Risks on construction sites

Construction 'sites' are where construction projects take place. Most construction sites are a hive of activity and moving parts, and they are also a breeding ground for hazards and risk.

Utilities - One of the major risks on construction sites are utilities. Many construction projects involve digging beneath the surface, excavating earth and the demolition of buildings and other objects. These activities are destructive by nature, but they become very risky and very dangerous when they involve utilities like electricity and gas. When struck, these utilities can easily cause major and catastrophic damage through explosions and other events. The best way companies manage these risks on construction sites is through procedures like dial and dig, safety permitting, and risk assessments.

Delayed deliveries and disruptions - The lifeblood of construction sites are deliveries. Every day, deliveries and supplies arrive on site so that new works can start and the project can continue. The problem with all of these deliveries and moving pieces is that they can get delayed or disrupted. This is a constant risk on construction sites.

Unsuitable equipment and materials - One of the major sources of risk on construction sites are plant and equipment. Plant and equipment are one of the most common reasons for injuries and fatalities. While some of these issues are caused because the equipment is inherently dangerous, some of them are caused because of unsuitable equipment or an unsuitable approach to using certain equipment.

Damage to property - With all of the moving parts on construction sites, damage to property is a constant risk. This can be damage to an existing structure not associated with the project during delivery and other activities, or it can be damage to the project property which leads to defects and sometimes structural issues.

Accidents and incidents - Accidents and incidents are a holistic construction risk. They put projects at risk because of delays and other issues, and they are a constant risk on construction sites too.

Site access - Site access is a constant source of risk on construction sites. Companies and workers work hard to ensure that site access is good and safe, and that only those people who have taken the necessary steps to enter site do so. This often includes things like proper site inductions and PPE.

Security - Similar to site access, site security is a constant construction site risk. The purpose of site security is to ensure that the things which are supposed to stay inside the construction site do so, and the things which need to stay outside do so too.

Poor conduct and negligence - Some construction site risks are inevitable and unavoidable, but others are completely avoidable. Too many construction issues stem from poor conduct and negligence - whether intentional or not. Creating a culture of good conduct and good habits is the best way to ensure that you minimise the risk associated with this type of behaviour.

Chemicals - Chemicals are a main source of risk on most construction sites. Chemicals, which serve many important purposes on construction sites, can be very dangerous. There are many processes and procedures surrounding documenting and tracking chemicals properly to ensure their safe handling.

Other stakeholders - Construction sites often seem to operate and function in their own world, but they are often surrounded by buildings and people doing normal life. Keeping other stakeholders 'happy' is a constant battle and constant risk on construction sites. Activities like noise monitoring are instituted to prevent avoidable issue with the public and other stakeholders.

Risks in construction contracts

Construction contracts are designed to reduce risk, like all contracts. Contracts tie their makers and signers to a specific outcome which creates stability and predictability.

While construction contracts do do this, they also raise their own set of headaches and construction risks.

Although a contract is always better than no contract, the construction industry is known for contract changes and disputes.

Change orders and variations -As previously mentioned, changes to construction designs, projects and contracts are relatively common. The construction industry has even designed documents and processes for changing contracts, like this change orders example.

While changes aren't inherently bad, they do pose a risk to construction companies because unexpected changes can throw projects and works off track and influence cash flows, resources and other inputs.

Disputes - One of the major risks in construction contracts is of course disputes which arise from the contracts. Disputes occur at a reasonably frequency on construction projects, sometimes because of a specific contract but usually because of what or what was not covered in the contract which occurred in real-life. Other disputes arise when companies are unsure who was at fault etc.

Delayed dispute resolution - On top of the financial and reputation risk associated with disputes, disputes also increase risk through delayed resolutions. Construction projects are successful when there are no delays and no disputes between parties. Once a project goes off track, it's hard to pull it back and delays often lead to more delays.

Delayed contract and project payments - Having concrete payment terms and scheduled in your contracts is a good way to increase the reliability of your payments, but there is still a fair amount of risk associated with delayed contracts and delayed payments. This is an industry-wide problem and risk, and one which some companies shoulder an unfair burden on.

Insolvency of contractors, subcontractors and other parties - One of the main construction risks in general is the risk associated with companies becoming insolvent and unable to deliver on the contract and on their promise. Insolvency of contractors, subcontractors and suppliers can wreak havoc on projects and project parties.

Construction safety risks

The construction industry hasn't historically had the best safety record, but it does mostly seem to be improving. Even so, construction safety risks are very real for projects, companies and of course for workers.

Some of the main construction safety risks include:

Poor safety procedures - Not all safety incidents are preventable, but some are caused because of poor safety procedures. Poor safety procedures and processes are a constant risk for the company and workers working with them - so getting them in order and improving your safety management system should always be priority one.

Health and safety - The health and safety of workers is a constant worry and risk for all companies. There are so many health and safety risks and hazards on construction sites that keeping everyone safe is a constant endeavour.

Unsuitable equipment - As we mentioned, plant and equipment is one of the major reasons for site incidents and injuries. Ensuring that all of the equipment people are using is the right fit for the job is a great way to reduce preventable safety issues.

Inexperienced workforce - No one is immune to construction safety risks no matter how experienced they are (especially if complacency creeps in), but inexperienced people typically have a higher risk of making mistakes or misjudging a situation - which typically lead to more issues.

Lack of training - On top of experience, ensuring that site workers are properly trained can have a big impact on reducing construction safety risk. This 'training' can include formal training for things like working at heights and operating power tools, and it can also include more informal safety meetings and safety talks.

Lack of resources - One of the 'things' which can increase construction safety risk across a site or workforce is a lack of resources. A lack of resources can result in improper or insufficient supervision, people working longer hours than safe, and people performing tasks which should involve more than one person by themselves. Ensuring a workforce is adequately manned and resourced is one of the best ways to reduce construction risk.

Poor communication - Construction sites are dangerous places, but they become exponentially more dangerous when risks are not communicated properly between and across people. This communication can involve verbal communication, and it can also include standard workflows and administrative controls too.

Construction worker risks

Construction companies and projects are exposed to a lot of different risks, but workers carry a lot of construction risk too. Some of the major risks which construction workers manage and deal with over the course of a day, project or career include:

Health and safety - As is very obvious from the above construction risk sections, the construction industry and construction sites are risky. This risk is immediately adopted by the people working on these sites and delivering these projects. Construction workers should be constantly aware of their own health and safety and do everything in their power to ensure they can get home safely.

Psychology and wellness - 'Wellness' has become increasingly important in most industries and in most walks of life, and the construction industry is no different. Construction workers have traditionally found it difficult to talk about their mental state and wellness in general, but it's becoming increasingly talked about and focused on. Things like regular physical exercise and pre-work stretching have also become more important to mitigate some of the construction workers risks they all face.

Prolonged exposure - Some construction worker risks are obvious, while some aren't. While big pieces of plant and equipment and activities like demolition are the obvious candidates for risk, prolonged and overexposure to noise, repetitive movements and vibrations are all very real risks for construction workers.

Employment - Hundreds of millions of people are employed in the construction industry, from labourers to project managers and engineers. While the construction industry is a good industry to be involved in and one with work, the nature of work (project-based) and changing environment of construction (technology replacing people etc.) do make employment a risk for construction workers.

Managing and mitigating construction risks

Looking at all of these construction risks paints a pretty bleak picture for the construction industry. But much of this risk is just 'risk', and companies and workers have found and continue to find better ways to manage and mitigate risks effectively.

Some of these new ways are developed from learning and exposure, while others are enabled through new construction technologies and tools.

The construction industry will always be riddled with risk - but life is also riddled with risk. We all have a role to play when it comes to managing and minimising risk - and being aware is always the first step.