A new Dodge Data & Analytics report highlights the differences in perspective on risk mitigation between owners of a project and general contractors or trade contractors.
Owners feel the greatest impact from planning/scope changes, schedule changes and cost escalation, while GCs and trade contractors are more concerned about labor procurement and contractual risks (from how risk is apportioned directly by the contracts, to issues like warranties, guarantees, etc.). These varying perspectives on risk lead to differing priorities when selecting the best risk evaluation and mitigation strategies.
The report, Managing Risk in the Construction Industry, lists the top five risk factors to owners, GCs and trade contractors as Labor procurement risks/subcontract management, schedule changes, contractual specification of risk, planning/scope changes, and contractual risk (e.g. warranty guarantees).
In addition to identifying the risks owners and contractors face, the report presents what are touted as the “most effective risk evaluation and mitigation strategies.”