“A dollar saved is a dollar earned.”
While this old chestnut may sound trite when referencing the multi-billion dollar construction industry, those in the field would do well to follow this timeless advice. Each year, the industry bleeds hundreds of millions of dollars on factors not directly related to the design and construction of buildings. In many cases, these expenses would have been entirely avoidable with the proper planning.
With this in mind, keep reading as we explore some of the most costly construction pitfalls and how to avoid them via proper professional guidance.
Worker Safety
First and foremost, partnering with the right inspection providers will ensure the health and safety of your team. Even the most profitable projects will become a resounding loss if they result in injury or loss of life to a worker. Historical data indicates that a workplace fatality costs construction firms about $4 million per episode, while non-fatal injuries cost about $42,000 apiece. Not to mention the intangible costs of decreased morale and negative public perception.
Unfortunately, it is far too easy to become lackadaisical in maintaining a safe work site. Key details become lost in the day-to-day grind. Cleaning the OSHA scaffold planks at the end of the day is a task too often pushed off until later. Keeping work areas clear of loose nails and wood splinters gets pushed down the priority list. Putting PPE back in its designated area feels superfluous if you plan on using it in the same place tomorrow.
By hiring a work site inspector, projects can guarantee the safest environment possible for their team members and stay one step ahead of any OSHA fines or sanctions.
Litigation
Going to court is a nightmare scenario for a construction firm, both financially and professionally. In addition to the real-time legal costs, ongoing bad press hurts the company’s long-term prospects.
While liability for worker safety and property damage are fairly obvious legal threats for construction firms, they are far from the only risks out there. Delay claims occur when a project misses a deadline, and the claimant seeks compensation for the subsequent loss of revenue. In addition, because many large-scale construction projects involve an intricate web of contractors, subcontractors, consultants, and the like, payment disputes often arise as to who was supposed to pay whom.
With this in mind, not only is it vital for construction firms to use the expertise of inspectional professionals to help keep the project on time and under budget, but they should also retain adequate legal counsel to handle complicated contracts and allow builders to focus on what they do best.
Rework
Construction is expensive enough the first time through. It is increasingly common for bids to reach 10 figures for some “mega” infrastructure projects these days.
What is even more surprising is that the cost of rework can account for up to 9% of total project costs. So for every $100 million in construction performed, the average firm is likely to shell out a whopping $9 million due to issues such as deviation from plans and poor workmanship.
Therefore, partnering with a construction inspection company can reduce the risk of these costly rework scenarios, saving the firm millions in the process. By using a multi-discipline approach throughout the design and building process, an inspection company will measure, examine, and validate to determine whether work and deliverables meet requirements and product acceptance criteria.
Building Code Violations
Workers get sick. Accidents happen. There are some expenses in a project that cannot be avoided.
What doesn’t have to happen is getting stuck with fines for impermissible work. As codes vary from state to state and county to county, it is a great idea to partner with an inspection professional up-to-date on all the due diligence in regard to local zoning laws and building ordinances. Remember, even non-structurally-altering renovations and landscaping projects may have their own specifications, so check on deck code requirements before starting any exterior projects. As the sign says: “Call before you dig.”
Insurance Issues
The recent wildfires in southern California have made insurance a hot-button issue in the media. Hundreds of millions of dollars are in limbo as property owners and insurance providers point the finger at each other over who is financially responsible for rebuilding from the devastation.
Construction professionals should take note and make sure that they have adequate coverage to protect themselves from unexpected events. Remember that even the smallest technicalities, such as failure to certify machinery on schedule or perform regular fire damper inspection, can create the necessary loophole that an insurance provider needs to deny payment. Make sure that your insurance agent and/or legal representative understands the fine print of your policy and advises you on the best elements to include in comprehensive construction coverage.
Avoid Unexpected Costs By Seeking Professional Construction Guidance
Construction projects are expensive enough without factoring in extraneous costs. From compensating injured workers to avoiding insurance issues, use the advice listed above to avoid costly construction pitfalls by employing top-notch professional guidance. For more of the latest trends in modern design, explore the resources at My Beautiful Adventures for ideas and inspiration today!
