Construction risks often evolve with variables ranging from job site location to level of training temporary workers receive.
Every project has its own set of hazards, states Big Rentz. To effectively manage risk, high-impact, high-probability risks should be handled first, while low-impact, low-probability risks should be addressed last. In order to create an effective risk management plan, the company mentions five sources of risks that should be considered:
- Safety Risk: Any construction site risks or hazards that can lead to worker accidents.
- Financial Risk: Factors that impact your financial flow, including lack of sales, problems with the economy, unexpected cost increases, and competition with other firms.
- Legal Risk: Potential disputes in the fulfillment of contracts with clients.
- Project Risk: Project hazards such as poor management of resources, miscalculation of time, lack of proper policies, or misunderstanding of project deliverables.
- Environmental Risk: Floods, earthquakes, and other natural phenomena that damage construction sites and make work inaccessible.
Big Rentz infographic provides a blueprint for managing construction risk.