FIDICBeijing 2005

Report of the risk management forum

Stephen BamforthChairman FIDIC Risk Management Forum

Synopsis

• Global Issues

• Insuring the partnering team

• Some claims examples

• Dispute resolution

• State of the PI Market

Global Issues– South Africa

Gary RabieGlenrand MIB

South Africa

• Current contractual state of affairsVarious standard forms

Lack of Agreement

• Scheme Claim TrendsSite investigation – 8%

Gross Negligence – 10%

Supervision – 16%

Admitted errors – 20%

Insufficient Experience – 46%

South Africa

• Scheme Loss Ratios1997 – 233%

2000 – 139%

2003 – 55%

2004 – 31%

2005 – 11%

South Africa

• Other DevelopmentsOccupational Health & Safety Act – Construction

Regulations

Degree of Uncertainty

Trench Collapses & Other Failures

Lack of Prosecutions

Global Issues- Australia

Therese CharlesACEA

Proportional Liability

Limits of Liability

Global Issues- New Zealand

Stephen JenkinsACENZ

Global Issues– United Kingdom

Nora FungACE

Insuring the Partnering Team

• A definition of partnering?

• Long term alliancing

• Partnering charters

• Holistic partnering

• Conclusion

Claims

Ewan MacGregorGriffiths & Armour

Claims

Traditional Procurement

Design and Build

Partnering

Un-insured Risks

Traditional Procurement

Employer Led Design

• Calculation Accuracy -

112o681112,681112.681

• Back to basicsRubbish in, Rubbish out

“common sense is not that common”

Design and Build

Contractor Led Design

• Quality of PII

• Contractors profit from building, clients from use

• Variations

Partnering

• Integrated Team Working

• Allocating Liability

Uninsured Risks

“What is most at risk is a firm’s reputation – and there is no way that you can insure

against that” The Times 3rd May 2005

Final Thought

It’s the alternative that creates the liability

Dispute Resolution

Keith Lonsdale

State of the PI Market

• The cycle continues!

• New capital, lower prices

• Will it end in tears?

Long Term PI Trends

FIDICBeijing 2005

Report of the risk management forum

Stephen BamforthChairman FIDIC Risk Management Forum