Contracts for Construction and Engineering Projects
Page 301
CHAPTER 23
Is conventional insurance for construction projects fit for purpose?
Is conventional insurance for construction projects fit for purpose?
123.1 Introduction
Large construction projects generally involve significant complexity in their procurement – in their technical challenges, and in the interaction and interfaces between the different organisations involved in design and construction. These issues (and others) are manifest in the inherent risks of construction, which range from the physical challenges of the site and the prevailing environment, the technical and organisational challenges of each party involved in design and construction completing their work to the required quality in the specified time, to completion of the works for the specified cost. The rights and obligations between the parties involved in design and construction are regulated by contracts that assign liability if the risk events occur.