Expert Panel Unveils New Research on Risk Mitigation in Construction

New research published by McGraw-Hill Construction delves into the top factors that make construction such a risky business, and steps that can be taken in a construction project to mitigate this risk. Findings from this study were unveiled in a panel discussion at the 2011 Construction SuperConference in San Francisco, California, on December 15. The official published SmartMarket Report entitled, Mitigation of Risk in Construction: Strategies for Reducing Risk and Maximizing Profitability, was released on December 16.

Among the owners, contractors, design firms, and other industry players polled in the study, changes to project schedules and changes in cost topped their list of concerns relative to risks in construction. Next in line were financial risks and contractual risks. Poll respondents found that the most serious risks were those affecting the project bottom line, while moderately serious risks involved project performance and expectations.

Interface consultants Frank Adams and Chris Sullivan were among the Construction SuperConference attendees able to listen in on the presentation. “While my firm may have experience with and knowledge concerning many of the dispute and litigation issues discussed in the report, I found it interesting to learn what others thought of those issues,” said Adams.

Another key finding from the study notes that the most serious risks, as perceived by the industry, can be directly addressed or mitigated through careful risk management. External factors such as the economy and labor markets are perceived as less dire risks than internal factors that can be controlled from within; like processes, procedures, and relationships. In addition to industry polls, the report features case studies on risk mitigation on complex projects like the Pentagon Reconstruction, as well as discussions of key risks by type of project, the impacts of new technologies on risk, and best industry practices for avoiding risk and litigation.

For information on how Interface Consulting assists construction-industry clients in mitigating risk, please click here.

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