You’ve probably driven by a construction site that’s been left unfinished for months or years. Perhaps you’ve wondered what happened or why it was abandoned. Unfortunately, construction site failure is a problem that plagues many development projects, and it can be caused by many different factors. It’s estimated, in fact, that over 60% of all project managers in the U.S. have experienced a construction failure. How can construction failures be prevented? What are the main causes of construction project failure? Read on for the answers to these questions and more information on construction risk management.
Implement Resource Management
Ineffective resource management is one of the most common causes of construction project failure. Some resource management issues, such as supply chain shortages, are out of your control. Other issues, though, may be avoidable if you plan effectively. In order to minimize the chances of failure caused by resource management problems, you should carefully forecast all resources that will be required to complete the project. Develop a detailed plan for the delivery of these resources throughout the duration of the project.
Set Boundaries with Stakeholders
Yet another common problem that can arise on the site of construction projects is pressure from stakeholders to alter an established plan. You might have a plan in place for the delivery of material resources, for example, and a stakeholder may propose a last-minute change to these plans. Unfortunately, this isn’t an uncommon scenario, but it can seriously disrupt the progress of your project if you yield to unexpected stakeholder requests. It’s important to set boundaries with these individuals and establish a deadline for any changes to the project plan.
Have a Backup Plan
Even when you stick to an established plan, things may not go as smoothly as you’d like. Hiccups happen, supplies get delayed, and any number of other problems may arise. What do you do when a project starts going off the rails? Investing in construction insurance is one of the best ways to ensure that your project is protected even if there are unexpected obstacles. Construction insurance often covers damages, injuries, and other liabilities that may pose a threat to your project.
Maintain a Clear Itinerary
Perhaps the most important part of maintaining progress on a construction project is establishing a clear itinerary for completion. Too many projects fail because they were not guided by an established schedule. Rather than simply setting a projected completion date, you should create an itinerary that outlines smaller goalposts for the project to ensure that you stay on track. This is essential for maintaining steady progress and minimizing the impact of obstacles. Check in with crew regularly to keep them updated on the progress towards completion, too.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
