Construction theft is big business, with experts estimating that heavy equipment theft alone costs the industry between $300 million to $1 billion a year. Another sobering fact is that it is much easier and more profitable to sell stolen construction equipment than cars, trucks and other registered vehicles. So, with the reward being greater than the risk, this serious industry problem is not expected to go away. In fact, now that the economy is slowing down there appears to be an increase in material and equipment theft at jobsites.

Some contractors, especially those working in cities, may say it is just a part of doing business and that it is what insurance is for. However, the theft of everything from copper wire to backhoes is not just happening in downtown areas, and there is more to it than just the cost of the materials or even the equipment. It causes downtime, wasted management time, delays and project overrun penalties — all of which equate to expenses that are not covered by insurance. And, what about the costs that are covered? Insurance policies have deductibles and premiums go up when too many claims are reported. Some insurance companies will drop policies for the same reason.

Can thieves and vandals be stopped? The answer is probably not, but contractors can take action to make theft and other criminal activities more difficult. Thieves will often go somewhere else if they know materials and equipment are locked up and the jobsite is secured or equipped with lighting and cameras.

Start by creating an equipment inventory management system that includes information about each piece of equipment — both yours and the rental company’s — including smaller equipment like generators and compressors. You should record the specific make and model number, product information number (PIN) or serial number (SN), any prefixes and other component numbers such as engine, chassis or attachments. Take a picture of the equipment and include it in the file. (Do not rely on bills of sale and other receipts that you may get when you purchase or rent the equipment.) Remember: The risk of thieves getting caught when selling the equipment is low because of the number of owners who do not record the foregoing information.

Mobile remote surveillance systems — like this eCamSecure from CPS Security Solutions — have the ability to send videos to a company’s computer network, project manager’s laptop or BlackBerry-type device.

You can also imprint equipment with your own company’s identity or paint parts of it with colors that will make it stand out. Thieves can of course repaint the equipment, but until they do, the equipment will be easier to spot if it is stolen. And because it is much harder to grind off imprints than it is to repaint the equipment, you might want to consider using etching tools or a steel punch to duplicate a unit’s PIN or SN in at least two other places on the equipment — one obvious and one hidden. Be sure to record the location of these numbers. These actions on your part can also act as deterrents because a lot of thieves don’t want to be bothered with repainting the equipment or grinding off numbers. They want to steal it, move it and sell it as quickly as possible.

If you have a significant investment in heavy equipment, you may want to register the individual items with the National Equipment Registry (NER) and other equipment databases to increase the chance of recovery if one of them is stolen. The NER will also send you a decal for each registered item to help deter theft. Registration also allows you to access and amend your fleet information online as a fleet management tool. In the event that a piece of equipment is stolen, you will be asked to provide the police and stolen equipment databases with detailed information about the equipment, so be sure to keep it where it can be easily retrieved.

It is important to remember that most equipment is stolen after dark between Friday night and Monday morning and during holidays for the simple reason that the theft is unlikely to be discovered until Monday morning. This gives the thieves a window of opportunity during which they can transport, modify, strip or hide the equipment without fear of being discovered. While there are no guarantees, there are a number of things you can do to secure your equipment, both at your office and on the jobsite.

Locking Devices

The most obvious thing a contractor can do to deter thieves is to lock up equipment and materials. Special equipment locking devices are available to secure controls, attachments, steering mechanisms, wheels, trailer hitches, etc. These devices deter the thief by making it difficult to drive, operate or tow the equipment. Locking devices are also available to secure office and storage container/trailer doors.

Fencing and Barricades

Where possible, you can store equipment and materials in fenced or barricaded areas or encircle smaller equipment with larger equipment. This is, however, not foolproof. One contractor reported that thieves used the backhoe loader they planned to steal to remove the jersey barricades surrounding it so that they could then drive it away.

Lighting

A valuable deterrent, lighting is relatively inexpensive, flexible and can be integrated with other security devices such as fences and sensors. Lights should be placed along the perimeter and directed at the worksite and storage areas to make it easier for patrolling officers to see into the area. The power source should be well protected and secured to prevent interruption. Bulbs should be protected from damage and checked on a regular basis.

High-Tech Solutions

If you’re really serious about deterring would-be thieves, you can invest in a mobile remote surveillance system that incorporates lighting, alarms, voice warnings, cameras and the ability to send a video or picture to a company’s computer network, project manager’s laptop or BlackBerry-type device. Generally mounted on a trailer (for portability) or set on top of light stands, these self-contained and solar panel-equipped units can be set to monitor the office or jobsite between preset hours or continuously.

The LoJack Stolen Vehicle Recovery System is probably the most commonly known method of recovering stolen equipment by means of a hidden radio frequency transceiver. Each vehicle has a unique code that is tied into the PIN. When a theft is reported to the police, a routine entry into the state’s police crime computer results in a match of the LoJack System’s unique code against the state PIN database. This automatically activates the LoJack Unit in the equipment or vehicle, which then emits an inaudible signal. Law enforcement authorities that are equipped with LoJack police tracking computers in their police cars and aviation units are always listening for LoJack signals. This system has been very successful, but is not available everywhere.

Some manufacturers are taking action to help their customers prevent theft by installing electronic “smart” key systems, programmable keypad ignition locks and immobilizer systems. They are also installing tracking systems, providing hidden markings, PIN and SNs in more than one spot and databases that will help customers recover a stolen piece of equipment.

Although it may be impossible to stop determined thieves, you owe it to yourself to at least make it hard for them by doing what you can to secure your equipment and materials. For more information about equipment theft and solutions, visit the International Risk Management Institute Web site at http://test2006.irmi.com/Expert/Topics/RiskManagement/TheftPrevention.aspx.

George Kennedy is NUCA Vice President of Safety.