Unsecured demolition sites come with many risks, but what many will be unaware of are all the hidden costs you can face as a business due to this. Discover what these are below.
Do you think you truly understand the real costs of an unsecured demolition site?
It has previously been reported that the construction industry as a whole in the UK loses an estimated £800 million a year associated with plant theft.
Unfortunately, demolition sites face increased risks of theft, vandalism, health and safety issues, and environmental concerns.
But, is your demolition site prepared for such risks? Do you feel aware of the true impact that this type of crime can have on you as a business?
The Real Cost of Theft and Vandalism
Combining their often easy-to-access, remote locations with high-value items, demolition sites are enticing to criminals.
There are several ‘costs’ caused by theft and vandalism to your demolition site, some of which may surprise you:
Financial Losses
Often the most well-known expense associated with theft and vandalism from demolition sites, financial loss on businesses can increase quickly depending on the damage caused.
Plant equipment and machinery is expensive, the theft of it leaves companies facing not just the financial loss of the stolen item but also additional costs created from the replacement of such equipment.
One gang alone was reported to have stolen over £1 million worth of machinery between 2015 to 2018, selling it overseas to profit from it themselves, and this is only one case.
Vandalism can also force equipment and machinery out of use until it’s repaired or, in worst case scenarios, it is replaced where severe damage has been caused.
Project Delays
The cost of stolen equipment and damaged property goes deeper than just the financial implications created from it, but the major project delays it can cause too.
It can set projects back by days, weeks or even months depending on the severity of the theft and/or vandalism.
This can lead to your company facing financial penalties and lost revenue as a result of this, simply increasing the financial implications of such events even further.
Insurance Premium Increases
Frequent claims for stolen and/or damaged machinery and equipment can lead to higher insurance costs and in the long-term, increased premiums.
Even though construction insurance is there to protect you from the full financial implications of theft and vandalism, it will Increase monthly or annual costs, slowly eating away at your business’ finances overtime.
Higher Labour Costs
Where time is lost as a result of theft and vandalism, your demolition site is likely to need increased labour to try and keep the project on schedule or at least prevent major project delays as best as possible.
The hiring of additional employees or overtime shifts to cover this loss of time will come at a cost, and depending on the severity, this could be a much bigger cost than you think.
Disruption to Other Projects
One of the biggest issues regarding demolition site theft and vandalism is the knock-on effect it can have with other sites and projects.
When an incident occurs at one site it doesn’t just impact that one particular project.
Delays impact construction companies’ schedules and this will lead to their other clients of theirs facing delays also. It could even lead to lost opportunities if the deadline for their project cannot be reached.
Expert Insight: "Many demolition companies assume theft is just a cost of doing business. But the reality is that proactive security measures can prevent these losses altogether. A secure site is an efficient site." – Shea Nugent
The Legal and Compliance Risks
There are several legal and compliance risks surrounding your demolition site if left unsecured.
Due to issues regarding health and safety, industry regulations and contract agreements, any non-compliance or neglect on these areas could cause unexpected costs that heavily impact your business.
Although there are various legal and compliance concerns to be aware of, we explore the four main risks all demolition sites should keep in mind:
Trespasser Injury Claims
It is well-known that any employees injured or at worse killed on site could lead to heavy legal and financial implications for your construction company if you are found liable for this.
However, this covers unauthorised persons also. If an individual enters a site and gets injured, you could be held liable for the incident, leading to legal claims and settlements for you.
These are unnecessary costs and reputational damage which could simply be avoided by correctly securing your demolition site and promoting policies to ensure employees are educated on safety too.
Regulatory Fines
Many Local Authorities now require demolition sites to have security in place to protect the site, your employees and those within the surrounding area.
Non-compliance could result in penalties and enforcement action taking place towards your business as a consequence of this.
Financial penalties can vary and if faced with a large fine, your business could be heavily, negatively impacted, as well as facing delays until the breach can be resolved.
Loss of Future Contracts
Any displays of non-compliance or frequent incidents of crime, especially theft and vandalism can result in clients being hesitant to award any new contracts to your business as to them it comes across you have a lack of care and security.
Companies awarding these contracts want certainty and reassurance that you can support them with their demolition project within schedule.
Incidents of crime and non-compliance can cause project delays and this is off putting for potential clients.
Reputational Damage
Not all press is good press, especially when it surrounds security breaches, trespassing injuries and environmental violations.
This can heavily damage your business’s reputation and regular instances of the above will simply deter future clients from working with you.
Companies appreciate knowing you have had success with other projects but if you cannot show that, you may not be a top contender for them, or even be one they consider.
The Cost of Environmental Non-Compliance
Security is not the only concern for demolition sites, environmental monitoring requirements are stricter nowadays and not adhering to them can be costly.
This is to protect the public’s safety and support the Government’s net zero target.
Excessive dust, Co2 emissions, and poor air quality are now monitored heavily with limits set prior to the project beginning. Not adhering to limits set for these could lead to the following:
Fines for Breaching Regulations
Businesses that pollute the environment can face unlimited financial penalties from the Environment Agency.
New policies and strategies, specifically the UK’s Clean Air Strategy and Environmental Regulations require construction and demolition sites to control airborne particles and noise pollution.
Any construction and demolition companies shown to fail these requirements can result in significant fines.
Improper waste management can also lead to further financial penalties which can be substantial if severe non-compliance has been found.
Work Stoppages
Prior to any demolition site beginning their project, a limit will be set on noise and particle production and your company needs to adhere to those limits throughout.
If at any point you exceed the permissible noise or dust levels, Local Authorities can implement orders that prevent work from continuing and create major delays for the project.
To manage this you will likely need additional employees, extra hours, and further measures put in place to support the project delays caused and this comes with a large price tag which you want to avoid.
Community Complaints
You may think your demolition site is the only focus for your business, but your site impacts the area surrounding it and the community within this making your focus much wider than you think.
Persistent environmental issues caused by your site can lead to complaints from any residents or visitors, as well as impact their health due to poor air quality, noise damage, and Co2 emissions.
Increased scrutiny on your business can have a negative impact on your reputation and affect any future project proposals and approvals due to this.
Higher Costs for Corrective Measures
Not implementing appropriate measures from the start of the project and not monitoring the conditions can lead to environmental issues being left unaddressed and worsening for your site and those impacted by this.
To resolve this, firms can be forced to enter into expensive investments in remediation work like noise mitigation strategies and dust suppression systems.
If you set yourself up correctly from the beginning, cost savings could be had and reputation maintained simply from organising a suitable strategy beforehand.
Protecting Your Site From Environmental Non-Compliance
Site condition monitoring is vital to ensuring your site, the local area, and the environment are protected against the dangers created from demolition and construction.
Available with all of our security solutions is Stellifii, a site condition monitoring sensor that tracks emission production and will trigger alerts if levels are above the predefined rule set by yourself.
Implementing a site condition monitoring sensor is simple, especially with WCCTV. They can be attached to our products and offer measurements for:
- Weather conditions
- Decibel levels
- Particle monitoring
- Local Air Quality Management (LAQM)
- Co2 emissions
In addition to the security it can provide your site, it also helps to protect your company from complaints and maintain your reputation to support you with future projects.
Mobile CCTV Towers: Security and Compliance in One Solution
Our Mobile CCTV Tower range provides 24/7 live monitoring, giving you full visibility of your demolition site from anywhere, on any device via our mobile app. With advanced AI-powered motion detection to ensure that only real threats trigger alerts, whilst minimising false alarms.
Each of our mobile units come with visual and audio deterrents including flashing blue lights, live voice-down audio feature, and built-in sirens. All of these deterrents work to prevent intruders from causing damage, preventing crime from happening in the first place.
By connecting our sensors to our CCTV Towers, we can track environmental conditions in real-time. From monitoring air quality and dust particles to noise and weather conditions, Stellifii helps to keep your site compliant with UK regulations.
At any point a limit is surpassed, you’ll receive an instant alert, allowing you to take action in that moment and prevent you from facing any fines or work stoppages.
Our solutions also work as cost-effective alternatives in comparison to manned security, offering high-quality coverage without the need to overspend on security. With additional availabilities of Time-Lapse Video which can be used to document progress, share with clients, and support with any reporting.
Take Control of Your Site Security Today
Every day your site remains unsecured, you risk financial loss, legal trouble and reputational damage. Investing in a managed security and monitoring solution now could save you thousands in the long run.
Book a free site assessment today and see how WCCTV can help protect your project.
