7 Tips to Mitigate Risks in Construction Projects
Risk mitigation is simply using a solution to reduce potentially adverse effects. For a construction project, that means the risks for the safety of the crew, the loan the construction project is running off of, disruption losses, delays, and much more. Fortunately, there are some easy techniques that you can incorporate into your risk management strategy.
Get the Insurance Anyway
There are plenty of construction projects that go off without a problem, and builder’s risk insurance proven unnecessary. There’s always the one time it is necessary, however, that you don’t have it and wish you did. Consider builder’s risk insurance a necessary investment for every construction project. Permanent insurance is also an option. Regardless, builder’s risk insurance is always one of those things that can be left better safe than sorry.
Read It, Then Read It Again
As a construction project manager, you and your legal team are going to be reading over the finer details of the construction project. You’ll need to review policies, agreements, applications, and a variety of other important documents in order to get the construction project even started without a hitch. It never hurts to read over the document one more time – and that doesn’t just mean skim. Make sure you fully read and receive all of the information you’re signing and agreeing to.
Make Sure You Know What’s Covered
Your insurance policy is going to clarify what, specifically, is considered yours and which materials are not. Keep a close eye on the transit sublimit. Basically, make sure you know what’s considered your “covered property” and what wouldn’t qualify should there be an accident and insurance need to be involved. This will better help you compare the sublimits of what isn’t yours and what is yours to the overall value of the covered property.
Utilize the Best Mitigation Software
ECL Software offers an award-winning risk mitigation software at a reasonable price that will make your project management job that much easier. Managing the construction loan aspect of the project can be labor intensive, time consuming, and tedious. The Fund Control solution, the risk mitigation software, is used by private lenders, mortgage companies, disbursement companies, and banks alike.
Always Stay Organized
The Fund Control solution helps you organize, manage, and make changes to everything from inspections to disbursements. It’s been used by small-time renovation loans, multi-billion dollar projects, and a little bit of every type of loan or project in between. And, because it’s mobile-friendly, you can use it on a mobile device or tablet while you walk around the construction site. Finally, you’ve literally got risk mitigation in the palm of your hands.
Set a Clear Path to the Finished Project
You need a clear, steady plan for how to get the entirety of your construction project finished, and the time that you’ll roughly be able to finish it in. You can do this by organizing with planners and calendars, doling out appropriate responsibilities to each of your team members, and ensuring there’s no confusion along the way. For example, if you’ve got team members that don’t know what to do or what their responsibilities for the project are, they’re not fully taking care of their specific part of the project, which can impede the entire process.
Stay Ahead of Deadlines
Deadlines in a construction project can, often times, shift dramatically or unexpectedly without much warning. The best way to avoid ever missing a deadline is to assign each member of your team with their part of the project, and give them a deadline earlier than the big deadline. By allowing each team member to focus on their part of the project and ensuring each of them complete their parts by their earlier deadlines, you can avoid missing deadlines completely.
Learn more about risk mitigation, construction management, and the Fund Control software that makes everything easier for a project manager. Call ECL Software at 800-625-5972 or shoot an email to email@example.com if you’re ready to take the next step and optimize your spot as a construction project manager. This will, in turn, help you kick your construction project into shape.