MITIGATING UNFORESEEN COSTS IN CONSTRUCTION PROJECTS [TITLE]
[INTRO TEXT] Every construction firm knows that projects involve risks. The bigger the project, the greater the potential that things will go wrong. Ignoring risks can result in nightmare scenarios such as schedule delays, cost overruns and, in the worst cases, legal disputes and claims. 
Research shows that three quarters of construction firms working on U.S. infrastructure projects worth over $100 million face significant unmitigated risks. Whatever the situation, unforeseen costs can have a serious impact on your bottom line.
As a construction manager, the responsibility for mitigating risk and maximizing profitability often falls to you. Our checklist below will help you understand the biggest pain points and how to overcome them.
THE CHALLENGES [CHAPTER 1]
Budget Shortfalls 
Construction projects have high budgets which means that budget shortfalls have a big impact. Loss of funding during a contract results in an incomplete project and lost revenue if parts of the project have already been completed.
[FACT BUBBLES]
Almost one in five large construction projects go over budget. 
The average budget overrun is a shocking 14% of the total project cost.
Approval Procedures
Following procedures and acquiring approvals are part and parcel of the construction industry. But going through excessive and repetitive approval processes is sure to slow any project down.
Contractor Inexperience
The contractor you choose for your construction project can make or break the finished product. Correcting mistakes or paying additional contractors is expensive and inconvenient — and can quickly contribute to your project going over budget.
Safety & Security
Safety is a core value in construction, but ensuring staff safety in an economic downturn where businesses have to do more with less can be challenging. Risk factors such as theft can also emerge without the proper security precautions.
[FACT BUBBLE]
The cost of construction equipment theft is as high $1 billion dollars per year.
WORKING SMARTER TO REDUCE RISK [CHAPTER 2]
Good Planning
Plan well and plan early to mitigate construction project risks. Forward planning reduces the likelihood of scope creep and helps with managing the costs of important needs like storage and transportation in advance. At PODS, we offer a one-source solution that takes all the hassle out of upfront planning and calculating costs.
Time Management
The better a project is managed, the faster it will be complete and your team can move onto the next job. Schedule regular check-ins to make sure you're on track, even if obstacles pop up. By keeping your timeline in check, you avoid unnecessary risk, higher costs, and unexpected downtime. 
Expert Partners
Experienced partners that can deliver a service or solution seamlessly and to your spec. Using third-party firms for activities such as loading and unloading materials or providing localized logistics support, for example, offers construction managers cost savings on both time and labor. Always carefully review potential partners to ensure they have the knowledge, experience and reputation to deliver.
[FACT BUBBLE]
67% of construction firm contractors have engaged external help for managing risk, with 71% reporting that it resulted in cost savings.
[OUTRO] Our specialist team here at PODS® is dedicated to helping construction firms like yours achieve more while minimizing risk factors and maximizing profitability. 
With more than 170,000 PODS containers, 600 regional delivery trucks in North America alone, and 230 secure storage centers spread across the U.S., our storage and logistics capabilities are market-leading.
Learn why thousands of contractors like you have made the smart decision to partner with PODS® to help increase their efficiency, manage costs more effectively, and reduce the risk of damage and theft.
Call us on 866-667-5590 for a free quote.
[SOURCES]
http://www.granite-companies.com/blog/risk-mitigation/5-risks-during-construction-projects-and-how-to-mitigate-them/
http://www.granite-companies.com/blog/risk-mitigation/5-risks-during-construction-projects-and-how-to-mitigate-them/
http://www.ner.net/wp-content/uploads/2017/10/Annual-Theft-Report-2016.pdf

Was this article helpful?
YesNo