Managing Risk in Construction Contracts

All construction projects carry with them great risks and the construction industry is subject to more risk and uncertainty than most other industries. But to be totally honest, the issue of how to effectively handle the risks which are inherent in any construction contract depends on a variety of factors. For example, it will automatically depend on the form and type of contract you use, the nature and location of the work, the contractor involved and their expertise as well as the current contracting climate. Each of these risks can radically change over time and there are also many outside influences to consider such as the input from financiers, governments and the insurance market.

Also, when you throw into the mix the current state of the construction industry, especially after a bruising and brutal few years, everyone is on tenterhooks waiting for the announcement by Government of key infrastructure projects. Although all the signs are there that there is more positive sentiment in the construction industry… there are companies that are so desperate for work that they gloss over the risk management component, and who are willing to put in bids with extremely low profit margins all simply because they want or need the work on their order books.

It is true that potential risk and liability lurks around every corner of a construction project and if you unknowingly assume that risk you can be putting your company in harm’s way. If you fail to understand and account for the risks and liabilities you are assuming under your construction contract, your company could become involved in timely and expensive disputes and ultimately be responsible for liability that could put your company out of business.

So, this 2-day Managing Risk in Construction Contracts Course training course has been researched and developed to address the critical survival and profitability factors from a risk point of view for construction companies managing projects in this current and forever changing economic environment.

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