Construction and renovation projects carry complex risks for all involved — including contractors, owners, and design firms — that can increase dramatically when construction takes place near an active facility or congested area. Risks include geological or pollution-related conditions, interference with ongoing operations, construction accidents, and design and construction errors that manifest during construction—or even long after project completion.

Marsh provides access to a highly experienced, global network of risk consultants and brokers to help clients to identify and manage the full spectrum of construction risk. We focus on helping them to reduce overall project risk rather than simply transferring the responsibility or consequences of risk. Whether clients seek to emphasize collaboration and risk sharing among all project participants, or to define and enforce individual accountability, we offer solutions for both insurable and uninsurable risk. From risk evaluation to loss prevention, loss mitigation, insurance, and other services, we provide customized solutions to meet the specific needs of the project and demonstrate that value to all stakeholders.

Risk Evaluation

If one party fails on a construction project, the entire team can suffer. Marsh offers a detailed assessment of the risk to all project participants. We start by examining the risks arising from project finance, the operating environment, project participants, and project scope, including industry-specific considerations such as efficacy or aesthetics. We then assess the consequences of these risks individually and in combination to help clients to prioritize and manage them.

Loss Prevention

Once risks have been identified, we work with all participants to implement loss prevention strategies that help reduce overall project risk at its source. We recommend solutions in such critical areas as communication among members of the design and construction teams; safety of workers, third parties, and property; rights and responsibilities upon project completion; and follow-up inspection and maintenance. We help clients to formulate contract provisions that delineate which entity will assume on-site control of risk, standards, and protocols to be followed by all participants; duties in an emergency; and other key provisions.

Loss Mitigation

Should a loss occur, immediate, decisive action can often mean the difference between a manageable setback and a catastrophic event. Marsh helps clients to put procedures in place to lessen the severity of an adverse event. For example, we can help companies to formulate a comprehensive emergency response plan that provides for the protection of persons and property; orderly evacuation of job site and adjacent structures; notification of police, fire, medical and other emergency personnel; communication with the media; and establishing accounting codes to capture insured expenses. We can also help with other mitigation strategies, including developing a return-to-work program for injured workers and compliance with any and all insurance policy conditions to secure coverage.

Insurance

Insurers typically reserve their best terms and conditions for those projects and companies that actively manage risk. Building upon the client's risk management program, Marsh can help determine the insurance coverage needed and which project participant is in the best position to buy it. We help clients to secure coverage at competitive premiums by presenting a strong case to insurers. We also help them review owner-provided insurance to negotiate and coordinate limits, deductibles, and coverage among all project policies. We offer expertise in critical areas, including:

• Environmental liability (including mold)
• Professional liability and contractors protective professional indemnity (CPPI)
• Property coverage/builders risk insurance including delay in start-up (DSU) protection
• Wrap-up insurance programs (OCIPs/CCIPs)
• Surety/subcontractor default insurance

Additional Services

In addition to the services described above, Marsh offers the following loss control and mitigation services either as part of a robust risk management program or individually:

• Environmental and natural hazard risk assessment and quantification
• Behavior-based safety programs
• Forensic accounting and claims services
• Dispute resolution services
• Project governance
• Claims consulting and advocacy