Construction site theft costs a home builder much more than just the replacement value of the equipment or materials stolen, and the problem seems to be an incurable industry epidemic. Lumber, shingles, windows and mechanical fixtures are all potential targets for roaming bandits, and the nature of the industry makes it extremely difficult to curtail theft. New home sites sprawl over acres of land, while independent crews work away in anonymity and countless vehicles come and go unnoticed. Conservative estimates in the past have put the loss from construction site theft at around $220 million in Canada annually, but many in the industry speculate that total costs could be closer to a billion dollars.

The impacts of construction site theft are far reaching, and the burden eventually falls on the backs of new home buyers, as these costs filter their way into the prices of new homes. Theft results in additional material costs, higher insurance premiums, and loss of productivity during the build cycle. This does not even begin to quantify the additional costs for labour and equipment utilized to try to ward-off would-be thieves, which quickly makes the costs of the items stolen one small piece of the pie when analyzing the overall magnitude of the problem.

Construction site theft may be as simple as the all too common loss of a few pieces of lumber lifted by weekend do-it-yourselfers looking for materials to finish their own deck or basement. Or it may be the work of professional criminals looking to steal equipment, ranging anywhere in size from air compressors up to excavators. In my own past experience in home building, we were the victim of thefts both large and small on several occasions. The largest incident was a total looting of two locked storage trailers, packed full of model home furniture and appliances that were awaiting move-in to our new model homes. Both the police and insurance company were quite confident that this was not a random theft, but rather well-contrived by someone familiar with our site, as is often the case. Whatever the nature and magnitude of the theft, the repercussion is always the same, in that it takes time and money to remedy.

Many home builders use a variety of means to curtail construction site theft, such as fenced compounds, just-in-time material deliveries, site security officers, and more. All of these precautions increase labour costs and reduce production efficiency, while still not eliminating the risk of theft. As careful as many home builders are, it is just not possible to have all materials under lock and key at all times. To further fan the flames of this problem, there always seems to be a readily available market for thieves to convert their stolen property into cash. Unfortunately, a large portion of items stolen are not easily traced or uniquely identified, which provides stimulus for this criminal activity to continue in a relatively low-risk environment for thieves.

No matter how formidable the foe may seem, there are techniques and practices that do help to reduce the risk of construction site theft and a good starting point is by developing a thorough jobsite antitheft plan. This plan is intended to clearly identify site security measures including secured storage locations, alarms systems, lighting, fencing, and security guard services where applicable. It should also identify a proactive materials management strategy, along with designating the company individuals that are to record incoming material deliveries. The exercise of developing this antitheft plan provides an opportunity to take a comprehensive and proactive look at not just the site location, but also the processes and the people that are at work in the course of operations. This holistic approach will often unearth areas that may be highly vulnerable and practices that are most susceptible to theft — providing an advanced opportunity to mitigate the risk.

Having a good line of communication with local police and fire departments is also recommended. New home sites are not always part of the routine patrol routes of local police, and it is always smart to be sure that a new site is on their “radar.” Acknowledging that local law enforcement cannot be everywhere at once, it is also wise to engage local residents to keep watch as well. It is in the best interest of new homeowners to try to reduce criminal activity in their community, and most homeowners will gladly report suspicious activity if they are apprised of the potential problems.

Research has shown that the majority of theft at construction sites is done by individuals familiar with the job site. Thus, it important to make all employees, suppliers and trades aware of the need to secure all materials and equipment. All tools and equipment should be uniquely and permanently marked for identification purposes. For larger equipment, anti-theft tracking systems are available that make it possible to recover stolen equipment and possibly track down the criminals. It is also important that all employees, suppliers and trades are aware of company policies regarding site theft, including the full range of consequences that will be enforced for anyone caught participating in this type of crime.

Construction site theft is a big problem in home building, and home building is a big industry in Canada. The magnitude of this problem cannot be dismissed. What more can be done to help stop these crimes? If you have any practices or policies that have proven effective, please let us know in the comment section below.