Strategies to Mitigate Procurement Risks in Construction

This article was produced by Control Risks, a member of IPFA. 

Throughout the lifespan of a construction or infrastructure project, practices undertaken by contractors can place unnecessary reputational or financial risk on the owner or developer. These risks are most acute when the owner engages a construction manager on a cost-plus basis. In this analysis, Control Risks’ team explores the risks and mitigation strategies relating to cost-plus contracts through two distinct and related strategies:

• Implementing a comprehensive third-party due diligence program of bidders and subcontractors
• Performing a thorough review of subcontractor procurement

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