Risk Management Strategies for Infrastructure Projects

This guide discusses the complexities and risks associated with infrastructure projects, emphasizing the importance of early collaboration and contract review. It outlines how contractors can identify and evaluate risks during the bid phase to prevent unforeseen obligations. The document highlights the shifting risk exposure as contractors grow and transition to alternative delivery methods, such as design-build. It details common pitfalls, such as inadequate review of indemnity provisions and insurance requirements, which can lead to significant financial consequences. The guide stresses the necessity of aligning contracts with risk allocation and insurance programs, particularly as project sizes and complexities increase. It also addresses the impact of claims on bonding capacity and the importance of proactive risk management strategies. The document concludes by advocating for contractors to engage with strategic advisors to ensure comprehensive risk mitigation and alignment with their evolving business needs.