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The risks of a construction business

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As with any industry involving manual labour and large-scale projects, risk is an important thing to consider in construction. It requires forward thinking and rigorous planning that accounts for the impact of external factors on a project.

Taking out construction insurance could offer valuable protection in an industry that faces so many challenges.

In general, though, risk in this industry can be split into four categories. We’ve broken them down for you below.

Project management risks

Failure to comply with contractual quality requirements or not having a handle on any sub-contractual agreements could be detrimental to the progress you make with your project. Any scheduling errors in this area can result in delays and even team conflict or tension.

Staying on top of the overall project management will help keep things running smoothly while making the job a little bit easier.

External risks

It’s also important to anticipate external influences that may come out of the blue. Depending on the project, new stakeholders may arise throughout the process and request changes that weren’t a part of your original plan. Other issues may include changes to laws or even taxation, as well as objections from the public.

It’s a tricky field to navigate when more than one party gets involved, so preparing for the unexpected and handling new challenges in a professional way can be extremely beneficial.

Construction risks

It’s no secret that construction involves a lot of manual and physical labour, most of which come with significant risk – from working at great height to operating machinery and lifting heavy objects.

Outside of this, there are financial risks. A spike in costs or fees can cause you to go over budget, while technological advancements could leave you needing to shell out to keep up with any changes.

Organisational risks

Keeping different areas of your project organised is just as important as the work itself, with changes threatening knock-on effects.

While keeping on top of supplies and deliveries is important to the smooth running of a project, finding the right workforce who are experienced enough for the job is just as key.

Part of maintaining a healthy workforce involves keeping staff turnover to an absolute minimum. On top of this, precautions need to be taken to always keep employees safe onsite. For example, 50% of fatal injuries in the construction sector between 2016 and 2021 were caused by falls from a height, so securing the premises and providing the correct training is essential.

 

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