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Labor shortages and risk management in the construction industry

Two authentic construction workers collaborating in the installation of concrete formwork framesConstruction is a risky business—whether it is trying to prevent accidents on the job or managing tight deadlines, everything involves taking risks. The key to success in construction is evaluating and managing risk.

With the current spurt of growth in construction projects, many construction firms are having difficulty finding enough skilled workers. This is driving up the cost of labor, even as margins on construction projects remain tight. In fact, recent surveys by the National Association of Home Builders cite the cost and availability of labor as among the top issues contractors are dealing with today.

With labor shortages and company profits on the line, construction firms can’t afford to take any chances with their risk management programs. A construction risk management team finds solutions for potential risks including those involving:

  • Compliance Issues
  • Fraud
  • Customer issues/complaints
  • Finance
  • Liability Risks
  • Safety Training

A formal risk management strategy helps construction firms take a proactive approach in solving potential risks before they actually occur. Reducing risks increases profit margins and gives a company the needed funds to grow even in the face of a labor shortage. A risk management strategy can also help to defend a company’s reputation, profits and its legacy when threats do arise.

Part of a complete risk management strategy involves having the proper liability insurance protection. At C & S Specialty Underwriters, we understand the unique world your construction clients live in and the risks they face on an ongoing basis. We know liability protection for contractors—it is what we do. We can find a complete liability package for your construction clients. Contact us for more information! http://csunderwriters.com/