From the course: Construction Management: Managing Risk

Unlock the full course today

Join today to access over 24,000 courses taught by industry experts.

Defining risk

Defining risk

From the course: Construction Management: Managing Risk

Start my 1-month free trial Buy for my team

Defining risk

“

- Risk in construction can broadly be described as the exposure to any loss. In the construction industry, we're exposed to many types of potential loss everyday. We could lose money, we could lose precious days in our schedule, a worker could get hurt on the job site, a tragic mishap could injure a passerby, we could fail to recognize the significance of a change in scope. One of our trade contractors or suppliers that we have a contract with could have financial difficulties that impact their ability to deliver as promised. These are all examples of the types of risk that we have to manage every day on a construction project. And that really is an important concept, we must manage risk. Think about that for just a minute. I did not say that it's our job to eliminate risk. Because is that really even possible. I don't think so. Our attorneys may want us to eliminate all the risk. Have everyone that sets foot on or near the job site sign away all their rights, in case we do something…

Contents