Transfer of risk to another party is an acceptable method of controlling risk in construction. In this video, explore examples of risk transfer on a construction project and the limitations.
- Another common way of dealing with risk in construction … is to transfer the risk to another party. … Now, let me take a minute here … and give you my stipulations on transferring risk. … Done properly, … the idea is not to transfer risk … to anyone that will accept it. … If you are going to transfer risk, … the idea is to transfer risk … to a party that is better able to handle it. … Now, using one of my earlier examples, … I said I was a general contractor … that also self-performed some of our work, … including undergrounds, like sewer and storm drain. … Now, on one project, … we were going to be required … to repair and extend a sewer manhole … that led to a very big, very active sewer main. … I looked at it before submitting the bid, … and there's really no other way to say it … than it was just going to be … really nasty work in that manhole. … It was an extremely hazardous confined space … and really outside the scope of our experience. … Now, rather than self-perform that work item …
- Defining risk
- Identifying the role of the construction manager
- Analyzing risk
- Controlling risk
- Managing challenges: scope, safety, communication, and more