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14 Construction Risk Management Tips For Managers

14 Construction Risk Management Tips For Managers

Last Updated on December 2, 2021 by Construction Digest

In today’s project-based economy, construction managers are often overburdened with a large number of tasks.

They’re responsible for hiring subcontractors and vendors, adhering to government regulation, overseeing design plans and purchasing materials until the job is done.

In addition to all that, they also have to manage site risk in order to protect their business from injury claims and lawsuits.

Here are 14 ways to make sure your construction company is protected in case something goes wrong on a jobsite:

1.Train Employees To Prevent Construction Site Accidents

Construction sites can be hazardous work environments.

Sites may be cluttered with tools and building equipment that pose fall hazards or chemical exposure risks if not handled correctly by employees.

Ensure that all employees are trained to identify, communicate and mitigate hazards on the jobsite before beginning work.

2. Conduct A Policy Manual Review

Many construction accidents are caused by violating company policy or not conducting pre-job safety meetings.

To prevent injuries on site, ensure that all employees follow your company’s safety policies by checking them regularly against other documentation, such as engineering drawings and building plans.

This will help protect you from liability in case of an accident.

3. Adopt Strict Liability Insurance Minimums

Strict liability is one of the most important risk management principles to adhere to when managing a construction project because it protects worker’s compensation claims directly related to injuries sustained at your business due to faulty equipment or lack of safety measures.

The higher your liability insurance, the better you can protect yourself and your business in case an accident occurs on site.

4. Maintain A Safe Work Site

Construction sites should be organized and clutter-free to avoid any accidents that may occur when moving around the area.

Make sure all tools are stored properly and out of reach from children or untrained employees to ensure child protection and safe operation at all times.

Also, make sure that there is enough lighting on site for employees working outdoors during night hours if necessary.

5. Utilize Proper Equipment For Jobsite Tasks

Many construction accidents occur when equipment breaks down unexpectedly because it wasn’t maintained correctly or was compromised over time due to long work hours in harsh conditions.

Ensure that all equipment, tools and vehicles are up to date on inspections and repairs before allowing them onto your jobsite.

6. Ensure That Your Employees Wear Proper Personal Protection Equipment

Protective gear such as hard hats, high boots, steel-toe shoes and welding goggles can help protect your employees from injury while performing necessary tasks on the site.

Be sure to provide protective gear for everyone working at your construction site every day—especially where risks are higher for hazardous exposure or accidents while working.

7. Hire A Qualified Construction Liability Insurance Carrier

Insurance companies specializing in construction risk management are well versed in policy terms to cover issues related specifically to construction accidents, which will help you manage liability should an accident occur.

It’s best to consult a team of construction professionals to ensure you’re hiring the right company for your needs.

Especially important if you have a large, high risk project that will require a lot of attention from a carrier.

8. Maintain A List Of Subcontractors On Site

Contractors working on your jobsite should always be notified in advance before work commences, even if they are hired through another subcontractor.

Keep track of all sub-contactors and vendors who bring equipment or tools onto your site by creating an approved vendor list so that you can monitor new people coming onto the job daily and know exactly who has access to restricted areas.

This will help protect against theft or unauthorized access where controlled substances or dangerous tools are stored or used.

9. Keep Accurate Daily Job Site Reports

Daily job site reports give you a snapshot of what occurred the day before and can inform you about issues such as weather delays, equipment malfunctions, injuries and accidents so that you can take necessary measures to prevent them from happening again.

Create a standard template format for your daily report so that all team members fill it out consistently each morning after they arrive on site.

However, be sure to keep updates at a minimum—job sites tend to amplify small problems into larger ones when commented upon more than necessary with extra attention given by upper management.

10. Conduct A Thorough Job Hazard Analysis

A hazard analysis will help identify potential risks associated with any task performed on the job site.

If employees are required to use tools, equipment or chemicals, perform a hazard analysis before beginning any tasks to ensure risks are identified and controlled ahead of working with them.

11. Keep A Close Eye On Potential Litigation

Construction accidents can result in costly lawsuits that affect your business’s reputation long after the incident has occurred even if you have done nothing wrong.

Be sure to closely monitor for any signs of litigation during the construction process so that you can take steps to avoid it occurring at all costs including cutting ties with sub-contractors or vendors who may pose a threat.

12. Ensure That There Is A Chain Of Command And Communication Protocols In Place

Teamwork is an integral part of any construction process, but communication problems can arise when there is no defined chain of command.

Ensure that communication channels are clearly laid out so that everyone on your team knows who they report to, where they need to go for any questions or issues and how information will be communicated between all parties involved.

13. Create Separate Company And Client Accounts For Your Business

It’s important to separate company funds from client funds by creating separate accounts for each partner in the contract.

Be sure to only use company funds for business expenses associated with your daily operations and hold client funds separately in their own account until full payment has been made on the job.

Doing so helps protect both parties against lost money should one of them experience a bankruptcy or other legal issue.

14. Don’t Be Afraid To Ask For Payment In Advance

Sometimes a construction project fails to meet financial goals because customers pay you late or not at all.

Don’t be afraid to request part or all of the payment up-front if this is going to be an issue for your business.

Not only will this help you stockpile funds for necessary expenditures, but it could also save you from costly financing fees and penalties that stem from delayed payments to suppliers and other creditors.


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