News Uk Construction Sector Hit Risk Warning

The UK construction sector faces an ever increasing level of risk and insurance is no longer considered a reliable safety net – according to research released today by law firm Weightmans LLP.

82% of respondents said that risk was increasing with many saying that uninsurable risks are being taken.

In other findings, 80% complained that contractual obligations are becoming more onerous and complex.

While almost half of respondents, 48%, do not have systems in place for ensuring their contractual trading conditions do not conflict with the provisions of their insurance contract

Another 47% of respondents are not gearing up for the introduction of BIM and are unaware of its insurance implications.

Over one third of those interviewed also thought that there would be casualties in the sector as a result of escalating risk issues.

Mike Grant, construction specialist and head of professional risk at Weightmans LLP in Liverpool, believes the UK construction sector needs to take note of the findings.

He said:”It is hardly surprising that the UK construction sector is acutely aware of risk. The issue of risk, and how to identify it and reduce it, is a key issue for all those involved in the industry. Getting it right means increased efficiency and profitability. Getting it wrong or ignoring risk can lead to disaster.

“The reality seems to be that although risk is recognised and tackled, ultimately the decision about whether to proceed with a project with a high risk profile is a commercial one. The imperative to win business and carry on trading means that the shadow of risk follows every business and the prospect of risk related business failure is a fact of professional life.”

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