fbpx

Business Continuity and Crisis Management Consultants

You are here: Home / Business Continuity / Building a Robust Business Continuity for Construction Plan
Construction with cranes in Tokyo

By //  by 

The construction industry is no stranger to risk. Project timelines, material availability, site safety, compliance — it’s a lot to manage. But there’s one risk that can bring everything to a grinding halt: disruptions. That’s where Business Continuity for Construction comes in. This isn’t just about weathering a storm or navigating a pandemic, although those things definitely factor in. It’s about weaving resilience into the very fabric of your construction company so you can keep building toward success, no matter what comes your way.

Consider this: McKinsey research shows that construction represents 13% of global GDP. That’s a massive economic engine, but it’s also a sector with notoriously tight margins and complex interdependencies.

What is Business Continuity in Construction?

According to ISO 22300, Business Continuity is the capability of an organization to continue the delivery of products and services within acceptable timeframes at predefined capacity during a disruption.

In construction, Business Continuity is more than just disaster recovery. Disaster recovery often focuses narrowly on IT systems, while true business continuity takes a broader approach. This is critical for small business owners and large companies alike.

A Business Continuity Plan for Construction asks those tough “what if” questions, covering everything from natural disasters to cybersecurity breaches and supply chain disruptions. How would you keep projects moving if your office was inaccessible? What about a critical material shortage? These are the kinds of scenarios a strong BCP anticipates and addresses.

Building a Resilient Foundation: Key Elements

Constructing a solid Business Continuity Plan involves a multifaceted approach that goes beyond just checking boxes. Let’s dive into the key elements.

Risk Assessment: Know Your Weak Points

Think about a skyscraper. You wouldn’t just start building without first analyzing the soil, right? Business continuity works the same way.

A Business Impact Analysis can guide you through assessing potential risks. It involves identifying vulnerabilities in your operations. This might include natural disasters common to your area, potential cybersecurity threats, or even economic downturns that could impact project funding. Once you know your vulnerabilities, you can start building in safeguards.

The Power of Prevention

Think of this stage as laying down strong rebar.

Can you reduce the likelihood of certain disruptions happening? This could involve robust cybersecurity protocols to prevent data breaches, diversification of your supply chain to mitigate material shortages, or regular equipment maintenance to minimize downtime. An ounce of prevention is worth a pound of cure, especially in construction. Taking these steps can help you ensure business continuity.

Response and Recovery Planning

Here’s where you create detailed plans for what happens when disruptions occur. This could include having alternative work locations lined up, backup communication systems, or pre-negotiated agreements with suppliers for emergency materials.

Think about things like evacuation procedures, emergency communication protocols, and how you’ll handle insurance claims. Make sure your plan includes steps to get your business running smoothly again as quickly as possible. This is a good idea to protect your business.

The People Factor: Training and Awareness

Your employees are the foundation of your business. Having them trained on Business Continuity plans and aware of their roles during a crisis can mean the difference between a minor hiccup and a major setback.

This means regular training and awareness programs to make sure everyone knows what to do when the unexpected happens. If your team is prepared, they can respond quickly and confidently, minimizing disruption to your projects. This could involve things like tabletop exercises to simulate different crisis scenarios or refresher courses on emergency procedures.

Why BCP Is More Than Just a Checkbox

Construction companies invest a lot of resources into their projects, so having a BCP in place is crucial. I’ve seen firsthand the devastation that disruptions can cause in construction.

But I’ve also seen how companies with solid Business Continuity Plans can not only survive but thrive, even in the face of adversity. This is especially important when understanding business in today’s climate.

This is crucial: Statistics paint a stark picture of why Business Continuity for Construction is non-negotiable. The Federal Emergency Management Agency (FEMA) estimates that 40 – 60% of small businesses never reopen following a disaster, and 90% of smaller companies fail within one year unless they can resume operations within five days. These figures underscore the importance of a robust BCP for any construction firm.

And don’t think you’re off the hook if you’re bigger than a small business. That global software security giant CrowdStrike had a recent system crash that crippled clients’ systems, leading to widespread outages.

Here’s why: Implementing the right tools can help keep your business up-and-running and thriving. ERP software can be helpful such as Sage Intacct because it lets you scale your business. Enterprise-level options are also available like Sage X3, which gives the benefit of letting users customize it. But if retail is a big part of your construction business, don’t overlook tools like Brightpearl by Sage. Of course, cost is always a factor, which makes options like Sage 100, which offers tools to automate accounting and payroll, and Sage 300, which assists in managing accounting and inventory, very compelling for businesses of any size. Having these systems in place long before they’re needed means you’ll be operational much more quickly.

FAQs about Business Continuity for Construction

What is BCP in construction?

In construction, BCP refers to how prepared your business is to keep projects moving smoothly during unexpected events. These events could be things we often see in the industry, like extreme weather affecting a job site, or unexpected supply shortages for essential building materials. It’s about anticipating these potential roadblocks and coming up with plans to minimize disruptions so you can continue building—and delivering—on time and within budget.

What are the 5 components of a business continuity plan?

The five crucial pieces are:

  1. Identifying your critical business functions.
  2. Conducting a Risk Assessment. What could interrupt those key functions? Think broadly, from IT glitches to natural disasters.
  3. Developing your strategy to combat each identified risk. What workarounds will keep your core operations going?
  4. Actually writing down your BCP. Distribute it to key personnel. Training will help things run smoothly.
  5. Regular testing and improvement. Like any good construction project, Business Continuity is an iterative process.

What is construction continuity?

Simply put, this refers to a project’s ability to move forward even when the unexpected happens. Imagine this: A critical subcontractor goes bankrupt mid-project. Will that completely derail your timeline? With good construction continuity planning, the impact can be mitigated. Maybe you have a backup subcontractor ready to go, or alternate sourcing for vital materials.

What are the 3 main areas of business continuity management?

Here’s what is crucial to your BCP strategy:

  1. Risk Management: This forms the bedrock of any effective business continuity strategy. The aim here is to anticipate potential threats to your construction operations, whether natural disasters, cyberattacks, supply chain issues, or other emergencies, and put safeguards in place.
  2. Business Recovery: The name speaks for itself—it’s all about figuring out how you’ll dust yourself off and keep moving if and when disaster strikes. Having those documented procedures means you can swiftly relocate critical business functions, manage data recovery, and ensure smooth communication, even when the unexpected happens.
  3. Incident Management: Having a clearly defined, rehearsed plan to deal with disruptive events—that’s incident management. A solid structure makes it easier for teams to communicate, implement recovery procedures, and get back to business as usual in a streamlined and timely fashion.

Conclusion

In construction, reputation is everything, and nothing protects that reputation like solid Business Continuity for Construction. Think about it. When a client trusts you with a project, they are also putting their faith in your ability to deliver, come hell or high water. You might not be able to control the weather, the global economy, or the cybersecurity landscape, but you can control how your construction business prepares for and responds to those challenges.

Want to work with us or learn more about Business Continuity?

About Bryan Strawser

Bryan Strawser is Founder, Principal, and Chief Executive at Bryghtpath LLC, a strategic advisory firm he founded in 2014. He has more than twenty-five years of experience in the areas of, business continuity, disaster recovery, crisis management, enterprise risk, intelligence, and crisis communications.

At Bryghtpath, Bryan leads a team of experts that offer strategic counsel and support to the world’s leading brands, public sector agencies, and nonprofit organizations to strategically navigate uncertainty and disruption.

Learn more about Bryan at this link.