All construction involves risk with unique challenges that need to be identified to mitigate those risks. You can face risks both internally and externally, which can be environmental, financial, operational, or contractual. Other risks include safety hazards, labor shortages, poor project management, material cost increases, change order management, severe weather, equipment failure, or subcontractors’ issues. To successfully reduce risk from concept through completion, you need a comprehensive and effective construction risk management program to analyze, manage, and minimize risks, ensuring you are well-prepared.
Construction Risk Assessment
Construction risk assessment encompasses the identification of potential issues. Such as:
• Controlling hazards to reduce potential accidents and injuries.
• Meeting all legal responsibilities and safety standards the project requires.
• Assuring the success of the project integrity by lowering the risks of financial losses.
• Considering protecting site visitors and client employees, as well as construction crews.
Identifying Construction Risk
While it is not realistic to think you can eliminate all risk, implementing construction risk management will increase safety, maintain schedules, and control costs. The owner and project team play a crucial role in this process, as they are responsible for identifying risks. However, to establish this plan, the owner will rely on the construction team’s expertise and experience. Identifying and reviewing similar projects to identify potential risks will help develop the plan for the current project. The plan should cover:
• Finding and addressing potential construction site hazards.
• Identifying the risk potential, the severity of the risk, and plans to address risks through tools like a risk matrix.
• Establish procedures to reduce the potential risks identified.
• Documenting risk assessment findings, developing and implementing the plan, and performing scheduled reviews are crucial steps. These reviews ensure that risks are continuously mitigated, and the plan is revised if new risks need to be addressed, providing a sense of ongoing reassurance and confidence in the process.
Gundlach Champion has assisted clients with a diverse range of projects throughout the Upper Peninsula of Michigan. The GCI team brings over 350 years of combined experience to every commercial construction project, from new buildings to renovations. To discuss your next project, contact us at gcfirst.com.