There’s a famous line from John Steinbeck’s Of Mice and Men about the best-laid plans, and how they often go awry. In his novel, Steinbeck wasn’t speaking about the construction industry, but the words are applicable to one of the world’s most in-demand lines of work.
Most construction projects begin in the summer for a variety of reasons: there are longer daylight hours, more favorable weather conditions, and demand for the work generally increases during warmer months. But as severe storms become more regular and material costs increase, many projects are experiencing delays and setbacks that move the work later in the year.
If you’re noticing more cranes and equipment moving around despite colder temperatures, it’s not a coincidence. Delays have always been common, but they’re becoming more common due to weather and cost.
Brokers play a key role in educating construction clients on why delays might happen, the insurance ramifications, and what they need to know about the impacts on their business.
Construction delays are on the rise in the United States
A December 2023 survey conducted by the American Institute of Architects found that nearly one-third of construction projects in the previous year experienced delays. That number increased from 22 percent in 2022.
What that means for construction contractors is two-fold; one, work is likely to extend later in the year when conditions are not as favorable. Second, costs associated with those projects are likely to increase.
What are the implications of a delayed winter construction project?
Construction delays are more than just a headache – they can alter the long-term future of a project. From a cost perspective, this can (in some cases) amount to 30 percent of a daily project rate for each day lost, which adds up quickly.
If a project extends into later months and seasons change, some contractors may encounter scheduling conflicts as well. In summary, delays are problematic and present a wide range of issues for companies as they look to complete the work on budget and within a reasonable time frame, which poses risks to clients.
How brokers can assist clients during winter delays
Preparedness is one of the most important factors that can help a construction company through delays, particularly in the winter.
Because of colder temperatures, changes to the soil and ground on a work site, and severe weather, the nature of construction work can pivot on a dime. Soil that was used in excavation, grading and foundational work in the summer won’t be the same in cold weather, which requires detailed planning and action items for each step of the process.
Without preparation, construction contractors face further inflated costs, lengthened timelines and other challenges to the project.
Have a clear communication plan in place
Brokers can educate clients on the best coverage for their business and employees, but taking it a step further, helping them understand the proper protocols for winter construction work can save them time and money in the long run.
Clear, detailed communication plans are essential if work is performed in the winter; these plans should explain in detail any changes to equipment, labor or materials that result from colder weather.
SitePro provides coverage for construction companies that can protect against losses incurred by delays, and damages to equipment due to inclement weather and winter conditions.
Keep detailed records of hours, budgets, labor
Meticulous logs of hours and budgets help contractors stay ahead of potential problems, and can help limit their risk when working in winter conditions. Budgets may need to be adjusted based on labor availability or condensed timelines, and if clients have a record of where they stand, those quick pivots and changes are easier.
Assess, communicate, and adjust accordingly
Navigating risk when construction projects are delayed should be a top priority, but often it is overshadowed by financial considerations. Brokers can support clients by regularly checking in to see where projects stand, if they have concerns, and reminding them of specific coverages that protect them in the event of a claim or accident.
SitePro is trusted by construction companies in all seasons
Construction businesses across the United States trust SitePro because it’s not an out-of-the-box insurance solution; SitePro is powered by industry-specific coverages that take an individual client’s business into account, covering everything from the total value of assets, number of employees, risk exposures and more.
Rated A+ by A.M. Best, SitePro offers more than 35 years of experience in helping construction clients navigate the nuances and complexities of their work. SitePro provides strength, stability, and the security your clients need to focus on successfully growing and running their business.
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