It’s hard to believe that year-end is quickly approaching. For many professionals in the construction industry, now is the time to look ahead to projects in 2019 and beyond. With that in mind, it’…Read More
The Ins and Outs of Risk Management
No two construction jobs are the same. Whether it’s a new house, a large retail complex, or something completely different, every project has its own complexities. Of course, there are also unique risks involved with each job.
Here’s the thing: If your company wants to survive and grow in the industry, it’s imperative to invest in construction risk management. By following sound processes, you and your team will make the right decisions and act accordingly.
Keep reading as we explain how to keep risks under control.
Review potential sources of construction risk
It’s easy to focus solely on the end result of your project. That said, you need to take some time figuring out what factors could potentially derail progress. Here are some of the more common sources of construction risk:
|Occupational risk: The last thing you want is for one of your workers to suffer an injury on the job site. Injuries can stem from carelessness, methodologies or technologies used, inclement weather, or a third party. If you’re at all concerned about occupational risk, consider having your workers go through additional training programs prior to starting on the project.|
|Project risk: A lack of proper project management can throw a wrench into any job. Inadequate company policies or miscalculation of time and resources can also jeopardize your project. That’s why it’s important to take a proactive approach when it comes to construction project management.|
|Natural risks: You might have already identified every potential occupational, financial, contractual, and project risk. But what happens when Mother Nature unexpectedly throws your progress for a loop? It goes without saying that floods and other major storms can damage construction sites and render future work impossible.|
|Competition: This is another major source of construction risk. Whether your company goes after large projects or smaller-scale ones, we’re willing to bet there’s competition. For example, maybe your firm is under pressure to match price or delivery terms. Whatever the case, it’s crucial to account for competition and avoid putting profitability at risk.|
Deal with each risk
Now that you know some of the more common construction risks, let’s take a look at risk management techniques worth implementing at your firm.
Avoid the risk
While this might seem pretty self-explanatory, it’s at least worth mentioning. Let’s say that your company has an opportunity to bid on a project in an area prone to earthquakes and other nasty weather. Is it really worth all the time, money, and materials to move forward with such a project? Maybe not.
Transfer the risk
Accidents occasionally happen on a job site. Sure, you can certainly implement training protocols to limit the chance of a mishap occurring. Frankly, though, your best bet is to put the inherent risk in the hands of an insurance company, subcontractor, or third-party supplier.
Mitigate the risk
There might not ever be a day when safety hazards in construction no longer exist. However, your team should absolutely continue to invest in proper safety equipment and training. We’re not just talking about programs for workers, either. By educating high-level staff and managers, your company has a better chance of reducing dangers.
Accept the risk
As an industry veteran, you know that some risks are worth taking while others are not. In any case, understand that risk is a major piece to the construction project puzzle. Rework your risk management strategies if necessary, knowing that implementing them can sometimes work around the specific risk and even lessen its impact.
For more information, be sure to check out “The Ultimate Guide to Construction Risk Management” by Capterra.
Don’t know where to begin your risk management efforts? The first step is finding a reliable outsourcing partner who, according to Construction Business Owner, “assists in creating and implementing programs to favorably impact your firm’s loss experience and minimize its cost of risk.” This person will also do everything in their power to prevent accidents from ever happening in the first place.
There are seemingly countless risk management professionals in New York City. Keep in mind, though, that the most qualified are the ones who possess the right knowledge, skills, vision, and tools to identify and transfer potential risk.
Here are Construction Business Owner’s expectations you should have of your risk management partner:
It’s one thing for your risk management partner to simply meet the compliance requirements. It’s another to include a comprehensive contractual risk transfer analysis. Many construction companies don’t realize that this is the least expensive way to transfer risk.
Risk transfer analysis isn’t the only noteworthy tidbit of contract reviews. For example, if your risk management team can show the underwriter how your risk is being transferred contractually, the door may be opened to reduced rates and broader coverages.
Bid and accrual support
Has your company explored what it takes to be insured in pricing your products and services? If not, be sure to ask your risk management professional about bid and accrual support. He or she can also help with projecting the impact of business changes on insurance costs.
Experience modification projections
Wouldn’t it be nice to understand the impact your experience modification factor has on workers’ compensation premiums? That becomes a reality thanks to experience modifications projections. The more predictable information you have at your fingertips, the easier it is to make good decisions in terms of risk.
Acquisition due diligence
This can help your team get a better idea of the risks associated with a company being considered for acquisition. Acquisition due diligence includes an explanation of coverage, off-balance sheet risks, strategic, risk planning, as well as risk infrastructure. Such information can definitely play a major role in negotiating a lower price.
It’s easy to make the wrong decision with optional coverages. On top of that, how should your team go about determining the most sensible retention and deductible levels? In short, a cost-benefit analysis created by your risk management advisor leads to better decision-making for everyone.
Menotti Enterprise sets the standard for risk management in NYC. But what exactly sets us apart from competitors in the industry? Let’s take a look:
You wouldn’t hire just anyone to serve as your risk management representative. The team at Menotti Enterprise has over 100 years of combined experience working on some of the most prestigious buildings around the world. It’s safe to say we’ve been there and done that in the world of construction safety and management.
Menotti Enterprise is certified by both the state and city of New York as a “Service Disabled Veteran Owned” and “Minority Owned” Business Enterprise. Over the years, our workers have been at the forefront of various projects. We have extensive safety management experience in government, educational, retail, commercial, residential, MTA, and maritime sectors. As we will discuss in a bit, Menotti specializes in risk management, construction management, OSHA training, engineering, and expediting. We continue to be one of the most versatile firms in the industry.
Very few risk management firms in the region emphasize integrity quite like Menotti does. As a family owned and operated business, we understand the importance of going above and beyond for clients. At Menotti, we believe that if you choose to invest in our expertise and services, you deserve the best experience possible. It’s why we place such significance on communication and timeliness.
Now that you know more about Menotti Enterprise, let’s dive into some of our services:
Our approach to risk management is simple: Provide processes and solutions to help identify and address any risks while implementing a plan to prevent future ones. Thanks to risk management services from Menotti, you can lessen the number of violations and stop work orders issued, insurance premiums, and legal fees. Not to mention, Menotti helps you proactively change the project’s culture.
For your convenience, we offer the following risk management services:
- Site safety management
- Fire safety management
- Concrete safety management
- Qualified safety personnel
- Certified health and safety technicians
- Certified safety personnel
- OSHA safety audits
Searching for an experienced construction management firm in NYC? Look no further than Menotti Enterprise. For years, we have provided clients world-class construction management services while exceeding their expectations.
The Menotti team is well-versed in all aspects of construction, management, and engineering. Whether your projects entails just a few minor renovations or a $1 billion overhaul, you can count on us to get the job done right. As aforementioned, Menotti has experience in various sectors, including government, education, residential, and aviation.
The Menotti team is happy to help with every phase of construction management. We can assist with supervision, coordination, pre-construction, scheduling, and closeout.
In addition to risk management and construction management, Menotti also provides clients with access to various OSHA courses. Here is just a sampling of them:
- OSHA 10-Hour Construction Industry
- OSHA 30-Hour Construction Industry
- OSHA 10-Hour General Industry
- OSHA 30-Hour General Industry
- OSHA Ergonomics
- OSHA Fall Protection
- OSHA Scaffold Safety
- OSHA Personal Protective Equipment
- OSHA Ladder Safety
- OSHA Confined Space
- OSHA Globally Harmonized System
- OSHA Lead Awareness
- OSHA Asbestos Awareness
Engineering and risk management go hand in hand. At Menotti Enterprise, our engineers will construct projects without putting the public, your workers, or your property at risk. The Menotti engineering team specializes in the following:
- Site safety plans
- Tenant protection plans
- Construction site fire safety plans
- DOT logistics plans
- Construction site engineered drawings
- Sidewalk shed drawings
- Supported scaffold drawings
- Suspended scaffold drawings
- Demolition drawings
- Temporary standpipe drawings
- Shop drawings
- Subcontractor coordination drawings
When choosing a risk management professional, you need someone who is comfortable with expediting. Here are some of the expediting services offered at Menotti Enterprise:
- Construction code determination forms
- DOT / DOB permit acquisition
- Stop work order remediation
- Code consultation
- DOB / FDNY / DOT / DEP consultation
- Dust / noise mitigation plans
At Menotti Enterprise, we are always dedicated and devoted to the client. If you have an upcoming project looming, don’t just settle for any risk management firm in NYC.
Reach out to our experienced team today!