How to Stay Ahead of Risks

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Construction project risks need to be mapped and mitigated intelligently to optimize project processes and improve outcomes. Construction projects will be delayed and run over budgets if risks are not effectively controlled and key resources are not aligned in a timely manner.

 

For close to 52% of developers, risk and change management is one of their major internal challenges in part due to inadequate response mechanisms and lack of technology. Teams performing inspections and executing quality checks need a digitized approach to streamline the domain.

 

Let us explore the top risks within construction projects and 4 key strategies that can help firms stay ahead of emerging risks.

 

Key risk 1 – Lack of visibility on site

 

Visibility on-site continues to be a critical risk factor for several organizations. Construction firms that are aiming to improve project outcomes through better planning and monitoring tools may experience lapses in project control within budgeting and forecasting.

 

Additionally, project work needs to be continuously monitored for compliance with specifications and project requirements. There can also be issues with material quality and manpower output that can go unnoticed due to poor visibility.

 

Key risk 2 – Overruns in projected budgets

 

Megaprojects in construction & engineering can experience cost overruns of nearly 30% owing to inefficiencies on-site and lack of integrated communication- these risks compound when indirect expenses and management costs are added to expedite construction work.

 

Overruns can also occur due to poor scheduling management within projects. A lack of true common data environment solutions via construction management or project mapping tools can introduce inefficiencies within projects.

 

Key risk 3 – Delays in project completion

 

Delays caused by lack of communication or ineffective workflows can significantly increase costs and reduce profit margins for firms. Delays can also introduce a lack of assurance of quality and adherence to specifications. Additional pressure from external stakeholders can also add to inefficiencies within timely completion.

 

Construction firms working with contractors, engineers, designers, and site workers need integrated communication solutions that can help streamline completion. Issues can be raised instantly and resolved in a timely manner when using a project collaboration solution.

 

Key risk 4 – Issues with productivity and quality

 

Construction, as a global industry, drives a productivity rate of around 1% across processes. A key challenge of a lower productivity rate is delays in execution as well as problems with quality. Reworks, hiring more labourers, shifting schedules, and incorporating new teams, can add cost and uncertainties around completion.

 

Other issues, such as safety, non-timely procurement, and quality mismatching, can also be critical to progress optimization. Companies need a robust technology solution that can instantly address upcoming risks and optimize them to improve productivity and quality.

 

The importance of staying ahead of risks

 

Some of the major reasons why staying ahead of risks is vital to successful completion are –

– Budgetary compliance and timely completion

– Early capturing of mapped and unmapped risks

– Enhanced inspections and QC testing approach

– Better planning of risk mitigation

– Enhanced organization of risks within projects

– Focused approach to reduce risks in future projects

Let us explore the top strategies to staying ahead of project risks.

 

Strategy – 1 – Onboarding the right technology solutions

 

Technology solutions, such as robotics, drones, and project management solutions provide the necessary visibility, structure, and insight for better risk mitigation. The leading construction project management software, such as Zepth, provide cutting-edge risk mapping and tracking solutions. With 50% of developers believing inadequate scope to be the main reason for budgetary risks, having the right construction risk planning tools is essential.

 

Strategy – 2 – Improving communication across project teams

 

Construction firms can onboard dedicated construction project collaboration software solutions for improved communication across processes. This can help identify, inform, and mitigate risks much faster while leveraging a documented communication history.

 

Stakeholders can seamlessly interact with one another via integrated tools and track updates on key areas such as safety, quality testing, procurement, etc. Key risk areas can be streamlined when team members can communicate within a unified collaboration channel.

 

Strategy – 3 – Enhancing access to data libraries and analytics

 

Access to data, including historical risk data and safety issue checklists, can help streamline risk management. Companies can stay ahead of risks when accessing rich data on project progress, stagewise completion, material specification, manpower output, etc. Risk trends can be calculated using data analytics and manual reviews to find upcoming issue areas.

 

Additionally, access to rich analytics can empower local teams to address risk areas faster. Agile insights on material delays, lack of manpower, issues with safety, and quality challenges, can help teams plan in a more strategic manner. Teams performing inspections and visual data reporting can also improve their output by referencing a richer library of QC data.

 

Strategy – 4 – Embedding the right controls for risk mitigation

 

Having the right controls in place is vital to risk management. This includes the mapping of all risk notifications via a risk management solution that is customized to the construction industry. A checklist and safety compliance-based approach can also help provide timely alerts to teams that can act quickly.

 

Additionally, financial controls can help manage budgets strategically. Teams can schedule financial reviews and understand daily outflows to have better control over comprehensive expenditure management. Compliance-based controls, such as unsecured data sharing, leaks, or data mismanagement, can also trigger alerts to managers that can instantly resolve issues.

 

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