We are pleased to launch the fourth edition of our Building Sight magazine, which provides news, opinions and advice on risk and insurance topics affecting construction companies. In our latest edition, we consider how globalisation is increasing competition and driving innovation as trade barriers change around the world as well as the risks arising out of entering new regions, working across multiple territories and those inherent as a result of increased complexity in supply chains.
IN THIS EDITION
Super supply chains
An increase in capital expenditure across the public and private sectors in the past decade has given birth to a spate of mega projects across the world. With contractor supply chains evolving across the world, our main feature looks at the steps companies need to take to ensure their viability and strength.
Working across multiple territories
Whether it’s contractors expanding beyond their home market or the need for international expertise on specialist projects, the demand for insurance programmes that can cope with multiple territories is growing. However, our advice is always to consider each new territory individually. In this article we explore five of the most important points to consider.
Local policy placement
In the past five to ten years the amount of litigation against directors and officers (D&O) has increased significantly. A new online resource will inform decisions about how to insure directors and officers around the world.
Gordie Howe Bridge case study
The Gordie Howe Bridge will cross the Detroit river to connect the Canadian city of Windsor with the US city of Detroit. Adding capacity to the existing Ambassador Bridge, which is the busiest border crossing in North America, the new bridge and border facilities will improve traffic flow between the two countries, aiming to encourage economic growth on both sides of the river.
Protecting against political risk
Increased exposure to political risk will be a very real issue for multinational construction firms over the next 18 to 24 months. Looming elections, terrorist threats and a potential trade war are just a few factors that companies must bear in mind when entering and operating within new and existing markets.
The view from China
For China’s construction companies, the outlook is all about infrastructure. At home, urbanisation continues to drive the need for road and rail links, energy and water supply. As Chinese cities mature, more complex engineering is required for the growing populations, with waste treatment, desalination and green development projects now coming online.
Minimising the impact of protectionism
A growing tide of protectionism is sweeping over the world. From the UK’s vote to leave the European Union, to the combative talks held at this year’s G7 Summit, an anti-globalisation rhetoric has become difficult to avoid. In this article, we look which protectionist policies are having an impact on the construction industry and how they are affecting contractors in different corners of the world.
Heading into new regions
Ambitious infrastructure development programmes in emerging markets across Asia, Sub-Saharan Africa (SSA) and the Middle East and North Africa (MENA) will drive construction sector growth in the coming years, as governments look to plug infrastructure gaps and private investors seek higher yields.
In December 2017, Melbourne Metro Rail Authority awarded a AUD 6 billion contract to the Cross Yarra Partnership. The deal covers the financing, design, construction and maintenance of two 9 km tunnels and five new underground stations over 25 years.
For further information, please contact Stephen Boddington, Managing Director of Construction, Asia at Stephen_Boddington@jltasia.com