Being able to define the main sources of risk in your projects can eventually pave the way for faster and cheaper delivery without compromising quality. Of course, not all construction projects are identical and, in this sense, different approaches may be necessary depending on the type and/or size of the project.
However, we must not forget that 80% of the processes are almost the same in all projects. That said, it is possible to create an effective risk management structure across different projects.
To achieve this, you typically need three crucial components:
- Investment in the right people.
- Implementation of sector-specific digital tools.
- Field data to continuously improve and eventually standardize your processes.
Taking this into consideration, it quickly becomes clear that mitigating risk and regaining control of your projects is not as far away as you might think, as long as you have the right people, tools and processes in place to increase site visibility and keep your teams connected across all levels. everytime.
How could we define risk in a construction project
Risk can be defined as any threat to the progress and completion of a construction project. In other words, any circumstances that could expose you to potential losses can be described as risk.
It goes without saying that risk does not appear the same in all projects. For this reason, contractors need to always be well aware of the different types of risks that can put their projects in danger. In this difficult mission, website data is seen as one of the most valuable allies.
Types of risk in construction
Before we focus on how you can regain control when your project is at risk, it's necessary to take a closer look at the different types of risk for your projects. This way, you can plan ahead and protect your project against downtime and endless complaints:
Project Management Risks
Anything that has to do with effectively managing your project falls into this category. We also mentioned before that visibility is key at this point. Through the use of a single source of truth, you can keep everyone connected and set high quality standards for your project. By establishing a direct link between the site and the office, you can avoid mistakes and prevent subcontractors from arriving on site in vain.
Tax risks
Financial risks have to do, firstly, with any delays that may arise in your project and the associated penalties. Especially in projects where the State is the client, penalties are typically higher and, as a result, the risk of potential delay is also more serious.
But there are also other types of risk that can be affected by the location of the project. For example, issues related to local taxation, inflation and exchange rates may arise during project development.
Legal risks
When it comes to construction, complaints are always around the corner. This is also why in this corner we often highlight the importance of recording everything that happens on the website. This way, you will always be in a position to raise or respond to a complaint effectively.
In many cases, complaints are triggered due to a lack of detail in signed contracts or the inability of the project team to prove that they are not responsible for a delay or quality issue that has arisen. Regardless of the reason, complaints can result in serious downtime for your project and put extreme pressure on your budget.
Risks linked to the natural environment
Each country, or even city in some cases, has a different environment and its own natural phenomena. With this in mind, you should carefully examine the environmental conditions of an area before beginning your construction project. This way, you will be able to time different tasks at the right season of the year and even protect your place from extreme phenomena such as earthquakes, floods and other natural disasters.
Work-related risks
Working on a construction site is always dangerous. It is a difficult job that requires great skills and attention. In this sense, it is essential that you have done your best to minimize the possibility of injury to the area. A thorough and constant safety check, not only before but also during the construction process, is more than necessary. Again, website visibility is of paramount importance in achieving this.
Social risks
One type of risk that is often wrongly underestimated has to do with the local social and cultural norms of the city where your construction project is located. Failure to comply with local regulations or unwritten laws can lead to serious problems for your project down the road.
How to efficiently mitigate risks
No matter how big or small your project is, risk is something you have to learn to live with when it comes to construction. However, you can still stay ahead of the risk by following the three steps below:
1. Increase website visibility
Having a live view of your project in place and shareable can help you track each team's progress at every stage. This is one of the most crucial steps to mitigate risk in construction. Simply because when you see more, you manage better.
By always keeping your project in sight, you can monitor progress and check the quality of tasks in real time. This approach will also allow you to resolve non-conformities as you go, rather than leaving everything until the end of the project, turning your transfers into a game of Russian roulette.
Plus, when you're up to date on what's coming up in your project, you can make better decisions faster, utilize resources efficiently, and avoid downtime or at least avoid the impact of delays you may face. along the way.
2. Use a single source of truth
Having all project information gathered in a single data source can play a decisive role in your effort to keep your project risk-free. The reason is simple. A single source of truth is also a single source of proof.
In this sense, all project stakeholders have access to the same information, making it easier for project teams to monitor who said and did what, with the help of a detailed audit trail.
Thanks to this, you, as a project manager, can track everything, respond to critical requests effectively and prioritize correctly. But for all of this to happen without drowning in administrative work, you need to find the right digital tool for your project. In other words, a specific tool for construction that was built with our industry as its main focus.
3. Standardize as much as possible
The more data you collect, the easier it will be to improve your processes and keep risks out of your current and future projects. Once again, implementing industry-specific tools is vital.
Only then will you be able to contextualize the enormous amount of data you collect from the site and begin to identify patterns that will allow you to work and connect with your teams more effectively.
What's more, a standardized way of working will allow your teams to make their own decisions without having to consult you all the time, adding extra stress and confusion on your shoulders. In short, cleaner, pre-designed processes will leave less room for error and force your teams to take responsibility for their tasks.
Nothing is missing. Avoid mistakes.
By now, it is clear that a risk-free project involves website visibility. But keeping up with what's happening on construction sites is a challenge if you don't have the right tools to help you.
