Construction in 2018: Less Risk and More Profit
For the last Construction Breakfast of 2017, the Construction Team at Gregg Latchams decided to do something a little different: carry out the main speaker role themselves, to pass on their strategies for better risk business management and payment flow management in ‘2018: Less Risk and More Profit’
Heledd, our Senior Associate in Estate Planning, Long Term Care, and Asset Protection, highlighted the potential risks that a company undertakes if they do not adequately plan for incapacity of an individual. This can affect a business, whether it is a sole trader or a largecorporation, as individuals provide lynchpins to business direction and strategic growth.
Whether that incapacityoccurs due to a terrible accident – such as the example of Michael Schumacer (hyperlink – http://www.ibtimes.com/michael-schumacher-condition-2017-f1-legend-still-fighting-after-2013-skiing-accident-2624455)– or due to a health issue, you should expect the unexpected and plan accordingly to ensure that business as usual can remain, for the most part, as usual. Heledd challenged all those at the Construction Breakfast to consider what would happen to their business if they themselves were to suddenly be unable to contribute; a startling warning that enables individuals to reduce risk for the business.
Andrew, our Head of Construction & Engineering, then explored contractual and practical approaches to limiting liability, with the goal in mind of always limiting liabilities to the lowest commercially acceptable level. In Andrew’s experience companies all too often accept unlimited liability and expose themselves to potentially onerous claims from clients and project partners – which ought only to be agreed when thoroughly understood.
Drilling down into the details of limited liabilities, Andrew revealed that wealth, moral blame, the existence of insurance, and the contract’s value and profit have absolutely no bearing to liability – and that small differences in cap and exclusion wording can leave businesses with exposure to great risks if they do not protect themselves. With practical recommendations of dealing precisely with the content of duties and restricting implied terms, all attendees were given a good deal to think about.
The floor was then opened up for questions: from how to renegotiate current contracts to include new liability limits, to whether the ‘dependable’ British weather can be included as an implied term, it was fantastic to see real engagement with our speakers and just how valuable their advice was.
This month it was a smaller, more intimate affair, with each attendee gaining more of a chance to meet everyone and gain valuable connections with other South West and national construction companies and individuals.
The Construction Team here at Gregg Latchams has been honoured to host so many people over the year, and welcome such incredible speakers. If you missed the last few, you can gain the insight from our speakers by clicking here and here. The date has already been set for the first Construction Breakfast of 2018: January 9th, when we welcome details here so
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