How To Limit the Impact Of Construction On Your Business

The construction industry is full of risk and interruptions that can occur on any project at any time. Risk and interruptions on a construction project can be very costly for businesses. However, with proper planning, any business owner/manager can help overcome these risks and interruptions and limit the impact of construction on their business.

To help you limit the stress of construction on your business operations, we have developed a few steps for you to follow.

Understand the Risk Involved

Part of planning is to understand the risk involved with each project. Not every project will have the same level of risk or amount. However, it is important to take time to evaluate the potential risk with your team and list all the preventable and non-preventable risk. There are different types of risk that should be considered for each project such as:

• Financial risk – cost of not being operational or fully functional
• Safety risk – hazards from construction
• Reputation Risk – how employees and customers view you
• Operational Risk – business shutdown
• Security Risk – theft or burglary

Not every project will have all these types of risk. However, it is important to consider each of them when planning for a construction project. In addition, you would want to prioritize each risk in consideration to its impact on your business and others. If you are not sure what to look for, ask a contractor and work with them.

Estimate The Cost Of Interruption

Calculate the cost for each anticipated risk. For example, if your business is shut down during a complete remodel, then you must factor in the potential financial cost of not being in operation. To accurately record interruption cost, look at your opportunity cost, overhead, potential fines or penalties, and duration of the construction process. If the construction project is delayed it can lead to further cost. The calculated cost will tell you which risk is more important to prioritize over another.

Take action To Reduce Risk

Once you have identified the different types of risk, then take action to resolve or alleviate those risk. For example, you may want to take the time in hiring the right contractor for the job. See if the contractor is licensed, insured, and bonded general contractor that has relevant experience to your project. Protect your staff and employees by preventing risk by eliminating any accidents or hazards on the construction site. As well as effectively communicate with your customers and employees that construction is in progress.

Continuously Evaluate And Prevent Risk

Ultimately, this process is an ongoing process. You can identify a lot of risk for your project, however there are always unforeseen risk. Find a general contractor that will work with you in continuously evaluating risk and preventing risk. Throughout the construction process communicate with the contractor in identify new risk and how to prevent them. As well as, seeing what risk prevention strategies worked and what did not.

Summary: How To Limit Construction’s Impact

There will always be risk in a construction project, however it is up to the business owner/manager and contractor to work together in reducing the impact of interruption or risk on a business. Identify the risk and calculate which risk will have the most impact. Try to prevent the preventable interruptions the best way you can. Communicate with your team, customers, and the contractor to successfully mitigate risk/interruption. By the end of the project, you will be more ready to tackle your next construction project.