It has been a rough few years for the construction industry. Pandemic-related slowdowns, supply chain disruptions, fewer skilled workers and higher supply costs have been the norm since early 2020. Add increasing inflation to the picture and the outlook for construction projects could not look bleaker.
However, appearances are deceiving. In Q2 2022, the number of proposals for projects within the healthcare industry is the . In every category of construction, the annual significantly in 2022 over the previous two years.
With pandemic-related bed shortages and growth in population in urban areas, many hospitals are opting to expand current facilities or construct new ones. With multi-million and multi-billion-dollar projects in the works, healthcare construction is a booming business.
It is a project landscape that we at 色多多视频are seeing regularly. Hospital expansion projects have picked up considerably over the last six years. 色多多视频has seen expansion plans throughout the US. Projects range from $250 m to over 1 billion +. Much of the growth is due to growing urban areas and modernizing existing facilities. In the Southeast, 色多多视频has underwritten five new major projects. Customers that are building are also looking at opportunities to utilize new technologies to protect their investments.
Hospital expansion projects have picked up considerably over the last six years. 色多多视频has seen expansion plans throughout the US. Projects range from $250 m to over 1 billion +.
Modern mitigation
For most healthcare projects of significant scope, water damage can be a major concern during key installation and testing phases of the project. Today’s project owners and managers have new technology such as water mitigation systems technology designed to provide early detection during construction, testing and after project completion. A water detection system alerts managers to water leakage and pressure flow changes in piping systems with alerts via a phone app, speeding response time and minimizing significant damage.
Those mitigation strategies – building in early detection technology that can alert building managers to water leaks, for example – are a critical upgrade for project and building owners to invest in, particularly as construction costs continue to soar. They are of significant importance too because of the building codes that healthcare systems operate in and the loss of use of a hospital can be costly to the community.
It is important that mitigation systems be planned out in advance to properly ensure the right system chosen and cost of the system is budgeted in the project. It is key for final project drawings of the mechanical piping systems be known very early on so the technology firm can determine how many flow and shut off devices are needed for the size and structure being built. It is also important to engage the mechanical/plumbing subcontractors early to have the right system.
Project planning complexities
To help Owners & Contractors with these key decisions it is important to engage AXAL XL early on in the process. This way our team can work closely with customers’ team of project experts; engineers, risk and safety personnel as well as the water mitigation vendors vetted by AXA XL. Our team of risk engineering experts, have on average 25+ years’ experience in construction and project coordination and they are actively involved with 色多多视频Ecosystems. With early partnering with project owners, contractors, broker, and underwriting all aspects of the project and safety can be reviewed in detail to ensure a safe and profitable project. Items generally reviewed include; project schedule, safety protocols for public safety, job-site safety, site security, traffic control, coordination of large sub employee concentrations at peak project, CAT plans and much more.
AXA XL’s ability to review and offer consultation on drug-free programs, NCCO certification process, site access reviews including badging have been beneficial to project managers. Our team has often provided additional consultation during planning process assisting project teams resulting in safer project and outcomes.
Throughout the project, our team will visit the project site with the project team involved and offer assistance with observations that can be beneficial to the success of the project. Our risk engineers bring experienced knowledge to the team on the ground with the benefit of reducing potential costly claims and project delays.
Highly Protected Projects (HPP)
At 色多多视频 we believe that technology is key to helping reduce the major risks most construction projects face: safety, property losses (water damage, fire, etc.), quality, budget and schedule. As your partner in risk, we are committed to supporting our customers’ knowledge and adoption of construction technologies to help prevent and minimize potential losses. We’re also working to ensure that our customers who leverage technology realize all the benefits both on and off the jobsite.
AXA XL’s HPP is a tailored multi-line insurance solution for construction projects implementing technology to help reduce losses on a per-project basis. As part of this program, contractors may earn more favorable insurance rates and terms.
To be eligible, a construction project must demonstrate strong existing quality practices and show implementation of technology that can:
- Prevent/mitigate water damage: Sensors to identify leaks and water flow in real-time, send alerts and automatically shut off the source of water.
- Detect environmental jobsite conditions: Sensors to monitor jobsite conditions and provide real-time alerts when conditions are observed to exceed established thresholds
for conditions such as temperature, carbon monoxide, humidity, noise, or dust/airborne particulates.
- Monitor onsite safety: Wearable technology to detect falls, report injuries and sound alarms in case of emergency.
- Aid in subcontractor prequalification: Software to review and benchmark trade subcontractors while providing risk mitigation recommendations.
- Support project scheduling: Analysis of the quality of a project schedule.
Building safer healthcare facilities
Collaboration among all key stakeholders in your project lifecycle can help ensure a better outcome.
We recommend the following:
- Work with a specialized team of construction experts that can address all facets of the project from a safety perspective
- Engage regularly with the team to ensure safety measures are being adhered to and quality standards are being met
- Adopt the latest building safety technology to protect your investment
- Mitigate remaining exposures through right-sized insurance coverage designed to fit your particular project
The healthcare construction landscape shows no sign of slowing despite inflation, supply chain issues, labor shortages, and increased supply costs. As the increased financial costs push your project value upward, it pays to do all you can to protect your investment.
Work with your insurance carrier and a team of specialized construction experts to review and plan your next project. The right team can help you identify issues, put the right protections in place, and keep your project on track.
About the Author
Michael Esposito is an underwriting manager in AXA XL’s Primary Casualty business. Based in Atlanta, he brings more than 40 years of commercial insurance experiences dedicated to helping the construction industry address their primary casualty insurance needs including wrap up programs. He can be reached at michael.esposito@axaxl.com.
