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Risk and insurance are at the heart of all construction projects, yet their role and detailed provisions are often misunderstood, leading to significant losses and disputation. The already-sophisticated contracting landscape has, in recent years, been made significantly more complicated by the introduction of proportionate liability reforms. This subject will examine these issues with particular emphasis on how risk can be managed to minimise losses.
The lecturers are expert navigators in relation to these complex issues. They have leading-edge expertise in advising on risk, security for performance and insurance in the construction context.
Principal topics include:
- Identifying risk in a construction project and how various industry participants (including principals, contractors, designers, professional advisers, insurers, security providers, and statutory and government authorities) may bear responsibility
- Philosophies and commercial drivers affecting risk allocation in construction contracts and consultancy agreements, and how these are reflected in standard forms
- Security for performance mechanisms, including cash retentions, unconditional undertakings, parent guarantees, insurance bonds, adjudication bonds and other instruments
- Insurance products available to the construction industry (including public liability, works insurance and professional indemnity insurance) and the law relating to them, including regulation by legislation, common law principles and treatment under standard-form construction contracts and consultancy agreements
- Proportionate liability regimes (including Part IVAA of the Wrongs Act 1958 (Vic)) and their impact on contract risk allocation.
Intended learning outcomes
A student who has successfully completed this subject will:
- Have an advanced and integrated understanding of the role and function of risk and insurance in relation to construction projects
- Have enhanced their expert and specialised cognitive and technical skills required to analyse and advise upon risk and insurance issues in the construction industry
- Be familiar with, be able to critically reflect on, and be confident in working across, the interaction between the technical, commercial and legal aspects of construction risk allocation and insurance
- Be able to demonstrate the research and communication skills required to independently investigate, examine and analyse existing and emerging legal issues relating to construction risk and insurance.
Last updated: 2 December 2019