Do you worry that your building under construction may catch fire? Or get vandalized? Does the thought of stolen heavy equipment or construction materials make you nervous?
You’re not alone. In fact, a study from the Chartered Institute of Building found that 92% of respondents in the construction industry suffer from regular site theft. One in five of these respondents added that theft takes place on a weekly basis from their sites.
The NICB (PDF) adds that the average value of a stolen piece of construction equipment is $46,273. They add, “Annual estimates of the cost of equipment theft vary from about $300 million to $1 billion, with most estimates in the range of $400 million.” What’s worse? “The estimates don’t include losses from business interruption. Those losses include the cost of rentals, project-delay penalties, and wasted workforce and management time.”
In other words, construction site theft is a prevalent and expensive problem in the industry.
How can you prevent it?
Construction risk insurance.