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Question: What matters should the employer consider in the allocation of risk between itself and the contractor in order to arrive at an approach that best suits its requirements?
Table of Contents
1. Introduction
2. Risk Management
3. Contracts
3.1 Letter of Intent
3.2 Contract Choice
3.3 Quantum Meruit
4. Contractual Security
4.1 Bonds
4.2 Guarantees
4.3 Collateral Warranties
5. Conclusion
Completed as part of Reading University, College of Estate management Year 2 – degree level.
Subject area – Construction Law
Grade 40/50 or 80%
Answer: 1. Introduction
Construction projects inevitably pose cost, quality and time risks to the employer involving numerous interacting activities. A successful project safeguards risks from occurring or reduces their impact (Burke 2002) as risk serves to increase costs and reduce the added value for the client (RICS 2014). This piece analyses the principles of risk management, and how the employer can allocate these risks to minimise their impact.
“No construction project is risk free. Risk can be managed, minimised, shared, transferred, or accepted. It cannot be ignored”, (Latham 1994).
2. Risk Management
Considering risk is crucially important, and project success depends on the stage at which it is introduced (CEM 2003). A method to do this effectively is proposed by Tweeds (1996):
• Risk analysis - Identification and Assessment.
• Risk management – Initial Response and ...(short extract)
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- Subject: Construction Practice
- Course: Construction Law
- Level: Degree
- Year: 2nd/3rd
- Mark: 80%
- Words: 1645
- Date submitted: October 03, 2015
- Date written: April, 2015
- References: Yes
- Document type: Essay*
- Essay ID: 6804
