Effective Contractual Risk Transfer in Construction

Full Description

This white paper provides a concise overview of strategies for improving the contractual risk transfer process from the point of view of both the risk transferor and the risk transferee. Both legal and insurance issues are addressed.

Strategies for Transferring Risk to Others Hiring (upstream) parties usually have greater bargaining power in transferring certain project risks to downstream parties. However, onerous provisions that provide little or no benefit, require coverages that are difficult or impossible to obtain, or unnecessarily increase the cost and time of completing the project benefit no one.

By drafting contract language that is current, compliant with applicable statutes, and consistent with insurance industry methods of providing coverage, indemnitees can obtain reliable protection and avoid unnecessary costs and frustrations. This paper provides strategies for achieving these goals.

This whitepaper was originally published here by IRMI.