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Study: My Understanding of Insurance

Tips For Construction Risk Management

There are times when you are involved in a construction project, and there are other parties that are also responsible for other responsibilities whose collective goal is to ensure that the structure that is under construction is finished well and in the time frame that was set at the beginning. It is for your benefit however, to understand that there is a variety of risks that are facing the project as it takes shape and they are likely to cause some kind or destruction which might lead to loss of money and even result in physical injury to works which will have a negative impact on your firm. To be ready and avoid such risks, there are tips that you can use to ensure that you are ready to manage them. The initial thing to do is to find out about all the risks that you are going to face during the process of constructing the structure and this is good because you will be able to know what you can expect and how to avoid that risk of causing damage while you also prepare to minimize the destruction caused if it does happen. The first type of risk that you can make arrangements to handle is occupational risk that is present due to the likelihood of an employee being hurt while working on the project as a result of the methodologies being used, the machinery being operated at the sight or even other natural calamities that might occur. The second example of risk is financial risk which might result due to money running out before the project is finished and it is as a result of making wrong estimates that resulted in a small budget that is not sufficient to sustain the project. The third type of risk faced during construction is the natural disaster risk which is due to the possibility of something like an earthquake or flooding destroying the structure or slowing down the construction process.

The second step is to put plans in place to ensure that all the risks you have listed are being dealt with accordingly so that they do not have the ability to create huge damage to the project or create losses. An easy way to deal with a risk is to avoid it completely and one such way is to not start a project in an area that is known to experience certain natural disasters such as earthquakes. Another way of dealing with risk is by transferring it to another party and this is possible through insurance whereby any damaged that might be caused is handled by the insurance company and not your firm.