Risk Financing Options: Guaranteed Cost

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Insurance is usually one of the last things companies want to talk about. It’s not fun or exciting, it’s simply a means to transferring risk. The necessity of insurance doesn’t make it any easier when figuring out the best risk financing option for your company. Depending on your trade and the type of risk you are wanting to transfer, will determine the best insurance option for you.

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Topics: Contractual Risk Transfer, Construction Insurance, Risk Financing

What is Contractual Risk Transfer?

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Contracts are often complicated and if you are not an expert in reading them, sometimes important details can be overlooked. There are significant risks inherent in every construction project. These risks can be driven by site conditions, the scope of work, an owner, or the contractors themselves. Regardless of the origin of the risk(s), they all have one thing in common - each contract executed will contain a clause transferring those risks from one party to another. This is done to eliminate a party’s exposure to risk.

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Topics: Contracts, Contractual Risk Transfer

Contractual Risk Transfer - 3 Tips for Trade Contractors

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Did you know the construction contract you signed contained a clause that transferred any risk from the project owner or general contractor to your company? Such clauses are common in executed contracts. Their purpose is to transfer any risks on a construction project from one party (transferor) to another (transferee) in order to eliminate the transferor’s exposure to risk. This legal practice is known as contractual risk transfer. 

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Topics: Contractual Risk Transfer, Construction Risk Management