Latent Defect Essay

The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!

It is alarming to know that each year there are over 4,500 scaffold injuries and 65 deaths (Occupational Safety and Health Administration [OSHA], 2016). In addition, there is a high risk for construction workers to be struck from objects falling off scaffolds. With these facts in mind, the Occupational Safety and Health Review Commission’s (OSHRC) 2013 case of the Secretary of Labor v Performance Contracting, Inc. (PCI) raises questions as to why violations of OSHA’s scaffold standards are sometimes considered “other-than serious.” Understanding that OSHA gives the Secretary of Labor the tasks of rulemaking and enforcement of its rules, it also gives the task of carrying out the legal process to the commission which both parties accepted, as well as PCI “engaging as a business affecting interstate commerce” (Secretary of Labor v. PCI, 2013, pp. 2-3). Knowledge of the case’s background, parties involved, arguments presented, cases used to reach a verdict, and final ruling provide insight to the penalties assessed, significance, and personal opinion.

SEC was offered a fixed price contract for ten months. The fixed contract as well as mis management caused the project to go over budget. Thus the risk was on

Falls are the leading cause of death in the construction industry, and in this case Lin and Hutch Realty Partners LLC, and Gamut Consulting all paid dearly. The purpose of this Paper is to discuss the Lin vs Hutch Realty Partners LLC court case relating to the falling accident that Mr. Lin experienced which per the Queens County Supreme Court, Lin vs. Hutch Realty Partners

In project management, contract almost related with every level of project, such as material buying, price negotiation, customer service and payments. Supplier is another important role in project management. If contractor could give a appropriate contact to supplier, it will helps on build stable relationship, with supplier, even more, it could bargain with price of materials. However, if contract not finish at each single phases of project, it will increase negotiation time, which means definitely time delay and cost overruns. With decent contract management of project, it will simply to avoid such fundamental problems. Another explanation for contract error is worker. Human resource is also important for basic project proceeding, and it has been included in contract management as well. Similarly, all potential possibilities need considered by manager. “careful consideration need to be finished when forming the initial contract, for about what might occur during its operation, this will guarantee that things are included in the contract documents that enable effective contract management”(OGC 2010)

In construction projects, mostly the firms (in this case the firms become client) do not have the skills or develop skills inside the firms to undertake the projects due to amount of the projects should be conducted or the complexity of the projects (Reve and Levitt, 1984). Therefore, the economic decision to conduct the projects is to procure them to third parties. However, more commonly the client agonize the final quality of the projects will meet standard requirements. Thus, impacts to involvement of complex contracts of construction procurement.

First, the ethical dilemma itself will be outlined. In the construction industry, it is often necessary for an owner or a construction company to enlist the help of other smaller or more specialized companies in the completion of a project. This practice is known as contracting. When an owner or company, referred to as the contractor, wants to contract out for a job, they will list the job and interested companies will bid for the contract. When arriving at a bid amount, interested companies will estimate

Cost of risk is a concept many construction companies have never thought about despite the fact that it is one of the

Within a project, the project’s success and budget belong to and are the responsibility of the customer. The Customer should have the final say in regards to what is acceptable and unacceptable in regards to risk and the quantification of risk. It is however, the contractor’s responsibility to be the primary source of expertise on a project or what they are being contracted to do. The contractor should offer their opinion and recommendations, and the customer should take their contractors opinions and recommendations seriously due to their expertise in the area. Overall, collaboration between the customer and the contractor should be the ultimate way to resolve a matter of dispute. Members from both the customer and contractor side should meet discuss historical events, modeling and simulation to arrive at the appropriate answer. Also, with quantifying risk, the customer and the contractor should be able to go back and look at the data. With risk quantification, there should be very little room for opinion and judgment which should make it easy to base a decision or a resolution based on hard core data. If a solution or an answer is not able to be decided upon, a third party consultation

In order to perform project risk management effectively, the organization or the department must know the meaning of the risk clearly. With regards to a project, the management must focus on the potential effects on the objectives of the project, for example, cost and time (Loosemore, Raftery and Reilly, 2006). Risk is a vulnerability that really matters; it can influence the objectives of the project

The Latin principle of caveat emptor literally meaning let the buyer beware, has been followed for many years by the English courts in the context of business transactions. Pre the industrial revolution the action for breach of contractual rights needed a written warranty otherwise action could only be brought on the grounds of fraud. The reasoning for such action was based on the manner in which business was conducted, that is, namely at small fairs where buyers could inspect the goods and haggle accordingly. This is evidenced in cases such as Chandelor v Lopus in which a plaintiff brought an action against the defendant in relation to a Bezoar stone which was thought to have medicinal properties. In this instance, the majority of the

This assignment is included in the 2014 session of the Risk Management module of the MSc in Project Management course at University of Aberdeen. The main purpose of the assignment is to demonstrate my understanding of the issues involved in Risk Management and how they are applied in my current Project environment. The assignment is split in to two questions as detailed below.

The research takes a case study approach. The case study analysis dwelt on risk management by Contractors who work on energy and utility construction projects, including strategies and supporting structures for managing risks, complete with an analysis of how these strategies and structures are implemented and supported by the Contractors resources base. The researcher specifically chose utility contractors for this study as the Energy and Utilities sector play an indispensable role in the global economy and in the UK, industry employs around 2% of the UK workforce (AGCAS, 2012). Moreover, the UK government identified the Utilities companies as companies that are heavily involved in risky incidents affecting their sector thus playing a crucial role in the preparation and planning for emergencies responsibilities (UK Government, 2013). According to Yip (2003) construction is risky as it almost always certainly involves loss of time and money. Above all, any denial of service during outage result in impact on communities (Lindman, 2008) and utility services are no exception. Against this background, it could be argued that contractors working on construction projects undoubtedly play a significant role in managing risks in order to stay in business.

For this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process.

This practice note sets out a number of fundamental legal and business considerations and issues to address in the context of a project finance transaction.