As the construction industry moves beyond the traditional design-bid-build method of project delivery and adopts project delivery methods that are characterized by early contractor engagement, it is important for the construction professional to understand that risk increases due to some risks being transferred away from other parties and onto the construction company. In this video, explore the importance of recognizing this transfer of risk.
- Earlier, I mentioned different types … of project delivery methods, … and I suggested that the type of project delivery method … chosen by the owner can also affect the risk … to a construction company on a project. … Traditionally, the delivery method used … on a construction project has almost … always been design-bid-build. … This method of project delivery … can pose the least risk to a general contractor. … Because if there's a complete set … of plans and specifications, you know the rules. … You know the scope, it's all in writing, … and you can price it accordingly. … If the plans are wrong or they don't work, … that is generally legally not a burden … that the contractor has to bear. … That risk belongs to someone else. … It's spread somewhere between the owner and the architect. … In legal terms, a contractor has that right … to assume the plans are correct and buildable. … If they're not, they have the right to compensation … if those plans have to be amended. … That risk of defects in the plans belongs again …
- Defining risk
- Identifying the role of the construction manager
- Analyzing risk
- Controlling risk
- Managing challenges: scope, safety, communication, and more