of training/safety training
- excessive working hours and low light
- insufficient manpower and lack of lifting equipment
- untidy site/lack of proper storage
- lack of signage (e.g. ‘keep out’, ‘warning,’ ‘toxic materials‘ ‘risk of electrocution’)
Because Of Accidents
Employees who work at construction sites can become tired after a long day’s work. They can take risks and cut corners in order to get the work done on time. Developers can use faulty or cheap equipment to save money. There are many potential dangers related to weather conditions (e.g.the excessive cold and rain or heat stroke from sustained exposure to the sun).
Some worksite accidents include:
- slips and falls
- fires and explosions
- construction collapses
- equipment malfunctions
Because Of Lawsuits
When it comes to construction and renovation projects, you never want accidents or injuries on your property. If something were to happen that caused someone injury or damage their belongings, they could sue the site owner for damages. This could be achieved by taking out a lawsuit. In the case of wrongful death, the deceased’s next of kin could file it. A lawsuit is ‘a legal action taken by one person or group against another person or group’.
In the context of construction, lawsuits can be taken out by accident victims to claim negligence on the part of workers, contractors, or site managers. If the lawsuit was successful, the person or people responsible for the accident would be liable to pay damages to the victim. This could include paying medical bills, repairing or replacing damaged property, and even compensating the victim for lost wages if they can’t work because of their injuries.
To Protect From Debt Or Bankruptcy
Lawsuits can be expensive, and they can seriously affect both the finances and reputation of building companies. In order to protect your company from both, you need to correctly oversee the construction site, have a comprehensive safety plan in place and take out adequate insurance coverage. It’s therefore recommended that you hire a broker and take professional advice as to what type of insurance is best for your company.
The Insurance Coverage
Basically, you should consider both General Liability Insurance and Contractor Insurance. General Liability Insurance covers you for any third-party injuries or damage that may occur as a result of your work. Contractor Insurance is specifically designed for contractors, and it protects them if something goes wrong while on the job. This insurance is different from General Liability Insurance because it covers people for any work-related accidents or injuries.
Both types of insurance are essential, but Contractor Insurance is particularly important if your company doesn’t have enough assets to cover a major lawsuit. Some builders may find that they don’t qualify for this type of insurance. This is because some insurance companies see the construction industry as a high-risk sector.
Because It’s The Law
In order to keep your construction site safe and secure, it’s important to know and abide by the regulations set forth by the government. Failure to do so can result in hefty fines, or worse, imprisonment. To start off, you will need to obtain all of the necessary permits before starting work on your project. These may include getting a building permit, demolition permit, and the necessary occupancy permits.
It’s also important to work with your local government on regulations that you’ll need to abide by. For example, if you’re working in an area where there are wetlands or protected habitats for endangered species, certain building materials might not be permitted due to environmental regulations. If you’re planning on using any dangerous (toxic) chemicals or substances, make sure that you have all of the proper permits and licenses for these, too.
Whilst your construction project may have the potential to make lots of money, you can now see the many reasons why you need to do so safely and responsibly. If your construction site remains protected and secure, you’ll be stewarding its contents (humans, equipment, and materials) and your finances and reputation in the process.