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Cyber in Construction Contracts
A
s the construction industry integrates advanced technologies, associated cyber risks increase as well. The integration of project management software or tools, such as building information modeling (BIM) and Internet of Things (IoT), increases the opportunity for a cyber-related incident to occur. As a result, project owners and developers have begun to include requirements for cyber liability coverage. CHARLIE FILISKO
Construction projects have become a prime target for cybercriminals due to the sensitive data and valuable intellectual property that can be involved. As companies adapt to these new technologies, they must also be aware of the vulnerabilities that they create. Here are three areas where cyber vulnerabilities can be especially present:
Project management software
Many construction companies are utilizing project management software that integrates functions such as budgeting, scheduling and communication. These platforms can house sensitive information, including client information, financial records and employee data. If the software is not properly secured, it can be exposed to data breaches, phishing schemes or ransomware attacks. Example: A ransomware attack on one of these platforms could lock access
to critical project data, halting work and leading to significant financial losses. If sensitive information is in jeopardy, it could lead to legal consequences and trust loss with clients.
IoT devices
The use of IoT devices on construction sites – items like wearable technology, connected machinery and smart sensors – has significantly increased. While the use of this technology can enhance efficiency and safety, it also introduces the vulnerabilities of the online world. Many IoT devices have historically had weaker security protocols for easier usability, making them susceptible to hackers. A device that has been compromised can serve as an entry point for cybercriminals to access the broader network of systems. Example: IoT devices transmit realtime data, such as worker locations and equipment performance, which could be exploited. An additional (horrify-
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Properties | May 2025