Construction is one of the world’s largest industries that cater to the need of rapidly developing economies. This industry often has to respond to urgent needs in areas affected by natural disasters.
Considering the risks at different points of establishing a building is very important. These stages typically involve:
- Idea
- Plan
- Finding the site
- Project work
- Design
- Construction
- Usage
- Reconstruction
Multiple values and risks characterize these steps.
Managing construction risks
Construction managers can manage various construction risks. In many cases, labor protection in construction cannot be neglected, and construction workers should not be exposed to unjustified risks during the consequences of the disaster and restoration work. Despite the machinery used in construction, manual labor is still required. Due to the changes in action at the construction site, working conditions in workplaces change very often, changing the occupational risks to which workers are exposed. There are many migrants from countries with lower wages, who are employed informally and in the short-term. For managing the data of these short term employees involved in construction work, the effective process of bookkeeping can be used.
Moreover, people belonging to different fields and professions often come together in a construction process that includes contractors, designers, and architects. Construction work carries a lot of risks, but these people can manage them in the best way possible. Working under such conditions can be a source of stress that can also increase the probability of psychosocial problems being occurred. This could result in accidents due to neglecting or diverted attention. All these factors make it very important for all stakeholders to effectively discuss and work together to achieve and maintain high standards of safety and health in a real environment.
Facts and statistics
The number of accidents and morbidity in the construction industry is tough to measure, as, for many countries, there is no statistical information. However, for many countries, such data are available and can make some estimates. It is even more difficult to obtain statistical data on occupational morbidity. Partly because many of the human health risk factors, such as exposure to hazardous chemicals and other substances or high levels of noise and vibration that have long-term effects on workers and do not appear for several months or years after exposure. However, it becomes clear that the construction industry is much more dangerous than any other sector of the economy.
The main unfavorable factors affecting construction workers leading to a decrease in working capacity and loss of health are elevated levels of noise and vibration, dusty and gassing of the air in the work area, and unfavorable microclimatic conditions, chemical factor, and the severity and intensity of the work process.
Risks under construction
The risk assessment of the construction phase is included in the main stages of the business plan development. The price of incorrect accounting for this risk component is the underfunding of the investment project. The procedure for developing a business plan includes mandatory accounting for the risk of underfinancing, the likelihood of its occurrence, and the severity of its consequences.
Many financial and credit institutions request estimates for construction, specify the details of the construction. For some banks, the need for insurance is especially vital in development. The lack of the opportunity to complete the residential real estate objects is reflected not only in the initiator of the project but also on the buyers who decided to share participation.
At the financial modeling stage of the investment project, it is recommended that several scenarios be included in the model reflecting price fluctuations that affect the course and dynamics of construction. Scenario modeling allows you to calculate the possible actions of management and company management to minimize the risks of the construction phase.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
