Construction site theft is not just about the immediate loss; it's a billion-dollar issue affecting downtime, insurance, and client trust in American companies. Explore the real cost of construction site theft and discover effective strategies to prevent it.
One billion dollars. That is the estimated amount of money American construction companies lose in stolen equipment every year, according to reports. It’s an almost unfathomable amount of money and a growing concern across the industry.
Understanding the Downtime Costs of Construction Site Theft
Oh, and that one billion dollars? It’s just the tip of the iceberg. The hidden costs can potentially be much more costly in the long run. The value of the average construction site theft is estimated to be over $30,000 per incident, but let’s take a look at some of the ancillary costs of replacing stolen equipment, tools and building supplies:
Replacing stolen hardware can take weeks…even longer if you’re purchasing specialized equipment or if it’s during a busy construction season. As an example, the average downtime cost for a fleet vehicle is roughly $500-$750 a day. Multiply that by the number of vehicles and the number of days your project is halted. Now, add to that equation the wages of your salaried and hourly workers, who can’t perform their jobs, and you can see just how steep these cost overruns can be.
Chances are excellent that intruders aren’t waltzing into your site and stealing your equipment without breaking some things first. Getting inside likely means busting windows or gates, tearing down fencing, and breaking locks. Reinstalling these damaged or destroyed barriers will be a top priority after a theft and it will come at a cost.
Many insurers now mandate security protocols for construction sites when issuing builder policies. If it’s determined that your site wasn’t properly protected when a theft occurred, your premiums could increase significantly. And if there’s a history of equipment theft, your policy could even be canceled.
This could be the most impactful of all the hidden costs: unhappy clients. Unplanned downtimes due to equipment breakdowns and service repairs are not uncommon and may even be expected over the course of a construction project.
However, when a stoppage is due to theft, questions will likely arise about how adequately the site was protected. If you haven’t done enough to deter criminal activity, it could damage your relationship with your clients and result in loss of work…and potentially even lawsuits.
Proactive Measures to Prevent Construction Site Theft
Construction company owners and project managers need to look beyond gates and perimeter fences and develop a solid security plan to better safeguard their site and keep their projects on time and on budget. Options include:
Whatever your security goals are, Titan is ready to work with you to build a tailored plan to meet the needs of your budget. Fill out the form below today to get a quote to secure your construction site and pave the way for the successful completion of your projects.