Understand the fine print

It's important that businesses take steps to ensure that they are well-equipped to navigate the complex world of contractual agreements and insurance requirements.

- 

Australia has been enjoying a sustained period of growth across the transport and civil construction sectors.

There has been considerable construction activity in mining and civil construction in response to the growing global demand for critical minerals. There has also been growth in the general construction sectors (i.e. residential, commercial, institutional, health).

The key drivers for this growth came initially from bullish State and Federal government stimulus spending in response to the COVID pandemic, which continues to be pushed along in response to strong population growth pressures and the need to ensure our urban and regional environments have the facilities to cope with this persistently increasing demand.

This creates a pipeline of available work opportunities for the earthmoving and civil sectors, probably for at least the next five years.

UAA's National Underwriting Manager Gary Woodhams said the positive outlook was certainly very good news, but warned that there are also many risks and challenges in business which need to be identified and mitigated.

"We all know the harsh reality is that all projects come with human, material, legal, financial, environmental and regulatory risk," he said.

"Understanding contractual and insurance obligations is just as important as managing physical equipment and site-based operational risks."

Gary said it was imperative to maintain a consistent approach and engage the experts when it comes to contract management and insurance.

Obtain quality legal advice

It is well known that contractual wording can be complex and fraught with risk for the unwary. Engaging a lawyer who has experience and expertise with operation contracts is a smart risk management investment. They can help you navigate complex indemnity clauses and:

• ensure they are workable from your standpoint

• align with your insurance coverage