How to manage risks in renovation projects?

Home, office or any renovation projects are a stressful experience for many owners, especially if there are multiple contractors involved. Every one of these projects carries specific risks, and unfortunately, we can’t avoid them. These risks can either sink your entire construction and renovation process or end up in casualties. So, you must be wondering what the best way to ensure proper renovation risk management is? Well, the answer is in great processes. So, here are a couple of steps which can help you keep all the risks under control and avoid any significant damage.

Project

The potential construction risks

To start the management process, you need to draw the list of things that could jeopardize your project.

Occupational risk – first of all, an injury which can be fatal to a worker because of behavior, tools that he uses, whether or third party involved.

Financial risk – In this case, you can expect unmanaged growth in oil prices, building supplies, problems with the economy and risking in interest rates.

Project risk – lack of proper project management, inadequate company policies and miscalculation of time and recourses required.

Natural risk – floods, earthquakes and other natural phenomena that can damage your constrictions site and make the work impossible.

How can you manage these risks?

One of the easiest ways would be to talk with your insurance broker and tell him about the things you are planning to do before the renovation starts. If you are investing a lot of money in this project, then you should consider the homeowner’s policy that is likely to cover a loss, by paying the full replacement cost. On the other hand, this more than generous provision comes with a couple of limitations. First of all, the homeowner needs to move out during the renovation process. The following fact is essential and make sure to remember it, if you fail to notify your broker, it may result in massive deductibles or even the policy loss, if you suffer some damage.

Select a licensed contractor

There is also another way to mitigate the risks, and that is if you choose a qualified and licensed contractor who has been approved by the state licensing bureaus. Doing a little research, you can easily find such company or individual. This will ensure you that your project runs smoothly. Once the construction has started, you are required to provide the worksite safety for your family members as well as construction workers. For example, all flammable liquids should be stored in appropriate containers, the fire extinguishers should be in place, and alarm system is working correctly.

Some insurance companies may request a course of construction endorsement to current policy, but this depends on various criteria. Make sure to have a meeting with your insurance agent before and after construction because you might need to make some additional adjustments. Planning is a crucial thing, and home renovation is a massive project that requires a lot of time and money. But, if everything is done correctly, you will have nothing to worry about.