James A Morrison PE Kiewit Infrastructure Engineers

Risk Management in Deep Foundation Construction

Gerenciamento de Risco na Construção de Fundações Profundas

1.  Design error 2.  Changed conditions 3.  Build it wrong 4.  Final cost exceeds budget 5.  Product does not work 6.  Third party damage

Deep Foundations Institute

What could go wrong ? O que poderia dar errado?

“The party in the best position to manage the risk owns it.”

North American Common Law…. Direito Comum Norte Americano…

Designer Contractor Owner

Design error X Changed conditions X Build it wrong X Final cost exceeds budget X X X Product does not work X Third party damage X X

Who can best manage the risk? Quem pode gerenciar melhor o risco?

Insurance Contract Quality Control

Design error X X Changed conditions X Build it wrong X Final cost exceeds budget X X Product does not work X X Third party damage X

Best vehicle for managing risk Melhor meio de gerenciamento de risco

Ris

k O

wne

rshi

p R

isk Ow

nership

Lump Sum Design-Build

Time & Materials

0 0

50 %

100 % 100 %

50 %

Owner Contractor

Contract Relationship Relação Contratual

Owner gets . . .

GAMBLERS

If Contractor owns all risk… Se o empreiteiro possui todos os riscos...

Owner gets . . .

ACCOUNTANTS

If Owner owns all the risk…. Se o proprietário possui todos os riscos...

1)  Contract type •   Bid-build •   Design build •   Public/private partnership (P3)

2)  Changed condition clause 3)  Geotechnical baseline reports 4)  Risk register

Key Contract Provisions Cláusulas Principais dos Contratos

1)  Design Errors and Omissions 2)  Owner Provided Insurance Programs 3)  Public Liability 4)  Builders Risk Insurance

Key Insurance vehicles for construction Principais meios de seguro para a construção

1)  Select best Contracting Method for the Project

2)  Align Contract Provisions with party best able to manage risk

3)  Changed Conditions Clause – clear and fair

4)  Geotechnical Baseline Report - to establish fair basis of contract

5)  Strong Quality Control program

Summary Resumo

James A Morrison PE Kiewit Infrastructure Engineers

Risk Management in Deep Foundation Construction