Managing Risks - Department of Public Works and Services
Managing Risks - Department of Public Works and Services
Managing Risks - Department of Public Works and Services
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Some General Principles (cont’d)<br />
<strong>Risks</strong> <strong>of</strong>ten allocated to more than 1 person<br />
E.g. subsurface risk<br />
Owner allocates to contractor, who allocates to<br />
subcontractor<br />
But – contractor <strong>and</strong> subcontractor may have<br />
liability caps <strong>and</strong>/or exculpatory provisions that<br />
leave owner with some residual risk<br />
E.g. “insured risks”<br />
When risks transferred to insurers, there may be<br />
limits <strong>of</strong> liability, specific exclusions <strong>and</strong> gaps in<br />
coverage so residual risk remains to be borne by a<br />
party to the construction contract<br />
12
Change language