As the construction industry grows, so does the scope and complexity of construction projects. With that, the risks associated with construction also increase. The key to managing construction risks is to be proactive in identifying threats and challenges and decisive when they occur. Here’s a look at three key areas to consider. Read on to learn more. Then, take action to protect your Construction Business. By following these tips, you can safeguard your business against common threats and protect yourself and your employees from harm. We specialize in Boat dock construction charleston sc, and our previous projects are the best proof!
Workplace hazards
If you are running a construction business, you must take precautions to prevent injury and damage to your business’s assets. Here are three major types of workplace hazards you must consider: falls, electrocution, and exposure to electricity. Fall hazards occur when people are working at heights. They may also occur when workers are working underneath a ladder, scaffold, or mobile plant. Fortunately, there are ways to prevent these injuries, such as proper training and protective gear.
The biggest workplace hazard is improper training. Many employers provide safety training at the beginning of an employee’s employment but never revisit it. To avoid accidents, implement refresher training and incorporate new standards and technologies. While enforcing ongoing training may be difficult, it can benefit your employees and business. COVID-19 restrictions may limit the number of classes available. In addition, the importance of safe procedures cannot be overstated.
Data breaches
How to protect your construction business from data breaches? Despite the fact that there are countless ways to protect your data, a single misstep can cause your entire bank account to be drained, or your employees to lose access to sensitive information. One way to protect your construction business from data breaches is to educate your employees about the risks of cybercrime and the importance of cybersecurity. Many companies lend their employees laptops and other devices and allow them to log into social networking sites and other services while they are working, which is the perfect way for criminals to access private information.
Unlike retail and financial institutions, construction companies store a large amount of sensitive information. These data may include employee social security numbers, banking information for payroll, and even healthcare information. Hackers might also target privileged contracts, project/bid data, architectural designs, and intellectual property, and even your financial accounts. They may even try to entice you to transfer corporate funds to them. In order to prevent this type of data breach, you should use data encryption on all devices.
Cyber-attacks
As the global economy has become increasingly digital, so has the construction industry. In the last three years, computer hackers have stolen more than $2 billion from U.S. businesses. Because the construction industry is often overlooked by cybersecurity experts, many organizations don’t prioritize cyber security and don’t take appropriate measures to protect themselves. According to a recent IBM Ponemon study, 74 percent of construction companies weren’t prepared to combat cyber-attacks. Unfortunately, these cyberattacks are becoming a growing concern for executives in the construction industry. To combat this growing threat, here are some simple steps that you can take to ensure the security of your digital infrastructure.
First, understand how hackers use social engineering techniques to gain access to private information. They may pretend to be someone they don’t know, and send emails pretending to be from trusted sources asking for access to payroll records. You must train employees to recognize suspicious emails and implement a process for independent verification. Another consequence of social engineering attacks is the fraudulent transfer of money via wire transfers. Your cyber-policy should cover any potential damage that a data breach could cause.
Insurance coverage
While many small businesses fail to secure the appropriate insurance coverage, construction companies need it. Depending on the type of trade, they may need specialized insurance policies that cover a variety of risks. For example, commercial auto insurance can protect vehicles that transport tools and equipment. It also provides physical damage coverage for permanently attached equipment. A business owners policy also combines property coverage and general liability. Workers’ compensation insurance will pay for medical expenses and lost wages of employees.
Contractors may also need to consider an excess liability policy, which will protect their company in case of a liability claim. This type of insurance policy covers more than one property loss, and it is a good option for those who want higher liability limits. Property damage to construction sites is typically excluded under most commercial general liability insurance policies, but it’s possible to purchase an excess liability policy that covers the cost of property damages. In the event of a pollution incident, the contractor would be liable for the costs.
Mechanics lien
A mechanics lien is a legal claim against a property owned by a construction company. It secures payment for labor, materials, and plans. When properly executed, it provides the claimant with the right to enforce foreclosure on the property and receive payment from the sale proceeds. On public projects, a bond claim serves the same purpose, although it is filed against a surety’s payment bond. If the claimant is unsuccessful in collecting his money, the surety’s payment bond protects the construction business.
One of the most effective ways to protect your construction business from mechanics liens is to hire a contractor you trust. Make sure to speak with him about the mechanics lien before hiring him. Ask him if there are any procedures he should follow to avoid filing a mechanics lien. Always follow contract terms, including payment schedules. If you do not have a contractor yet, consider signing a lien waiver.
Contracting with reputable subcontractors
There are various ways to protect your construction business by contracting with reliable subcontractors. When you hire a subcontractor, you are obligated to pay them a substantial portion of the project’s cost before you will get paid. But once the project begins, you may find that the subcontractor is not as reliable as you thought. This is called subcontractor default, and if the subcontractor is late with payments, you can find yourself with a problem.
Before you sign any contract with a subcontractor, be sure to read it thoroughly. Make sure that it spells out your rights to supplement work, stop the subcontractor from performing, and terminate the contract. It also spells out your rights to reimbursement for reasonable costs. Also, make sure that the contract clearly outlines the circumstances in which you may terminate the subcontract. If there are red flags, you should seek legal advice at the earliest opportunity.
