THE IMPACT OF INSURANCE POLICIES TO BUILDING PROJECT CONTRACTS
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- NGN 3000
ABSTRACT
Construction industry is subject to more risk and uncertainty than many other industries. The development of a construction project from inception to completion takes a long time and involves many phases. It brings workers with different skills and interests together and involves the use of large and diverse set of equipment. All of these complex requirements have to be handled with proper co-ordination to provide a smooth flow of activities. It is necessary to identify and analyse the risks that may appear during project risks means the control of the project itself. Insurance is, of course, only one means of managing risks associated with such projects. It needs to be put into context and understood that not every risk can be insured against adequately or insured for a price that is acceptable. This paper aims in conducting an investigation on how insurance is used as a risk transfer tool in the construction industry and examine the interaction between construction players and insurance companies with respect to risk management.
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