Managing Risk During Australia’s Construction Boom
TPM Builders/blog/Managing Risk During Australia’s Construction Boom
Australia’s population is growing at a rapid rate, especially in urban areas, according to The Australia Institute. Its studies show that Australians are building a city the size of the nation’s capital every year, and that the population will hit 24 million later in 2015. That puts extra demand on the construction industry, which must provide the infrastructure to satisfy demand. Design-build is a great way to create new buildings fast, but it carries increased liability risks. Read on to discover ways to manage these risks and get projects completed on time.
Design-build only works when the owners know what they want and adequately communicate that to the design-builder. Writing a clear contract all parties agree upon is the best way to minimise the risk of project disputes. The contract should clearly spell out the project’s scope and the owner’s expectations. It should include provisions addressing the sharing of losses and cross indemnification for both parties should claims arise. General conditions detailing the steps taken in the event of a dispute should also be included. Both parties should read the contract in its entirety and ensure they understand all parts of it before signing.
Work as a Team
The owner and design-builders dealings shouldn’t end once the contract’s ink dries. One of the best way minimise risks is to work together as a team, with clear communication throughout the project. This way everyone is always on the same page.
