INSURANCE AND RISK MANAGEMENT


n What is the quality and consis- tency of their workmanship?


n Is the subcontractor experienced in the type of work and in the geographical area?


n Are quality control/assurance procedures in place for vendors?


n Do the subcontractors have the proper certifications and licenses?


n What type of safety programs do they have in place?


Quality management n Are the high-level project members accountable for quality?


n Is there a formal QA/QC manual? n Do they have documented quality inspections?


n Are there formal record retention protocols with photo documentation?


Materials n Are the right materials being sourced?


n Are vendors available?


n Is there initial training on quality implementation?


Contracts n Are owners asking you to take on liabilities such as onerous terms or conditions?


n Are you asking subcontractors to take on additional risks?


n Has an annual contract review process been established?


n Has the contract been signed and formalized before work is begun?


n Does your contract language indicate that safety programs are being met or exceeded?


Labor n Do you have enough personnel to take on the backlog?


n Do you have the ability to expand or contract operations as needed?


n Will your staff be overburdened or have too much inexperienced project management?


Clarity for the Future An effective and focused ERM


framework can provide a general contractor with a clear picture of its overall risk exposures, and can improve firm-wide understanding of its ability to control the risks. A “lean” ERM framework can result in a more efficient use of people and financial resources, and can help a general contractor avoid having to manage the same risks again in the coming years and with future projects. n


n Any there special skills required to take on the work?


Backlog n Are you at risk for taking on more work than you can handle?


John Watras is Vice President of


Middle Market Commercial Contractors for Zurich North America. Zurich American Insurance Company can be reached at (800) 382-2150 or online at www.zurichna.com.


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The state’s largest technology and social media projects Our most notable stadiums, arenas, and ballparks One of the largest IPD hospitals ever built The tallest structure west of the Mississippi


find out what else we are building at www.rosendin.com www.AGC-CA.org Associated General Contractors of California 13


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