When running a construction project, you need to think about the budget. Factors like risk management, proper insurance coverage, and documentation can play a larger role than you might think.
When running a construction project, you need to think about the budget. Whether new construction or renovation, the budget will be a large concern to building owners, the general contractor, and all other insurable interests.
Today we’re going to go into three factors that construction business owners should think about during the course of construction.
Risk management consists of all the things that your business will do to mitigate the risks associated with construction. The contingency can be used if mistakes are, one should avoid these. Project managers and superintendents underneath the general contractor should always look for ways to mitigate risk on site.Read more: When Should You Consider Opting for Extended Service Contract and What Are Its Benefits
Examples of risk management include proper fencing, helmets, safety wear, and security. In addition, your company should have a risk management plan. This will look into things like physical damage, physical loss, and soft costs from the ground up. Keeping risk management in mind will help you to save money from mistakes that could otherwise cost a fortune.
Proper Insurance Coverage
In addition to risk management, your construction project can also benefit from having proper insurance coverage. What are the construction documents should indicate certain details about insurance requirements, they will not list everything. For that reason, it’s very common to be under or over-insured. Either situation can result in too much money spent.
On the one hand, you could be spending too much on insurance coverage premiums. On the other hand, if something happens, you could have to pay out of pocket due to being uninsured for that situation. Talk to an insurance professional about what you’re doing and risks there are in the project.
Keep in mind the need for coverages like builders risk coverage, property insurance, liability insurance, and inland marine when talking to your insurance agent so that you are fully informed and ready for the conversation.
The final factor that can help a small construction business save money is documentation. Tracking all the comes onto and goes off of the site will ensure that nothing is missing and every detail is going according to plan. As the general contractor, you’re in charge of ensuring that every subcontractor plays nicely and does what they are assigned to do. Without meticulous notes, this job can be virtually impossible. Make sure to keep the end of day reports, invoices, and notes that get passed around on site. It’s easy to drop and forget about something when running around all day, but it can come back to bite you later.
If the need for proper insurance struck a chord with you, contact us, Builder’s Risk.net, to talk about how builders risk insurance can help you save money on the construction site. We work with large and small business construction owners to help lower insurance costs and find what works best for their particular situation. If we don’t have what you need, we will talk with you and refer you to the construction company and policy that will best work for your construction insurance needs.