The document discusses various stages and aspects of construction risk assessment for insurance purposes. It covers pre-insurance surveys, construction stage surveys, start-up and commissioning assessments, and warranty period reviews. The document also outlines what underwriters need to evaluate risk, such as location details, contract values, construction schedules, and contractor experience. Survey reports would include risk assessments, recommendations, conclusions, and other relevant details like photographs and diagrams. Large losses are often due to faulty workmanship, floods, explosions, and fires.
9. Pre-insurance survey
Advantages Disadvantages
Making decision before the Contractors can be assessed on
construction starts their previous projects only
Some recommendations can be All conclusions are made on the
given before the construction base of design examination
started
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10. Construction stage
Advantages Disadvantages
We can assess the performance Usually the insurance policy is
of contractors at the construction already issued
site
Some design errors can be
revealed at the construction site
Planned and actual way of work
performing can be compared
We can define the
implementation of
recommendations
More recommendations can be
elaborated
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11. Start-up and commissioning
Advantages Disadvantages
We can define the The final stage of construction, it
implementation of is to late to recommend
recommendations something regarding the
operations
Some recommendations
regarding housekeeping can be
given
We have los history for the object
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12. Warranty period
Advantages Disadvantages
The majority of problems appear The building (structure) is
at the initial stages of buildings’ finished, so we cannot change
operation something in it
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13. Stages of survey
Before the • Examination of design
visit • Study of contractors
During the • Site survey
visit • Documentation examination
After the • Recommendation elaboration
visit • Survey report preparation
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14. What do underwriters need to assess
the risk?
• Location map
•Over-all contoured side plan – showing contract site,
storage and work areas
•Full Contract Value (broken down into major sections of
work) – also include ‘free issue’ or other materials not
included in contract value, but for which cover is required
•Detailed description of project works including method of
construction, equipment materials etc.
•A copy of the contract specification/feasibility study
•Scale drawings, general arrangement drawings and cross
sectional drawings
•Construction schedule bar chart
•Contractors and Sub-contractors’ experience
•Photographs (if available)
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15. Survey report content
Survey report contains the following sections:
1. Risk assessment summary
2. Area description – regional features, climatic features, geographical and hydro
geological characteristics of region
3. General data – location, contractors, etc.
4. Construction methods – brief construction methods description, state of means of
production, construction control methods
5. Design parameters of buildings and structures – technical features, construction
materials, current state of buildings and structures
6. Infrastructure – features and state of engineering equipment and communications
7. Loss history
8. Fire protection – technical and managerial procedures aimed at fire prevention and
loss minimization
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16. Survey report content
9. Security – physical security and engineered safety features
10. Insurance conditions – insured perils, sum insured, significant conditions of
insurance policy
11. Risk assessment – each insured risk is examined separately, its probability and
consequences are estimated. Hazardous occurrence scenarios are elaborated if
necessary
12. Risk improvement recommendations
13. Conclusion and proposals – general conclusions based on the results of
engineering risk assessment, recommendations of insurance coverage optimization
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38. Malakut international offices
Moscow
Kiev Almaty
Dubai Hanoi
(Representative office)
Panama
Kuala Lumpur
Russia – Ukraine – Kazakhstan – Vietnam – Malaysia – UAE – Panama
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