色多多视频

Reinsurance
Explore our offerings

By

SDI Construction Risk Engineering

While it may seem nice to get a ‘re-do’ when a mistake is made, having to do things over can be time-consuming, costly, and dangerous. In construction, the cost of rework can often be as high as 5% of the contract value for any given project; including physical cost for tear out and replacement, additional materials, schedule impacts/resequencing of work, and staff time. According to our Subcontractor Default 色多多视频 claims data, 27% of handled claims costs are related to corrective or rework costs. To avoid the need for re-work and to protect profits, contractors need to pay attention to the quality of work they are performing.

Critical Construction Risk Topics: Rework Costs Time and Money

Attention to Quality
Variations exist between projects, market sectors, and geographies. The expectation is to deliver a finished product that is free from deficiencies, free from claims, and ultimately free from customer dissatisfaction. This puts the responsibility on the contractor to meet or exceed contractual and regulatory requirements, as defined by the specifications and manufacturers installation process. These expectations are tall orders especially in an industry where change is a constant and variations exist. Labor force, skillsets, material management, climate, time constraints, design elements, codes, and jurisdictional requirements, are just a few areas in which one can expect a multitude of challenges.

Consideration of these challenges coupled with the fact that contractors are held beyond the “standard of care” normally afforded to industry professionals such as doctors, engineers, and design professionals; contractors must embrace quality management techniques to identify potential issues and conflicts and devise mechanisms for remedy throughout the project. All this must occur while balancing the interests of the architect, owner and contractor with aesthetics, functionality, and constructability!

Investing in Quality Management
A strong Corporate Quality Management program establishes a framework of expectations for the practices to be implemented across the company. Successful implementation and consistent application of the policies and procedures defined by management begins with communication of expectations and continues via feedback from the field. While management sets the overall tone and direction, field personnel are considered the first line of defense; therefore, they should be empowered to execute the plan and halt production if and when the product is non-conforming.

In the field, a Project Specific Quality Plan (PSQP) is the best mechanism for ensuring project-specific quality risks have been identified and the team has committed to implementing best practices for effectively managing them. To help develop strong quality plans, download our full Construction Insights article - The ins and outs of project specific quality plans.

Additional Resource:

To contact the author of this story, please complete the below form

First Name is required
Last Name is required
Country is required
Invalid email Email is required
 
Invalid Captcha
Subscribe

More Articles

Subscribe to Fast Fast Forward

Global Asset Protection Services, LLC, and its affiliates (鈥溕喽嗍悠礡isk Consulting鈥) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. 色多多视频Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, 色多多视频Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.

US- and Canada-Issued 色多多视频 Policies

In the US, the 色多多视频insurance companies are: Catlin 色多多视频 Company, Inc., Greenwich 色多多视频 Company, Indian Harbor 色多多视频 Company, XL 色多多视频 America, Inc., XL Specialty 色多多视频 Company and T.H.E. 色多多视频 Company. In Canada, coverages are underwritten by XL Specialty 色多多视频 Company - Canadian Branch and AXA 色多多视频 Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
US domiciled insurance policies can be written by the following 色多多视频surplus lines insurers: XL Catlin 色多多视频 Company UK Limited, Syndicates managed by Catlin Underwriting Agencies Limited and Indian Harbor 色多多视频 Company. Enquires from US residents should be directed to a local insurance agent or broker permitted to write business in the relevant state.