Five steps to create an emergency

preparedness plan for your property

Diana Rodriguez-Zaba October 17, 2018
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Managing a commercial property comes with enormous responsibilities. Being prepared for on-
site emergencies stands as one its biggest challenges. I speak from experience.

My involvement with commercial real estate started with investments I made when I was 18.
Today, my husband and I own and operate one of the largest ServiceMaster Chicago fire and
water damage restoration franchises.

Unfortunately, it’s all too often that I hear property managers express regrets about not having a
better emergency plan in place.

Whether you manage retail, multifamily or industrial properties, you give it your very best, but
you have to anticipate the worst. Based on my years in the restoration business, I strongly
recommend developing property management emergency procedures built on these five critical
points.

1. Be Ready to Respond

The call or text comes through. Your building is on fire. Does the alarm come from a tenant? Has
someone already contacted 911? Work out your response to the first wave of an emergency
before it happens.

Upgrade alarm systems with communication technology that alerts you, first responders and
building tenants and also keep a list of multiple emergency contacts available so that you can
quickly reach critical services. Immediately inform employees and tenants about any changes in
building layout or access.

It’s also important that maintenance team members know how to shut off the building’s water,
gas and electricity. Assign on-site employees to help evacuate tenants with special needs. Drill
employees on how to respond to different emergencies, and update them on any changes in
procedures.

2. Clearly Map Evacuation Routes

When we work on a property after a fire, I’m often surprised by the absence of posted evacuation
maps. These maps play a lifesaving role in every property manager’s emergency action plan
especially in multifamily buildings.
Post evacuation maps on each floor near exits, elevators and stairwells. Include emergency safety
information about avoiding elevators and closing doors during a fire. Clearly mark all emergency
exits and fire-safe stairwells, and post easy-to-read directional information in hallways.

3. Maintain All Safety Systems

As a property manager, your responsibilities for emergency planning include keeping all
building safety systems in good shape and up to code. Your property’s maintenance teams can
take care of routine checks and adjustments, but some jobs are better handled by industry-trained
technicians.

Make sure fire extinguishers are mounted correctly alongside posted information that explains
their proper use and routinely check all emergency systems including fire sprinklers, emergency
lighting and smoke alarms. Have all emergency system equipment inspected by industry
technicians at least once a year.

Check emergency exits for properly operating doors every day, and make sure these areas always
stay clear. Update evacuation maps to reflect any changes in property layout that could affect
exiting the building.

4. Keep Tenants Informed and Involved

You want an emergency plan for your commercial building that helps minimize property
damage. However, maximizing tenant safety is your first priority. As you develop an emergency
response plan, keep tenants informed and involved.

Make sure tenants have a list of emergency numbers including contact information for you and
your staff. Include a packet of emergency preparedness information with all tenant move-in
materials and deliver an updated emergency preparedness packet to all building tenants once a
year.

In multifamily buildings that allow pets, distribute ASPCA Rescue Alert stickers as needed.
Also, alert tenants to any property alterations or changes in emergency procedures that might
affect an evacuation.

5. Have a Trusted Recovery Partner

Solid emergency planning should address the aftermath of fire and water damage. If you don’t
already work with a disaster restoration company, partner with a contractor now so that you’ll
have 24/7 access to vital recovery services.

Talk to other property managers about their experiences with different disaster restoration
companies; your insurance carrier can also recommend a restoration contractor who maintains
Quality Restoration Vendor status. Be sure to connect with a restoration business that’s full-
service, available 24/7, IICRC-certified and has positive online reviews.
Make your final decision based on a personal interview with the company’s team leaders. After
you partner with a restoration contractor, add his or her contact information to your list of
emergency numbers.

You Always Have Help

When my husband Neil and I launched our restoration business back in 2008, we knew we
needed an emergency plan to protect our building and employees in cases of on-site
emergencies. I reached out to our local fire, police and EMS departments. Even my insurance
carrier was a big help.

As you form your own plan or update existing procedures, network with emergency responders
in your area. Developing a disaster preparedness plan is a very big job, but it’s easier when you
ask the experts for assistance. They’re always there for you, and they’re always happy to help.

About the author

Diana Rodriguez-Zaba owns and operates ServiceMaster Restoration by Zaba, with offices in
both Chicago and Skokie, Illinois. Diana and her team work daily with property managers all
across the city, providing water damage, fire damage and specialty cleaning services.

C O N S T R U C T I O N – DISASTER
RECOVERY

CONSTRUCTION

RISK MANAGEMENT
ALTERNATIVE RISK FINANCING

DISASTER RECOVERY PLANNING

1. Introduction

Risk management is a wide ranging discipline, which is not confined to insurable risks. It is
estimated that for every insurance risk, there are probably eight non-insurance events, which
require risk management consideration. This work deals with the insurance related risks, which
arise on construction sites.

To put the subject in to perspective, insurance is just one solution to a risk management
problem. The cost and frequency of insurance claims in the construction industry has resulted in
insurance becoming unavailable in some areas e.g. theft of plant, theft from unattended vehicles
and substantial excesses are now normal for most risks. It is essential therefore, for the
construction industry to practice its own risk management, quite apart from the disciplines which
insurer’s may impose.

2. The Risk Management Process

Risk management may be defined as the identification, analysis and economic control of those
risks which can threaten the assets or earning capacity of an enterprise.

The following diagram shows the stages in the process.

IDENTIFY THE RISK

EVALUATE ITS IMPACT

CONTROL THE RISK

PHYSICAL CONTROL

FINANCIAL CONTROL

POST LOSS

PRE-LOSS
RETAIN TRANSFER

3. Identification of Risk

This is the first and essential step in the risk management process. Without identification the risk
cannot be evaluated, and therefore cannot be controlled.

There are numerous methods of identifying risks in the construction industry e.g. organisational
charts, physical inspections, check lists, flow charts, and more technical methods such as the use
of fault trees, which can offer alternative causes of any particular risk which may arise. There
are advantages and disadvantages with all methods, and the contractor needs to work with that
which is most practicable for his situation. Check lists are quite effective in that they are speedy
and low cost, as well as encouraging others to get involved in the process. Most contractors will
be small enough to purchase conventional insurance, and the insurance manager will give them a
comprehensive list of perils and liabilities to which they are exposed.

In a large international contracting Organization a risk manager will probably be employed,

whose sole function is to carry out this process. In an ideal world, such a risk manager should
always be employed, but at the end of the day the process has to be cost effective to the
enterprise.

4. Analysis

It is necessary to evaluate the impact of the risk once it has been identified. Clearly a fire will
have a significant impact on a construction site, as will a severe storm on an exposed site, and
vandalism on a suburban site with valuable materials in store. Very expensive plant may be on
site and there are risks of impact and collapse, with third party claims also possible. To evaluate
any risk requires a lot of information gathering, along with an analysis of previous experience.
There is a need to calculate the potential frequency and severity of losses, and various techniques
are used to achieve this.

Just because a risk exists does not mean that it has to be treated in a particular manner. For
examples, some risks produce frequent but low cost claims. Theft of plant from sites or from
vehicles is common. Most claims are for a few hundred pounds, and as this would eat away the
annual premium charged by an insurer, it is likely that the insurer will call for a compensating
increase in the premium. It is sensible therefore to self insure such risks either by removing the
theft risk entirely, or imposing a significant excess.
Insurance therefore is not the answer to most low cost high frequency losses. This does not
mean that the contractor has to accept the situation. He can improve his security on the site or on
his vehicles and seek more stringent controls on the movement and location of plant.

5. Risk Control

This comprises two disciplines – financial control, either by retention, insurance or otherwise,
and physical for example improved security on site. In construction insurance the problem is
compounded by the wide range of risks to be managed.

These can range from direct perils such as fire and malicious damage on site to complex legal
liability claims, involving professionals, sub-contractors and future tenants and purchasers. In
addition there are a range of consequential loss issues, as well as specialist risks and insolvency
of contractors (performance bonds).

The contractors all risks cover alone involves numerous risks from fire, explosion, aircraft
damage, riot, malicious damage storm, flood, burst water pipes, impact, and accidental damage.
In some circumstance consequential losses may arise, to the contractor, the client, and the
professional advisers. Legal liabilities may also arise out of the same incident.

The impact of these risks will also vary from location to location and in some parts of the world,
other perils have to be considered e.g. hurricanes, volcanic eruption, and earthquake.

This is a considerable challenge to a risk manager, and the scope for risk control in the
construction industry is therefore enormous, and in recent years, steps have been taken to
improve the situation. Examples of recent initiatives are:

i) The local Code of Practice on the protection from fire on construction sites and buildings
undergoing renovation.

ii) The Theft Scheme.

iii) The regulations (Construction Design and Management).

iv) The Construction (Health Safety and Welfare Regulations.

The above initiatives have regrettably only been a response to the continuing unacceptable losses
from various perils over many years.

Another method of controlling risk is transfer by means of contract conditions. A common

example is the use of the Construction conditions, in relation to plant hire, which transfers most
of the risk of damage to the plant, and personal injury, to the hirer. This does not however,
reduce the risk. Total elimination of a risk is well high impossible, but reduction in risk is quite
possible, and several initiatives are now under way. The 1992 joint Fire Code of Practice, has
initially been targeted at the larger contract sites. There has been some criticism that the severe
measures required, are causing financial problems to the construction industry in a difficult
trading period, when profitability is difficult to achieve. However, this has to be the way
forward if insurance protection is to remain available at reasonably commercial premium rates.

The fire code deals with various headings, such as:

– the design phase, imposing a duty on architects, engineers, contractors, and client.

– the construction phase-involving the appointment of a fire safety co-ordinater responsible for
assessing the degree of fire risk, and for updating the site fire safety plan. The requirements go
in to some detail.

– Emergency procedures e.g. signs to be erected in prominent positions, indicating the location
of fire access routes, and escape routes, and also the position of dry riser inlets, and
extinguishers.

– fire protection.

– portable fire extinguishers.

– site security, against arson.

– site storage of flammable liquid and L.P.G.

– electricity and gas supplies.

– hot work. Insurers have imposed conditions under third party policies for many years, where
heat is applied on third party premises but have paid little attention to the same risk under
contract works policies prior to handover.

– waste materials.

– plant.

The damage potential, caused by contractors on third party sites has now been recognised, and
most employer’s now have strict procedures in operation, before contractors are allowed to enter
a site, and during operations. It is perhaps an indictment on the industry that these measures are
client and/or statute driven.

6. Local Fire Code-Prevention Checklist

Guidance is available for surveyors, construction professionals and contractors. The questions
are split in to different phases of the contract.

Design Phase

i) Has a design co-ordinater been appointed ?

ii) Does the co-ordinater understand the full scope of his responsibilities ?

Construction Phase

i) Has a fire safety co-ordinater been appointed by the main contractor?

ii Has the fire safety co-ordinater:

– formulated a fire safety plan?

– ensured that the staff are familiar with and comply with

the plan?

– monitored compliance with the plan, particularly with regard to hot work permits?

– established a regime of checks and inspection of fire safety equipment, and escape routes?
– established effective liaison with security contractors or staff?

– written records of checks, inspections, maintenance work, fire patrols and fire drills?

– carried out a fire drill, and analysed the results

– checked arrangements and procedures for calling the fire brigade?

iii) On large sites has the co-ordinater appointed fire marshalls or deputies, trained them and
delegated responsibilities to them?

Provided site plans for emergency services, showing escape routes, fire protection equipment and
facilities for the fire brigade?

iv) Fire Safety Plan

Does the plan detail:

– the Organisation and responsibility for fire safety?

– the site precautions?

– the means of raising the alarm in case of fire?

– the procedure for calling the fire brigade?

– the means of escape in the event of fire

– the hot work permit scheme?

– the site accommodation-its use location construction

and maintenance.

– the points of access and sources of water for the fire brigade

– the control of waste materials?

– the security measures to minimise the risk of arson?

– the staff training programme?

v) Emergency Procedures

– is the means of warning of fire known to all staff

– is it checked regularly and is available in all areas above

background noise.

– are fire instruction notices prominently displayed?

– are the fire brigade access routes clear at all times?

– have specified personnel been briefed to unlock barriers when the alarm sounds?

– have signs been installed, indicating fire escape routes and the positions of fire protection
equipment?

vi) Fire Protection

– have measures been taken to ensure early installation and

operation of escape stairs, lightning conductors, automatic fire alarms, automatic sprinkler
systems, or hose reels?

– are fire dampers, and fire stopping provided at the earliest opportunity?

– is steelwork protected as soon as possible?

– are adequate water supplies available?

– are all hydrants clear of obstruction?

vii) Portable Fire Extinguishers

– are adequate numbers of suitable extinguisher’s provided? – are sufficient personnel trained
in their use?

– are extinguishers located in conspicuous positions near

exits?

– are carbon dioxide extinguishers installed near electrical equipment

– do all mechanically propelled site plant carry suitable extinguishers?

– have procedures been implemented for the regular, inspection and maintenance of
extinguishers.

viii) Site Security Against Arson.

– are adequate areas of the site including all storage areas

protected by hoarding?

– is security lighting installed?

– has closed circuit television been installed?

– if so, are the screens monitored, and/or recorded?

– is the site checked for hazards at the end of each work period, particularly where hot work
has been in progress?

ix) Temporary Buildings

– has the contractor made application for a fire certificate? -is the fire break between the
temporary building and the works more than 10 metres?

– if the fire break is less than 6 metres-is the temporary building of relatively non combustible
materials, and is the building fitted with an automatic fire detection system?

– if the temporary building is within the building under

(Loss Prevention Standard) or otherwise made of materials which will not significantly
contribute to the growth of a fire? Is escape for personnel sufficiently easy? Is access for the
fire brigade readily available? Is the building fitted with an automatic fire detection system?

– is any space under a temporary building, enclosed with non-combustible material?

– are heaters fitted with guards, and securely fixed on the walls
– if buildings contain heaters for drying clothes are they thermostatically controlled, and are
drying racks fixed firmly at a safe distance?

– are all heaters and cookers properly installed and is adequate ventilation provided?

– are automatic fire and intruder alarms installed in temporary building, used for the storage
of flammable liquids and gases?

– do temporary buildings contain the minimum of furniture and fittings made of synthetic
materials?

– in areas of fire hazard, does a no smoking policy prevail and are there adequate ‘no
smoking’ signs in place?

x) Site Storage of Flammable Liquids and LPG

– are flammable liquids and LPG stored in purpose designed compounds?

– if not, is the quantity less than half a day’s supply (about 50 litres) and is it kept in a fire
resistant container?

– is the storage area at least 10 metres from temporary

and permanent buildings?

– if not, are all recommended precautions taken?

– are oxygen cylinders, chlorine and similar agents kept

separately from flammable liquids and LPG?

– are the stores properly signed

– has the store a paved on solid base, and is it kept clear

of weeds and rubbish?

– are all electrical fittings of intrinsically safe design?

– is automatic gas detection equipment installed?

– are suitable fire extinguishers provided at the entrances?

xi) Electricity and Gas Supplies

– do electrical installations comply with IEE regulations for electrical installations?

– is all electrical work undertaken by a competent electrician?

– are all installations inspected and tested regularly?

– are all circuits, turned off when work ceases? (except those controlling security functions)

– are all gas supplies installed by a registered gas installer?

– are all gas supplies in fixed piping of armoured flexible tubing?

– are gas cylinders located outside buildings, secured, and protected from interference?

– are flexible links used for LPG supplies only connected by a competent person?

xii) Hot work

– is a permit to work system in operation?

– does the system include an adequately maintained register

– is the area of operations cleared of combustible materials,

before work commences, and are the opposite sides of walls or partitions also inspected?

– is a careful watch maintained during hot work processes with suitable extinguishers of
appropriate type at hand?

– is wooden flooring, and other combustible material which is not moveable covered before
work commences?

– is the work area screened when welding or grinding is undertaken?

– are gas cylinders secured vertically and are they fitted with flashback arresters?

– are tar boilers supervised by experienced operatives, and only taken on to roofs in
exceptional circumstances?

– is the work area thoroughly examined an hour after work has finished?
xiii) Waste Materials

– are provisions made for the safe storage and removal

of waste materials?

– are checks carried out routinely to ensure that waste materials are not accumulated?

– are metal bins with metal lids provided for oily rags?

– is collected waste, awaiting disposal kept away from temporary buildings, stores and
equipment?

– is all dry vegetation removed regularly from around the site?

– is there an absolute prohibition in burning rubbish on site?

xiv) Plant

– is all plant with internal combustion engines, positioned in well ventilated, non combustible
enclosures with exhaust pipes clear of combustible materials?

– are compressors, housed away from other plant?

– do notices and staff training make it clear that fuel tanks must not be refilled while engines
are running?

– is plant and equipment protected from accidental impact?

– are air intakes positioned so that air is cool and free from flammable gases and vapours?

– are sandtrays provided to absorb drips of fuel and lubricant?

Any contractor following this checklist will have covered the Local Fire Code requirements very
well, as it is very exhaustive. The code was revised again in 1995, and you should keep up to
date with developments.

7. Security on Site
Theft and vandalism on sites is a constant problem, and a source of some concern to contract
works insurers. Cover is becoming difficult to obtain for some risks, such as theft from
unattended vehicles, and comprehensive security measures are almost mandatory to obtain site
and depot cover. Substantial excesses are becoming common.

The type of security devices required will center on high quality standards for locks bolts for
thief resistant door locks. This is a minimum standard and some doors may warrant an even
more substantial lock. Mortice deadlocks are inferred but if that is not physically possible a
rimlock of the correct standard would suffice.

Other means of securing doors are hinges, padlocks (which should be of the close shackle type,
and used with a strong locking bar) key operated bolts, door reinforcement (sheet lining, with
coach bolts) and frame reinforcement e.g. a rigid steel strap to the full length of the post, to
spread the load.

Window security may be by key bolts or screws, or by bars or grilles, shutters, or even bricking
in. Much depends on the particular situation. Contract works are difficult to secure, and much
of the above security would be more applicable to existing structures, such as in refurbishment
contracts, or building extensions.

A more recent requirement is for the telephone line to be constantly monitored by use of systems
of such as B.T. Redcare or Red A.B.C. Many alarm systems are either non-NACOSS, or have
audible signalling only, or police only, or with a digital communicator to a central station. A
direct line is another method which is acceptable to many insurers, although it is expensive.
Alarm bells only, or security systems are generally not approved by insurers, unless the risk is
very low hazard.

Site security is possible, with a combination of one or more of the following devices:

Security Fencing – a first line of defence, which can be used in conjunction with guards and for
security lighting. The fencing is usually of the chain link or welded mesh type topped with
barbed wire, or steel palisade. The standard required is BS 1722 specification for fences parts 10
and 12.
Security Lighting-this can be vandal resistant, and if carefully planned and installed can be a
very good deterrent. The lighting may be linked to a CCT camera and/or an alarm system.

Guards-an expensive alternative, which should be done by a member of security companies and
patrol section. Such guards should be well trained with good communication arrangements. The
guards can be supplemented by use of CCTV and security lighting.

Security Glazing-in an enclosed hazard area, such as wages distribution points. A glass screen
can be fitted and the glass should be anti bandit or even better bullet resistant. It would be as well
for the whole area including base beneath the glass to be the same resistance as the glass.

Closed Circuit Television-good for day-time surveillance, but equally good nowadays for
overnight detection. The cameras can be monitored on site, and/or connected to video recorders.

The main problem in the construction industry, however, remains that of plant theft from site.
Some operators have now had their plant and vehicle fleets fitted with the police tracker device,
which is fitted to the vehicle in a secret location, and gives out a signal, to enable the stolen
vehicle or plant to be followed. It has been very successful so far with a very high detection rate,
including the rounding up of a few criminal gangs, responsible for such theft. Immobilisers, and
locking devices would be a requirement of all plant insurers, and cover for plant which is not in a
locked building, or alarmed compound overnight, is rapidly becoming unavailable.

Apart from the above devices, a contractor can help to reduce the incidence of losses such as:

(a) Tighter control of keys. Many items of plant are stolen with the keys still in them! Keys
are also often left in site huts, which are easy to break in to.

(b) Paint the plant a more unusual colour. The large majority of plant in the EUROPE is still
bright yellow.

(c) Improving the quality of locks – many manufacturer’s own locks are of very poor
specification.

(d) Use of security marking devices, such as etching.

(e) High tensile chain towing eye locks.

(f) Wheel clamps.

(g) Mercury tilt switches, to activate an audible alarm

(h) Telescopic leg fixed to the underside of a machine which extends downwards if the
machine is lifted off the ground.

(i) Fuel locks hydraulic locks and battery isolating switches. Electronic access control
systems to site with I.D cards with photographs

(k) Materials to be logged on to site

Most items of plant are not registered for road use, and therefore have little other identification.
Most plant still does not have a vehicle identification number.

8. Site Safety

Perhaps one of the biggest problem areas for contractors remains that of safety. The industry has
dragged its heels for a long time on safety issues, but have now had to take corrective action, in
the wake of a deteriorating accident record, various reports on the industry, and now in
legislation such as the Construction Design Regulations 1994, and the Construction (Health
Safety and Welfare Regulation.

9. Local Regulations

The Regulations impose duties on all parties involved in the construction and design process,
including the client. The clients duties are extensive, although some of these duties may be
passed down to contractors and consultants. The duties include the appointment of a planning
supervisor, and of a principal contractor. The client must also ensure that the planning is carried
out as soon as practicable. This may require a further appointment, that of a consultant to carry
out an environmental audit. Where existing buildings are involved, their current, and previous
use should be made known to the planning supervisor

A health and safety phase must also be built in to the construction programme, and this should
describe the project, identify the risks to persons carrying out construction work, and set out
proper precautions. A health and safety file must be made available, and be kept updated. The
file will ultimately be passed to the purchaser or tenant of the completed building. Suitable
insurance arrangements are also required.

As far as designers and contractors are concerned, their duties are also complementary.

– except for in house designs, the designer cannot allow its employees to prepare a design for
any project, unless reasonable steps have been taken to ensure that the client is aware of the
duties it has to perform under the Local Code.

– designers must co-operate with the planning supervisor to ensure that the designs take in to
account all considerations and include adequate information, to avoid health and safety risks.

– contractors must cooperate with the principal contractor and comply with his directions, and
the notes of the health and safety plan.

– contractors are also required to be pro-active with information to the principal contractor,
including data which they do not yet have. Any existing requirements on health and safety, may
need modifying by the client, setting out the contractors new duties under the Local Code.

– warranty agreements may now be extended to the principal contractor, and planning
supervisor, and any obligations under the contract or collateral warranties should be backed by
suitable insurance.

Local Codes does not give third parties any extra legal rights, except where:

– the principal contractor fails to take reasonable steps to prevent unauthorised persons from
having access to the site.

– where the client does not ensure, as far as is reasonably practicable that a health and safety
plan is prepared before construction commences. Directors and responsible executives of the
client who are found liable may find themselves facing a limited fine in a magistrates court or
unlimited if taken to a higher Court, and for imprisonment for a maximum term.

The regulations will include a much wider scope of work than previous regulations, including for
example works of engineering construction and minor maintenance contracts.
Some of the more significant areas which will appear in the new legislation are:

• Prevention of fall. This account for an estimated 60% of all construction accidents ie falls of
over 2 meters or being struck by vehicles on site. Suitable steps will have to be taken therefore
to prevent such falls, such as provision of working platforms, intermediate guard rails, and where
appropriate, crawling boards, or crawling ladders.

• Fragile Material e.g. roofing, some means of support will be required to avoid such falls.

• Falling Objects -positive measures will be required to prevent people being struck by falling
objects. Materials on site will have to be stacked or laid out in such a way as to prevent them
collapsing or overturning.

• Collapse of Structures-adequate support must be provided for any structure which may be in a
weakened state or unstable, to avoid collapse. The duty to diagnose such weakness or instability
will be on the designer and contractor. Consideration will have to be given to the effect of
temporary loadings imposed by construction methods, and natural forces, singularly and in
combination.

• Safe Means of Support-the safety performance of scaffolds ladders, or other means of support
will be dealt with in detail.

• Demolition and Dismantling – areas to be covered will be the demolition plan. No demolition
work will be allowed to start unless steps have been taken to prevent any danger from specified
hazards.

• Excavations-risks connected with falling, flooding or instability will be considered.

Provisions for the excavation of any excavation in the event of fire or inundation will be
paramount.

• Traffic-the planning and Organisation of traffic routes on or adjacent to the site.

• Doors and Gates -all to have safety devices to meet relevant criteria.

• Vehicles – excavating and handling machinery will be required to be fitted with devices to
protect the driver from being crushed if the machine topples.

• Plant and Equipment-the design use and maintenance of plant and equipment will in future be
influenced strongly by safety factors.

• Fire Precautions – fire fighting devices, fire detectors and alarm systems will be the order of
the day, on construction sites.
• Emergency Routes -every construction site will have to have a sufficient number of escape
routes, which must be kept clear of obstruction and provided with emergency lighting where
relevant.

• Ventilation-fresh or purified air must be available on all sites. This is obviously required in
restricted spaces or enclosed environment such as in tanks or boilers.

• Temperature-this must be reasonable at any point of activity on the site, and the requirement
will be interpreted in conjunction with the provision of protective clothing or equipment.

• Lighting – the colour of any lighting on a site must not adversely affect or change, the
perception of warning signs or signals.

• Good order-a proposed statutory requirement to maintain a construction site in good order,
and in a state of cleanliness.

The regulations will also be looking at inspection of certain hazards by a competent person e.g.
where work is carried on at a height of more than two metres. Welfare provisions will also be
considered at some length whether on or off site or for offices or works. The regulations will
include facilities for washing, changing clothes and eating.

10. Environmental Issues

The environmental aspects of risk management have now been brought to the fore, as a result of
the Environmental Protection. Contractors may have responsibilities for land which has been
contaminated, and which has been purchased for development purpose.

Examples of the consequences of failure would include:

– civil liability, including payment of damages or clean up casts as well as affecting the future
of the site such as an injunction or abatement order.

– criminal sanctions such as imprisonment as well as fine.

– environmental statutes, imposing personal criminal liability on directors and officers, or

controlling parent companies.

Remedies to avoid such problems would consist of:

i) Development of a corporate policy on environmental matters with eventual adoption of an
environmental standard such as.

ii) Staff qualification under environmental management schemes.

iii) Greater corporate disclosure, via corporate and environmental compliance audits, which
should identify actual or potential shortcomings.

iv) Proper selection, training and supervision of staff and outside agencies

v) Documentation is vital. Attention should be concentrated on audits and reports, employee

manuals and instructions, contract documents, financial documents, and not least insurance
policy wordings. Document retention policies are important, in view of the nature of legal
liability, which may arise many years in to the future, based on pollution created many years ago.

vi) Care in dealing with regulators. If regulators call in their own experts, a consultant should
be appointed.

vii) In some areas e.g. chemical works crisis management procedures may need to be in place the
manual being updated constantly.

viii)Consideration of the insurance levels required. Public liability policies may vary in the
cover they provide. Older policies may provide cover against pollution generally, but newer
policies have specific pollution wordings, which (a) define the extent of pollution liability
covered, and (b) specifically restrict the cover to sudden identifiable unintended and unexpected
incidents which take place at specific times and places. Pollution claims occurring are excluded
entirely, and need special consideration. The Environment Act has now further extended the
responsibilities of site owners and operators.

11. Terrorism Damage

Due to continuing acts of terrorism, commercial insurance is now only available in respect of
buildings, contents and consequential losses. If full protection is required, it must be paid for by
applying to Pool Re, a Government backed cover, or a similar scheme. It is vital to be aware and
take appropriate action therefore to minimise the chances, and the effects of such damage. Such
measures are difficult to apply, because bomb attacks are indiscriminate. Complete security is
not possible, but with agreed plans and procedures and pre-planning for disaster, the effects can
be reduced.

12. Pre-attack Procedures

i) Vigilance-to be alert at all times for suspicious objects, or people, whether inside or outside
a building. Clear instructions to all staff on the action plan to be circularised.

ii) Responsibility-many buildings are multi-tenanted and responsibility for security should
remain with the owner. Regular liaison with all tenants is vital and an agreed procedure adopted.

iii) Tidiness-to keep disruption to a minimum. This may mean the provision of suitable secure
cabinets for the storage of all material. Desk tops, floors, and shelves can then be kept free.

iv) Control of entry to buildings. This involves the control of ingress and egress preferably by
limiting the number of such points. A security patrol is recommended.

v) Visitors-to pass through a reception area designed to prevent further access without
approval. All visitors should sign for and receive a security tag and even be accompanied by an
employee at all times. The departure should also be logged.

vi ) Other visitors such as contractor’s on site, or delivery personnel should be checked and
authorised. Arrivals and departures should be recorded carefully.

vii) Premises should be searched at the end of each working day, including communal areas.
The search should be thorough, including all space up to ceiling level, and include cloakrooms,
passageways, car park areas and stairways. Results need to be collated. Any suspicious object
should be left untouched and the police alerted.

viii) Someone must be appointed to co-ordinate the above functions, to be based at a well
established point, with good communication access.

13. Post Loss Measures

From the moment that a device is discovered, or a warning given, or a device goes off, urgent
decisions need to be taken. Evacuation of the premises is an obvious consideration, but it may
not be sensible for all situations. Evacuation may be total or partial, depending on the size and
shape of the premises, and the size and type of bomb. The latter can vary from a letter bomb, to
a suitcase bomb, or vehicle packed with explosives.

The decision to evacuate must come from the owner or tenant of the properties concerned. the
police do not have such authority.

It may be more appropriate to relocate staff to a safer part of the building such as a basement or
underground car park, depending on where the bomb is located. Designated areas should be
arranged beforehand, so that staff are not tempted to go out in to the street, where they may be
injured by flying glass and other fragments. Such areas should be checked beforehand by
structural engineers.

These areas are known as “bomb shelter areas.” They should be sited away from windows,
external doors and external walls, away from the perimeter structural bay, away from stairwells,
or in areas with access to lift shafts. They should also be in areas surrounded by full height
masonry, or concrete walls e.g. corridors, toilet areas, or conference rooms.

Communications between co-ordinater and staff must be comprehensive and clear. Portable
powered communication equipment should be available, in case the mains electricity supply is
interrupted e.g. hand held transmitters / receivers, or other stand alone audio communication
links.

14. Security Measures and Contingency Planning

The effects of a blast can be reduced by fitting a special transparent polyester film to the inside
of windows or hanging special net curtains. The film provides a good bond which reduces the
hazard of flying glass. The fitting of a blast curtain limits the internal effects of an explosion.
The curtain is designed to billow out, absorbing the energy of the blast and retaining glass
fragments.

Closed circuit television is very useful, provided it is actively monitored, and has a recording
facility. Such devices are now widely used to combat daily crime as well as terrorism. CCTV
also needs to be used in conjunction with other security aspects, such as communications,
personnel and staff training.

It is not sufficient just to purchase and install any old equipment. The following criteria are
important:

– carefully draw up a specification of what exactly is needed

– employ a CCTV specialist to install the equipment

– commissioning procedure to be included

– cameras to be in sound working oder, with clear lines of vision

– ensure recording devices are in good order, and that tape heads are regularly cleaned, and
maintained

– recording tapes to be of good quality, and recordings retained for 28 days or longer.

Contingency planning is essential to minimise the disruption to the business. A business can be
severely interrupted by any number of contingencies, not all of which need be high profile such
as terrorist bombs, and not necessarily relating to insured damage. It might for example involve
closure of the premises because of infection or foreign bodies in the product.

In the event of a bomb, however, the contingency plan should anticipate that a building may be
so badly damaged as to be inaccessible. The plan must therefore look at alternative
accommodation for staff, restoration of communications, back up arrangements for vital records,
off site, and notification of all necessary arrangements to customers and suppliers.

Key individuals must to appointed, with clear responsibilities on procedure. A sound plan is to
appoint one overall supervisor of the plan, with two teams reporting to them one which manages
the business itself until things return to normal, and the other which manages the disaster itself.

15. Risk Management for Professionals

Arguably this subject should be at the beginning of this work, as much of what happens at the
design stage, will have an influence on the whole construction process.

The main points to be considered by the architect and engineer are as follows:

i) Do not certify anything without having carried out a proper site inspection.

ii) Insist on an equitable written contract. Such a contract outlines the duties and responsibilities
of the parties, so that it is easier to pinpoint the cause of the problem when it arises.
iii) They must have a specific project plan

iv) They should not make any exaggerated claims about their design or specification

v) They must keep the client informed at all stages

vi) Any problems should be faced squarely

vii) written records should be maintained of any changes in the contract terms, designs,
scheduling, materials, site meetings, instructions and after any incident or accidents. Such
records should be kept for a mininum of 15 years.

viii)Never guarantee performance or accept uninsurable risks e.g. a contract or collateral

warranty, with an express fitness for purpose clause.

ix) Think carefully before suing for outstanding fees. There may be a reason for the non
payment. Only if the claim for fees looks perfectly valid, proceed.

16. Contractors on Third Party Sites

The basic rules of risk management apply equally to activity on other peoples premises, as well
as the contractor’s own site. Many contracts consist of work on existing premises, much of it
involving “hot work” ie use of heat such as blow torches and welding appliances. Not
surprisingly, many major fires have been caused by contractors on other peoples premises and
the more enlightened employers have now laid down very strict procedures, regarding access to
the site and rules whilst on site. Such procedures cover not only the fire risk, but site security,
and health and safety matters in particular.

A common procedure is to issue any contractor entering the premises with an entry permit, or
booklet which incorporates all the procedures to be followed. This commences with entry
procedures, and states that no contractor will be allowed to commence activities, until they
demonstrate that they understand and will comply with the regulations.

The contractors health and safety policy should be supplied before work commences, and all
employees must report to the correct entry point, and sign in. The health and safety procedures
will need to cater for employees of the contractor, as well as employees of the customer, and to
third parties.
If any of the work is to be sub-contracted, the contractor must ensure that the subcontractor has a
copy of the health and safety document, and that they will comply with its provisions.

Fire precautions are laid down, on much the same lines, as the contractors public liability
insurers may apply e.g.

– apparatus to be regularly checked

– apparatus to be extinguished when not actually in use

– no storage of flammable liquids on the site

– permission from the customer before work commences

– no burning of waste on site

– fire proof screens to be erected around the work to be carried out

– fire extinguishers to be immediately at hand

– site to be checked half an hour or an hour after the work has finished.

Other requirements would concentrate on such areas as:

i) Protective clothing and equipment

ii) Noise and environmental pollution

iii) Electricity regulations

iv) Housekeeping

v) Welfare and first aid activities

vi) Fencing of machinery

vii) Control of Substances Hazardous to Health.

viii)Insurance requirements -usually a mininum third party cover of say along with suitable
employer’s liability cover, and any other relevant cover and on more specific areas:

ix) Scaffolding and means of access

x) Lifting operations

xi) Excavations

xii) Asbestos regulations

17. Self-insurance

This is the planned assumption of risk. It should not be confused with non-insurance, which is
not planned, and where a catastrophe could arise without the buyer even being aware of the risk.
Most large buyers will accept a degree of self insurance, and certain criteria may be adopted such
as 1% to 5% of working capital in any one year, or 0.1% of sales per occurrence. Factors which
may influence the actual level of self-insurance are the cost of the insurance premium, claims
handling costs and loss control. The obvious advantages are improved cash flow on loss
payments, no insurance overhead contribution, more focus on loss control, improved control
over claims, and improved scope of excess insurance.

There are disadvantages, such as heavy losses in any one year, and cost of handling the self-
insured losses including tax implications.

Insurers are also slow to offer good discounts for higher deductibles, so that many buyers are
settling for lower deductibles than they could actually absorb.

18. Preparing the Plan

A committee should be set up for the specific task in hand, and this should consist of
representatives from all areas of the enterprise -production, development, financial, personnel,
technical.

To be effective, the team selected must, be right for the job, selected from senior management,
and commitment must be shown from the top.

The leader of the team, should act as a coordinator, and again needs to be a senior figure in the
company.
The team would look at the worst possible scenario, say a total devastation of the premises, and
decide how they would continue to operate the business, and how to progress back to normal
working in the shortest possible time. Some disaster have different effects on a business. There
may be a loss of production, as on a contract site, on inability to trade because of lost drawings
or documents.

Back up is vital. A key member of the team may be on holiday or away ill, at the time of a
disaster, and reserve personnel must therefore be trained up, as part of the team.

A list of names, addresses and telephone numbers must be available, including emergency
numbers, in respect of:

Bankers

Insurers

Loss adjusters

Plumbers, electrical

Material suppliers

Local police

Emergency services

Sub-contractors

Consultants

Detailed plans of the premises, including location of all services must be available, and liaison
with loss adjusters may well repay the company, as they will have useful information contacts
and resources.

It is vital to keep such lists and plans up to date on a regular basis.

The division of responsibility may include:

– communication and public relations

– computer systems

– salvage and debris removal

– production

– administration.

Good public relations is vital in some industries, and the public do need to have their confidence
restored. On a major new construction contract the client does need to know where he stands, to
avoid substantial trading losses due to delay. A sound two way communication system is
required.

Salvage specialists may be needed and again contact with loss adjusters will assist in this area.

19. Keeping the Plan Up-to-Date

This is an essential function. An out of date plan is almost as bad as having no plan at all.
Regular meetings will therefore be necessary to ensure that the plan remains relevant to the
current situation. Flexibility must be built in to the plan. Regular meetings also mean increased
familiarity with the plan. The plan should also be tested occasionally in parts and as a whole, so
that any hitches can be ironed out ahead of any real emergency.

The document itself should be simple to follow. Personnel do change, and new people taking on
such responsibilities should be able to look at the document, and pick up the main points readily.
This will involve some thought on the lay out of the document, colour coding and summarising.
Copies of the document need to be available at the time of the disaster. If they are all destroyed
by the disaster they are not of much use. Copies must therefore be kept off site, say at the homes
of directors.
22. Benefits of a Disaster Recovery Plan

1. Apart from the fundamental benefit of providing the basis of a speedy recovery, the other
advantages are:
2. Market Position – possible loss of market in the event of a long delay.
3. Legislation – a plan will focus on legislative matters, such as safety procedures, and fire
protection.
4. Problem Areas -already addressed within the plan
5. Education and Training – identifying and dealing with the problem is one thing but
lessons can then be learnt and incorporated in to training programmes.
6. Prevention-the plan enables different views to be taken on how the work is done in the
future. Different working practices may improve the risk for the future, as well as
bringing about improvements in the industry generally. One of the problems there was
the presence of combustible site huts and materials sited under the main building. One of
the outcomes was the introduction of the Local Code of Practice for Construction Sites
now in its third edition.
7. Finally, the presence of a good disaster recovery plan, may be helpful to the insurance
overhead on certain risks where some discount may be available from certain insurers.

Creating a Disaster Recovery Plan for Your

Building

For every new build project, safety is a top priority. The structure must be designed to withstand
both everyday stresses as well as those that exceed average conditions, such as tornadoes,
earthquakes, and fires.
If a disaster strikes, the success of your recovery efforts hinges on the effectiveness and
execution of your disaster preparation plan.

But what does this involve?

Here’s how to create a disaster recovery plan for your building.

Ante Disaster Period

A key facet of disaster recovery planning involves risk management and assessment. This is
often a lengthy and complex planning period that is necessary to obtain insurance and ensure the
safety of the building occupants.

Typically, it involves the following steps:

 Risk Identification – You must identify the chief risks in order to control them. But the
types of disaster risks you may face likely hinge on several factors, such as the location
and the type of construction project. While hurricanes aren’t a major concern for new
builds in California, wildfires and earthquakes are. Ways you can identify common
construction industry risks include:
o Physical inspection
o Checklists
o Flow charts
o Fault trees

According to FEMA’s National Disaster Recovery Framework, some of the most common risks
you should account for include natural weather-related hazards, technological and accidental
hazards, and terrorist threats.

 Analysis – After you have identified a risk, the next task is to gauge the potentially
destructive impact it could have on the building. Project managers must consider
disasters that are low-cost high-frequency losses as well as those that cause high-cost
low-frequency losses.

 Risk control – The next task is to implement the proper measures—physical, structural,
and communal—to mitigate the threat a potential disaster poses on the building. At the
very least, the new build should align with fire codes, which tend to account for the most
common risks in that particular area.

 Nominate a design coordinator – A design coordinator will be tasked with the

responsibility of designing a disaster recovery plan and then monitoring compliance.
They’re expected to:
o Set inspections checks for emergency equipment and building escape routes
o Document the checks, inspections, and maintenance work
o Liaise with local fire departments
 o Ensure that people working on the building and those that will eventually occupy
it are trained and prepared for a disaster
o Verify that emergency equipment, signs, and protection equipment are visible

Post-Disaster Period
After a disaster has struck, it’s also vital to have a post-disaster recovery plan in place to mitigate
losses. Disasters tend to lead to disorder. But if you have a plan in place, it could help cut
through the noise, enabling you to act decisively.

What does that look like? As with pre-disaster planning, it begins with analysis:

 The assessment – Once a disaster has struck, your first task is to determine how much
damage it caused, and how that will impact operations. Power lines may be down,
roadways blocked, people injured, and emergency responders overwhelmed. For the
building itself, it’s imperative to determine the extent of the damage to the site—both
apparent and beneath the surface. From there, the goal is to re-establish communication
channels.

 Recovery mobilization – After you have verified that the area is safe to work on, you
should begin work post-haste. For this, you must consider the types of equipment needed,
how that equipment will be transported, the availability of resources, and (for
uncompleted projects) whether the existing structures can be worked upon or need to be
demolished.

 Customer management – Although this may seem like an afterthought, construction

companies must consider and address the customer’s needs. Providing aid and support
demonstrates that you value the long-term relationship.

 Evaluation – There’s only so much planning you can do for a natural disaster. Quite
often, the planning is theoretical. As a result, some parts of it may have been effective
while other aspects were not. After the restoration process is underway, a construction
manager should evaluate the successes and failures of the disaster recovery plan. From
there, they can make the necessary tweaks so that they’ll be even more prepared should
disaster strike a second time.

Disaster Planning with MFS Construction

Most disasters strike suddenly, with little warning.

Disaster planning can help you protect the worksite, its structure, and its future occupants, as
well as your employees. If planned properly, it’s an invaluable resource that can guide you
through the calamity.
At MFS Construction, disaster planning is an essential part of our design and construction
process. It informs how we plan and carry out every project.

If you want to learn more, reach out today for a consultation.

How to Prepare and Implement a Disaster

Recovery Plan
The value of a Disaster Recovery or Control Plan is the ability to react to a threat or event swiftly
and efficiently. This can only be achieved when a department has informed staff, disaster
supplies and planned procedures -- in short, a Disaster Recovery Plan.

What was discussed earlier about planning for disaster prevention applies equally to planning for
disaster recovery. The planning is a senior management function and cannot succeed without top
level support. Recognition of the need for such a plan must be present at an early stage, no matter
who stimulates this awareness.

A written authorization statement makes management's support for the disaster planning process
clear to all employees. The original mandate must spell out the plan's goals and objectives so that
top management's expectations are met.

Proficiency
Records Management is just one of many resources available to the University. The key to
having a comprehensive disaster prevention and recovery plan is to draw from all of these
resources/plans.

One of the primary resources we have identified, not only from a records management
perspective but also nationwide among large companies, is the opportunity to relocate backup
information and systems that are vital to our University's success, survival and reputation.
Because we are a four campus system, each campus can be a vital resource for each of the other
campuses as a distant off-site storage location (90 to 128 miles apart) for backup of information
systems. In the event of a wide-spread disaster such as a tornado or earthquake, UM's system of
wide-spread campuses could serve as off-site backup facilities with very little cost to the system.

The Disaster Recovery Plan

The Disaster Recovery Plan should be prepared by the Disaster Recovery Committee, which
should include representatives from all critical departments or areas of the department's
functions. The committee should include at least one representative from management,
computing, risk management, records management, security, and building maintenance. The
actual size and composition of the committee will depend on the size, location, and structure of
the individual department or facility.
The committee needs to prepare a time line to establish a reasonable deadline for completing the
written plan. This time line may take the form of a Program Evaluation and Review Technique
(PERT) chart or a decision.

Team Task Organization

The plan must spell out the titles and functions of each team member involved in the disaster
recovery process. The individuals who will compose the team or teams should be identified by
title or position and name. In a small facility or department with only a handful of employees, the
entire staff may become the Disaster Recovery Team with one person designated to lead the
recovery effort. The person named Recovery Director or Coordinator must be given the
necessary authority to declare a disaster, and to act quickly and effectively during the salvage
operation.

Information Distribution Procedures

The plan must include specific methods for contacting team members and alternates, vendors,
support agencies, suppliers, consultants and all those with whom special disaster contracts and
agreements are in effect.

Specific Disaster Reactions

The plan must provide for both major and minor disasters, and must address individual and
community-wide natural disasters such as tornados and general flooding. Your plan should also
define in terms of business interruption what constitutes a disaster; thus, authorizing the
activation of the disaster recovery plan.

Training of Employees

The recovery plan must provide for initial and ongoing employee training. Skills are needed in
the reconstruction and salvage phases of the recovery process. Your initial training can be
accomplished through professional seminars, special in-house educational programs, the wise
use of consultants and vendors, and individual study tailored to the needs of your department. A
minimal amount of training is necessary to assist professional restorers/recovery contractors and
others having little knowledge of your information, level of importance, or general operations.

Priorities for the Restoration of Essential Functions

Your disaster recovery plan must not only spell out which functions are vital, but also the order
they are restored. This is especially critical in the vital, complex computing functions where
accounts receivable, payroll, and accounts payable have fluctuating priorities throughout the
month.

The plan should establish only general priorities. Leave individual decisions to managers who
know which functions are critical at a specific period of the month or in a particular situation.

Contracts and Agreements with Disaster Support Agencies

Copies of contracts and agreements with all disaster support agencies and businesses including
salvage and reconstruction consultants, available alternative sites, and vendors of other essential
equipment and supplies must be included in the written plan; or otherwise arranged by UM Risk
Management.

Agreements are a less formal means of providing emergency services particularly where
goodwill is involved in promising help to charitable organizations, educational institutions, and
government agencies. The Eastman Kodak Company is one large organization that has provided
reprocessing services for water-damaged film to its customers for years through informal
agreements.

A list of additional recovery resources should include:

 Local fire department

 Police department
 Civil defense
 Ambulance services
 Paper supply vendors
 Copy machine(s)
 Office equipment
 Computer equipment and supplies
 Resources for freezer space/freezer trucks
 Local volunteers or temporary help

The disaster recovery plan must specify by name, address, position, and phone number the
various resources the disaster team will use.

A List of Disaster Salvage Equipment and Supplies

A list of the equipment and supplies gathered for the disaster salvage kit forms part of the
disaster recovery plan. This list should indicate the available items and their location. Each
department must decide what items should or should not be included on the supply list. Below
are some items to consider:

In House

 Employee identification (arm bands, badges)

 Blotting paper
 Packaging tape
 Freezer paper
 Paper towels (not colored)
  Plastic milk crates
 First aid kit
 Gloves - rubber
 Flashlights/batteries
 Sponges
 Pencils or pens
 Soot sponges
 Permanent markers
 String
 Heavy plastic sheeting
 Unprinted newspaper
 Overalls
 Camera and film
 Mops
 Copiers
 Ladders
 Pallets
 Radios/batteries

Purchase or Rent

 Plastic trash cans (large and small)

 Extension cords
 Dehumidifiers
 Plastic trash bags
 Soot sponges
 Wet vacuum
 Water movers (squeegees)
 String
 Forklift
 Batteries
 Generators
 Hand trucks
 Safety glasses
 Labels
 Fire extinguishers
 Tie tags
 Permanent markers

Your disaster recovery supplies can be assembled within the department as part of disaster
planning, or they can be purchased after a disaster from previously contracted suppliers. The
latter approach is risky in a general disaster when such supplies are in great demand.
Blueprints and Floor Plans of Building

This information is essential during the preparation and salvage stages to locate utility
connections, electrical switches, alarms, potentially dangerous floors or ceilings, hazardous
materials, and access to damaged areas. Gas, water, and electricity must be turned off as soon as
possible after a disaster. In situations with advance warning, utilities can be shut down in
advance.

The first step in the recovery process is the restoration of climate controls. This is especially true
if the damage is by water (wet documents). Wet paper, or most any other material, will develop
mold within 48-to-72 hours in a warm and humid environment. An accurate picture of access
routes, storage areas, and equipment locations allows the recovery team to quickly take control
and assess the extent of the damage.

Summary

A disaster recovery plan maps out the process of resuming normal business operations,
reconstructing or salvaging vital and other important records and equipment, and becomes a
guide for all managers and employees during and after a disaster. The plan's key elements fall
into three categories: those common to all sections of the plan; those pertaining mainly to the
resumption of business operations; and those pertaining mainly to the reconstruction or salvage
of vital University records.
How can you manage real estate assets in natural disaster-prone areas?

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Assess your exposure

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Develop a contingency plan

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Implement preventive measures

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Engage with stakeholders

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Leverage technology

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6

Learn and adapt

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Here’s what else to consider

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Natural disasters can pose serious threats to the value, performance, and safety of your real estate
assets. Whether it's a hurricane, earthquake, flood, wildfire, or pandemic, you need to have a
proactive and comprehensive strategy to manage your portfolio in disaster-prone areas. In this
article, you will learn some of the best practices and tools to help you mitigate the risks and
optimize the outcomes of your real estate assets in natural disaster-prone areas.

Find expert answers in this collaborative article

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1 Assess your exposure

The first step to manage your real estate assets in natural disaster-prone areas is to assess your
exposure to different types of hazards. You can use various sources of data, such as historical
records, climate models, geospatial analysis, and risk maps, to identify the locations, types, and
levels of risk that your properties face. You can also conduct site visits, inspections, and audits to
evaluate the physical condition, structural integrity, and operational resilience of your assets. By
assessing your exposure, you can prioritize the most vulnerable and valuable assets and allocate
your resources accordingly.
Add your perspective

2 Develop a contingency plan

The second step to manage your real estate assets in natural disaster-prone areas is to develop a
contingency plan that outlines the actions, roles, and responsibilities of your team in the event of
a disaster. Your contingency plan should cover the following aspects: communication,
emergency response, business continuity, recovery, and restoration. You should also establish
clear protocols and procedures for reporting, monitoring, and documenting the impacts and
progress of your assets. Your contingency plan should be regularly reviewed, updated, and tested
to ensure its effectiveness and alignment with your goals and objectives.

Add your perspective

3 Implement preventive measures

The third step to manage your real estate assets in natural disaster-prone areas is to implement
preventive measures that can reduce the likelihood and severity of damage and disruption to your
assets. Some of the preventive measures that you can consider are: upgrading or retrofitting your
buildings to meet the latest codes and standards, installing or enhancing your fire suppression,
backup power, water supply, and security systems, diversifying or relocating your tenants,
suppliers, and operations to less risky areas, and purchasing or renewing your insurance coverage
and claims management. By implementing preventive measures, you can improve the durability,
functionality, and value of your assets.

Add your perspective

4 Engage with stakeholders

The fourth step to manage your real estate assets in natural disaster-prone areas is to engage with
your stakeholders, such as tenants, employees, contractors, investors, regulators, and community
members. You should communicate with them regularly and transparently about your risk
assessment, contingency plan, preventive measures, and recovery efforts. You should also solicit
their feedback, suggestions, and concerns and address them promptly and appropriately. By
engaging with your stakeholders, you can build trust, loyalty, and collaboration and enhance
your reputation and social responsibility.
Add your perspective

5 Leverage technology

The fifth step to manage your real estate assets in natural disaster-prone areas is to leverage
technology that can help you monitor, analyze, and optimize your portfolio performance. You
can use various tools and platforms, such as sensors, drones, cameras, dashboards, cloud
computing, artificial intelligence, and blockchain, to collect, store, process, and share real-time
data and insights about your assets. You can also use technology to automate, streamline, and
improve your workflows, processes, and decisions. By leveraging technology, you can increase
your efficiency, accuracy, and agility and gain a competitive edge in the market.

Add your perspective

6 Learn and adapt

The sixth and final step to manage your real estate assets in natural disaster-prone areas is to
learn and adapt from your experiences and outcomes. You should conduct a post-disaster
evaluation and review of your assets, processes, and performance and identify the strengths,
weaknesses, opportunities, and threats that emerged. You should also benchmark your results
against your goals, objectives, and expectations and measure your return on investment and risk-
adjusted returns. By learning and adapting, you can enhance your knowledge, skills, and
capabilities and refine your strategy and tactics for future scenarios.