Work zones are essential to be able to maintain and upgrade our roadways. However, work zones can be dangerous because hazards often appear unexpectedly, endangering roadway workers and motorists. So, how can we make work zones safer? Creating safe work zones requires risk management strategies to be implemented by employees, supervisory personnel and contracting agencies. And putting these strategies into place is essential.

In 2020 alone, 857 people were killed and 44,000 people were injured in work zone crashes. Of those 857 fatalities, 479 were in construction zones, 314 were in work zones of unknown types, 56 were in maintenance zones and 8 were in utility zones.¹

To help people better understand the importance of work zone safety, National Work Zone Awareness Week was established. The annual campaign is held at the start of construction season to encourage safe driving through highway work zones.

The Four Areas in a Traffic Control Zone

Most temporary traffic control zones are divided into four areas:³

The Advance Warning Area

This is a section of the highway where motorists are informed of the upcoming road work. This is the first notice that road users see of the work zone.³ It is important to ensure you have proper signs, arrow panels or message boards advising what motorists can expect in the upcoming work zone.

The Transition Area

This section redirects road users from their normal path away from the work zone. It is important to consider the speed limit when setting up this transition area. The higher the speed limit, the longer the transition area will need to be.³

The Activity Area

This area is the section of the highway where the work activity takes place. To ensure safety for motorists and work zone employees, it should include a space set aside for workers, equipment and materials. There should also be a space for the traffic to flow through. A work zone should include additional buffer space that separates moving vehicles from the workspace.³

The Termination Area

The area extends beyond the work zone and returns traffic to its normal flow. This often involves a downstream taper where drivers are directed by cone placement. Cones serve as a visual cue to drivers, directing them back into the original lane(s) that were closed at the start of the construction area.³

What Are the Risks of Work Zones?

Work zones cause daily disruptions to traffic patterns, narrow roadways, unexpected speed changes and other construction activities. These factors can often result in crashes, injuries and fatalities, which cause excessive delays.²  That’s why having a strategy in place is crucial in preventing serious issues.

Traffic Control Plans

Temporary traffic control zones are necessary to ensure workers are safe while on the job. However, these zones cause disruption to the normal flow of traffic and so they must be methodically developed using a traffic control plan.

A traffic control plan describes measures needed to transport motorists through a work zone. These plans can vary in detail based on the complexity of the project and should be completed for all maintenance operations and highway construction. It is important that management or supervisory personnel prepare this plan.⁴ Supervisory personnel can find more information on what should be included in these plans by visiting their state’s Department of Transportation website.

There are many different tools you can use to mitigate risk in your work area. We’ve put together a list of tips to help businesses stay safe within work zones.

For Engineers, Planners and Contracting Agencies:

1. Do not award contracts based solely on a low bid criterion.
2. Level the playing field among all potential contractors by specifying appropriate protective systems (ex. truck-mounted attenuators, concrete barricades, etc.) and requiring a written safety program in bid specifications.
3. Pre-qualify all contractors and subcontractors to ensure that they have good safety records.
4. Specify that the traffic control supervisor must have overall responsibility for temporary traffic control through your contract language.
5. Specify a standard for illumination of work zones in bid specifications. Include minimum lighting levels, types of light sources and minimum areas to be illuminated.
6. Close the road completely and reroute traffic where feasible.
7. Specify increased taper lengths for night work.
8. Specify the use of truck-mounted attenuators (TMAs) whenever work zones are moved.
9. Plan the workspace to eliminate or decrease backing and blind spots.

For Management and Supervisory Personnel:

1. Develop traffic control plans (TCPs) for all medium, large and multi-contractor jobs. For small recurrent operations such as filling potholes, routine maintenance and mowing, a checklist could be used in place of a complete TCP.
2. Ensure that a trained traffic control coordinator is present at each job site.
3. Train workers in the implementation of the TCP for each project.
4. Hold “toolbox” meetings at the job site to discuss and report hazards and near misses. Be sure to also discuss safety considerations that are needed for performing the tasks.
5. Evaluate the effectiveness of the temporary traffic control on a regular basis by walking or riding the work zone and looking for evidence of near misses (ex. skid marks, damaged barricades, etc.).
6. Authorize the traffic control supervisor to temporarily halt work until unsafe conditions related to temporary traffic control have been eliminated.
7. Where worker exposure to traffic cannot be completely eliminated, use positive protective barriers (ex. temporary traffic barriers) to shield workers from intrusions by traffic vehicles.
8. Give employees the authority to shut down unsafe equipment without repercussion.
9. Train flaggers consistent with their level of responsibility and work zone conditions and in accordance with applicable state DOT requirements. Refer to The National ATSSA Train the Trainer Flagger Registration Program for a listing of state flagger requirements.
10. Avoid using flaggers under hazardous conditions, such as high traffic speeds, inclement weather, night work and other conditions which limit visibility.
11. Provide fluorescent and/or retro-reflective materials on head gear and flaggers’ gloves.
12. Document in writing work zone setup and changes throughout the course of the project.

For Employees Working In Work Zones:

1. Wear high-visibility safety apparel when in work zones.
2. Inspect high-visibility clothing regularly and report any damaged or defected clothing.
3. Perform pre-shift equipment checks and report any deficiencies. Pictorial equipment checklists make equipment inspections easier.
4. Read operator manuals prior to use.
5. Never move equipment without making positive visual contact with any workers on foot near the equipment.
6. Set parking brakes when leaving equipment unattended and chock wheels when equipment is parked on an incline.
7. Always wear your seat belt.
8. Report any deficiencies in the temporary traffic control setup.
9. Question any portion of the TCP that you don’t understand.

Construction is unique. Unlike other industries, you sell an item before knowing the ultimate cost. Currently, pricing risk is increasing due to inflationary pressures, which is now a main topic of concern amongst industry leaders.

“Pricing risk determines profitability, and ultimately the success of a construction company. As a company, you want a long-term positive return for the risks you take. Managing pricing risk appropriately is a long-term survival tool. If you don’t do it well, you’ll be out of business,” says Tim Holicky, a senior executive underwriter at The Hartford.

“Construction is a business that prospers under discipline and diligence.”

While there is still uncertainty surrounding pricing risk, here are ten best practices that can influence the outcome of a project and increase your success when selecting projects.

Understand Profitable Growth vs. Unprofitable Growth

The goal of any project is to make positive return on investment. If a company continuously takes on projects without evaluating the overall cost, it can affect the overall business viability. The most successful way to ensure profitable growth is in the project selection process.

One of the key problems that causes a project to fail is choosing the wrong job. In order to grow, it can be appealing to step outside of what your company does well and take on a different type of project. However, doing so creates additional risk.

It is best practice to approach projects cautiously and compare them to successful projects you have completed in the past, which can reduce the known risks. Overall, leaders should be strategic with project selection to ensure a positive return on investment.

Realistically Assess Potential Clients

A large part of ensuring project success is client fit. When selecting which clients you’ll work with, pay attention to risk factors. While you might not have control over the price of materials, you do have control over the time it takes for a client to make critical decisions. Additionally, pay attention to clients who are disorganized or only prioritize money when making decisions. These could lead to delays in the timeline.

“Selecting the right client for your business is important for success. A part of that is understanding how your company can provide value to a project. For example, if a client asks you to build a church, but the most important part of the project is for it to be open before the holidays, you will prioritize timing over cost. Each client will have different needs. It’s important to consider if you can provide that value,” says Holicky.

Work With Transparent Clients

The risk of not getting paid can cause significant financial hardship for your company. When selecting and working with clients, you should be sure there is transparency with funding and pricing sources. Clearly outlining details such as a payment schedule in your contract can save your company from disruption.

Manage Costs by Forecasting Ahead

Construction is an uncertain industry, as timelines and material costs fluctuate. Part of running a successful construction company relies on your ability to manage costs and have the systems and controls in place that allow you to recognize issues early on. “The worst time to find out if you made money is at the end of a job. You need to know throughout the job where your profits lie, and you need to have the right systems and people in place to spot variance early on,” says Holicky.

Update Your Business Plan Annually

“You should be prepared for interruptions in revenue streams or loss of a key clients,” says Holicky. “Maintain a thoughtful business plan that outlines where you operate, who you are working for, the quality of relationships and how much money you are going to need to invest for long-term viability.”

Have a Formalized ‘Go or No Go’ Process

As a part of your project plan, Holicky encourages leaders to include two to three “killer questions.” If you get beyond these questions, the project may be viable. You should then have a series of yes or no questions that help inform the details of your upcoming project. For example, if you cannot verify the source of money for a project, you would dissolve the project before it ever breaks ground.

Build Your Circle of Trusted Advisors

As you plan which projects your company will tackle, continually engage with trusted bankers, agents and brokers. Agents and brokers will help you find the right insurer to meet the needs of your business. “Insurance allows you to look at the risk within your contractual relationship and protects your balance sheet from insurable losses, which in turn protects you from liability,” says Holicky.

Additionally, bankers provide you a line of credit that allows you to maintain the pace of work until you get paid. You want to work with a banker who understands your businesses cash flow needs to best support your work.

Participate In Trade Groups

Networking is a great way to meet other leaders in the construction industry. Organizations like Associated General Contractors of America (AGC), Construction Financial Management Association (CFMA), Associated Builders and Contractors (ABC), American Road & Transportation Builders Association (ARTBA) or The National Utility Contractors Association (NUCA) can help to enhance your education, knowledge of best practices and new emerging trends or opportunities within construction.

Have Visible Leadership

Having leaders visit projects regularly shows commitment and support to the project. Make sure all leaders such as the CFO, Chief Estimator, and Operations are included to see if the progress on the project aligns with the financial and job cost reporting. It can also help identify conflicts early on and the company resources necessary to meet the schedule.

It is great for your brand and customer rapport, as it also allows you to have real-time conversations with the client about future project opportunities. Not only does it enhance client relationships, but also builds morale amongst your employees.

Value Your New Hires From Day One

New hires increase the experience and acumen of your business. Encourage collaboration and participation from your new hires when working through the project selection process. The experience can provide additional insight for your “Go / No Go” processes.

Additionally, consider diversifying your workforce as you take on new hires. Employees from different backgrounds, ethnicities, races and genders can all provide new perspectives that might have not been considered previously. Overall, this can help build retention as it shows you value their experience and knowledge.

Project selection is an integral part of the success of a construction company. While there are some factors, like inflation or the tight labor supply, that you won’t have control over, there are other things you can focus on to ensure your company is best prepared for successful project completion.

After nine months, 2021 is already one of the most active and costliest years for weather events causing extensive damages – a trajectory that can overcome records set in 2020.

There have been 18 weather and climate disaster events through September 2021, each causing over $1 billion in losses.¹ These events include:²

1. Drought and heatwave
2. Flooding
3. Severe storms
4. Tropical cyclones
5. Wildfires
6. Winter storms

These events also caused more than twice the number of fatalities than from all events in 2020.³

Compared to 2020, there haven’t been as many weather events this year. In 2020, there were 22 weather disasters. However, the 18 events in 2021 have already caused more damage than 2020 events. Disaster costs through the first nine months of 2021 was $104.8 billion – compared to the $95 billion in damages in 2020.

Many scientists and experts believe more frequent and severe storms may become the norm.⁴ If so, we can expect rain, hurricanes, storms and wildfires to occur more frequently.⁵

While it’s difficult to predict what Mother Nature will bring, we know the number of storms and the intensity will continue to increase because of climate change. And while we can’t change the weather, we believe there are things that can be done to help protect buildings and reduce damages and losses.

1. Stronger Building Codes To Withstand Storms

It’s not uncommon to see the destruction that a hurricane or tornado leaves behind. From torn roofs to collapsed buildings, weather catastrophes have the potential to cause a large amount of damage.

“Stronger building codes are one of the best ways to make sure property can withstand catastrophes,” said Andy Simmons, large property leader at The Hartford. “We saw Florida implement changes to its building codes after Hurricane Andrew, then again in 2007 after the Hurricanes of 2004 and 2005. New construction since then has made houses and buildings significantly more hurricane proof.”

In a study of building codes in 18 states along the Atlantic and Gulf coast, nearly half received a poor rating from the Insurance Institute for Business & Home Safety (IBHS).⁶ That means building codes in these states haven’t changed to address storm damage and new construction is likely using code that’s decades-old. Buildings constructed 30 years ago were likely built with codes that can’t withstand the strong winds of a hurricane or significant rainfall that a storm can bring.

That’s why the IBHS believes addressing all aspects of the building process can help break the “cycle of destruction.”⁷

IBHS President and CEO Roy Wright explained that states can strengthen their building codes to reduce losses by simply addressing roofs. For example, sealing the roof deck can prevent water from entering the building if a roof tears off. It’s a small expense during installation, but it can save tens of thousands of dollars in the long run.

The IBHS created the FORTIFIED program. It’s a set of construction standards “designed to strengthen homes and commercial buildings against specific types of severe weather.”⁸ Depending on the standard, fortified buildings can withstand severe storms, like an EF-2 tornado.

These standards mirror the building codes in Florida, which received the highest rank in the IBHS study. Homes and buildings constructed along the coast in Florida will be built with codes that mirror IBHS’s Fortified Gold standard to resist damages from a Category 3 hurricane.⁹

2. Storm-Hardening

Many existing homes and buildings may not have been built to withstand storms or water damage, but you can storm-harden them. Storm-hardening means improving the infrastructure to better withstand these kinds of losses.

“Storm-hardening a building can prevent potential damage from heavy winds and water,” Simmons explained. “It’s an upfront cost, but the return on your investment can be significant.”

An example of storm-hardening is improving the framing inside a building. Changing the framing can make it stronger, reducing the amount of potential damage during strong winds from a hurricane or tornado.

You can also put storm-hardening measures in place to protect your building against fire and water damage. Ensuring there’s proper drainage and flood protection when building can reduce the loss of equipment or inventory.

It’s a good idea to conduct a storm-hardening assessment of the building. This will give you a starting point of what areas to address and what can be done. Some structural areas to look at include:

1. Building envelope evaluation
2. Wall types
3. Roof types
4. Windows
5. Doors
6. Exterior drainage
7. Landscaping

Don’t forget to look at your building’s mechanical and electrical needs. It’s a good idea to note:

1. Locations of air handling units
2. Water supply
3. Critical electrical or mechanical equipment
4. Whether an emergency generator has enough capacity to deliver the necessary power during an outage

3. Using Technology as a Proactive Measure

Advancements in technology have led to devices and building materials that can help protect a building in severe storms.

Connected devices can help you monitor your building and identify problem areas with leaks. Detecting leaks isn’t always easy. After a storm passes, it’s always good to check and document any initial damages. Sometimes, storm damage can lead to large property losses because of water. You can install water sensors in your building to get alerts of water intrusion or leaks.

“If your building or facility has had a history of water damage, these kinds of devices can help prevent a major loss,” Simmons noted. “The difference in damage costs from being able to quickly respond to a leak compared to not realizing something happened and letting hours go by is significant.”

Simmons added that he recommends businesses install water sensors even if the building is newer or hasn’t had a history of claims. This is because they’re still beneficial in preventing damage.

You can also install stronger walls or shatter-resistant windows in your building. These can help prevent water from ever entering your building. They can also keep the people inside your building safe during harsh weather. And if a window were to break, the glass won’t scatter all over.

A Partner With Experience

We can’t predict what 2021 or beyond will look like when it comes to storms, but we do know that weather events like hurricanes, tornados and wildfires will continue. And because of climate change, we’re expecting them to increase in severity.

We understand the risks and challenges that building owners face. That’s why we use innovative technology and offer specialized insurance solutions to help protect businesses in many industries. Our Risk Engineering team can work with you to assess your building and create a customized risk management plan tailored to your needs.

Learn More About Large Business Insurance From The Hartford

^1,2,3 National Centers for Environmental Information: National Oceanic and Atmospheric Administration, “National Climate Report – September 2021”

⁴ TIME, “2020 Was a Year of Climate Extremes. What Can We Expect in 2021?”

⁵ GFDL, “Global Warming and Hurricanes”

⁶ Insurance Institute for Business & Home Safety, “Rating The States 2021: Hurricane Coast”

^7,9 Insurance Institute for Business & Home Safety, “Solving the Climate Crisis: Cleaner, Stronger Buildings”

⁸ Fortified: A Program of IBHS

As more than 40% of the current U.S. construction workforce will retire in the next decade, industry leaders need to equip themselves with the necessary resources to combat the shifting work environment.¹

“Trends in the construction industry will fluctuate in the coming years, which can lead to additional risks for industry leaders. It will be important to think about how they can address any potential risk factors. A lot of leaders have been increasing their planning efforts and looking into technology solutions to combat the ongoing labor shortage,” said David DeSilva, head of construction at The Hartford. Here, he outlines the top three top trends for business leaders to watch in 2024.

1. Ongoing Labor Shortages

Construction is an industry that traditionally has a high labor turnover rate, which means companies needs to hire more frequently. This only increases during labor shortages. The construction workforce is up against several factors, including an aging workforce and recruitment struggles.

Additionally, there has been an increase in large construction projects in concentrated pockets across the country.

“A lot of large-scale projects are happening across the country, many in close proximity to each other. These projects require a massive number of workers, which causes a major drain to surrounding area contractors and projects that need workers,” says Chris O’Hala, managing director of construction risk engineering at The Hartford. “They aren’t just pulling front line laborers and craft workers, but also superintendents, project managers, and safety management personnel. You combine that with the aging workforce, lack of early career entrants, and it is the perfect storm for creating a challenging recruitment environment.”

In 2024, the construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring that happened in 2023 to meet the demand for labor.²

The industry is seeing a particular increased need for professionals to enter the construction field as field engineers, superintendents, project managers, safety and quality managers, architects and engineers.

“A lot of folks still believe a career in construction is about getting out there with a shovel in your hand and performing manual labor. There is certainly a labor component to the work, but there are so many other opportunities in the industry,” says O’Hala.

Recruiting younger generations will be vital to recruitment in 2024 and beyond. “Firms have to expand their talent pool, and it is important to think about how you can attract younger people from all different backgrounds and locations. There has never been a better time to be in the construction industry because there is a huge push in the industry to have good culture, with a focus on safety, technology and wellness,” says DeSilva.

2. Increased Supply Chain Management

The construction industry has been critically impacted by supply chain delays since early 2020. However, there is hope on the horizon as professionals have seen the supply chain delays begin to stabilize.

“We believe some of the pressures are easing from the COVID-19 pandemic and related issues, like product delays, have slowly alleviated. Yet there are still some bottlenecks with things like electrical equipment, so it is still critical to plan well in advance,” said O’Hala.

The bottlenecks and supply availability caused by the pandemic exposed other areas of weakness in the supply chain as well. Climate change creates the question of how and when certain items will be available, while turmoil overseas requires companies to stay vigilant on inventory availability.

“For example, look at materials and products that comes from China and Taiwan. As political tension increases, companies need to factor in if they will have access to these materials and how costs are fluctuating,” says DeSilva.

Supply chain management, timely procurement for deliveries and efficient warehouse management will be the key factors to staying on schedule in the year ahead.

“Companies need to invest in staffing and tools to create supply chain plans at the project and company level. You cannot expect materials to be available when you need them. It is crucial to form new relationships and vet new suppliers,” says O’Hala.

Additionally, business leaders can explore purchasing programs that will help to lock in set pricing. “Businesses should consider escalation clauses when contract planning. From the time you sign a contract to putting the first shovel in the ground, pricing for materials will change. By putting in these clauses you are protecting yourself by securing an agreed cost range,” says DeSilva.

It's also important to have multiple options in the supply chain to serve as a back-up in case your primary supplier has capacity or logistical issues; or worst-case scenario, goes out of business. By diversifying relationships with vendors and contractors, businesses can decrease the possibility that they will be left without materials mid-project.

3. Emerging Technology

The evolution of construction technology has been slow, but transformation is happening to make the industry safer, more cost-effective and efficient.

“Construction has been a late adopter to technology. This creates new opportunity for leaders in the industry to find ways to include technology in their daily practice. As we’ve seen, the shortage of labor has created higher levels of workmanship issues due to lack of capacity. This is the perfect opportunity to implement effective technology to better protect job sites,” says DeSilva.

For example, companies are investing heavily in imagery technology to monitor job sites more effectively. “Site managers can’t be on the job at all times. This is a way to record what is happening and monitor various aspects of a project at one time, which helps encourage worker safety and site security. A safety manager can cover more ground with this imagery technology in place. Instead of overseeing a single project, they might have capacity for multiple projects,” says O’Hala.

Construction companies are also increasing the use of information tracking systems and dashboards. These systems provide a centralized hub for all project stakeholders to obtain real-time access to project information like contracts, design plans and specifications, safety plans and contracts.

Additional popular technology that’s being deployed on construction sites includes:

1. Drones: Drones have been used to conduct site inspections in remote or hard to access areas. With drones you can make 3D and topographical models and obtain high-resolution images of job sites.
2. Wearables and site sensors: Construction wearables can be placed on workers or in the personal protective equipment (PPE) or clothes of employees. They use GPS tracking and biometrics to mitigate accidents. Wearables can track slips and falls, while site sensors can warn workers about potential hazards and make the jobsite safer. They can track noise levels, dust saturation, temperature and the presence of hazardous substances.
3. Robotics: Repetitive tasks can be executed by robots, such as bricklaying and tying rebar. Automation saves workers’ time and allows them to focus on more complex tasks. Robotics is also a promising way to prevent injuries and fatigue on a construction team.

Overall, there is a push to move the construction industry away from manual labor and towards technological methods. “Now is the perfect time to dip your toes in the water and figure out what this is like to work with technology. You need to start somewhere. Pick a problem you have and find a technology solution to help,” says DeSilva.

Protecting Your Company Long Term

As new methods are integrated to mitigate on-going labor and material shortages, leaders should be aware of the added risks they can create – and the solutions that exist to support companies.

“The decreased number of workers, paired with increased work hours, fatigue and lack of process knowledge, creates a greater chance for loss. You must understand the technology, and its limitations, while also staying up-to-date on new offerings in the construction technology and equipment sectors. Additionally, it is important to explore resources that help train workers who might have a lesser skillset or simplify overly complex processes,” says O’Hala.

To best protect your company from loss, start with a strong, proactive leadership team. Prioritize hiring, effective onboarding and continuous training as a means of promoting safety and quality efforts.