Any businessman or entrepreneur will undoubtedly say that running a business in any area is closely related to taking risks. The same thing can be said about the construction business as it can face an obstacle or some unforeseen circumstances at any stage of a project which can subsequently affect its outcome. Not surprisingly, any construction entity wants to prevent risks or get around them. That is why construction risk management is one of the most important issues. Much effort is put into anticipating or reducing risks or lessening their effects on a construction project, irrespective of the fact whether it is a renovation project or a new one. Therefore, a lot of new applications and software, such as building cost estimating software, have been developed for this purpose. So, what are the common factors affecting the construction business and which factors have to be considered while creating software?

Whether it is big or small, no construction project can be initiated without investments to cover its costs. If the inflow of money isn’t regular or if it cuts off, the construction will certainly be behind schedule or will come to a halt, and this fact can worsen the relationship between the parties. It can also lead to lawsuits, or such projects can even be frozen.

Developing an infrastructure project, we shouldn’t forget about its commercial viability and feasibility, that is, ensuring that there will be a steady demand for it during its lifecycle and that the economic benefits of the project will cover its costs, and that the decision to implement this project is based on the correct data, that there are no legal, environmental or technical barriers to it and that it is likely to end up successfully.

Another important aspect is the design. It is a complex process comprising different areas which are interconnected. To ensure the success of a project, any error or omission in design, for instance, failing to meet the prescribed standards or legal requirements, should be prevented or eliminated; otherwise, they can lead to delays and overspending. The same can be said about materials. Manufacturers and contractors can raise their prices for economic reasons; thus, the selected materials will no longer be available for construction. And as we know, the choice of construction materials and methods forms the basis of the budget of any project. If the chosen materials aren’t available or the methods are considered unsuitable, it can jeopardize the whole project.

Construction is considered to be one of the most dangerous spheres. According to the estimates, a lot of casualties or injuries happen on construction sites annually. Accidents can cause additional expenses that may not be covered by insurance, delays, and even costly lawsuits. Dangerous situations can also arise because of unfavourable weather conditions. Weather can produce a great impact on the construction process as well as on materials and equipment. Some activities are not unadvisable during intense heat and cold. Scaffolding and steelwork can’t be done when strong winds blow. Heavy rainfalls can disrupt or delay the construction process. All in all, the above mentioned can result in a suspension or standstill. Talking about accidents, we can’t ignore human-caused ones such as vandalism, fires, stealing of equipment and materials etc., which can have different consequences ranging from those which can be remedied within hours to those which will take days or weeks.

To sum it up, anticipating the above-mentioned hazards and planning adequate measures to remedy them are key steps in the construction area as they help to complete a project on time and in compliance with the budget.