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Effects of Risk Management on Project Insurance Costs
The objective of this paper is to explain how project costs (specifically Construction All Risks (CAR) insurance premiums) can be reduced by the project owner and / or contractor, by adopting an effective risk management program and working in conjunction with the insurers own risk management services. Managing risk and uncertainty in the construction industry is a daily battle. Projects can range from the straight forward to the highly complex (including the likes of renovation and demolition) and a strong focus on risk management is essential in controlling the exposures. Large construction projects are generally exposed to a variety of risks during the planning, feasibility, design , construction, and defects liability phases; as well as outside exposures such as the availability of resources, materials etc.Recipient :
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