Industry experts estimate equipment theft and vandalism on construction sites cost companies billions of dollars a year. Construction theft includes materials such as timber and other valuable commodities (scrap metal and copper); tools; and equipment such as bulldozers, backhoes, generators and welders. Vandalism on worksites includes broken glass, graffiti, destruction of constructed work and damage to equipment and vehicles on site. Research shows that construction sites are most vulnerable to theft on weekends and an estimated 90% of all construction thefts take place between 6:00pm Friday and 6:00am Monday.
Construction firms engaging in all types of projects are susceptible to theft and vandalism, impacting the success of a project and everyone related with the project, including the property owner, project team, and contractors. In addition to the direct monetary losses, there are indirect costs due to project delays and lost productivity.
Controlling Losses through Loss Prevention
Smart, sound preventative measures can dramatically reduce theft and vandalism losses on construction worksites. Download our Managing Risk: Vandalism & Theft Prevention Measures here. Put these measures into place on all construction sites and vacant properties.
Equally important is purchasing adequate insurance coverage. A Builder’s Risk program should include coverage for theft or vandalism of construction site materials, equipment and tools. This is a critical risk-mitigation tool for any individual or entity (property owners/developers, contractors) with an insurable interest in a construction project. Additionally, if the property is vacant, Vacant Building coverage should be provided to insure the building until it is leased or sold, with coverage included in the event of theft or vandalism. Without these valuable coverages, the cost to replace stolen material and equipment or repair vandalized property would be left to the owner and/or contractor, which could make the difference between making a profit or sustaining a loss on a development or remodel.