Construction site thievery is an unrelenting problem for the construction industry. The good news is that a growing number of solutions are available to help deter criminals.

Data from the National Insurance Crime Bureau shows that construction loses account for as much as $1 billion in stolen items annually, and only 23% of them are ever recovered. For residential projects alone, the direct and indirect costs can add 1% to 2% to the price of a new house.

It’s more than the replacement costs of a replacement loader or a set of tools that are at risk. Lost time causes project delays and may lead to liquidated damages, lost or wasted man-hours and increased expenditures, especially when using rental equipment.

Being aware of the coverage details of insurance policies is a given. For starters, does the policy provide coverage for equipment on a replacement cost basis? This should be part of regular discussions with your broker. Equally important, though, is to put the firm in the best possible position to manage the risk of theft.

It takes a comprehensive approach because these days, as there is little that criminals won’t take. Start with anything that fits in a pickup truck. This isn’t merely power tools, but materials, especially copper and more recently, lumber. One recent survey of architects, M&E suppliers and contractors found that 83% had experienced copper theft at some point—no surprise as its price edges toward $5 a pound.

But equipment that can easily be driven off-site is another easy target. Loaders, skid steers and excavators are especially attractive, and contractors in California, Texas and Florida are particularly at risk. This is probably not surprising given the ports and access to international markets as much of the stolen equipment is sold out of country.

The most effective way to offset construction site thievery is to create a comprehensive program that includes not only basic security safeguards, but technology solutions that add extra security layers and policies to reinforce your defensive posture. Here’s how construction firms should approach it.

1. Know what the company has

Several practices are important to staying on top of thievery and better enabling recovery when equipment is stolen. Start with an inventory of all the equipment that’s on site, and make sure it’s regularly updated so you know where it’s located. It’s also key to identify every piece of equipment in a way that’s hard to remove or obscure. This applies to everything, from heavy machinery to hand tools and all their attachments. Since little of this equipment has titles or registration information, it’s a common-sense move. Labeling can be done with welding or etching tools. Microdot identification, which shows up under a black light or magnification, can be a good backup, too.

2. Think in terms of security layers

The strongest security results from practices that work together. Start with blocking access around project perimeters by securing plywood to cyclone fencing. Post warning signs noting penalties to trespassers or rewards to those who report thieves, and it doesn’t hurt to tout your video surveillance. Access points should be limited, locked during off-hours and monitored with technology solutions or guards, who can be worth the cost in high-crime areas. It’s also key to maintain adequate lighting, especially when it is paired with motion detection monitors and alarms.

3. Get smart with technology solutions

Think about the return on investment in technology-driven security solutions. They can make a big difference, especially when they can serve multiple functions. For example, "Internet of Things" networks connect your security lighting, monitor and alarms. Internet of Things sensors can help you efficiently monitor equipment locations and movement—and detect fire and flooding, too. GPS is another valuable security aid. It should be installed on all equipment, including smaller items like generators, welders and trailers. While hardwired GPS systems were vulnerable to clever thieves, today’s small, battery-powered units can be better hidden. Another benefit is that integrated GPS systems can efficiently monitor and link construction operations. Finally, don’t forget motion sensing cameras, which are cost-effective and versatile. They can be hard-wired or battery operated and solar-powered, too, and rely on phone signals versus WiFi for notifications. Plus, even in bad weather, they can capture detailed images.

4. Don’t make it easy for the bad guys

Anything that easily fits in a pickup truck or can be hitched to one is an easy target for thieves. Take advantage of factory and dealer security options like hydraulic locks and hidden disconnects. Common-sense measures for portable equipment like generators and welders are important, too. If they’re not locked in a trailer, chain them in a secure building or at least out of sight. And enforce simple but smart policies, starting with “no key left behind” on machinery. Another is a purchasing policy specifying that equipment is individually keyed.