Risk and Insurance in Construction

The new 3rd edition of Nael Bunni’s Risk and Insurance in Construction, now co-authored with Lydia Bunni, explains the need for insurance in construction and engineering projects and why it must be incorporated into the Conditions of Contract for such projects. It is unique in bringing together the background of the two topics of ’risk’ and ’construction insurance’, explaining the flow and the interaction between them and then dealing with how they have been used to formulate the 2017 FIDIC Suite of Contracts and the 2021 Green Book.

This edition has been fully updated, and new chapters deal with the latest definitions of ’risk’ outlined in ISO 31000: 2009, and specifically explains the principles embodied in the new Clauses 17, 18 and 19 of the Major Suite of the FIDIC forms of contract and how they should be used. An important chapter (Chapter 5) is included, discussing the logical transition from decision-making to risk identification to responsibility for those allocated with particular risks, to the potential liability that results. This includes discussing particular liabilities that may arise for parties typically involved in construction and engineering projects, including developers, owners, contractors and designers. This part of the book links insurance to the law and explains the interaction between the two topics. The correlation between liability and the need for indemnity, which can only be provided properly through insurance, is highlighted.

The book is essential reading for practitioners from both the engineering profession and the insurance industry in all types of projects. Engineers who are required to use one of the Major Forms of the FIDIC Suite of Contracts, whether they are designers or contractors, and those involved in the insurance sector, whether brokers, claim consultants or insurance company personnel, will find this book to be an indispensable reference.

Nael G. Bunni is a Chartered Engineer, Registered Chartered Arbitrator and Conciliator. He is also a visiting professor in construction law and contract administration at Trinity College Dublin. He is past president of the Association of Consulting Engineers of Ireland (1987-88); past president of the Chartered Institute of Arbitrators (2000-01); and past chairman of its Irish branch (1986-89); and a member of the Board of Directors of the LCIA (1994-2007). Over the last 25 years, Nael Bunni has been closely involved in FIDIC issues related to risk, liability, insurance, contracts, and dispute resolution. He was involved in the development of the 1999 suite of FIDIC contracts. He was a full member of the FIDIC Contracts Committee from 2004-2009, and has been a Special Advisor to the committee since then, especially on insurance and related matters. He has also been closely involved in the development of insurance clauses within the recently published 2017 Suite of FIDIC contracts and the 2021 Edition of the Green Book. In 2018 he received the FIDIC Louis Prangey Award, the highest recognition for dedicated service to FIDIC.

Lydia B. Bunni is a Barrister practicing in Ireland specialising in Construction Law, Arbitration and Dispute Resolution, Environmental Law and Planning. Lydia was one of the founding members of the Construction Bar Association of Ireland and remains on the Executive Committee, serving as its Treasurer of the Association. Lydia delivers lectures on the construction law and contract administration diploma, Trinity College Dublin and to the School of Architecture at University College Dublin. Lydia is also a Tutor on the Barrister at Law Degree Course with the Honourable Society of Kings Inns. In September 2020, Lydia was appointed by the Minister for Housing and Local Government to the Pyrite Resolution Board.