Contract documents

April 2020

Construction projects inherently involve a multitude of risks that are addressed through compliance with applicable safety standards. To survive in this ultra-competitive business, contractors establish strict health and safety cultures to protect their employees and reduce the risk on injuries on the job. However, risks associated with environmental pollution are often overlooked and not addressed until after they happen. Contractors are often left relying on insurance policies that are often vague in the coverage they provide, or in many cases, exclude pollution incidents altogether.

This paper presents the importance of hiring contractors that are trained and insured to mitigate the many environmental risks that are unique to each project and to respond to pollution incidents when they happen. This paper focuses on understanding the relationships of all parties involved in a construction project, the risks they face, the possible inadequacy of insurance policies, and the challenges project owners and general contractors face with procuring contractors who are properly trained and insured to mitigate environmental risks and respond to environmental incidents. Additionally, this paper offers a solution for project owners and general contractors that will streamline the procurement process and ensure the hiring of competent, trained and properly insured contractors.

Access the white paper here: Managing Environmental Risk in the Construction Industry

AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.