Trade damage is a well-known issue in commercial construction. With multiple contractors working in close proximity, it is almost inevitable that some form of damage will occur during a project's duration. These issues can range from minor scratches to major structural failures, both of which can disrupt project timelines and impact budgets significantly. The good news is that there are strategies to minimize the effects of trade damage and safeguard your financial interests. Below, we have outlined several effective ways to do so.
1) Communicate often and effectively
Poor communication and inadequate planning are major factors contributing to trade damage on jobsites. Misunderstandings between trades can result in accidental damage, while inefficient scheduling and coordination can lead to bottlenecks and an increased risk of damage. That’s why it’s crucial to establish and maintain clear communication among all parties involved, including General Contractors, Specialty Contractors, and Owners. If trade damage does happen, immediately inform all parties and work together to form a plan for repairing the damage.
2) Document everything
Comprehensive documentation is a valuable resource for all stakeholders involved in a project. Maintaining thorough and well-organized records is essential for successful project management and can help in resolving disputes. In cases of trade damage, it is important to document all incidents carefully. This includes taking photographs, writing a detailed report, and gathering witness statements to properly assess the damage and identify the necessary repairs.
3) Proactive project management
Develop detailed project plans that outline the sequence of tasks and identify potential conflicts or overlaps with other trades. Hold regular project meetings to discuss progress, address issues, and raise any safety concerns. By carefully planning the order of tasks for different trades, you can minimize overlapping activities in the same area. This can reduce the risk of interference and potential damage. Assigning specific areas for each trade to work in also decreases the need for workers to move through others' workspaces. Additionally, creating designated buffer zones between trades provides extra space for moving around and helps prevent accidental damage to materials and equipment.
4) Leverage digital solutions
Historically, trade damage has been managed through paper T&M Tickets, a process that is error-prone and time-consuming. This often leads to financial blindspots and frustration among stakeholders due to a lack of transparency. Using a cloud-based Change Order Communication tool like Clearstory provides instant visibility, aligns stakeholders, and reduces revenue at risk that might be lost in the current process.
In addition to digitizing the T&M workflow, Clearstory allows users to capture and attach photos and other supporting documents effortlessly (see best practice #2). The mobile app automatically includes these visual elements in the T&M PDF package, ensuring that your submission provides a comprehensive overview.
5) Streamline the backcharges process
Although backcharges are a standard process in commercial construction, the typical tools for tracking, communicating, and sharing them among stakeholders are often limited to paper, email, and spreadsheets. Again, this is another error-prone, time-consuming process that frustrates all parties involved.
Clearstory provides an end-to-end workflow that allows Subcontractors to instantly generate a backcharge ticket, complete with photos of their work. This ticket is automatically priced and sent to the GC. With just a click of a button, the GC can forward this ticket to the Subcontractor being charged, all within the same day the work is completed.
Thanks to Clearstory's shared, real-time Change Order Request Log, Specialty Contractors and GCs can efficiently manage backcharges, quickly resolve issues, and keep projects on track.
6) Develop a risk management plan
A comprehensive risk management plan is essential for effectively managing trade damage and minimizing potential financial losses. This plan should include obtaining appropriate insurance coverage for all trades. By proactively identifying and mitigating risks related to property damage and liability claims in commercial transactions, businesses can better protect themselves against unforeseen challenges.
Conclusion
By following these best practices, you can significantly reduce the impact of trade damage on your projects and ensure a successful outcome.
Interested in learning more? Clearstory offers a free, no-risk pilot program to test our solution on your projects. Schedule a demo with our team to learn more.
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