The construction industry is one of the riskier industries in the world. Every year, around 1000 workers lose their lives and approximately 5000 workers face fatal injuries during construction work. Each project in the construction industry is different from the last one. Every construction job comes with its own challenges. To do a construction project within the timeframe, resources, and profit, it is mandatory to identify all possible major risks in the construction sector and take necessary measures to prevent them.
This blog will share 5 major risks that can hurt your construction project. Let’s check out what are the key risks that a construction project manager needs to consider during work, and also how he can fix those risks by taking the right corrective measures.
5 Important Construction Industry Risks
1. Manpower Shift
Manpower shift always comes into play in the heavy equipment industry. There’s always a higher demand for skilled labour in this sector due to which experienced manpower switch companies whenever they find a better one. Workforce issues can hurt the project timeline as the project leader has more inexperienced workers and less skilled ones. The stats shared above related to deaths and injuries occur due to this change. Bureau of Labor Statistics predicts labour change will increase up to 10% by the year 2028.
To ensure the project gets completed on time without any major issues, many big companies are taking help from technology instead of skilled workers to complete their construction work. These industry giants use robotics and artificial intelligence (AI) for finishing tasks like painting, excavation, roofing, etc. One benefit of using automation is your project work gets completed in less time and also it saves you on labor costs.
2. Raising Change Order
A change order is a document that a contractor raises whenever there’s a change in the work. Change orders can include budget changes, timeline changes, or other deviations that are not written in the main contract.
You can raise a change order against bad environmental or tough work site conditions, that can cause delays in work. One tip is to determine a few important factors in advance to avoid time delays or payment disputes. These key factors are labour size, timeline, material, pricing, etc.
3. Manufacturing Defect
A manufacturing defect can hurt the timeframe of any construction project. It includes any deformity in the design or the structure of the project. Design issues can occur if an architect lacks an understanding of construction drawings. To fix this defect, you must redesign your work site drawing. Structural defects that can occur include improper installation of weatherproofing mechanisms.
To avoid this manufacturing defect, you must hire professionals for your construction project. Remember, to get quality work you need quality people. Find the right professionals who can complete the project on time within the given time and resources.
4. Poorly Written Contracts
Another major risk that can hurt your project is a poor written contract. Construction companies don’t pay attention to details while writing a project agreement. It is important to include a few clauses in your contract that allow a contractor to manage his workforce and get the work done within the timeline. If you neglect this, you will end up facing labor or contract disputes, or even money losses.
5. Contractual Records Keeping
A well-maintained record can save you from major losses in any industry. In the construction industry, one major risk that can hurt the project is poor record keeping. The Project Manager’s negligence in maintaining records can result in big losses. Even though it is exhausting work still as a project manager you can’t take it. Big construction companies prefer keeping records in digital form rather than doing paperwork. This also saves their precious time and helps them in finding any document in no time whenever they need it.
Taking care of these major risks can benefit you big time in the long run. Major risks shared in this blog will increase your knowledge about the construction industry risks. This guide will help you identify major risks in your project and also help you fix them to complete your work within time and resources.