The construction industry is constantly facing risks both old and new. In order to properly maintain an effective risk management strategy, it’s important to understand the different risks currently facing the industry. The following are some of the biggest risks to watch out for in the construction industry:
- Substance use—Employees in the construction industry are 60 per cent more likely to suffer from substance use disorders than the national average.
- Defect claims—The most common types of claims or disputes against the construction industry are defect claims, with the majority of organizations experiencing a claim in the last five years.
- Project overextension—Despite the rising number of billion-dollar construction projects taking place, 37 per cent of contractors report overextension as their most common reason for failure.
- Lack of skilled labour—Eighty per cent of construction firms report having difficulty finding skilled labour to fill positions, making it more difficult to complete projects on time and with the expertise required.
- Increased natural disasters—With the frequency and severity of natural disasters rising year over year, construction sites face increased delays, damage and nonideal working conditions.
- Lack of accommodations—The number of women in construction positions has risen 31 per cent in the last decade, however, there is still inadequate proper-fitting protective equipment, training and sanitary facilities in place to accommodate this growing workforce.
- Unsubstantiated wearables—While wearable technology has become a popular means of protecting workers from harm, little research has been done regarding the actual effectiveness of these technologies.