Construction has always been an industry with a high level of risk. Increasing project complexity, large project teams and the inherent physical dangers of the work itself all contribute to this reality. However, too often the industry accepts high construction risks as a standard operating condition. As construction activity accelerates after the recession, improving risk mitigation is as important as increasing productivity, safety and profitability.
This new study reveals essential intelligence on the top risks faced by building owners, GCs and trade contractors and the top benefits achieved from specific risk evaluation and risk mitigation practices. The study, which includes over 500 building owners, GCs and trade contractor respondents, provides a comprehensive look at risk mitigation for construction risks. It reveals:
- The top construction risks faced by owners, GCs and trade contractors, and the prevalence of disputes and claims.
- The most effective risk evaluation and risk mitigation strategies.
- The specific benefits that industry professionals experience from employing those strategies.
- Evidence of the importance of collaboration as a critical means risk mitigation.
A clear pattern emerged from this study regarding the impact of collaboration on reducing construction risks. The two top strategies for all respondents were formal brainstorming with the team and regular project meetings with the full team focused on risk. Both strategies enhance collaboration across teams and yield critical benefits like increasing reliability in overall project performance, reducing the cost of construction, improving project schedule and improving construction site safety.
We would like to thank our premier partner Alliant for helping us to bring these important findings to the industry. In addition, we thank Procore and e-Builder for their support, and we also thank all our research partners for their efforts to engage the industry in the study.