It doesn’t always take a global pandemic to drive up the price of materials. If they don’t factor in a bit of wiggle room to cover spiking costs, there are a number of factors that can turn the job upside down. When a contractor enters into a lump sum contract, materials pricing can be one of the most significant risks to the job’s profitability. Fluctuating materials pricing and availability Get help keeping your paperwork in check with Levelset’s Document Checklist for Contractors. The obvious solution here is proper organization and document tracking. Also, without insurance documentation or the right contractor license, there can be legal issues or fines on the docket. For GC’s, tracking down pay apps, lien waivers, and compliances takes time away from more pressing tasks. When you consider that many subcontractors are working on two or three projects simultaneously, keeping up with every GC’s deadlines, required compliances, and submission methods can be a hassle. Just a few of the documents that if lost can cause problems are: One receipt hiding under the seat can cost them quite a bit of time and money. Contractors that use the dashboard of their work truck as a filing cabinet are definitely the weakest link in the chain. While it may not sound like the greatest danger, missing necessary paperwork is a serious construction risk. Keeping up with paperwork on a construction project is a full-time job. Read more: Schedule Delay: How to Assess & Reduce Impact in Construction 2. As delays are often the result of other risks on this list, getting ahead of them and maintaining an open line of communication between the subs and project management is one of the only ways to minimize their effect on the project. While timelines and schedules are good guides, they rarely take all of the variables and possibilities into account. Without a doubt, delays are one of the most common risks involved in construction. Pushing back the delivery date on projects affect almost everyone on the job. Recognizing these construction risks is good practice for contractors of any experience. In order to reduce the chance of something going wrong, it’s important to recognize these potential outcomes and take the appropriate steps to prevent them.The following are some of the most common challenges that contractors, subs, and even suppliers face. These all come with an assortment of different construction risks that can halt a job or even terminate it completely, if not properly prepared for. There are many moving parts when it comes to project completion, and it often may be hard to balance contracts, budgets, workers, subs, deadlines and quality assurance simultaneously.
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