Third-party claims, also called tort claims in the legal community, have the potential to be the most costly claims faced by a construction company. The identification and mitigation of risks involving damage or injury to a third party must be a major component of any construction risk management program. In this video, explore common examples of third-party claims seen in the construction industry.
- I've talked several times … about assessing the level of risk … and putting forth equivalent resources … to deal with that risk. … Based on that, you need to know, … that the risk posed by third party claims … against a construction company are enormous. … You must mitigate these risks … by taking all possible steps … to reduce the likelihood that they will occur. … Because if they do occur, … your potential exposure is extremely high. … Let me explain. … Put quite simply, … if you do something to cause damage to the property … of some third party, someone not connected to the project, … just a passerby or some member of the public, … or if they get injured as a result of some situation … caused by your project, … it is very likely that they're going to take legal action … against your company. … Unfortunately, legal action … is not necessarily unfamiliar to those of us … who have been in the construction industry for awhile. … For example, we see contract disputes … that end up in the legal system quite frequently. …
- Defining risk
- Identifying the role of the construction manager
- Analyzing risk
- Controlling risk
- Managing challenges: scope, safety, communication, and more