Job Site Theft: The Hidden Factor Driving Up Construction Costs
Download MP3Overview: Rising theft of materials and tools is driving up construction costs, compounded by economic factors and changes in law enforcement. This episode discusses the increasing frequency of theft, the impact on contractors and construction projects, and strategies to safeguard job sites.
Key Points Discussed:
- The Rise in Construction Material Theft: Theft of materials such as lumber, insulation, roofing tiles, and tools is increasing.
- Economic Influence on Theft: With inflation in material costs, the theft of items like lumber has become more financially impactful. For example, a two-by-four board that used to cost $2 to $5 now costs $6 to $7, making theft more lucrative.
- Challenges of Securing Job Sites: Securing job sites is difficult without comprehensive fencing and constant monitoring. Even with security measures, criminals can still target smaller, easily stolen items like wire or tools.
- The Cost of Job Site Theft: Builders are seeing higher losses due to increased material prices. Items that were once inexpensive, like paint, now cost much more.
- Insurance Challenges: Some insurance policies only cover stolen materials within a limited range (e.g., 100 feet), leaving contractors to absorb losses for items outside that perimeter.
- The Need for Better Job Site Security: Contractors are urged to assess their job site security measures and account for theft in their project costs.
Discussion Question: How has job site theft impacted your construction projects? How are you protecting your materials and reducing theft?
Call to Action: Share your experiences with theft on job sites, how you’re safeguarding your materials, and how you manage losses from theft, including employee or contractor shrinkage.
