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5 Construction Risk Solutions for Your Estimation Team

construction risk solutions

Construction is inherently one of the riskiest professions, and the bulk of construction management is finding a way to manage this risk. Every construction management personnel must be fully concerned with the safety of their employees, the viability of materials and equipment, and selecting the right contractors to reduce the physical and financial risks that are a part of every construction project. Every decision you make in your project's planning, and budgeting phases must have risk assessment and mitigation. First and foremost, if you are to avoid the negative outcomes that can scuttle even the most ambitious construction enterprise.

Let’s delve into the features that will help you successfully manage risk on virtually any project.

Effective construction risk solutions are easiest to find when risk management is started early in the process. Performing cost estimation is the best way to ensure that you are building it into your eventual budget. Your risk estimation team has so much on their mind, trying to find savings and maximize capital investments into materials and labor costs. Due to this goal and the competitive nature of the bidding process, it is in this phase that there is the risk of cutting corners that will come back to bite you. ProEst software has five features that can help you find these savings in the safest way possible.

1. Safety Risk Solutions

When it comes to overlooking potential physical risks, the probability skyrockets when your team lacks time to analyze and assess potential workplace safety problems properly. The most significant factor that contributes to this is poor workflow. Construction management software that improves this workflow can give them a much more generous timetable to work with and discover cost-effective construction risk solutions.

2. Financial Risk Solutions

The possibility that you will experience a financial loss in terms of overspending your budget or not accounting for an unexpected expense is usually a result of poor forecasting. This often results from inadequate data integration. Your team may have all the data they need to assess costs properly and may even have enough information to provide accurate estimates. Still, if all this data is shuffled between team members or managed haphazardly, you may be surprised at how inaccurate your cost estimate ends up being. Proper data integration features will give every team member the same view of the database and keep them on the same page throughout the cost estimation process.

3. Contractual Risk Solutions

Any construction process can live or die by its contracts. Whether it is a labor contract, permit filings or lease agreements, you want to make the most advantageous use of every dollar you need to spend. However, there is also the risk that non-compliance with license or permit requirements can result in fines or work stoppages that can be as costly as any onsite accident. Having access to a unified construction-specific database ensures that you can check all these boxes before you make your first bid and that you have the confidence of having the necessary contract work locked down on day one of construction.

4. Environmental Risk Solutions

No two construction projects are alike, and from the very first worksite survey, you will be aware of potential environmental complications. Perhaps there is a nearby protected wetland or existing infrastructure that has yet to be demolished. Sometimes, you aren't so lucky to be working on land that has been well-developed for the project you are planning. These complications can be frustrating, but you need to work within any number of environmental constraints to ensure the successful completion of your project. This is the advantage of having digital takeoffs, where your team can quickly add and remove these factors as you discover and mitigate them.

5. Competitive Risk Solutions

When you have been in construction management long enough, your competition is foremost in your mind when you start to estimate costs on any project. Virtually everyone has had a deal fall through due to a competitor underbidding them, but this may be a completely avoidable outcome. The construction-specific features of ProEst software give you the edge over competitors who may be working with older software or even just spreadsheet programs. From documenting to purchase orders, every step of the process is performed with software specifically designed with construction management professionals like you in mind. Getting a leg up on the competition is bound to help you reduce the risk of losing out on a coveted project.