Risk Management in the Construction Industry (Part 1)

There was a time when a construction company’s assets could all be loaded into the back of a truck. Jobs were “simpler” and plentiful. As the industry has expanded and matured, this has changed dramatically. From small specialty contractors to large general builders, the variety of assets and the cost of these assets have grown exponentially. Nowadays, contractors spend tens and hundreds of thousands of dollars on field equipment and office technology. It is simple to take a piece of field equipment and chain it, lock it, or hoist it in the air. Question is, what about the “invisible” assets?

Some of the most valuable items companies own are their client lists, contact names, past projects and the software that manages all of this intellectual property on the business’ behalf. These are out of sight and often out of mind when it comes to assessing risk and taking steps to protect a company against loss, but they are crucial because they set the company apart. Failure to adequately safeguard these assets could compromise a company’s chance of survival, especially in an adverse economic climate.