FIDIC Beijing 2005 Report of the risk management forum Stephen Bamforth Chairman 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 Rabie Glenrand MIB

South Africa Current contractual state of affairs Various standard forms Lack of Agreement Scheme Claim Trends Site investigation – 8% Gross Negligence – 10% Supervision – 16% Admitted errors – 20% Insufficient Experience – 46%

South Africa Scheme Loss Ratios 1997 – 233% 2000 – 139% 2003 – 55% 2004 – 31% 2005 – 11%

South Africa Other Developments Occupational Health & Safety Act – Construction Regulations Degree of Uncertainty Trench Collapses & Other Failures Lack of Prosecutions

Global Issues - Australia Therese Charles ACEA Proportional Liability Limits of Liability

Global Issues - New Zealand Stephen Jenkins ACENZ

Global Issues – United Kingdom Nora Fung ACE

Insuring the Partnering Team A definition of partnering? Long term alliancing Partnering charters Holistic partnering Conclusion

Claims Ewan MacGregor Griffiths & Armour

Claims Traditional Procurement Design and Build Partnering Un-insured Risks

Traditional Procurement Employer Led Design Calculation Accuracy - 112o , Back to basics Rubbish 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 3 rd 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

FIDIC Beijing 2005 Report of the risk management forum Stephen Bamforth Chairman FIDIC Risk Management Forum