When it comes to construction, time and money are very important. Losing one or the other can derail an entire project and cause bigger losses down the road.
Threats to time and money can come from anywhere, however tThe large losses at the top of the chart represent the more general losses in construction compared to other risks such as vandalism, fire damage and collisions. In fact, industry experts attribute a staggering $1 billion in losses to theft each year.
While workplace theft is not new, the risk it poses has increased since the pandemic. With continued supply chain issues and inflated material prices, today’s contractors are shouldering the brunt of this risk.
In Denver, CO, the industry saw a 36% increase in workplace thefts in the first half of 2022 compared to 2021. It’s not just a big city problem, though. Contractors across North America reported increase in thefts in 2022making enhanced theft protection measures more important than ever.
Common targets of theft in the workplace
Construction yards are used to store tools, equipment and valuable materials, but often the security of these large outdoor spaces is not enough to prevent thieves from helping themselves.
The three most stolen items from construction sites include:
- Tools: Thieves steal tools more often than other equipment, and some studies find it close 40% of stolen goods are tools. This includes any type of hand or power tool used during construction. Because tools are easy to hide, dispose of and resell, they are an easy target for thieves.
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Heavy construction equipment: It’s hard to believe that someone could steal a backhoe or bulldozer without being seen, but people steal heavy equipment nine times more often than they vandalize it. Because heavy equipment has such a high resale value, thieves are highly motivated to steal these items whenever possible.
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Construction materials: Wood, copper, brass mill shapes and steel account for 11.3% of workplace theft. Building materials fluctuate in popularity for thieves, depending on market demand and cost. Rising material prices drive this type of theft, with more expensive materials having higher theft rates. With the wood up 60% from 2021it has been a great target for thieves looking to resell the materials and also for opportunistic thieves looking for material for their own personal projects.
More than stolen goods
In 2019, a single theft incident cost an average of $5,865. Since then, the prices of construction materials have increased more than 35%which means there’s even more on the line for contractors who become victims of construction site theft.
Law enforcement can recover less than 25% of stolen construction property, with some sources claiming recovery in less than 7% of cases. Often the goods just disappear, causing a domino effect of losses that include:
- Project delays due to lack of tools, equipment or materials
- Additional costs associated with project delays (employee wages, liquidated damages, lease extensions)
- Additional costs associated with replacing missing materials, tools or equipment.
- Schedule the impact of replacing items, reports and insurance claims
- Higher insurance premiums
- Customer dissatisfaction and possible loss of future projects
When it comes to recovering losses, insurance companies often take weeks or months to pay the cost of stolen goods. The time involved in replacing these assets can contribute to additional project delays, the cost of which can be as high as $27,750 per day in liquidated damages and overhead, according to a study by Navigant Consulting.
No matter how you look at it, it’s clear that theft prevention is essential for every workplace.
Ways to protect yourself from workplace theft
The low recovery rate of construction goods combined with the increasing rate of theft means that workplace safety is no longer optional. While some thefts are premeditated or the result of organized crime, others are thefts of opportunity. Perpetrators may include employees who pick up small amounts of materials for personal projects, teenagers looking for a night out, or thieves who spot valuable goods and find an easy way into the workplace.
Premeditated thefts can be much more shocking, with entire trailers full of tools, materials and heavy equipment gone within hours. Taking steps to protect against workplace theft is a critical step in ensuring a construction project stays on time and on budget.
Here are eight of today’s best theft protection practices:
- Permanently mark tools
People, for the most part, do not want to buy or own stolen tools, so thieves are less likely to carry indelibly marked tools for resale. Employees are also less likely to steal items that are clearly marked and accounted for at the end of each shift. - Strategic parks construction teams
Deter thieves looking for a quick getaway by keeping equipment locked when not in use and parking it so other vehicles or structures prevent it from being towed or driven off site. When possible, keep equipment out of sight of opportunistic thieves or in a guarded location. - Install temporary fence
A temporary fence with shade cloth can be a great deterrent to thieves because it prevents them from seeing what’s on the menu and makes it difficult to get in and out of the place. - Install motion-activated lighting
Thieves don’t want a spotlight on their criminal activities, and they certainly don’t want an audience, so motion-activated lighting can scare them away effectively.
