Is Your Construction Risk Management Plan Complete?

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In the construction industry an above average percentage of on the job accidents make risk mitigation critical for the overall success of an organization. OSHA reports that during the past year, over 20 percent of worker deaths in private industries occurred at construction organizations.

By creating a risk management plan, you are creating a safe environment for both staff and workers while protecting your company’s bottom line. Here are 5 tips that can help business owners and project managers reduce danger:

  • Cover the Contract: The contract should be the starting point for any operation and always be in writing. The contract should cover agreements to provide insurance, outline which parties are responsible for any accidents or changes to the original agreement, indemnity, and exculpation clauses.
  • Evaluate: For each contract, project managers should evaluate and understand all risks involved. Risks associated with the construction industry are commonly categorized as:
    • Occupational
    • Financial
    • Contractual
    • Project
    • Client
    • Natural Disaster
    • Competitors1
  • Educate: Educating workers company-wide leads to better preparation for worst case scenarios. Workers should be knowledgeable of any risk that they face as well as the plans should those risks take place.
  • Coordinate: Any subcontractors or outside workers should understand the potential hazards beforehand, thus keeping with the company’s ability to maintain a safe work place.
  • Prepare for the Unknown: Even with the prevention preparation, accidents can happen. Having a contingency plan in place is the best way to make sure your business is covered.

Performing due diligence can prevent incidents and maintain a safe working environment for both workers and clients.

 

Sources

  • http://contractorsinsurance.org/construction-risk-management-tips-2/