K2 Electric Utilizes Construction Analytics to Manage Risk
One of the most crucial questions that management within the construction industry must ask themselves is “how will we manage our business risk?”.
While the answer to this question is not one-size-fits-all, all sizes must find a fit that fosters sustainable business continuity. One of the ways we have managed risk at K2 is through construction analytics.
Construction analytics is the process of collecting, analyzing, and monitoring real-time data to improve capital project outcomes, reduce risks, and uncover critical insights. Our team was able to draw on decades of experience in the electrical contracting industry to identify the analytics that have been crucial to how we have managed risk. This, in turn, has led to significant growth over the years by helping us answer imperative questions, including:
“Should we bid on this project?”
“How much should we bid?“
“If we bid on this project, will we run into problems on any of our other jobs?”
“Can we exploit the risk inherent to this job to gain a competitive advantage, or should we avoid it altogether?”
Four common ways of dealing with risk are to avoid, reduce, transfer and/or accept. With the use of automated reporting, KPI’s and financial/operational dashboards, we have been able to find a balance between these risk responses that allows us to provide a higher quality product at the best prices, all while maintaining the highest safety standards.