– the benefits employees need to motivate them. Whether workers need financial education, mental health coverage or even childcare, the right kind of benefits will differentiate one construction firm from another, driving engagement and retention for employees who are already in-house. Data analytics can help leaders to determine the right mix of benefits for their employee base.
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Consider alternatives. For a construction business that has come up against weather-related challenges, it may be worthwhile to look into alternative building methods. With modular construction, for example, structures are built off-site and under controlled conditions. This means business leaders and workers won’t have to stop work because of a storm or a heat wave, leading to greater accuracy of project timelines – as well as initial costing estimates. For those firms seeking to get into “mega” projects, modular construction creates an easy opening.
1. Opt-in to technology. Technological innovations are plentiful today, but they serve more than one purpose. Drones and robots not only perform tasks that can be challenging, and even dangerous, for workers, but adopting this solution demonstrates to workers that the leadership cares about their safety and understands that an older worker simply can’t perform that task. Similarly, wearable technology offers data-driven proof that a worker is overheated and overtired and also offers GPS tracking to help find a worker who has fallen.
2. Create a culture of security. Choosing technology solutions isn’t a choice to take lightly. Te solutions also come with risk. As firms introduce these solutions, they must also plan ahead
to prevent cyber attacks. Develop a cyber response plan to protect the business from crimes, as well as a plan for managing the risks if the business is attacked. To make sure everyone is prepared to spot the warning signs, this plan should involve these principles: • Update software and other applications. Cybercriminals often gain access to company data through outdated software. Be sure to perform regular updates and patch vulnerabilities to protect sensitive information.
• Train employees in cybersecurity principles. Teach all workers to handle sensitive or personal information appropriately, and introduce a formal process to confirm changes to plans. Finally, require workers to identify potential threats and report suspicious links, even if they aren’t certain.
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Limit exposures. Successful firms expect the best of their employees; they must also expect the same of their vendors and suppliers. When creating a partnership, specify those standards in any contracts to be sure cybersecurity safeguards are in place for all parties and limit exposures that are beyond your control.
• Adopt multi-factor authentication (MFA). MFA – a security measure that requires the user to provide several methods of verification to access a system – should be used as an additional layer of security for all sensitive information, such as banking data or legal documents.
• Create an incident response plan. Prepare for the worst by developing a plan. Consult with IT experts, insurance consultants and other advisors to make the best possible incident response plan. Be sure all stakeholders know what to do – and
what not to do – in the event of a cyber attack. Finally, prepare all stakeholders by holding tabletop exercises to role-play specific scenarios.
3. Gather a team of advisors. Everyone needs guidance from time to time. When it comes to risk, an experienced insurance broker is an invaluable tool. Brokers can help identify and secure sufficient insurance coverage for the business, both in terms of the right kinds of policies and appropriate limits. Be sure to include cyber coverage in your considerations. When insurance isn’t enough, brokers are often well versed in alternative risk transfer options to mitigate the risk. Note: Familiarize yourself with some of the lesser-known coverages, including parametric insurance, which offers a payout for a policyholder when a certain threshold is reached, such as a certain amount of rainfall within a short period of time or a certain number of days in a row with temperatures over 100 degrees Farenheit. For firms with “megadeal” projects, project-specific insurance can protect the rest of the business from a major incident on that one project. Construction firms can no longer afford
to ignore risk when planning a strategy for the future. Tose that put risk management at the center of its strategy will be better able to beat the odds of success, easily identifying exposures and utilizing a plan to protect the business from incident – whether that incident comes from the weather, the econ- omy, or even a cyber attack.
Mark Wooditch is the Los Angeles Orange County construction practice leader for global insurance brokerage Hub International. He spent 30 years at The Wooditch Company, Insurance Services, Inc., with a focus on commercial contractors. In 2023, the practice was sold to HUB.
CALIFORNIA CONSTRUCTOR NOVEMBER/DECEMBER 2025
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