Effective RISK MITIGATION poses a particular challenge for construction projects. On one hand, various risk factors have to be considered before, during, and after the project.

While it seems impossible to create an exact risk or cost forecast, you can mitigate risks by reducing the probability or consequences of an adverse risk event to a satisfactory threshold. Taking early action is more effective than trying to repair the consequences.


In a nutshell, the risk management process is a sequence of steps that identify the risks for the successful completion of a project. Construction projects can pose many internal and external risks that may include:

  • Financial risks: Fluctuating material costs, incorrect estimation, payment delays, or financial inexperience of the contractor are just some of the financial risks in a project.
  • Environmental risks: These include severe weather conditions, natural disasters such as earthquakes, pollution, and seasonal implications.
  • Technical risks: These include incomplete design, inadequate site investigation, unavailability of materials, design errors, or changes in project scope or requirements.

One of the best ways to control risks is to understand the different types and take steps to best avoid these risks. Sadly, there is no way to entirely avoid risks since unknown factors will always emerge throughout a project.

Here are the three risk elements that project management should consider:

  • Schedule: Will the project be executed within the projected time frame?
  • Cost: Will the project be completed within the budget?
  • Performance: Will the project output satisfy the business and technical goals?

When these risks are quantified, the project team can develop effective mitigation strategies or add proper contingencies to the project estimate.


Greater Confidence in Your Projects

Once you know your risks, the budget for dealing with them, and have a clear path to mitigating them, you grow confident in the success of your project.

Improved Safety

Risk mitigation is all about identifying and reducing possible risks, problems, or disasters before they hit your project really hard. That’s why a risk mitigation plan is indispensable. Not only it builds trust in your project but also ensures a safe and secure environment for your employees, visitors, and customers. Among other benefits, a good risk mitigation plan:

  • Reduces legal liability and threat of litigation
  • Decreases the number of injuries, hazards, and risks in the workplace

When you invest time and effort to build a solid risk mitigation plan, you reduce the risk of spending thousands of dollars in legal and internal costs.

Increased Profits

All construction projects face the risk of unanticipated events, such as a natural disaster, loss of funds through theft, or injury to employees or visitors. Any of these events can cost your company money or even cause your business to close.

With a comprehensive risk mitigation strategy, you can plan for the unexpected which in turn minimizes extra costs before they happen. Risk mitigation will contribute to higher profits in several other ways:

  • Reduces the likelihood of workplace accidents as you identify areas to improve work processes or training.
  • Reduces and prevent fines, lawsuits, and penalties from costly non-compliance issues.
  • Shows employees that your business cares about their safety which in turn boosts morale.

Risk Mitigation strategies can save you money, reduce the risk of a workplace injury, and protect your finances and other business resources. Thankfully, there are ways to take the pressure off creating and implementing risk mitigation on your own.


How many times have you heard about a business that failed due to “unforeseen circumstances?” With KBCm, you can take a holistic approach to risk management and risk reduction by leveraging our years of experience and expertise. Thanks to fully integrated construction and service management, we deliver everything you need to remain compliant, reduce risks and drive efficiencies –regardless of the scope or complexity of your project.

Our risk mitigation strategies include:

Control processes. We put controls in place with the contractor(s) that take as much risk out of the project as possible.

Auditing. We audit your budget and track every transaction, design changes, etc.

Utilization of multiple contractors. We breakout the scope amongst severalcontractors.

Prefab units. If applicable, we evaluate if a prefab unit can fit the project.

Negotiate materials across several projects at once.