How to Protect Your Schedule & Profit

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.

The good news is that some simple planning steps can greatly minimize the risk of negative financial impacts from accidental water damage on a jobsite.
 

Proactive Steps: Building a Water Damage Mitigation Program

Protecting your project from water damage doesn’t require a massive overhaul but does demand a calculated, phased team approach. Creating a water mitigation program can give you confidence that your team, tools and processes are prepared to respond quickly and minimize damage.

Preconstruction: Prepare Your Plan

Assess Critical Risk Areas 

Evaluate the unique exposures such as high-value equipment, inventory or finishes that can be damaged on your project, and create a plan for responding to a water event.

Develop Formal Programs Including Roles & Responsibilities

• Wet work permit — Establish a permit system and use valve tags for water-related activities to ensure precautions are followed.
• Response plan — Outline steps for addressing incidents quickly and efficiently, and assign roles to specific team members.
• Consider including water sensor technology into your bid — Use sensors to detect water leaks and monitor flow, temperature and humidity. Utilize solutions that offer remote shutoff features when possible.
   

During Construction: Monitor & Train

1. Perform routine site checks to identify and address any potential for damage due to water hazards.
2. Provide consistent training during toolbox talks so that all team members are familiar with water damage prevention and response actions.
3. Monitor weather forecasts for significant events. Establish protocols for securing the site in case of storms.
4. Use a defined closing checklist to ensure simple protocols are completed to prevent losses when the site is not occupied.
5. Use real-time smart water technology to detect and control water-related risks if they occur.

Post-Construction: Hand Over a Protected Site

1. Regularly inspect the building for any signs of water intrusion until the site is under the management of the owner.
2. Consider monitoring systems that can be transferred to the project owner.

The Power of Technology in Mitigating Water Risks

Water damage prevention has advanced alongside new technology, making it easier to detect leaks, respond remotely and prevent costly damage. Today’s water monitoring systems continuously scan for issues, sending alerts to your team or activating shutoffs if needed. Wet work permits and valve tags also help organize and manage water work on-site, ensuring the right steps are taken every time.

Secure Your Projects & Protect Your Business

As the numbers show, water damage can be a costly delay, but proactive steps make a difference. By following the steps outlined in this article and setting up a thorough water damage mitigation program, you’ll be safeguarding your projects, protecting your profits and enhancing your reputation in the industry. After all, construction is challenging enough — let’s keep water damage out of the equation.