Every construction project faces its own share of risks that evolve with time. This is why construction project managers and companies should conduct their own assessments to identify these risks. This takes time and careful observation, so one should never rush with risk assessments for a project, no matter how big or small it might be.
Kanat Sultanbekov – Know what your risks are?
Kanat Sultanbekov is a widely respected and credible construction manager from New York with rich experience in strategic planning, risk assessment, and operational processes. He has a proven track record when it comes to proactively leading teams to complete projects within time and budget. According to him, the following are the common risks faced in a construction project-
- Risks to safety- This is one of the primary risks for a construction project and is considered the most hazardous if not carefully managed. Sites for construction work pose several safety hazards; for example, workers can fall down from heights, they can be electrocuted by live wires, or be crushed or stuck in equipment. Worker fatalities occur if the proper compliance and safety standards are not maintained effectively on the construction site.
- Risks to finance- This type of risk affects the profitability of the construction company, and no company wishes to take a step back when it comes to financing a project. Replacements or repairs pose a great financial risk, and some of them can be external as well, for instance, the economic impact on the cost of raw materials, a high rate of interest, theft of equipment, or competition from rival companies. These factors are just some of the key threats to the financial success of your project. However, there are cases where the above can happen if the financial risks are unprofessionally managed.
- Management risks- Poor or unprofessional communication between the team and the client often leads to conflict on the construction site. When expectations linked to the project deliverables are not met, problems arise, leading to delays. Other management risks can include setting an unrealistic timeline for the completion of a task, or taking responsibility for too many projects can pose a risk to construction companies. Subcontractors can become a risk if they have communication or coordination problems.
According to Kanat Sultanbekov, outdoor elements can also pose a risk to construction projects like the weather conditions or a natural calamity like a storm, typhoon, etc. These elements often pose safety risks to the team and affect the project’s timeline. For example, earthquakes or floods often wreak havoc on a construction project site, demolishing the work already done, and this is a huge setback to construction companies in the long run.
The planning phase of the project is crucial when it comes to setting project timelines and budgets. The above key risks should always be taken into consideration by project managers and companies before the commencement of work. In this way, losses and delays can be reduced, and the project will be completed on time.