Construction World October 2024

MARKETPLACE

Best practices for managing risk AND ALIGNING COMPLIANCE The tragic collapse of an apartment building in George earlier this year, which resulted in the loss of 34 lives, serves as a stark reminder of the critical importance of adhering to best practices in construction to manage risk and ensure compliance. The incident underscores the need for stringent regulatory oversight, robust risk management, and unwavering commitment to safety standards in the construction industry, writes Wynand Botha, Associate Director at BDO South Africa .

B efore initiating a project, it’s critical to ensure that construction adheres to the South African National Standards (SANS) 10400. These regulations ensure the safety, health, and sustainability of buildings. Compliance to these standards begins with a clear understanding of regulatory obligations, ensuring that the construction entity and individuals involved are competent and qualified. SANS 10400 mandates that buildings must be structurally sound and capable of withstanding various forces, including wind. The regulations also emphasise space requirements, accessibility, and ceiling heights to ensure the building’s intended purpose is achieved efficiently and comfortably. Public safety, particularly fire safety measures, is key here, along with proper demolition procedures to prevent accidents and minimise environmental impact. Safe construction site practices, including security, waste disposal, and erosion control, are also considered essential. By diligently applying these regulations to a project, structures can meet the highest standards of quality and safety while minimising their environmental impact. Ensuring compliance To ensure compliance throughout the construction process, companies must stay abreast of regulatory changes. They must also communicate the importance of compliance to their employees and designate a compliance champion, who can bridge the gap between the teams and legal advisors while constantly monitoring compliance using appropriate tools. By implementing a robust quality management system, companies can stay on top of this process. This would involve effective document control, and comprehensive training programmes. It also means being prepared for regulatory audits and operating in a validated environment to ensure compliance. One of the most common compliance issues in construction is poor documentation management. With numerous parties involved in a construction project, communication issues and slow response to change orders can arise. Implementing appropriate policies and procedures, and leveraging construction management technologies, including paperless operations, can mitigate these issues. Primary risks and how to manage them Construction projects face a variety of different risks. Common issues include construction delays and late

delivery of projects to poor quality of infrastructure, lack of skilled labour, material availability and general quality issues. Underpinning these risks is inadequate planning and project management. Delays can result in financial penalties and poor quality, which can lead to defects and, in the case of the George, collapse and tragedy. Effective risk management involves comprehensive risk assessments, clear definition of scope, roles, and responsibilities, and detailed mitigation plans for known or potential risks. Comprehensive risk assessments should be conducted and integrated into a project’s planning phase to prioritise significant risks. Project managers and directors must prepare detailed mitigation plans and ensure all stakeholders understand their roles and responsibilities. Technology can play a vital role here. Accurate measurement and monitoring of the exposure and vulnerability of infrastructure systems can assist in making informed decisions, while data analytics can spot risks early and mitigate them. Wearable technology can also be used to track ergonomics, movement, and environmental conditions on construction sites to prevent injuries and monitor workers’ locations in real-time. Ensuring due diligence Due diligence is a key part of minimising risk, enhancing project outcomes, and ensuring informed decision-making. This includes thorough investigation and assessment before committing to a project, taking into account location-based risks, construction challenges, regulatory and commercial risks, as well as financial health, and management team experience. Comprehensive due diligence involves evaluating the construction company’s business status, financial performance, organisational structure, workforce, and legal compliance. Stakeholder engagement is also crucial to this part of the process. Engaging with stakeholders ensures project goals align with community needs, environmental concerns, and economic priorities. Early detection of potential risks and transparent communication with stakeholders not only builds trust but can also facilitate informed decision making. Designing for long-term durability To ensure long-term durability and minimal maintenance, a project must integrate operations and maintenance goals early in the design process. Durability planning should

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