Travelers explores the 6 top risks for the construction industry and offers Quick Tips and things to consider to help navigate these risks.

1. PRESENTED BY
THE RISK LIST: TRAVELERS INSIGHT EDITION
TOP RISKS FOR
THE CONSTRUCTION
INDUSTRY
CLICK TO EXPLORE
6

2. PRESENTED BY
The skilled labor shortage and an
influx of inexperienced workers
can drive up costly accidents and
injuries.
SHIFTING
WORKFORCE
1#
THE RISK LIST: TRAVELERS INSIGHT EDITION
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3. Promote a culture of safety
with these tips:
1. Attract and hire qualified employees.
2. Train and onboard them with instruction
on safety best practices.
3. Support and engage workers
throughout their employment.
PRESENTED BY
SHIFTING WORKFORCE
QUICK TIPS
THE RISK LIST: TRAVELERS INSIGHT EDITION
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4. PRESENTED BY
With a less experienced
workforce, long-tail construction
defect claims are on the rise.
CONSTRUCTION
DEFECT
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5. PRESENTED BY
Be proactive with these tips:
1. Keep up with current codes and
understand the products you use.
2. Be diligent in establishing your risk
transfer opportunities.
3. Document every step in the
construction process.
4. Have a robust Quality Assurance/
Quality Control (QA/QC) program.
THE RISK LIST: TRAVELERS INSIGHT EDITION
CONSTRUCTION
DEFECT
QUICK TIPS
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6. PRESENTED BY
Owners continue to shift more
liability to contractors via
contract language.
CONTRACTUAL
RISK
3#
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7. PRESENTED BY
Know what to look out for during
contract discussions:
1. Be aware of contract risks and projects with poor
or incomplete plans.
2. Look for unreasonable requirements to file a valid
claim for additional costs.
3. Understand the risks of extended contract warranties
and Operations and Maintenance provisions.
4. Be aware of “flow down” provisions which
incorporate contract obligations of the General
Contract into the subcontract agreement.
5. Be sure that the owner can fund any potential
changes in the contract.
CONTRACTUAL
RISK
QUICK TIPS
THE RISK LIST: TRAVELERS INSIGHT EDITION
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8. PRESENTED BY
Increasing demand may drive
general contractors and
subcontractors to take on larger
jobs or more projects than they
have the capacity to handle.
OVEREXTENSION
4#
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9. 4
Consider these steps when determining the best
interests of your company:
1. Examine whether the strategy to
grow your company is sound.
2. Understand that growth can mean
subcontractor and control problems.
3. Be sure that your company’s cash
resources can fund growth demands.
4. Ensure that accounting and cost
systems meet a growing revenue base.
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OVEREXTENSION
QUICK TIPS
THE RISK LIST: TRAVELERS INSIGHT EDITION
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10. PRESENTED BY
Poorly managed hot work
activities or shortfalls in site
security, especially in wood
framed construction, can
result in costly losses.
FIRE
5#
THE RISK LIST: TRAVELERS INSIGHT EDITION
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11. PRESENTED BY
Develop a site specific fire safety
program based on NFPA 241 Standard for
Safeguarding Construction, Alteration and
Demolition Operations that includes:
1. A formal, written, hot-work
permit program with all trades
and subcontractors
2. A dedicated permit authorizing
individual (PAI) to provide oversight
of the program.
3. Designated and trained fire watch
for all hot work activity.
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5FIRE
QUICK TIPS
THE RISK LIST: TRAVELERS INSIGHT EDITION
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12. PRESENTED BY
Unattended jobsites can result in
unknown damage from leaking
or frozen pipes, smoldering hot
work, and theft or vandalism of
equipment and materials.
SITE
PROTECTION
6#
THE RISK LIST: TRAVELERS INSIGHT EDITION
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13. PRESENTED BY
Take precautions to make sure your site
is protected when unattended:
1. Prevent unauthorized access to the site with
a layered approach to security including off
site locations consisting of physical controls,
electronic surveillance and security guards.
2. Protect on site business systems and
equipment from physical damage such as
water, temperature extremes or vandals.
3. Install and update building monitoring
systems as construction progresses to help
better manage the conditions of the site.
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6SITE PROTECTION
QUICK TIPS
THE RISK LIST: TRAVELERS INSIGHT EDITION
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14. FOR MORE INFORMATION
visit travelers.com/construction
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THE RISK LIST: TRAVELERS INSIGHT EDITION
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