Articles
Insights from the CIOB Construction Risk Panel at KPMG: A Shift Toward Proactive Risk Management
Newton Fisher Group had the pleasure of attending an insightful panel hosted by The Chartered Institute of Building (CIOB) at KPMG, focusing on one of the most critical themes in today’s built environment: navigating construction risk in New South Wales.
As construction projects grow in complexity and the regulatory landscape continues to evolve, risk management is no longer a reactive discipline—it’s become a cornerstone of long-term project viability. The event brought together leading industry voices to explore how developers, builders, consultants, and insurers can align to mitigate risk from day one.
The Rise of Contingency Management and Latent Defects Insurance
A standout topic of the evening was the increasing importance of contingency planning and the evolving role of latent defects insurance (LDI) in the Australian market.
With defect claims on the rise and building regulations tightening, the panel emphasized the need to embed contingency frameworks early in project planning. Robust contingency measures—both in budget and delivery—are essential to absorb uncertainty without compromising the program or quality outcomes.
At the same time, LDI is gaining traction as a viable solution to protect asset owners and investors post-completion. Unlike traditional insurance models, LDI provides coverage for critical structural defects that may not surface until years after practical completion. As confidence in the sector hinges increasingly on quality assurance, these policies offer a crucial safety net.
From Compliance to Resilience
What became clear during the discussion is that risk mitigation is no longer just about meeting compliance obligations. It’s about building resilience into the DNA of every project. That includes better communication between stakeholders, improved documentation, independent certification, and an emphasis on quality throughout the design and construction lifecycle.
As a consultancy deeply involved in cost planning and risk assessment across NSW, ACT & QLD, Newton Fisher Group welcomes this industry-wide pivot. We believe that a proactive and collaborative approach to risk not only protects investments but ultimately leads to better-built environments for everyone.
Final Thoughts
A sincere thanks to the panelists and organisers for a thoughtful and forward-looking discussion. Events like this are vital in shaping best practices and elevating the standards across our industry.
We look forward to continuing the conversation and contributing to smarter, safer, and more sustainable construction outcomes.
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#Construction #RiskManagement #LatentDefectsInsurance #ContingencyPlanning #CIOB #KPMG #QualityInConstruction
