Risk Transfer Considerations for Public Projects

Risk Management Magazine

PUBLISHED ON: September 3, 2018

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Public sector projects, like private sector projects, face risk that must be managed through insurance coverage. Contractors undertaking large and complicated public projects bear greater obligations and burdens as a cost of doing business. For example, contractors usually face increased bonding requirements on public projects because public property is exempt from mechanic’s liens. Contractors are also often required to manage additional risk that has been shifted away from the public entity sponsoring the project.