The document summarizes a presentation on construction insurance and risk management for energy projects. It discusses topics like identifying stakeholders, developing an insurance plan, gathering technical data, conducting a placement process, and considering coverage issues. The presentation provides an overview of important steps in navigating insurance for large construction projects in the energy industry.
Ditching Defect Drama: Keeping Construction Claims ObjectiveKipcon Inc.
When a community is embroiled in a construction defect lawsuit, the challenge becomes making sure the claim is presented objectively, and the cost of the claim won't be more than the corrective work needed. This webinar includes best practices for preventing construction defects and offers alternatives to costly litigation.
Understand the relevant contractual provisions and different types of claims. Identify the major causes of construction claims and disputes. Learn how to handle your claims effectively using strategies and different solutions. Understand delay cost procedure and process. In depth review on the SOP Act. How to prevent disputes leading to litigation/arbitration/adjudication
Aba div 4_swann_design_build_standard_of_care_2014_05_27Roland_Nikles
This document discusses standards of care in design-build projects. It describes a project where a government agency issued a design-build RFP for a project with only 30% complete documents. A contractor hired a design firm with prior experience with the agency to assist with bidding. Issues arose during construction as the design was not fully developed. This led to questions about which standard of care applies and who bears responsibility for incomplete information. The presentation examines responsibilities of designers and contractors in design-build projects.
Risks & Advantages of P3 Projects by Sid Scott, Hill InternationalRoland_Nikles
Provides overview of the current status (March 2014) of public/private partnerships for development of horizontal and vertical infrastructure in the United States.
Construction Law Conference Presentationecpraustin
This document discusses unique defensive issues that can arise when defending design professionals in litigation. It notes that certificate of merit requirements do not apply to third-party plaintiffs or cross-claimants. The economic loss rule bars negligence claims for solely economic damages but allows claims for damages to other property. Professional liability insurance for architects and engineers covers breach of contract claims involving failure to meet professional standards of care but excludes some claims and limits are reduced by defense costs.
This document discusses contract dispute resolution techniques presented by Dr. Rafiq Muhammad Choudhry. It covers traditional techniques like contract negotiations, mediation, and arbitration as well as their advantages. Contract claims can occur for various reasons and if unresolved, may lead to litigation which is generally more costly and lengthy compared to alternative dispute resolution methods.
Construction disputes arise from environmental and behavioural factors. There are many different causes of disputes in the construction industry. Disputes waste money, therefore drain profits and destroy the relationship and it takes energy away from projects.
construction dispute cases
construction dispute lawyer
construction disputes statistics
construction dispute letter
causes of disputes in construction
construction disputes attorney
construction dispute resolution services llc
homeowner vs contractor disputes
building construction ppt
construction ppt presentations
HOW TO SURVIVE CONSTRUCTION PROJECTS DURING TIMES OF ECONOMIC INSANITYBurns White LLC
Following is a slide deck from a presentation given by Burns White Members Chad A. Wissinger and T.H. Lyda to attendees at the National Railroad Construction and Maintenance Association (NRC) annual conference in January about how to survive construction projects during times of economic insanity.
Ditching Defect Drama: Keeping Construction Claims ObjectiveKipcon Inc.
When a community is embroiled in a construction defect lawsuit, the challenge becomes making sure the claim is presented objectively, and the cost of the claim won't be more than the corrective work needed. This webinar includes best practices for preventing construction defects and offers alternatives to costly litigation.
Understand the relevant contractual provisions and different types of claims. Identify the major causes of construction claims and disputes. Learn how to handle your claims effectively using strategies and different solutions. Understand delay cost procedure and process. In depth review on the SOP Act. How to prevent disputes leading to litigation/arbitration/adjudication
Aba div 4_swann_design_build_standard_of_care_2014_05_27Roland_Nikles
This document discusses standards of care in design-build projects. It describes a project where a government agency issued a design-build RFP for a project with only 30% complete documents. A contractor hired a design firm with prior experience with the agency to assist with bidding. Issues arose during construction as the design was not fully developed. This led to questions about which standard of care applies and who bears responsibility for incomplete information. The presentation examines responsibilities of designers and contractors in design-build projects.
Risks & Advantages of P3 Projects by Sid Scott, Hill InternationalRoland_Nikles
Provides overview of the current status (March 2014) of public/private partnerships for development of horizontal and vertical infrastructure in the United States.
Construction Law Conference Presentationecpraustin
This document discusses unique defensive issues that can arise when defending design professionals in litigation. It notes that certificate of merit requirements do not apply to third-party plaintiffs or cross-claimants. The economic loss rule bars negligence claims for solely economic damages but allows claims for damages to other property. Professional liability insurance for architects and engineers covers breach of contract claims involving failure to meet professional standards of care but excludes some claims and limits are reduced by defense costs.
This document discusses contract dispute resolution techniques presented by Dr. Rafiq Muhammad Choudhry. It covers traditional techniques like contract negotiations, mediation, and arbitration as well as their advantages. Contract claims can occur for various reasons and if unresolved, may lead to litigation which is generally more costly and lengthy compared to alternative dispute resolution methods.
Construction disputes arise from environmental and behavioural factors. There are many different causes of disputes in the construction industry. Disputes waste money, therefore drain profits and destroy the relationship and it takes energy away from projects.
construction dispute cases
construction dispute lawyer
construction disputes statistics
construction dispute letter
causes of disputes in construction
construction disputes attorney
construction dispute resolution services llc
homeowner vs contractor disputes
building construction ppt
construction ppt presentations
HOW TO SURVIVE CONSTRUCTION PROJECTS DURING TIMES OF ECONOMIC INSANITYBurns White LLC
Following is a slide deck from a presentation given by Burns White Members Chad A. Wissinger and T.H. Lyda to attendees at the National Railroad Construction and Maintenance Association (NRC) annual conference in January about how to survive construction projects during times of economic insanity.
SWOT ANALYSIS OF ARBITRATION AWARDS IN INDIAN CONSTRUCTION CONTRACTSIAEME Publication
Contract forms, terms, specification, analysis of rate and conditions of contract
are being followed by various governments departments in the field of civil
construction are not uniform. Against the backdrop of India’s burgeoning macroeconomic prospects, the weaknesses of the construction industry create challenges,
particularly with respect to settlement of disputes between the owner and contractor
that it will have to overcome. Arbitration awards have been studied and based upon
their analyses a series of survey questionnaire have been developed. The responses to
the above along with the gist of focused discussions and interviews with domain
experts forms the basis for SWOT analyses of arbitration awards.
The document discusses best strategies for effective project control in construction projects. It begins with an introduction of the conference organizer, Mohamed Maged, and his qualifications. It then covers various topics related to contract management, including definitions of contracts, the contract lifecycle, FIDIC contracts, contract parties, stakeholder identification and management, the importance of relationships, and strategies for effective administration, negotiation, communication and conflict resolution.
FIDIC is an international federation of consulting engineers that publishes standard forms of contract. It was founded in 1913 and is headquartered in Geneva. Some of FIDIC's most well-known standard forms include the Red, Yellow, and Silver Books. The Red Book covers construction projects, the Yellow Book covers electrical and mechanical works, and the Silver Book covers EPC/turnkey projects. FIDIC contracts establish important procedures like priority of contract documents, the engineer's role, extensions of time, insurance requirements, and dispute resolution processes involving negotiation, mediation, and arbitration.
16.35 judy wilson (blake, cassels & graydon llp in association with dr. saud ...Ibrahim Al-Hudhaif
This document discusses managing risks in the procurement process for mega projects. It outlines some common mistakes made that can negatively impact project success, such as rushing procurement documents before they are fully defined, using poor evaluation criteria, and not allowing enough time for feedback. It also discusses particular legal issues that require consideration for mega projects, such as how to allocate risks related to site conditions, delays, access and permits between the owner and contractor. Overall, the document emphasizes the importance of a thorough procurement process to selecting the right contractor and establishing a balanced legal framework for managing risks over the life of complex mega projects.
The document discusses various risks involved in construction projects and methods for managing those risks. It outlines that risks can increase costs, reduce profits, and even cause project failure if not properly managed. It then describes various types of risks like performance risks from errors, default of contractors, and legal issues. It also provides strategies for dealing with risks through avoiding, mitigating, transferring, or accepting them. Key tools for risk management discussed include contracts, insurance, contingency funds, bonds, and proactive planning.
This document provides definitions and explanations of key terms related to architecture and the construction industry. It defines terms like trade, business, profession, doctrine, liabilities, duties, responsibilities, code, etiquette, ethics, negligence, tender, contract, and incompetence. It also summarizes the roles and services of architects, including consultation, design, construction documentation, construction phase oversight, and post-construction services. The types of fees charged by architects are outlined, generally ranging from 4-10% of a project's cost depending on its size and scope. Architects must comply with regulations from the Council of Architecture, which oversees the registration and standards of architects in India.
This document provides information about a training program on understanding and administering FIDIC standard conditions of contract for civil, mechanical, and electrical projects. The program covers FIDIC contracts for international projects and enables participants to understand their own project contracts. It discusses contract provisions among owners, contractors, and consultants and recommended procedures. The program is intended for those working on FIDIC contract projects and covers case studies, claims, payments, defaults, and other contract topics. It aims to provide participants with knowledge of FIDIC standards to help with contract administration.
Top 5 Methods for Resolving UK Construction DisputesSarah Fox
According to the Arcadis Global Disputes Survey 2016, the average value of a construction dispute is near $46m and it takes over 16 months to resolve. This guide looks at your
five main options to resolve a dispute in the UK construction industry. It compares litigation (court proceedings), arbitration, adjudication, negotiation and mediation.
The author is Sarah Fox 500 Words Ltd and you can get regular tips for construction contracts to help you avoid disputes and the need for dispute resolution methods in her fortnightly tips sheet http://just500words.co.uk/signup.
The document discusses FIDIC, an international organization for consulting engineers. It was founded in 1913 and now has over 60 member countries. FIDIC is best known for publishing standard contract conditions used around the world for construction projects. The document discusses the new editions of FIDIC's standard contracts, including the Red Book for construction, Yellow Book for plant design/build, and Silver Book for EPC turnkey projects. It provides details on the applicability of each book under different project delivery systems. The document also discusses improvements made in the new editions to address issues like back payments, financial arrangements, and contractor-financed projects.
The document discusses key aspects of EPC contracts and the FIDIC Silver Book for major infrastructure projects. It notes that EPC contracts allocate significant risk to contractors in exchange for price and schedule guarantees. The FIDIC Silver Book is a turnkey contract form that departs from the usual risk allocation. The summary highlights common bankability issues for lenders and key contract clauses around fixed price and schedule, performance guarantees, liability caps, security provisions, and defects liability.
This document discusses bonds and insurances in construction projects. It describes the three main types of construction bonds: bid bonds, performance bonds, and payment bonds. It explains that bonds guarantee project completion and payment, protecting the project owner. The parties to a contract bond are the obligee or owner, the principal or prime contractor, and the surety who provides the bond. The document also provides an overview of insurance, describing types of coverage commonly required for construction projects like general liability, auto liability, workers' compensation, and builders risk insurance.
مقارنة بين ثلاثة من الصيغ النموذجية البريطانية والدولية مع فكرة عن نموذج رابع أمريكي
FIDIC - JCT - NEC - AIA
محاضرة الشرح: https://www.youtube.com/watch?v=fVpeut_-9-0
This document provides a presentation on design and build contracts under FIDIC contracts. It discusses what FIDIC is, its origins and vision. It then discusses design and build procurement, highlighting advantages like price certainty and single point responsibility, as well as disadvantages like reduced employer control. It outlines the roles of different parties in traditional vs design and build arrangements. It also summarizes key clauses and details in FIDIC's Orange Book and Yellow Book for design and build and turnkey contracts. Sample questions and answers are provided to illustrate how situations would be addressed under the FIDIC contracts.
This document discusses the consulting engineering industry and use of FIDIC forms of contract in Ukraine. It notes that while a handful of firms are capable of meeting FIDIC standards, there are issues with qualifications, expertise, and awareness. FIDIC forms see limited use driven by international lenders, with the Red and Yellow Books most common. There is a lack of guidance, case law precedents, and an established operational environment. Challenges include understanding risk allocation, resolving disputes, and developing the consulting engineering industry and contract management culture in Ukraine.
FIDIC is an international federation of consulting engineers established in 1913. It publishes standard form construction contracts known by the color of their covers, such as the Red Book. The document discusses the history and evolution of FIDIC contracts, describing various contract forms like the Red Book, Yellow Book, and Silver Book. It also discusses the roles of consulting engineers and the Consulting Engineers Association of India, the Indian affiliate of FIDIC.
The document discusses turnkey contracting and the FIDIC Silver Book, which aims to provide owners certainty of cost and schedule for large projects by transferring significant risks to contractors. However, the document argues that a true turnkey solution is difficult to achieve in practice due to the complex nature of large projects. While the Silver Book and turnkey contracts aim to make contractors responsible for all risks, in reality many risks remain shared between owners and contractors. Large projects also typically involve multiple turnkey contractors, complicating responsibility and dispute resolution. Therefore, owners' expectations of a complete risk transfer and single point of accountability are often not fully met.
Construction Defect Claims: The Ins & The Outs, The Do's & The Don'tsSamantha Ip
This document summarizes key issues relating to construction defect claims in British Columbia. It discusses claims based on breach of contract and negligence, the requirement of proving a "dangerous defect" in negligence claims, the duty to warn of defects, negligent misrepresentation claims, how damages are assessed, and limitation periods for construction defect claims in BC. The presentation was delivered by lawyers from Clark Wilson LLP at the BUILDEX Vancouver conference on February 14, 2013.
The document discusses various project delivery methods and construction contract types. It describes the traditional Design-Bid-Build approach where design and construction are separated. Alternative approaches discussed include Design-Build where a single entity handles both design and construction. Turnkey project delivery methods add operation and maintenance responsibilities. Contract types covered are Lump Sum, Unit Price/Admeasurements, and Cost Plus, outlining their advantages and disadvantages for allocating risk between the owner and contractor.
This document discusses the tendering process for construction projects. It covers the key elements of a tender including the tender notice, documents, forms, earnest money, security deposits, evaluation criteria. It also summarizes different types of construction contracts like item rate, lump sum, percentage rate contracts and their merits and demerits. Finally, it discusses important conditions of contracts and arbitration process.
This document discusses project insurance and is from an insurance brokerage firm. It defines what a project and insurance are, and explains that risk analysis and management are important for projects. Insurance can transfer project risks to insurers, and the broker offers customized project insurance products. Their services include risk analysis, documentation assistance, developing an insurance program, negotiating policies, and claims management to protect projects from various risks like damage, liability, and delays. The document emphasizes that insurance allows projects to sustain risks and the broker can provide clear terms and competitive prices through their expertise in project insurance.
Gardiner & Theobald conducted a survey of risks on recent capital projects. The three most common risks reported were:
1) Scope changes by owners, which occurred on 70% of projects and caused cost and schedule impacts.
2) Design errors and omissions, which occurred on 55% of projects.
3) Unforeseen site conditions, which occurred on 40% of projects.
To mitigate risks, the report recommends understanding project-specific risks, carefully drafting contracts, and avoiding optimism bias during project planning.
SWOT ANALYSIS OF ARBITRATION AWARDS IN INDIAN CONSTRUCTION CONTRACTSIAEME Publication
Contract forms, terms, specification, analysis of rate and conditions of contract
are being followed by various governments departments in the field of civil
construction are not uniform. Against the backdrop of India’s burgeoning macroeconomic prospects, the weaknesses of the construction industry create challenges,
particularly with respect to settlement of disputes between the owner and contractor
that it will have to overcome. Arbitration awards have been studied and based upon
their analyses a series of survey questionnaire have been developed. The responses to
the above along with the gist of focused discussions and interviews with domain
experts forms the basis for SWOT analyses of arbitration awards.
The document discusses best strategies for effective project control in construction projects. It begins with an introduction of the conference organizer, Mohamed Maged, and his qualifications. It then covers various topics related to contract management, including definitions of contracts, the contract lifecycle, FIDIC contracts, contract parties, stakeholder identification and management, the importance of relationships, and strategies for effective administration, negotiation, communication and conflict resolution.
FIDIC is an international federation of consulting engineers that publishes standard forms of contract. It was founded in 1913 and is headquartered in Geneva. Some of FIDIC's most well-known standard forms include the Red, Yellow, and Silver Books. The Red Book covers construction projects, the Yellow Book covers electrical and mechanical works, and the Silver Book covers EPC/turnkey projects. FIDIC contracts establish important procedures like priority of contract documents, the engineer's role, extensions of time, insurance requirements, and dispute resolution processes involving negotiation, mediation, and arbitration.
16.35 judy wilson (blake, cassels & graydon llp in association with dr. saud ...Ibrahim Al-Hudhaif
This document discusses managing risks in the procurement process for mega projects. It outlines some common mistakes made that can negatively impact project success, such as rushing procurement documents before they are fully defined, using poor evaluation criteria, and not allowing enough time for feedback. It also discusses particular legal issues that require consideration for mega projects, such as how to allocate risks related to site conditions, delays, access and permits between the owner and contractor. Overall, the document emphasizes the importance of a thorough procurement process to selecting the right contractor and establishing a balanced legal framework for managing risks over the life of complex mega projects.
The document discusses various risks involved in construction projects and methods for managing those risks. It outlines that risks can increase costs, reduce profits, and even cause project failure if not properly managed. It then describes various types of risks like performance risks from errors, default of contractors, and legal issues. It also provides strategies for dealing with risks through avoiding, mitigating, transferring, or accepting them. Key tools for risk management discussed include contracts, insurance, contingency funds, bonds, and proactive planning.
This document provides definitions and explanations of key terms related to architecture and the construction industry. It defines terms like trade, business, profession, doctrine, liabilities, duties, responsibilities, code, etiquette, ethics, negligence, tender, contract, and incompetence. It also summarizes the roles and services of architects, including consultation, design, construction documentation, construction phase oversight, and post-construction services. The types of fees charged by architects are outlined, generally ranging from 4-10% of a project's cost depending on its size and scope. Architects must comply with regulations from the Council of Architecture, which oversees the registration and standards of architects in India.
This document provides information about a training program on understanding and administering FIDIC standard conditions of contract for civil, mechanical, and electrical projects. The program covers FIDIC contracts for international projects and enables participants to understand their own project contracts. It discusses contract provisions among owners, contractors, and consultants and recommended procedures. The program is intended for those working on FIDIC contract projects and covers case studies, claims, payments, defaults, and other contract topics. It aims to provide participants with knowledge of FIDIC standards to help with contract administration.
Top 5 Methods for Resolving UK Construction DisputesSarah Fox
According to the Arcadis Global Disputes Survey 2016, the average value of a construction dispute is near $46m and it takes over 16 months to resolve. This guide looks at your
five main options to resolve a dispute in the UK construction industry. It compares litigation (court proceedings), arbitration, adjudication, negotiation and mediation.
The author is Sarah Fox 500 Words Ltd and you can get regular tips for construction contracts to help you avoid disputes and the need for dispute resolution methods in her fortnightly tips sheet http://just500words.co.uk/signup.
The document discusses FIDIC, an international organization for consulting engineers. It was founded in 1913 and now has over 60 member countries. FIDIC is best known for publishing standard contract conditions used around the world for construction projects. The document discusses the new editions of FIDIC's standard contracts, including the Red Book for construction, Yellow Book for plant design/build, and Silver Book for EPC turnkey projects. It provides details on the applicability of each book under different project delivery systems. The document also discusses improvements made in the new editions to address issues like back payments, financial arrangements, and contractor-financed projects.
The document discusses key aspects of EPC contracts and the FIDIC Silver Book for major infrastructure projects. It notes that EPC contracts allocate significant risk to contractors in exchange for price and schedule guarantees. The FIDIC Silver Book is a turnkey contract form that departs from the usual risk allocation. The summary highlights common bankability issues for lenders and key contract clauses around fixed price and schedule, performance guarantees, liability caps, security provisions, and defects liability.
This document discusses bonds and insurances in construction projects. It describes the three main types of construction bonds: bid bonds, performance bonds, and payment bonds. It explains that bonds guarantee project completion and payment, protecting the project owner. The parties to a contract bond are the obligee or owner, the principal or prime contractor, and the surety who provides the bond. The document also provides an overview of insurance, describing types of coverage commonly required for construction projects like general liability, auto liability, workers' compensation, and builders risk insurance.
مقارنة بين ثلاثة من الصيغ النموذجية البريطانية والدولية مع فكرة عن نموذج رابع أمريكي
FIDIC - JCT - NEC - AIA
محاضرة الشرح: https://www.youtube.com/watch?v=fVpeut_-9-0
This document provides a presentation on design and build contracts under FIDIC contracts. It discusses what FIDIC is, its origins and vision. It then discusses design and build procurement, highlighting advantages like price certainty and single point responsibility, as well as disadvantages like reduced employer control. It outlines the roles of different parties in traditional vs design and build arrangements. It also summarizes key clauses and details in FIDIC's Orange Book and Yellow Book for design and build and turnkey contracts. Sample questions and answers are provided to illustrate how situations would be addressed under the FIDIC contracts.
This document discusses the consulting engineering industry and use of FIDIC forms of contract in Ukraine. It notes that while a handful of firms are capable of meeting FIDIC standards, there are issues with qualifications, expertise, and awareness. FIDIC forms see limited use driven by international lenders, with the Red and Yellow Books most common. There is a lack of guidance, case law precedents, and an established operational environment. Challenges include understanding risk allocation, resolving disputes, and developing the consulting engineering industry and contract management culture in Ukraine.
FIDIC is an international federation of consulting engineers established in 1913. It publishes standard form construction contracts known by the color of their covers, such as the Red Book. The document discusses the history and evolution of FIDIC contracts, describing various contract forms like the Red Book, Yellow Book, and Silver Book. It also discusses the roles of consulting engineers and the Consulting Engineers Association of India, the Indian affiliate of FIDIC.
The document discusses turnkey contracting and the FIDIC Silver Book, which aims to provide owners certainty of cost and schedule for large projects by transferring significant risks to contractors. However, the document argues that a true turnkey solution is difficult to achieve in practice due to the complex nature of large projects. While the Silver Book and turnkey contracts aim to make contractors responsible for all risks, in reality many risks remain shared between owners and contractors. Large projects also typically involve multiple turnkey contractors, complicating responsibility and dispute resolution. Therefore, owners' expectations of a complete risk transfer and single point of accountability are often not fully met.
Construction Defect Claims: The Ins & The Outs, The Do's & The Don'tsSamantha Ip
This document summarizes key issues relating to construction defect claims in British Columbia. It discusses claims based on breach of contract and negligence, the requirement of proving a "dangerous defect" in negligence claims, the duty to warn of defects, negligent misrepresentation claims, how damages are assessed, and limitation periods for construction defect claims in BC. The presentation was delivered by lawyers from Clark Wilson LLP at the BUILDEX Vancouver conference on February 14, 2013.
The document discusses various project delivery methods and construction contract types. It describes the traditional Design-Bid-Build approach where design and construction are separated. Alternative approaches discussed include Design-Build where a single entity handles both design and construction. Turnkey project delivery methods add operation and maintenance responsibilities. Contract types covered are Lump Sum, Unit Price/Admeasurements, and Cost Plus, outlining their advantages and disadvantages for allocating risk between the owner and contractor.
This document discusses the tendering process for construction projects. It covers the key elements of a tender including the tender notice, documents, forms, earnest money, security deposits, evaluation criteria. It also summarizes different types of construction contracts like item rate, lump sum, percentage rate contracts and their merits and demerits. Finally, it discusses important conditions of contracts and arbitration process.
This document discusses project insurance and is from an insurance brokerage firm. It defines what a project and insurance are, and explains that risk analysis and management are important for projects. Insurance can transfer project risks to insurers, and the broker offers customized project insurance products. Their services include risk analysis, documentation assistance, developing an insurance program, negotiating policies, and claims management to protect projects from various risks like damage, liability, and delays. The document emphasizes that insurance allows projects to sustain risks and the broker can provide clear terms and competitive prices through their expertise in project insurance.
Gardiner & Theobald conducted a survey of risks on recent capital projects. The three most common risks reported were:
1) Scope changes by owners, which occurred on 70% of projects and caused cost and schedule impacts.
2) Design errors and omissions, which occurred on 55% of projects.
3) Unforeseen site conditions, which occurred on 40% of projects.
To mitigate risks, the report recommends understanding project-specific risks, carefully drafting contracts, and avoiding optimism bias during project planning.
This document provides an overview of single project professional indemnity (PI) insurance. It discusses the post-pandemic infrastructure industry outlook and new risks. It then covers what SPPI insurance is, who it insures, key coverages and exclusions. Real claim examples involving architects and engineers are presented. The document also touches on retroactive dates, territorial and jurisdictional limits in PI policies. Overall it aims to discuss the SPPI insurance market capacity and trends.
This document provides information about getting fully solved assignments from an assignment help service. It includes their contact information of email and phone number and emphasizes mailing them over calling. It then provides a sample assignment question on project finance and budgeting for an MBA program, including evaluation criteria and multiple questions to answer on topics like the role of project sponsors, project budgeting, debt financing, risk assessment techniques, risk audits, types of working capital, BOOT projects, and the role of engineering advisors in project finance. Responses to each question are provided.
Exploration of risks and risk management in construction project deliveryMECandPMV
Risks are pervasive throughout construction projects and need to be properly managed. This document discusses:
1) Various types of risks that occur during different phases of the project life cycle from planning to construction.
2) How the selection of a project delivery system, such as design-bid-build or design-build, can impact risks related to costs, schedule and control.
3) Qualitative and quantitative risk analysis methods that can be used to identify, prioritize and evaluate risks, such as cause-and-effect diagrams and decision analysis.
The document summarizes benefits of proper cost estimating techniques and provides case studies. It discusses fundamentals of cost estimates, including purpose and potential legal liability. Case studies examine a cost to complete estimate for unfinished subdivision work, finding the plaintiff's claim overstated, and a design-build project where cost overruns occurred due to inadequate contingencies and misaligned expectations between the designer and contractor. The document emphasizes importance of clear communication and standard practices in cost estimating.
This document provides an overview of risks in engineering, procurement, and construction (EPC) contracts and techniques for mitigating those risks. It discusses major categories of project risks for EPC contracts, including construction, financial, geographical, contractual, and project management risks. Case studies are presented to illustrate examples of risks in areas like contractor expertise, payment issues, force majeure events, and project staffing. The document concludes by outlining contractual provisions and project management strategies that owners and contractors can use to mitigate risks in EPC projects.
Winning tenders / securing tenderers in a competitive construction market - N...Browne Jacobson LLP
This seminar looked at:
(1) how employers can make their tenders attractive in an increasingly competitive market, and
(2) from a supply chain's perspective, what employers are looking for from tenderers.
This document provides an overview of project finance for power generation projects. It defines project finance and differentiates it from other types of finance. Some key aspects covered include:
- Project finance uses a special purpose vehicle to finance infrastructure projects on a limited or non-recourse basis.
- Risks are allocated optimally through contracts between the project consortium members.
- Credit ratings consider the standalone credit profile of the project based on operational and construction risk factors.
- Projects require diligence on financial modeling, engineering reviews, market assessments, and ensuring permits and commitments are in place.
- Exhibits provide more details on engineering procurement construction management, legal structures, and benchmarking power plant costs
Smart Agreements and Green Litigation RisksScott Wolfe
This presentation - given to the New Orleans Green Legal Matters Conference - analyzes the risks inherent in green building projects, and those contractual tricks that can be used to limit or minimize those risks. I gave this presentation on October 14th, joined by James d'Entremont of Phelps Dunbar.
Geology 198 Investments and Risk Management.pptxRonniePenarroyo
This document summarizes a lecture on project finance and risk management. It defines project finance as the financing of long-term infrastructure or industrial projects using a non-recourse structure relying on the project's cash flows. Key aspects discussed include the use of a special purpose vehicle, cash flow-based valuation, allocation of risks through contracts, and conducting due diligence. The major risks identified for projects include completion, resource availability, technology issues, market forces, currency and political instability.
Managing Technical & Project Risks on Small Renewable Energy Projects (...mtingle
The document discusses managing technical and project risks on small renewable energy projects that are less than $20 million. It outlines the high level issues with financing smaller projects due to legal and financing costs being too high. It then discusses the technical risks of project design, construction, and operations and who should take on these risks. It proposes a new financing process that simplifies due diligence and risk assessment for smaller projects through measures like lower debt service coverage ratios and cross-security between projects.
The document provides information on professional practice for architects in India, including:
1) It defines key terms related to architecture such as trade, business, profession, doctrine, liabilities, duties, responsibilities, code, and etiquette.
2) It describes the roles and services provided by architects at different stages of a construction project from conceptual design to project completion.
3) It outlines the participants involved in the construction industry such as contractors, owners, engineers, and suppliers.
4) It discusses the contracting process between owners and contractors and the scale of fees charged by architects at different stages of a project.
The document provides information on professional practice for architects in India, including:
1) It defines key terms related to architecture such as trade, business, profession, doctrine, liabilities, duties, and responsibilities.
2) It describes the roles and services provided by architects at different stages of a construction project from conceptual design to project completion.
3) It outlines the process of contracting between clients and architects, including common payment stages as a project progresses.
4) It provides details on the scale of fees charged by architects, usually around 10% of the total project cost for smaller jobs down to 4-5% for larger projects.
The outlook according to key players across the construction sector and the insurance industry
Key players in the construction sector recently met with leading construction insurers to discuss current trends and debate the future outlook for their industries. The meeting of minds was organised by Lucas Fettes & Partners and Constructing Excellence, the organisation charged with driving the change agenda in construction.
Read the report: The future for construction insurance
Lucas Fettes and Constructing Excellence have published a report that presents an overview of some of the insights that emerged from the initial discussion, including some direct extracts from the transcript of the evening.
This document provides an overview of project finance and the credit appraisal/evaluation process for infrastructure projects. It defines infrastructure projects and examples. It also defines project finance as financing that is "non-recourse" where lenders are only repaid from the project's cashflows. The credit appraisal process for infrastructure projects focuses on assessing the technical, economic, financial, and commercial viability of projects, with an emphasis on evaluating the project's feasibility study and ability to service debt from cashflows rather than relying on sponsor balance sheets. Key areas of analysis include market demand, costs, financing plan, cashflow projections and sensitivity analysis.
M Sc P M Lecture No 3 Project Organisation & Procure 2Hoang Vuong
The document discusses various methods for managing risk in project management, including identifying risks, analyzing their likelihood and potential impact, and allocating risks contractually. Standard form contracts help mitigate risk through measures like liquidated damages, performance bonds, provisional cost sums, and defects liability periods. Key risks can be insured, transferred through contracts, or retained depending on the level of control and financial impact.
M Sc P M Lecture No 3 Project Organisation & Procure 2Hoang Vuong
The document discusses various methods for managing risk in project management, including identifying risks, analyzing them, quantifying their likelihood and severity, and then choosing appropriate actions to eliminate, reduce, transfer or retain risks. It provides examples of how standard form construction contracts help mitigate risks through liquidated damages clauses, performance bonds, defects liability periods and retention sums, and insurance requirements.
Building Contractors Lessons: Duties and Responsibilities of a Building Contr...
Rims Energy Session 2008
1. IND 911 – Energy Resources
“Navigating the Landscape
of Risk”
Speakers:
Gabriel Lugo Mike Amador
Mel Causer Cynthia Vickers
Bill Siebenaler
April 28, 2008
San Diego, CA
3. Q
Market
Insurer
Advantages
A
Program
Structure
4. Construction Contracts
Risk Allocation &
Insurance Issues
Risk Allocation & Insurance Issues
Bill Siebenaler
Bill Siebenaler
5. Risk Allocation & Insurance –
Contract Issues
Owner Issues
• Are there standard provisions?
• What are the fall back positions when
contractors cannot or will not comply?
• What are the delegations of authority?
• What effect will the requirements have on the
cost of the project?
• What are the local restrictions?
6. Risk Allocation & Insurance –
Contract Issues
Owner Issues
• What is the business climate?
• Is the language too long and complicated?
• What is expected of subcontractors?
• What type of additional training is available to
contract specialists?
• What resources are available to help with
difficult contracts?
9. Construction Contracts – Preparation
Key Stakeholders
• Local vs. Central
Authorities • Standardization
• Exceptions
Training
10. Construction Contracts –
Preparation / Execution
Key Stakeholders
Authorities
• Model Contracts
Training
• Consistency
11. Construction Contracts –
Risk Allocation Issues
Who Should Bear the Risk?
• The party providing the service/product ?
• The party in control of the work ?
• The party in the best position to prevent the
loss/accident ?
• The party in the best position to manage the
financial consequences ?
• A combination ?
12. Construction Contracts –
Risk Allocation Issues
• Take time to understand the risks
− Yours
− Theirs
− Others outside the contract
• Be consistent with underlying contracts
• Know your counterparties needs
• Be aware of enforceability issues
− Anti-Indemnity Statutes
13. Construction Contracts –
Risk Allocation Issues
• Typical Allocation Options
− Mutual Hold Harmless
− Negligence Based
− Combination
• First Party & Third Party
− People
− Property
− Consequential Loss
14. Construction Contracts –
Insurance Issues
• What types and amounts of insurance should be
required of contractors?
• What should subcontractors be required to carry?
• Are there company standard insurance provisions?
• What deductibles should be allowed?
• What level of self insurance should be allowed?
• Will and OCIP or CCIP be used?
• What are the options for solving an impasse?
15. Construction Contracts –
Insurance Issues
Purpose of Insurance Clauses
• Help ensure that transferee has funds available to pay liability
assumed under indemnity clause
• Can give the transferor some specific rights under transferee’s
policies
• Specify the types and limits of insurance transferee must buy -- a
measure of viability
• Can cover some liability not covered by the indemnity
• Do not always cover all obligations in the indemnity provisions
16. Construction Contracts –
Insurance Issues
• Project Risks & Indemnities – Review the particular
exposures and risks related to the contract and how they are
allocated in the indemnity and other sections. Make sure all
risks are accounted for.
• Financial Strength of Contractor - Appropriate limits are
determined case-by-case and are subject to compromise. Ask
for the higher-end of “reasonable.”
• Cost of Coverage – Each requirement carries a cost which in
many cases is passed back in the form of a higher contract
price.
17. Construction Contracts –
Insurance Issues
• Insurer financial strength - Determine what you are
comfortable with. If rated, ask for insurers with a high
rating from A.M. Best or Standard & Poors
• Terminology - Use current insurance terminology
rather than obscure legal terms or outdated insurance
terms.
• Retentions – Allow appropriate deductibles or self
insurance based on the financial strength of the
contractor and need to support indemnities in anti-
indemnity jurisdictions.
18. Contractor Insurance Limit Guidance
• Step 1 – For each type of insurance coverage listed in the
model, determine whether or not there are any risks in the
project which could be the subject of such coverage.
• Step 2 – For each type of coverage for which risks have been
identified, determine both the hazardous nature and the
potential size of those risks and classify them as High,
Medium or Low Risk taking geographical factors into
consideration.
• Step 3 – Once the risk level, if any, has been determined,
select the appropriate base levels of coverage to be inserted
into the contract requirements. For large, financially stable
contractors, these limits may be changed.
19. Key Insurance Provisions
• Additional Insured Status
• Waivers of Subrogation
• Other Insurance – Primary vs. Excess
• Evidence – Certificates, Policies, etc.
• Option to Self-Insure
• Option to Purchase for Contractor (OCIP)
20. Risk Allocation & Insurance – Recap
Owner Issues
• Are there standard provisions?
• What are the fall back positions when contractors
cannot or will not comply?
• What are the delegations of authority?
• What effect will the requirements have on the cost of
the project?
• What are the local restrictions?
21. Risk Allocation & Insurance – Recap
Owner Issues
• What is the business climate?
• Is the language too long and complicated?
• What is expected of subcontractors?
• What type of additional training is available to
contract specialists?
• What resources are available to help with
difficult contracts?
24. RIMS 2008 – Construction Placements
Topics Discussed Today…
I) Houston, We Have a Project
II) Insurance Planning & Technical Data Mania,
oops, Mining
III) Let the Placement Begin
IV) Selected Coverage Issues and Recent Placements
V) Energy Market Indicators
25. RIMS 2008 – Construction Placements
I) Houston, We Have a Project
26. RIMS 2008 – Construction Placements
Houston, We Have a Project
• Headlines Headlines, Read All About It
Super, duper mega amazing zillion barrel discovery !!!!
27. RIMS 2008 – Construction Placements
Houston, We Have a Project
– And inside the Risk Manager’s Head he begins to
ponder the profound project mysteries such as....
28. RIMS 2008 – Construction Placements
Houston, We Have a Project
– Oops, let’s try again…and down the hall in the
savvy's Risk Manager’s office, he knows well what
may transpire:
A discovery is made, we’ll see if it is commercial to develop (A
new asset may be constructed or an add-on to an existing asset)
Studies and teams formed
Front-end engineering undertaken
A plan of development
Contracting
Long-lead items ordered
Permitting and licenses obtained
Approval process
Project Sanction received
Construction works begin
29. RIMS 2008 – Construction Placements
Houston, We Have a Project
– Oops, let’s try again…and down the hall in the
savvy's Risk Manager’s office, he knows well what
may transpire:
A discovery is made, we’ll see if it is commercial to develop (A
new asset may be constructed or an add-on to an existing asset)
Studies and teams formed
Front-end engineering undertaken
A plan of development
Contracting
Long-lead items ordered
Permitting and licenses obtained
Approval process
Project Sanction received
Construction works begin
30. RIMS 2008 – Construction Placements
Houston, We Have a Project
– The Risk Manager’s checklist early on….
Where could the development be located ?
Who may be the Operator ?
Is there a joint venture & a division of interest ?
Who are the stakeholders ?
Meet & cultivate relationships with key people
on the project team
Try to determine what type of physical asset
the project might be
31. RIMS 2008 – Construction Placements
Houston, We Have a Project
– The Risk Manager’s checklist early on….(Continued)
Early Risk Assessment: form ideas of what risk
characteristics the project may have
Begin considering an appropriate risk transfer
program
Sourcing needed technical data
Possible insurance issues including local
insurance regulations and service providers
Develop a preliminary rough timeline
32. RIMS 2008 – Construction Placements
II) INSURANCE PLANNING &
TECHNICAL DATA MINING
33. RIMS 2008 – Construction Placements
Insurance Planning
Critical Insurance Issues to Consider -
Size of project – Capacity Constraints ?
Project Location – Flood & Windstorm Exposure ?
Other Operations/Projects in the Area – Aggregation Issues ?
Local Insurance Regulations – Local Insurance Fronting Required ?
Loss History at the Project Site or Area – How to Market It ?
34. RIMS 2008 – Construction Placements
Insurance Planning
Critical Insurance Issues to Consider -
Your Joint Venture – What is Their Appetite for Risk & Risk Philosophy ?
State of the Insurance Market – Is it in a Hard or Soft Cycle ?
Recent Energy Losses – Will they Impact Your Project ?
Project Capex Budget – How Much to Insure ?
Major Project Contractors - Are they in Good Standing with the Market ?
35. RIMS 2008 – Construction Placements
Planning for Windstorm Coverage
in Your CAR Placement
36. RIMS 2008 – Construction Placements
The reinsurance market - the “great divide” ....
US windstorm Remainder of portfolio
Reinsurers have required
Gulf of Mexico cover to be
a separate “tower” of
coverage, with the rest of
the account split…
US windstorm
37. RIMS 2008 – Construction Placements
Named Windstorm ActivityAs of April 9, 2008; next forecast May 31, 2008)
Forecast by Colorado State University
Forecast Parameter 1950- 2005 2006 2007 2008
2000 Ave Act Act Act FC
Named Storms 9.6 23 9 14 15
Named Storm Days 49.1 103 50 70 80
Hurricanes 5.9 13 5 7 8
Hurricane Days 24.5 45 20 35 40
Intense Hurricanes 2.3 7 2 3 4
Intense Hurricane Days 5 17 3 8 9
Net Tropical Cyclone 100% 249% 85% 140 160%
Activity (NTCA)* %
38. RIMS 2008 – Construction Placements
Named Windstorm Coverage
When Considering Wind Risk Transfer -
– Do you need it ?
– Requesting it will place capacity constraints on your placement
– How much do you need ?
– Value at risk deductibles: % of value at risk
– Coverage trigger: Review definition of Named Windstorm
– Major exclusions: Is flooding covered ?
– Stand Alone Placement Premium: 2% - 5% of sum insured
39. RIMS 2008 – Construction Placements
Technical Data Preparation
40. RIMS 2008 – Construction Placements
Technical Data Preparation
Begin by accepting that gathering a high volume of
quality technical data is no longer optional but
mandatory to successfully place construction insurance
for large projects - especially at the best terms and
conditions.
41. RIMS 2008 – Construction Placements
Technical Data Preparation
Critical Data Which Will Be Requested -
– Latest project budget statement
– Insurance application
– Hurricane preparedness procedures specific to the project
– Fire prevention (hot works procedures, fire brigade training, etc.)
– General company overview information
– Explanation of how your companies property conservation
programs
with tie into your contractor’s
– Major contractor’s loss experience on large projects
– Maximum wind design for the asset
42. RIMS 2008 – Construction Placements
Technical Data Preparation
Critical Data Which Will Be Requested (Continued) -
– Flood and hurricane action plans specific to the project
– Construction Underwriting Report
– EML calculations
– Detail on the construction process
– Delay and Start-Up data if DSU quote desired
– Cargo transits
– Major Contract (EPC, etc.) Wording
– Company & contractor QA/QC procedures and management
44. RIMS 2008 – Construction Placements
III) Let the Placement Begin
45. RIMS 2008 – Construction Placements
Placement Planning
General Considerations -
– How will the placement be managed ?
– Will you conduct a Call For Tender ?
– Who will be invited ?
– What is your placement strategy? Limits, Coverages, Buybacks
– How can you best generate competition ? Brokers, Markets, Placement
Structure
46. Number of energy insurers world-wide
120
100
80
Offshore
60 Onshore
40
20
…no significant changes since 2002
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source:Aon Limited
47. RIMS 2008 – Construction Placements
Placement Planning
The Call For Tender -
– Develop a Calendar To Attach Cover at the Appropriate Time
– Cover Letter Inviting Brokers
– Scope of Work
– Basic Project Information
– Broker Deliverability Instructions
– Qualifications – Response on the basis of a desk quotation only…
– Form of Proposal – Details Risk Manager expectations of what information
Broker will provide related to the policy placement, Broker personnel &
experience and the Broker fee.
– Broker Award
– Confidentiality Agreement
– Broker Engagement Letter – Service agreement including indemnities and
insurance requirements
48. RIMS 2008 – Construction Placements
Insurable Limits
49. RIMS 2008 – Construction Placements
Placement Strategy - Insuring Limits – Full ECV Versus A Loss Limit
The Daddy Big Bucks Project
Full Estimated Contract Value (ECV) $ 1,500,000,000
Estimated Premium Calculation 2.5% $ 37,500,000
50. RIMS 2008 – Construction Placements
Placement Strategy - Insuring Limits – Full ECV Versus A Loss Limit
The Daddy Big Bucks Project
Full Estimated Contract Value (ECV) $ 1,500,000,000
Estimated Premium Calculation 2.5% $ 37,500,000
Risk Manager's Option: Insure a Loss Limit CFT $ 750,000,000
Technical Report Estimated Maximum Loss (EML) $ 500,000,000
Delta Between Loss Limit Option & EML $ (250,000,000)
Credits Hoped For - Loss Limit Option 2.5% $ (6,250,000)
51. Placement Strategy - Insuring Limits – Full ECV Versus A Loss Limit
The Daddy Big Bucks Project
Full Estimated Contract Value (ECV) $ 1,500,000,000
Estimated Premium Calculation 2.5% $ 37,500,000
Risk Manager's Option: Insure a Loss Limit CFT $ 750,000,000
Technical Report Estimated Maximum Loss (EML) $ 500,000,000
Delta Between Loss Limit Option & EML $ (250,000,000)
Credits Hoped For - Loss Limit Option 2.5% $ (6,250,000)
Underwriting Response to Risk Manager's Loss Limit Option
Option 1: Loss Limit Option $ 750,000,000
Underwriter Loss Modelling EML $ 800,000,000
Delta Between UWR EML & Loss Limit Option $ 50,000,000
Credits Quoted For Loss Limit Option 2.5% NIL
52. RIMS 2008 – Construction Placements
Placement Strategy - Insuring Limits – Full ECV Versus A Loss Limit
Decision: Insure Full ECV
53. RIMS 2008 – Construction Placements
Presentation Site Map
54. RIMS 2008 – Construction Placements
IV) Selected Coverage Issues and
Recent Placements
55. RIMS 2008 – Construction Placements
Selected Coverage Issues……
56. RIMS 2008 – Construction Placements
Coverage Issues - Offshore
WELCAR - Special Conditions for Other Assureds
It is a condition precedent for any party identified in Other Assureds definition
clause iii. and iv. above to benefit from the Other Assureds status under the
Policy that they perform their operations according to Quality Assurance/Quality
Control systems(s) which comply with the Quality Assurance/Quality Control
provisions passed on by the Principal Assureds through each and every written
contract awarded within the scope of insured works as scheduled under the
Policy.
The interest of the Other Assured(s) shall be covered throughout the entire
Policy Period for their direct participation in the venture, unless specific
contract(s) contain provisions to the contrary. The rights of any Assured under
this insurance shall only be exercised through the Principal Assureds. Where
the benefits of this insurance have been passed to an Assured by contract, the
benefits passed to that Assured shall be no greater than such contract allows
and in no case greater than the benefits provided under the insuring agreements,
terms, conditions and exclusions in the Policy.
57. RIMS 2008 – Construction Placements
Coverage Issues - Offshore
WELCAR - Waiver of Subrogation
Underwriters agree to waive rights of subrogation against any Principal
Assured(s) and/or Other Assured(s). The Assureds shall not grant any waiver
of subrogation to drilling contractors and/or their sub-contractors without
obtaining Underwriters’ agreement to a specific endorsement to this Policy
prior to the commencement of operations.
As a condition precedent to their benefiting from the automatic waiver of
subrogation in this clause, Other Assureds must perform their operations
according to Quality Assurance/Quality Control system(s) that comply with
the Quality Assurance/Quality Control provisions passed on by the Principal
Assureds through each and every written contract awarded within the scope
of insured works as scheduled under the Policy.
Note: should be modified to reflect deletion of QA/QC and waiver of
subrogation to drilling contractors.
58. RIMS 2008 – Construction Placements
Coverage Issues - Offshore
WELCAR - Policy Limit
Underwriters’ total liability under Section I for all claims arising out of any one
Occurrence shall not exceed 125% of the latest agreed Schedule “B” values,
including payments made under the sue and labour clause, the additional work
clause and the removal of wreckage and/or debris clause (each of which is
separately limited under the appropriate coverage clauses).
In the event of escalation as provided under clause 5 of Section I,
Underwriters’ total liability under Section I for all claims arising out of any one
Occurrence shall not exceed 150% of the initial Schedule “B” values, including
payments made under the sue and labour clause, the additional work clause
and the removal of wreckage and/or debris clause, and the Escalation Clause
(each of which is separately limited under the appropriate coverage clauses).
Notwithstanding anything contained herein, Underwriters’ maximum limit of
liability in respect of Section I shall not exceed the Schedule “A” value in the
aggregate.
59. RIMS 2008 – Construction Placements
Coverage Issues - Onshore
Onshore Construction Hot Buttons
• Contractor Requirements – Design Error, Extended Maintenance,
Contractor Soft Costs: Each of these items often are contractually
required by contractors in the current market and can be critical in
the final costs for a Builders Risk policy. Although LEG 3/96 (faulty
part coverage) is available, it does have an impact on cost. Extended
Maintenance coverage as required by many contractors is often not
commercially available in the US. Many underwriters take the position
that after a Builders Risk policy expires following hand-over, new
occurrences become a 3rd party liability issue and not insurable
under the Builders Risk (which is a property policy.)
• Delay in Start-Up: This coverage is often heavily scrutinized by
underwriters with burdensome documentation and a long waiting
period that sometimes makes the coverage not very cost effective for
owners.
60. RIMS 2008 – Construction Placements
Coverage Issues - Onshore
Onshore Construction Hot Buttons – continued
• Inland Transit: This coverage extension although traditionally covered
without many questions is coming under increased scrutiny by some
underwriters. Owners should be prepared to provide details similar to
what one would normally expect on an Ocean Marine placement. This is
a critical coverage and owners should carefully evaluate contracts to
determine the level of inland transit coverage actual needed under a CAR
/ EAR policy.
• Liquidated Damages: Although very challenging and expensive to place
(generally not considered economically practical), many contracts have a
provision for owners to insure LD’s. Underwriters sometimes may agree
to write a limited LD cover, there are usually many questions around the
issue of moral hazards when contractors know there is insurance for
LD’s provided to them.
61. RIMS 2008 – Construction Placements
Some Recent Placements……
62. RIMS 2008 – Construction Placements
Ultra Deep Offshore Placement
Construction "All Risks" / Liability Insurance
Lead Quote on Welcar Form
Description Limits Cost
CAR - Includes Windstorm $ 444,146,376 ECV $ 8,200,000 1.8%
$ 150,000,000 CSL 5.5%
Sub-Limits
Cancellation $ 5,000,000
Standby $ 10,000,000 $ 70,000
Forwarding $ 2,500,000
Testing $ 2,500,000
Buyback: Faulty Part Coverage $ 20,000,000 $ 445,000
Third Party Liability $ 100,000,000 $ 470,000
Sub-Total Insurance Cost $ 9,185,000
Deductibles - Staged from $1,000,000 - $5,000,000
63. RIMS 2008 – Construction Placements
LARGE ONSHORE PROJECT
Description Market Quote Description 2
Coverage Full Project Value
Design Error Provision LEG2/96
12 Months Maintenance Yes
DSU & Extra Expense No Cover
Windstorm Limit $100,000,000 In the aggregate for the term of the policy
Flood limit $100,000,000 In the aggregate for the term of the policy
Earth Movement $250,000,000 Annual aggregate
Inland Transit No Cover
Deductibles
Works $500,000
Hot Test and Commissioning $1,000,000
Named Windstorm 3% VARATOL min
Rate 0.40%
64. RIMS 2008 – Construction Placements
V) Energy Market Indicators
65. $bn
20
So how did 2006 turn out?
18
16
14 Source:Willis/Aon Energy Loss Database
12
10
8
Losses excess US$1m
6
Estimated Worldwide Premium (US$)
4
2
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
66. Energy insurer capacities & average rating levels
The “Supply & demand” curve
US$m % of 2001 rates
6,000 120
5,000 100
4,000 80
3,000 Offshore
60
Capacities
2,000 40
Onshore
Capacities
1,000 20
0 0
2001 2002 2003 2004 2005 2006
Source: Aon Limited
67. RIMS 2008 – Construction Placements
Capacities of Major Reinsurers
Reinsurer 2006 2008
AIG $150m $200m
Swiss $120m $100m +
Zurich $75m $100m
ACE $80m $150m
ARCH $75m $100m
Liberty $100m $150m
76. What is Ergonomics?
From the National Safety Council:
“Ergonomics is the study of human
characteristics for the appropriate
design of the living and working
environment.”
77. What is Ergonomics?
Solutions to ensure safety and productivity
of workers
Involves changing tools, equipment, materials,
work methods, work place:
Engineering controls
Safe work practices
PPE
78. What is Ergonomics?
Reduce Work- Related Use principles of
Musculoskeletal Disorders: Ergonomics:
– Gripping – Redesign tools, equipment,
– Kneeling materials, or work
– Lifting processes
– Repetitive movements
– Bending
– Twisting
– Using vibrating equipment
– Squatting
– Overreaching
79. Musculoskeletal Disorders
(MSDs)
• Involve nerves, tendons, muscles, and
supporting structures such as
intervertebral discs
• Represent wide range of disorders from
mild to severe chronic and debilitating
conditions
80. Common MSDs
• Carpal tunnel syndrome
• Low back pain
• Eyestrain
• Tendonitis
• Trigger finger
• De Quervain’s disease
• Rotator cuff tendonitis
• Herniated disk
• Hand-arm vibration syndrome
81. MSD Characteristics
• Severe and debilitating symptoms
• Reduced worker productivity
• Lost time
• Temporary or permanent disability
• Inability to perform job tasks
• Increase in workers’ compensation costs
82. MSD Signs
• Less strength for gripping
• Less range of motion
• Loss of muscle function
• Inability to do everyday tasks
83. Outward MSD Signs
• Swelling or inflammation of joints
• Vigorously shaking hands
• Massaging hands, wrists, or arms
• Cradling arms
• Limping
• Stiff back
84. MSD Symptoms
• Back and neck – shooting pain, stiffness
• Shoulders – pain, stiffness, loss of
mobility
• Arms and legs – shooting pains,
numbness
• Elbow and knee joints – pain, swelling,
stiffness, soreness
85. MSD Symptoms (cont.)
• Hands and wrists – swelling, numbness,
loss of strength
• Fingers – jerking movements, or loss of
strength, mobility, and feeling
• Thumbs – pain at the base
• Feet and toes – numbness, tingling,
stiffness, burning sensation
86. Risk Factors
• Repetitive motion – Stress on muscles, nerves,
and tendons
• Forceful exertion – Inflammation of tendons,
nerves, joints
• Awkward posture – Stress on muscles and
tendons
• Contact stress (pressure points) – Pressing
against or grabbing a hard object
• Vibration – Affects tendons, muscles, joints,
nerves
87. Risk Factor - Repetitive
Motion
• Stress on muscles, nerves, and tendons
• Contributing factors:
Frequency of repetition
Duration and speed of the repetitious movement
Number of muscles involved
Required force
88. Risk Factor - Forceful Exertions
• Inflammation of tendons, nerves, and joints
• Contributing factors:
Type of grip
Weight of object
Body posture
Type and duration of the task
Presence of vibration
89. Risk Factor – Awkward Postures
• Stress on muscles and tendons
• Contributing factors:
Overhead reaching
Maintaining awkward position
• Lifting while twisting, turning, or reaching
90. Risk Factor – Contact Stress
• Pressing against or grabbing a hard object
Pressure on nerves, tendons, and blood
vessels
• Contributing factors
Repetition
Duration of contact
Strength of grip required
91. Risk Factor – Vibration
• Affects tendons, muscles, nerves, and joints
• Contributing factors:
Restriction of blood supply to hands and
fingers
Prolonged grip
No dampening device on tool
93. No mouth - can’t complain
about the constant pain from Long flexible neck - to see
over work poorly placed machine controls
Built-in computer - easily Steel cable in back - can’t be
programmed for boring injured by heavy lifting
repetitive work
Super strong arm - when Extra long arm - can
quality assurance requires easily reach supplies on
brute force to make parts fit the highest shelves
Easily replaceable wrist unit -
Wrist Springs- never needs expensive carpal
absorb the shock of tunnel surgery
vibrating power
Telescoping legs - no need
for adjustable height
workstations
94. Identifying Hazards and
Controlling Through Ergonomics
• Identify potential hazards and degree of risk
• Devise control strategy
• Implement control measures
• Train employees
95. Workstation Design
• Workspace layout
• Work surfaces
• Standing and walking surfaces
• Seating
• Storage
• Work fixtures
• Work environment
96. Workstations
Computer Workstations
• Keyboard
Thin and detachable • Monitor
Positioned low Slightly below eye level
Viewing angle 30 degrees
• Mouse or trackball Viewing distance 18-24”
Within easy reach
Same height as keyboard
97. Workstations
Computer Workstations (cont’d.)
• Seating
Adjustable back support, seat and
padded arms
Adequate support for back and legs
Rolling, five-pronged base for stability
• Workspace Layout
Adjustable
Worker should be able to maintain neutral position
Adequate leg room
Adequate space for tools and equipment
98. Workstations
• Work Surfaces
Proper height and angle
Permit neutral postures
Adjustable
• Walking and standing surfaces
Designed to prevent slipping
Provide adequate traction and comfort
99. Workstations
• Storage
Organized
Heavy items stored between knee and shoulder
height
Frequently used items close to worker
• Work Fixtures
Use mechanical devices
Hand tools should fit employees’ hands
Use pneumatics tools with vibration dampening
Provide personal protective equipment (PPEs)
100. Workstations
• Work Environment
Isolate equipment or operations that produce loud
or distracting noise
Proper lighting
Isolate hands and feet from cold
Reduce whole-body vibration while riding in
vehicles or standing near equipment
Isolate workers from excessive heat
101. Workstations
• Management Controls
Safe procedures
Broadening or varying job content
Training in recognition of risk factors
Requiring use of PPEs
Reducing shift length or curtailing overtime
Rotating workers
Scheduling frequent breaks
102. Key Points – Basic Ergonomic
Principles
• Examine work conditions on case-by-
case basis
• Minor ergonomic changes can make
significant improvements
• Involve workers in discussions before
changes are made
103. References
• National Institute for Occupational Safety
and Health
www.niosh.gov
• Occupational Safety & Health
Administration
www.osha.gov
• National Safety Council
www.nsc.org