One of the key components to success in the construction industry is the effective management of risk. This is true of manual operations on the ground, but it is also true in the critical area of construction contracts, where successful management of risks can be critical to a project's success.
There is a vast array of options available when drawing up a construction contract, and this includes the way in which you might choose to divide and allocate risk among parties. Oratto's member commercial lawyers for construction can help you do this intelligently so that risk is effectively counterbalanced as a matter of sound policy.
Furthermore, our specialists can help you achieve all of the following risk-related objectives:
- Identification of risk
- Definition of risk
- Analysis of risk
- Response to the risk
- Transfer of risk
- Acceptance of risk
- Avoidance of risk
- Clarification of duties in relation to specific risks
- Insurance against risk
There are three main categories of risk in relation to construction contracts. These are "pure and particular risk", "fundamental risk" and "speculative risk".
Pure and particular risk refers to the damage to property or injuries to people suffered in relation to a construction project. It is always advisable to take out insurance in order to provide financial protection from this kind of risk.
Fundamental risk refers to risks outside of a project's usual areas of control. These might include damage caused by war or an environmental disaster, or they might include problems caused by political influences or industrial disputes.
Speculative risk is the area for which your commercial lawyer for construction should come into his or her own. This is because this is the area of risk that can be written into the contract so that parties are clear as to their rights, responsibilities and liabilities. Clear instruction at this stage can help avoid potentially costly delays and disputes.
Sound understanding of commercial construction contracts
Oratto's commercial lawyers for construction can add value to your operation by providing sound, practical advice to help you manage risk in your construction contracts, whether they are between clients, contractors, investors, consultants or other parties.
For solid, specific advice on any aspect of construction law, whether it concerns the drafting of contracts, managing risk in contracts or handling a breach of contract further down the line, contact Oratto today.
Connecting with our member solicitors is a quick and easy way to access the legal advice that you need.