3 Key things construction project managers To Do reduce risks

In this blog, I’ll share three key things you can do as a construction project manager to reduce risk. These strategies will help you safeguard your projects, protect your career, and maintain peace of mind. By the end of this, you’ll have a strong foundation for managing risks effectively, ensuring that your projects run smoothly and successfully.

The Beauty of Risk Management

Risk management might seem daunting at first, but once you get accustomed to identifying and addressing risks, it becomes a powerful tool. When you foster a culture of proactive risk management, you not only minimize potential setbacks but also create a more resilient and successful project. Here’s how I developed my risk management strategies.

How I Learned Effective Risk Management Strategies

As a superintendent, I participated in risk management efforts where we evaluated potential risks during different phases of the project. We attached timelines and cost estimates to each risk, making the process quite engaging. Then, I came across a fantastic book titled How Big Things Get Done, which changed my approach to risk management.

The book emphasizes that managing risks isn’t just about identification and mitigation—it’s also about anchoring. This means gathering data from similar projects to understand the risks they faced and applying those lessons to your own projects.

 Anchoring expanded my mindset, and now we include anchor and risk data in the risk registers early on during pre-construction. This practice allows us to effectively manage risks throughout the project lifecycle.

The Real Issue: Not Finding Problems

One key lesson I’ve learned is that the real problem isn’t the presence of problems on a project—it’s thinking that there aren’t any. Projects inherently come with risks, but ignoring them or failing to address them is where the danger lies. 

That’s why we need to use the Identify-Discuss-Solve (IDS) method: recognize problems, talk about them openly, and then solve them. It’s this mindset that enables teams to operate with clarity and efficiency.

Now, let’s dive into the three key practices for reducing risk on your projects.

1. Comprehensive Risk Assessments

Comprehensive risk assessments should happen at multiple points throughout a project. One of the most critical moments is at the beginning when you’re setting up your project for success. Here’s how I do it:

• Start by reviewing your prime agreement and Division One specifications. This gives you a strong sense of the key responsibilities and potential risks.
• Host a pre-construction risk review meeting with your team to identify potential risks and anchor the project.
• Equip your team with two key documents: the prime agreement/Division One specifications and the risk register. These ensure that everyone on the team understands both the contractual obligations and the risks to look out for.

This initial risk assessment sets the stage for success because your team can see the risks, understand them, and take proactive steps to mitigate them.

2. Effective Communication and Documentation

Once risks are identified, they must be thoroughly documented and communicated. Effective communication and documentation are crucial to managing risks successfully. Here’s how it works:

Imagine you’re two-thirds into a project, and a vendor informs you that a crucial piece of equipment will be delayed by several months. Without proper documentation, your conversation with the project owner becomes a reactive one, leaving you in a vulnerable position.

However, if you have maintained accurate documentation of your procurement log and risk register, you can show the owner exactly when and where the issue arose and how your team has been addressing it. This allows for a much more proactive conversation, where you’re demonstrating control over the situation and presenting potential solutions, rather than just reporting bad news.

3. Active Risk Mitigation

The final and perhaps most important practice is actively mitigating risks. Simply identifying and documenting them isn’t enough—you need to take action.

One effective strategy is to ensure that each person on your team is responsible for managing specific risks. For instance, assign geographical areas of control to your superintendents, assistant project managers, field engineers, and project assistants. 

They should not only know the risks in their areas but also actively work on mitigating them. This approach ensures that risks are being addressed continuously and systematically throughout the project.

Additionally, your team should meet weekly to discuss risk mitigation efforts. During these meetings, the person responsible for each risk provides updates on the progress, ensuring that nothing falls through the cracks.

The Key to Reducing Risks

To sum it up, reducing risks on a construction project comes down to three key practices:

1. Identify risks through comprehensive assessments.
2. Document and communicate risks effectively so they can be tracked and managed.
3. Actively mitigate risks with your team, addressing them consistently throughout the project.

By implementing these practices, you’re not just protecting your project from potential pitfalls—you’re creating opportunities for success. With a risk management strategy in place, your team will be empowered to handle challenges efficiently, improve project outcomes, and even find ways to enhance profitability.

I hope you’ve enjoyed this blog, and I look forward to helping you achieve even greater success in your projects.