Starting a commercial building project is a huge undertaking that requires a lot of preparation. Once construction begins, there are always unpredictable risks that can lead to costly delays and damages. To protect your investment, it’s essential to have construction risk insurance in place before groundbreaking. This type of insurance covers any losses that may occur during the construction process, from damaged materials to accidents on the job site. Having construction risk insurance is vital, but it’s also important to have a good system in place for managing risks. By tracking insurance c ..read more

Contracts are ubiquitous in an organization and are the lifeblood of business as they represent the company’s formal relationships with a multitude of parties. Within their intricate terms and conditions lie many essential clauses that often cause bewilderment in understanding and deriving the essence of those clauses: Limitation of Liability is one such significant clause that has its own prime importance. Let’s unravel the meaning of the clause, its application and significance in contracts management. Definition: – A limitation of liability clause in a contract limits the amount of money or ..read more

Procedure of Variation Claim: In many construction and contracting scenarios, it is common for employers to request that contractors submit a Variation for additional work. This request can take various forms, such as an Instruction, Change Order Request, or Request for Change Proposal. However, more often than not, it is the contractor who identifies the need for a Variation. This realization may occur when a delay event disrupts the original project timeline, new drawings with differing information are issued, or when the contractor encounters unexpected variations in the contract or site c ..read more

Disruption vs Delay: Navigating the Path to Success Disruption, distinct from delay, refers to instances where a contractor is unable to complete work activities within their originally planned costs. On the other hand, delays refer to situations where the contractor cannot finish the work within the initially intended timeframe. While delay claims capture the additional time and related costs due to reduced progress rates, disruption claims encompass the extra expenses incurred to complete the work. It’s important to note that disruption and delay are not the same, although they might be con ..read more

Disruption, distinct from delay, refers to instances where a contractor is unable to complete work activities within their originally planned costs. On the other hand, delays refer to situations where the contractor cannot finish the work within the initially intended timeframe. While delay claims capture the additional time and related costs due to reduced progress rates, disruption claims encompass the extra expenses incurred to complete the work. It’s important to note that disruption and delay are not the same, although they might be connected. Contracts experiencing delays are likely to ..read more

Aims of construction contract agreement In a construction contract, both parties (Clients & Contractors) are bound by explicit and implied terms that outline their obligations and actions to prevent breach of contract. The challenge arises when one party, such as the client, needs to adhere to a specific contract term triggered by an event but has not been informed by the other party, the contractor, about the event. This raises the need for timely communication, acknowledgment, or response to prevent disputes. Construction contracts aim to manage the complexity of modern projects, where d ..read more

Construction projects can experience delays for various reasons. Occasionally, delays may occur due to actions taken by the contractor themselves, which typically do not authorization a claim against the employer. Whether or not a contractor can file a claim for a specific delay event depends on several factors: Adherence to Contract Documents: Delays resulting from causes explicitly outlined in the contract documents are not usually claimable. Contract documents often specify potential delay events that the contractor must consider. If these events are clearly defined, the contractor cannot l ..read more

Any construction project is vulnerable to several risks. The nature of risk can be varied. The main aim of parties that are involved in a construction project will strive hard to minimize the risks and maximize the profit margins. Since we are already aware of a few aspects of the risk management process, let us quickly recall what it is in brief. When you talk about construction risk management, it entails the following- You identify the potential risks that are involved Evaluate or assess the impact it will have on the project Decide upon the strategies that will help in minimizing the impa ..read more

Construction projects have always been susceptible to a lot of upheavals. And the risks associated with it cannot be ignored or undermined. Over the years, researchers associated with this sector have extensively studied the types of risks that are associated with the construction sector. What are the types of risks that occur in the construction sector? These are the following types of risks that you will mostly find in this arena. Under these circumstances, construction risk management steps must be adopted. They are- Financial risks Due to oscillating exchange rates, cost of material, inacc ..read more

Risk prevails in every construction project that you undertake. As such, you must also be prepared and well-equipped to counter the same. We know the downside of a claim when it arises. Here, let us find out a few tips on how you can optimize the claim management solutions to reap the benefits judiciously. What are the risks of construction claims? Several risks are associated with construction claims. Let us know them in brief. Delayed project timeline – The completion of the project may be hampered. There are many reasons for the same, however, there are instances where it might also lead t ..read more