R I S K M A N A G E M E N T
Managing
Risk
During a
Time of
Change
Risk management
needs to be a priority for
Alberta contractors
By Shawn Bower, Lloyd Sadd
These are unprecedented times. Amid a worldwide
pandemic that has rattled our country and the
province of Alberta to the core, we’ve experienced a
collapse in oil prices, provincial unemployment rates that are
hovering around 15 per cent and an economic future that is
uncertain. With so much downward pressure impacting the
construction industry, it can be tough to see a light at the end
of the tunnel. However, there are hopeful signs of recovery
as the province begins to relaunch, construction season is
getting into full swing and companies across Alberta are
getting back to work.
Managing risk during a time of change has become a
priority for many. Leading contractors are re-evaluating their
business paradigms to manage these risks and maximize
profits. Many potential risks can impact the bottom line. The
guiding principles of risk management are to identify, analyze
and implement systems to mitigate these risks. Critical
exposures include such things as:
• Occupational health and safety (OH&S) compliance
• Sub-contractor controls
• Contract disputes
• Cost and schedule overruns
• Environmental exposures
• Managing change orders
• Machinery and equipment protocols
• Labour shortages
These all have the potential to derail a project and cause
undue hardship during the lifecycle of a job.
In an effort to manage these risk factors, companies are
leaning heavily on technology to help drive efficiencies across
divisions and allow for collaborative communication in real
time. Construction software programs integrate HR systems
(hiring, orientation, training, skills assessments) directly into
the OH&S platform that provides all the necessary com-pliance
documentation. From daily toolbox meetings and
hazard assessments to standard operating procedures and
real-time incident/accident tracking, these IT platforms are
helping companies manage their risk. They are typically
stored in the cloud so employees can access all their systems
24/7. Management has live dashboards to monitor key per-formance
indicators, which facilitate decisions on manpower,
equipment required and project specific initiatives in order to
drive cost savings. Project-specific software also incorporates
drawings, engineered specifications, change orders, scope,
schedule and costs so that everyone involved with the project
has accurate real-time data.
Fleets and Yellow Iron are now coming from the manufac-turer
with telematics and maintenance software programs as
part of the package. Companies can now visually see where
every piece of equipment is, how fast they are travelling
(with speed alerts), idle time, hard braking and much more.
This software enables contactors to apply geo fencing for a
Aleksandar Mijatovic/123rf
ALBERTA HEAVY Quarter 2 2020 33