Construction projects are known to involve a lot of risks. A project owner deals with a lot of challenges on a daily basis.
Although many of the risks are easily controllable, you may not have control over most other risks involved in construction projects.
Whether it’s lack of funding or conflicts with the contractors, these risks can potentially derail your entire project.
Regardless of the severity of the construction risk, you should understand these risks so that you can take preventive measures. For example, you can effectively deal with contractor problems at the bid stage if you have a bid bond in place.
Don’t panic if you don’t know the bid bond definition. Just know that it can save you from major contractor conflicts. Apart from that, there are some other risks that you need to be aware of.
Here are four such risks involved in construction that you should know.
1. Shortage of labor
It’s hard to find skilled labor who will give your project’s best, and you don’t want unskilled workers to work on your project. Despite the abundance of skilled labor in Canada, their availability can also be a big concern.
You need to make sure they are available during the entire tenure of your project. No matter how intricate your construction plan or designs are, the project is bound for delays without the skilled labor to execute your ideas.
Using mobile recruitment software can be a great way to attract younger workers who are more privy to technology.
2. Lack of Productivity
Once the workers are hired, there is still a possibility of delays due to a lack of productivity. There are numerous reasons behind this. Lack of supervision is one of the main reasons workers do not engage in productive work and try to save themselves from work.
On top of that, the lack of essential machinery and equipment can also be a necessary factor behind lesser productivity. Faulty equipment can delay the project in many ways.
To tackle this problem, you have to make sure enough supervisors are watching the workers and making sure they are working efficiently. It’s also essential to fix the faulty machinery as soon as possible as you don’t want any further delays in the project.
3. Contractor Conflicts
Although the project owner and the contractor have strict contracts in place, contractors often fail to keep up with the promises they make. There are different reasons behind it. Lack of financial support is one of the main reasons behind construction delays.
Contractors often overpromise things during the contract and end up underdelivering the results. It can create conflicts between the owner and the contractor. Bid bonds are designed to protect the project owner from such disputes at the bid stage.
The bid bond mandates the contractor to enter into the contract as awarded or face the consequences mentioned in the agreement. The bid bond definition will help you understand how bid bonds work and their benefits for the project owners.
4. Safety Hazards
Construction projects involve a lot of risk due to safety concerns. The negligence of workers, faulty machinery, and weather conditions can cause serious accidents that can potentially derail your project.
Ensure the workers follow the safety guidelines and avoid any accident that can put their lives in danger.
As a project owner, you deal with many risks and uncertainties. With proper planning and the right steps, you can reduce these risks to a great extent and finish your project on time.