The construction industry is exposed to many varying types of risks, in both project delays and health and safety issues. With the number of people involved in a major project, and with workers often required to use potentially dangerous tools, many things can go wrong.
Mitigating against what may happen is an important part of working in the sector, and with the help of an expert insurance broker, it's easy to plan your risk management strategy. So, what are the three ways to reduce risk in your Australian construction project?
1. List your potential risks
'Failing to plan is planning to fail', as the saying goes. If you don't know what risks you may face, how can you fix these issues when they arise? Austrade offer comprehensive guidance on why every business should take risk management seriously, claiming any strategy should be discussed by all parties and regularly reviewed.
Before you start building, you should consider:
- Occupational risk – like a worker injury.
- Financial risk – managing supply and labour costs against investment.
- Project risk – poor management or resourcing that could derail your construction.
Working with a specialised broker, you can use this list to help create a tailor-made policy that best protects your business.
2. Choose the right response for each risk
A key part of identifying potential risks to your project is matching these problems with solutions. Managing construction projects in Australia requires clarity on how you plan to tackle any issues. For example, complications with project management can be reduced by using planning software to help streamline your communications. Similarly, seeking advice from insurance experts can help to mitigate the risk of occupational accidents.
This is particularly important in managing the risk of injury to workers – ensuring you are open about your response to incidents and accurately documenting relevant information if an incident occurs could save you thousands of dollars in a legal case.
3. Get everyone involved
Getting everyone on the same page about identifying and managing risk is a good way to minimise the likelihood of anything serious happening.
Start with risk training for the different groups involved in your project, focusing on what is mostly likely to affect them. For example, your tradespeople and builders will often be working outside and with potentially dangerous tools, so adequate training on the risks they will face in their day-to-day is vital. Similarly, your architects and design team may require a Professional Indemnity policy to cover for defence costs if they are alleged to have provided inadequate advice.
A construction insurance expert can advise you on the many areas of risk you may face exposures on, which in turn will influence the training you pass on to your team.
For more information on construction project risk management with a personalised insurance policy, contact the broking team at Trans-West Insurance today.