69% of all building company owners claim loss in productivity is down to poor contractor’s performance. Luckily, Builder’s Risk Insurance covers you for financial costs due to lost productivity. That’s good news when non-productive activities cost 35% of construction workers an average of 14 hours per project. That may seem small in comparison to how much the industry losses overall, but it really isn’t. If your contractors wasted that amount of time on every project, you’d lose thousands of hours of labor. Apps, however, may solve your problem. While your Builder’s Risk Insurance is there to absorb delay costs, you’d want to avoid it, in the first place.
In this article we’ll look at how your Builder’s Risk Insurance can help protect you from the financial effects of loss of productivity when you don’t complete your construction project on time.
4 Top Causes of Construction Delays
Are you prepared for the financial consequences of construction project delays? Let’s look at 4 things that can go wrong resulting in work delays.
1. Delays Caused By Bad Weather
Bad weather can sometimes have a lasting impact on your business. For example, a bad hail and wind storm has made it impossible to be on the work site for two weeks. There’s extensive damage and the area is water-logged. You’re unable to get back to work for a month in total. By the time the site’s cleared of debris and everything else, you’re facing a lengthy delay.
It’s highly unlikely you’ll complete your construction project on time, so, you’ll need to hire more contractors. And that’s where your Builder’s Risk Insurance comes into play. Your policy will cover the costs resulting from the delays, such as having to hire temporary staff.
2. Delays Caused By Building Law Changes
Building codes change frequently. If the laws change half-way through and cause extensive delays to the completion time, it’ll be expensive. When that happens, work may stop and that impacts profits. Your business will be covered for any losses incurred by your Builder’s Risk Policy.
3. Delays Caused By Industrial Action
For example, there’s industrial strike action. The local unions have called on all roofers to walkout for several days. It continues for two weeks. Your project is behind schedule, and it hurts your wallet.
4. Delays Caused By Bad Management
Are you running your construction business efficiently? Bad time management and poor team communication can result in time-wasting hiccups.
Construction Delays You Can Avoid
Delays caused by bad management can be avoided by using technology. With Smartphone apps, you can get the extra help you need to keep projects running smoothly and, hopefully, without delays.
The following apps will allow you to organize, manage, and ensure better communication between you and your employees.
- Roofing Calculator
- OSHA Heat Safety Tool
- Plan Grid
- Pro Core
Even if you’re a bit technologically-challenged, you and your business can benefit from these apps. They’re easy to use and interactive.
Complete Your Construction Project On Time
Most causes of delays are out of your control. There’s little you can do about changes in building ordinance; bad weather or labor strikes. But you can protect your business from financial losses that come with construction delays. You are not always able to complete your construction project on time, but you can prepare for damage control.
Financial Protection With Builder’s Risk Insurance
Builder’s Risk Insurance is the safety net when things go wrong. Builder’s Risk Insurance not only covers labor costs, materials and equipment. It also covers profits lost. Financial losses are covered with Builder’s Risk. Having the policy will ensure you and your client aren’t left out-of-pocket because of the delay due to the strike.
When you face costly delays, Builder’s Risk insurance is there to save the day. Whether your employees fail to turn up on time, or a delay due to bad weather, your policy is there for you. But, of course, it’s better to avoid these, if you can. And there’s nothing better to use than apps. Apps for your Smartphone could help manage your team better and avoid the need to make an insurance claim. Let us help you find the right insurance. Call Contractors Liability at 866 225 1950 and get a FREE quote.