Risk Management

Posted on LinkedIn 9/29/25

Risk Management – Protect Your Business Before It Breaks You

Construction companies rarely fail because they can’t perform; they fail because they do not manage risk.

Some basics for protecting your company:

1️⃣ Always Put It in Writing
Verbal agreements will bury you. If it’s not in writing, you’ll lose the argument every time. Even a simple email can save you. Never rely on texts for dollars or obligations.

2️⃣ Watch the Money
Cash flow kills more contractors than bad work. Know your customer’s pay cycles and watch A/R. And before adding payroll or making a big purchase? Check your P&L. Numbers don’t lie.

3️⃣ Field Discipline
Inspect work before you pay. Never pay partials — pay 100%, but only when the task is 100% complete. And remember: if your crews don’t care about exposure, your company is at risk.

4️⃣ Transportation & Safety
If crews haul materials unsafely or cut safety protocols on site, you’re company is exposed. These behaviors don’t just lead to lost dollars — they risk your company’s survival.

5️⃣ Engage Your Entire Team
Risk management isn’t just ownership’s job. Everyone needs to see risk management as job preservation — because it is.

👉 Bottom line: Most “bad luck” in construction is just poor risk management. Write it down. Track the money. Inspect the work. Control logistics. Engage your people. Reduce risk, grow profit.