Risk and Insurance in Construction
Third edition
By Nael G. Bunni and Lydia B. Bunni
This book is a treasure trove of information and guidance for the construction professional. It was written by a Chartered Engineer and visiting professor in construction law and contract administration (Nael G. Bunni), and practicing Barrister in Ireland (Lydia B. Bunni).
This book provides context for the law, with some very interesting history, including reference to Hammurabi’s Code. The Author’s discuss responsibility, liability, and common law, along with hazards and risks in construction. For example, how risk should be allocated in construction contracts. I will paraphrase below; the allocation of risk should consider:
- Who can control and manage the risk;
- Who can best foresee the risk;
- Who could best bear the consequences of the risk, should it eventuate;
- Who would ultimately benefit or suffer the most, if, and when, the risk eventuates.
I found this book to be highly educational, and instantly applicable to work. It thoroughly references appropriate case law, and documents, which provide excellent insight and nuance into specific scenarios and outcomes.
The book further discusses insurance, the main rules which differentiate it from other types of contract, and applicable laws and persuasive cases. The International Federation of Consulting Engineers (FIDIC) standard forms of contract are discussed, regarding risk allocation and insurance.
Even if you do not deal with the FIDIC contracts, I would highly recommend this book to every construction professional. As the book notes on the back, it is "...essential reading for practitioners from both the engineering profession and the insurance industry in all types of projects."
