A big part of construction is effectively managing risk. In a world where litigation is lurking around every corner, risk evaluation and management is essential. With so much going on in the average construction job, it’s very easy to overlook and identify a certain risk. Here are some that are worthwhile exploring. It’s better to have addressed these issues prior to the construction project starting, rather than having to fight a legal case at a later date.
- Pollution issues. In an eco-friendly conscious world, pollution is a major talking point in the construction industry, and it’s important that you take it seriously. If you are a business that has not taken its contribution to pollution seriously, you need to make it a priority. From environmental contractors to waste transportation, you need to pay attention to changes in policy in both General Liability and Pollution Liability. Ensure you are up with the latest policies and guidelines around this.
- Government policy risk. With constant changes to governmental and national policy, it’s important to stay up to date on government policy changes. These can come into play in the middle of your construction project especially if it is a project that spans a few years or more. Do you have clauses in place that allow you to make the changes required? What would you do if there were drastic changes to the current plans? Who is the person responsible for keeping an eye on this?
- Are your insurances up to date including professional liability. While nothing may happen that requires a policy to be utilised, its important to have everything aligned so you are covered. Take the time to get advice about the right insurances, and ensure there are clauses in your contracts that stipulate what needs to be put into action and when.
It’s very easy to overlook certain risks, but it’s our responsibility to ensure we are covered correctly. Ensuring you have a specialist team that can help you spot said risks and having them listed in your contracts and ready to be utilised if the need arises takes the pressure of you. The sooner you act on improving your insurance policies and put a clear strategy in place, the sooner you can resolve these issues once and for all.
SHAW Dispute Resolution is launching a new facilitated mediation process specifically for the developers who have identified the opportunity in NSW to approach Owner Corporations with a view to redeveloping the whole residential building with at least 70% agreement of the Owners. If you would like more information about this process and packages please call Linda on 1300 768 496.