Chapters authored
Different Market Methods for Transferring Financial Risks in Construction
A goal of risk management in construction is to minimize risk exposure and the total cost of risk for a project. To this end, there are a variety of market mechanisms available for transferring risk and/or the financial consequences of a risk realization (e.g., transfer the financial consequences of a risk to an insurance company or use contractual non-insurance risk transfers such as hold harmless agreements to allocate financial responsibility to another party). Unique characteristics of construction risks are examined along with a discussion of which of these risks are insurable and which are not. The advisable risk handling mechanism to use (insurance, non-insurance transfer, retention or self-insurance, or some other technique) is provided Both the construction firm and its client must anticipate potential undesirable event occurrence with initial project planning, and build both downside risk protection and resilience into its risk management strategy. Future emerging technological advances and their impact on construction risks are discussed.
Part of the book: Risk Management in Construction Projects