Risk, Liability, and Insurance Flashcards
Define Assignment
When the benefit of all or part of a contract is transferred by one of the original parties to a ‘third party’
Define a ‘desk-top valuation’
Valuations that are conducted without going to site
What is a ‘tort’?
An umbrella term for all civil wrongs recognised by the law, other than breach of contract.
How will the courts test whether or not a professional is in breach of their tortious duty?
They will ask if a reasonably competent professional would have acted in the same way, or provided the same advice, that
the defendant professional did
What are the four types of risk under NRM1?
- Design development risks
- Construction risks
- Employer change risk
- Employer other risks
Under NRM1 what is ‘design development risk’?
Risk allowance for use during the design process to provide for risks associated with design development, statutory requirements, and procurement methodology.
Note, where this a D&B procurement route, the main contractors may bid with their own design development risk.
What RIBA stages should risks be included from?
Stages 0 and 1
What RIBA stage would you produce a project specific risk register?
Stages 0 and 1, because it will help advise on the project budget and overall viability of the project.
Under NRM1 what is ‘construction risks’?
Risk allowance for use during the construction phase for the risks associated with site conditions, ground conditions, or delays by statutory undertakers.
Under NRM1 what is ‘employer change risks’?
Risk allowance for use during both the design and construction phases to provide for the risk of client driven changes e.g. changes in scope of works, quality, or time.
Under NRM1 what is ‘employer other risks’?
Risk allowance for other client risks, e.g. early handover, acceleration, or special contract arrangements.
In NRM2, what is a way the contractor and client can share risk?
Provisional quantities, where the cost risk is taken by the contractor, and the quantification risk is taken by the client.
In NRM2, how is risk dealt with in a BQ?
- Risk transfer to the contractor
- Risk sharing by both the client and contractor
- Risk retention by the client
