Economic Headwinds:

• Inflation is raising material and project costs, straining subcontractors and vendors.
• Labor shortages require increased wages and talent retention efforts, further driving up costs.
• Supply chain issues persist due to geopolitical tensions, cyberattacks, and extreme weather.

Mitigation Strategies: Adopt robust financial plans, manage debts effectively, maintain stakeholder relationships, and secure adequate insurance.

Legal Challenges:

• Stricter safety regulations and mandatory reporting for high-risk buildings are reshaping the industry.
• Contract breakdowns due to insolvencies and delays are growing concerns.

Mitigation Strategies: Stay updated on legal changes, enhance contract management, and consult legal counsel.

Insurance Claim Concerns:

• Rising "nuclear verdicts" (jury awards exceeding $10M) are driving up claim costs, often linked to liability, unsafe practices, or faulty work.
• Disputes over defects and safety issues compound insurance costs.

Mitigation Strategies: Focus on safety training, eco-friendly practices, and technology like telematics for risk prevention.

Environmental Exposures:

• Extreme weather events increase project costs, delay timelines, and complicate insurance coverage in disaster-prone areas.
• High temperatures pose health risks to workers, reducing productivity.

Mitigation Strategies: Improve disaster preparedness, invest in weather-resistant materials, diversify supply chains, and prioritize occupational safety programs.