Construction Risk Management
No matter what size a job may be, all employers in the construction industry have a legal, moral and economic reason to reduce the risk of injury to personnel.
In the UK, 2.2 million people work in Britain’s construction industry, making it the country’s biggest industry.
It is also one of the most dangerous, although overall it accounts for only about 5% of employees in Britain it still accounts for 27% of fatal injuries to employees and 9% of all reported major injuries.
What is Construction Risk management?
The construction industry is inherently a risky business which is reflected in the insurance premiums that construction companies pay. Risk can come in many shapes and sizes including:
- Pressure to complete a project on time and to budget
- High levels of disputes and litigation
- Intense competition for work
- Pressure to produce a high returns from low margins
- Poor safety and occupational health record
- Pressure to save time and money
- Pressure on health and safety provision
The Turnbull Report brought the requirement for construction companies to implement procedures to manage risk. The aim of effective risk management in construction is to prevent the losses which arise from accidents, loss of money or time, damage to property or loss of reputation.