Course of Construction reports, sometimes referred to as Builders Risk reports, have been a valuable tool for insurers in ensuring construction projects are progressing as planned and adequate loss control practices are in place. While this has been traditionally been a type of report specific to Insurers, it can also be of significant value to a builder or any government organization or entity with the ultimate responsibility for the successful completion of a construction project. The report forms part of a “due diligence” plan for any organization with a financial or political risk exposure.
No matter what the stage of the construction project, inspections can identify areas of concern that can reduce the risk to the organization itself, or the insurer.
The Four Phases of Construction Projects
PHASE 1
Phase 1 is related to the initial site preparation of a project, and includes security reviews of features such as watchman service, fire protection services, fencing, lighting, materials storage and handling, trenching and drainage. In addition, the overall safety plan for the project would be reviewed.
PHASE 2
Phase 2 provides a review of the property during the initial phase of construction. It includes a review of activities in Phase 1, and a review of sub-contractor access and equipment operations at this point in the construction process. It would also include a review of hazardous materials, flammable liquids and hot work, present or occurring on the site.
PHASE 3
Phase 3 is a review of the property near the final stage of construction. As well as a review of features in the first two phases, this phase would include a review of construction waste disposal and storage, exposed foam insulation, and third party liability exposures.
PHASE 4
A Phase 4 review is completed when the project is substantially finished. It includes a review of the items from the first three phases, along with a review of test certificates and approvals for fire alarm systems, sprinkler systems, underground piping, and security systems. This phase may also include a review of the builder’s warranties to confirm compliance.
How can iv3 Solutions assist your COC program?
The risks during the construction phases of a building are the highest exposures a building will face. With so many potentially hazardous activities being completed, the chance of loss is high. A COC report can help reduce those exposures by identifying potential hazards and exposures, which can lead to project delays, physical losses, life safety issues, and liability issues. Theft of construction material, fire, and vandalism are all significant problems on construction sites that an inspection may help identify areas that can be improved. Implementing improvements and ensuring adequate controls are in place can go a long way in reducing or preventing these exposures and ensuring a successful project.