An evaluation of the use of insurance in managing construction risks

Henry Odeyinka

    Research output: Contribution to journalArticle

    15 Citations (Scopus)

    Abstract

    One of the major methods of managing construction risks in the Nigerian construction industry is the insurance method. On the basis of data from some selected construction sites in Nigeria, this paper evaluates the effectiveness of the method. Also it identifies, through a questionnaire survey, the various insurable construction risks perceived to be encountered in the Nigerian construction industry and the types of insurance policy employed in managing them. High importance is placed by the construction industry on site security, construction risk, and health and welfare requirements, and the use of an all-risk insurance policy is the most prominent method for managing the identified risks. Finally it is concluded that there is a correlation between insured sum and actual replacement cost when there are losses or damages. However, the insurance claims settled could cater for only 61.1 % of the replacement cost of on-going construction works studied.
    LanguageEnglish
    Pages519-524
    JournalConstruction Management and Economics
    Volume18
    Issue number5
    Publication statusPublished - Sep 2000

    Fingerprint

    Insurance
    Construction industry
    Costs
    Evaluation
    Health
    Replacement cost

    Keywords

    • Insurance
    • construction risk
    • contractors
    • construction industry
    • Nigeria

    Cite this

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    abstract = "One of the major methods of managing construction risks in the Nigerian construction industry is the insurance method. On the basis of data from some selected construction sites in Nigeria, this paper evaluates the effectiveness of the method. Also it identifies, through a questionnaire survey, the various insurable construction risks perceived to be encountered in the Nigerian construction industry and the types of insurance policy employed in managing them. High importance is placed by the construction industry on site security, construction risk, and health and welfare requirements, and the use of an all-risk insurance policy is the most prominent method for managing the identified risks. Finally it is concluded that there is a correlation between insured sum and actual replacement cost when there are losses or damages. However, the insurance claims settled could cater for only 61.1 {\%} of the replacement cost of on-going construction works studied.",
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    An evaluation of the use of insurance in managing construction risks. / Odeyinka, Henry.

    In: Construction Management and Economics, Vol. 18, No. 5, 09.2000, p. 519-524.

    Research output: Contribution to journalArticle

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    AB - One of the major methods of managing construction risks in the Nigerian construction industry is the insurance method. On the basis of data from some selected construction sites in Nigeria, this paper evaluates the effectiveness of the method. Also it identifies, through a questionnaire survey, the various insurable construction risks perceived to be encountered in the Nigerian construction industry and the types of insurance policy employed in managing them. High importance is placed by the construction industry on site security, construction risk, and health and welfare requirements, and the use of an all-risk insurance policy is the most prominent method for managing the identified risks. Finally it is concluded that there is a correlation between insured sum and actual replacement cost when there are losses or damages. However, the insurance claims settled could cater for only 61.1 % of the replacement cost of on-going construction works studied.

    KW - Insurance

    KW - construction risk

    KW - contractors

    KW - construction industry

    KW - Nigeria

    M3 - Article

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    SP - 519

    EP - 524

    JO - Construction Management and Economics

    T2 - Construction Management and Economics

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