How to Protect Your Schedule & Profit
Date Posted: January 9, 2025
Posted In: Discussion, Workforce,
From Construction Business Owner: Imagine this: Your project is days away from completion. You get a call on a Sunday morning from local law enforcement who noted water flowing down the front steps of your project and onto the city street. A water line has been leaking since Friday, and a large section of the lower level of the building has standing water. By the time you arrive, more than $500,000 in damage has occurred, and you are left managing not just the water cleanup but also the client’s mounting frustration, as the project will not meet the deadline.
This situation is a stark reminder that water damage on construction sites isn’t just a minor inconvenience — it can halt projects, erode your profits and impact your reputation.
As a construction business owner, you know the risks of working on a jobsite, but few sources of loss are as frequent and increasingly costly as water damage. Nationwide’s construction claims data shows that nearly one-third of all liability losses on construction sites are caused by water damage. Further, the cost of water damage claims has been rising year over year, with median claims costs up 21%. And if that doesn’t concern you, then maybe this will: Since 2015, claims surpassing $500,000 have doubled, and those over $1 million have tripled.
The data is clear: Effective water damage prevention is essential for all contractors. While plumbing and HVAC contractors face the highest risks, 40% of water damage claims stem from many other trades, including electricians and carpenters. Even without water work in your scope, your company is still at risk.