The construction industry is fraught with risks despite technological improvements and advancements. According to The Construction Industry Institute, managers have to consider about 107 construction risks when managing a typical project. It may sound daunting, but many of these risks are out of control, while others are completely manageable if you act on time and take the right approach.

A robust risk management strategy keeps projects on track while the implementation of construction management software solutions can take you a step ahead in this direction. Everything boils down to investing your time, effort, and resources at the right places to steer clear of the risks or manage them even if they do become real. Before you go ahead, it is vital to understand them in the first place because you cannot beat an invisible enemy.

Here is a list of the most common risks that construction companies come across and insights into managing them effectively.

Labor issues
Besides material, labor is the single most important factor that keeps projects up and running. But labor issues in the construction industry are more common than you imagine. You may encounter a shortage of skilled people to work on the site, which can delay and even disrupt projects. A recent survey found out that 80% of businesses are struggling to hire skilled workers because of an ongoing skilled labor shortage.

Another labor-related risk that you cannot sideline is lack of productivity. Even if you have an adequate number of skilled people working on the site, they may not be able to deliver the expected levels of productivity. Investing in construction management software can cover you on both fronts. It helps you maximize productivity by ensuring proper tracking and scheduling. Workers can leverage their collaboration capabilities to stay connected and perform better. Further, your business gains on reputation and attracts the best talent in the industry.

Safety hazards
Unsafe work conditions can elevate the risks of accidents on site. Mishaps can even happen on the safest sites. It is a threat you cannot overlook because accidents not only disrupt work but also bring a massive expense for businesses owing to compensations and allowances. Further, it also poses a threat to your reputation in the long run. Managers need to go the extra mile to cover the safety hazards on sites and make them as safe as possible.

Fortunately, it is doable if you take the right approach towards curbing faulty safety procedures and paying attention to the well-being of the employees. Workforce training is the first step in this direction, and communication plays a significant role as well. A construction software solution can help you facilitate ongoing training and real-time communication with the entire workforce. You can use it to ensure that everyone is up-to-date, and no one is missing out on the important safety updates on the site and in the industry.

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Disputes
Construction projects are expensive and time-consuming, so the threat of disputes runs high. Businesses may face disagreement with clients, sub-contractors, or labor. They can arise due to different reasons, from poor contract administration, errors and omission in designs, payment issues, and below-par quality of deliverables. Disputes can disrupt projects and even lead to expensive lawsuits, which makes it all the more important for businesses to curb the risk.

Keeping close track of the cost and timelines is the best way to minimize this risk. You can do it easily by automating the process with cost control software. Documenting everything from the start to the end is another effective measure to keep issues under control. It prevents ambiguity and misunderstanding with clients and other parties and saves your business from rework and design mistakes.

Coordination issues
Another major construction risk that managers need to be watchful about is coordination issues. It is an unavoidable risk because miscommunications can occur naturally when large teams and numerous processes are involved. There could be misalignment on design documents, managers could go complacent with sharing instructions, or workers may simply fail to understand them. Whatever the reason may be, poor coordination can be a killer for the project as it can cause schedule delays and cost overruns.

A construction management software solution can go a long way in alleviating this risk as it streamlines communication and gets everyone on the same page. A single cloud-based system lets you upload plans, markups, and RFIs for the entire team to view in real-time. They have access to the data they need for making informed decisions, thus cutting the risk of disrupting your timeline and going over budget.

Poor documentation
Typical projects involve extensive documentation, and megaprojects may require thousands of documents. Your team may need to access them from time to time, and it may get increasingly difficult as more documents pile up over time. Managing them in a paper-based system can get tedious over time, and you may even end up missing documents. But many companies are still relying on these legacy systems that put them at risk. Sifting through documents manually kills time and can result in miscommunication, errors, and delays.

The best measure to resolve this risk is by moving to a cloud-based document management solution. Most construction software comes with this feature out of the box, so you need not worry if you have implemented the right one for your company. It lets you access loads of documents with a few clicks, even when you aren’t on the site. Apart from availability and accessibility, the system also arms teams and managers with greater transparency.

While these construction risks appear daunting, the good thing is that you can rely on a single solution to manage them all. Fortunately, going digital with a full-featured construction management software solution can curb all the risks to a significant extent. Additionally, managers can have the right people on board to nip them in the bud and manage them if they still arise. A mix of proactive and preventive measures keeps your business safe.

Summary
Construction is a risky domain and managers need to make every effort to curb risks for projects. Before doing so, you need to understand the key risks and then formulate a strategy to deal with them.