INSURANCE OF CONSTRUCTION OBJECTS AGAINST CONSTRUCTION RISKS IS ONE OF THE EFFECTIVE METHODS OF RISK MANAGEMENT

Abstract

It is clear that the implementation of construction projects is not safe and spontaneous. In most cases, an incorrect assessment of the current situation in construction, errors in the application of construction technologies and calculations, as well as imperfection of the primary documents permitting construction, lead to risks in construction. In order to prevent construction risks when designing construction projects, it is necessary to take into account the necessary insurance from the economic and technological side. Therefore, during design, costs are calculated, estimates are drawn up, technical and economic aspects of construction are analyzed, and then provided to insurance companies to determine insured amounts. This serves as a necessary measure to allow the client to avoid construction risks, especially those associated with loss of property.

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Mirzayev Baxtiyorjon Obokulovich. (2024). INSURANCE OF CONSTRUCTION OBJECTS AGAINST CONSTRUCTION RISKS IS ONE OF THE EFFECTIVE METHODS OF RISK MANAGEMENT. International Journal Of Management And Economics Fundamental, 4(06), 26–32. https://doi.org/10.37547/ijmef/Volume04Issue06-04
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Abstract

It is clear that the implementation of construction projects is not safe and spontaneous. In most cases, an incorrect assessment of the current situation in construction, errors in the application of construction technologies and calculations, as well as imperfection of the primary documents permitting construction, lead to risks in construction. In order to prevent construction risks when designing construction projects, it is necessary to take into account the necessary insurance from the economic and technological side. Therefore, during design, costs are calculated, estimates are drawn up, technical and economic aspects of construction are analyzed, and then provided to insurance companies to determine insured amounts. This serves as a necessary measure to allow the client to avoid construction risks, especially those associated with loss of property.


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Volume 04 Issue 06-2024

26


International Journal Of Management And Economics Fundamental
(ISSN

2771-2257)

VOLUME

04

ISSUE

06

P

AGES

:

26-32

OCLC

1121105677
















































Publisher:

Oscar Publishing Services

Servi

ABSTRACT

It is clear that the implementation of construction projects is not safe and spontaneous. In most cases, an incorrect

assessment of the current situation in construction, errors in the application of construction technologies and

calculations, as well as imperfection of the primary documents permitting construction, lead to risks in construction.

In order to prevent construction risks when designing construction projects, it is necessary to take into account the

necessary insurance from the economic and technological side. Therefore, during design, costs are calculated,

estimates are drawn up, technical and economic aspects of construction are analyzed, and then provided to insurance

companies to determine insured amounts. This serves as a necessary measure to allow the client to avoid construction

risks, especially those associated with loss of property.

KEYWORDS

Construction risks, design, construction and installation works, insurance.

INTRODUCTION

The socio-economic development of the country

cannot be imagined without construction. In any

region of the republic you will witness the construction

of multi-storey residential complexes, social facilities

Research Article

INSURANCE OF CONSTRUCTION OBJECTS AGAINST CONSTRUCTION
RISKS IS ONE OF THE EFFECTIVE METHODS OF RISK MANAGEMENT

Submission Date:

June 09, 2024,

Accepted Date:

June 14, 2024,

Published Date:

June 19, 2024

Crossref doi:

https://doi.org/10.37547/ijmef/Volume04Issue06-04


Mirzayev Baxtiyorjon Obokulovich

Head of the Department of Civil Engineering, Andijan Institute of Economy and Construction, Uzbekistan

Journal

Website:

https://theusajournals.
com/index.php/ijmef

Copyright:

Original

content from this work
may be used under the
terms of the creative
commons

attributes

4.0 licence.


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and industrial enterprises. It is clear that the

implementation of construction projects is not safe

and spontaneous. In most cases, an incorrect

assessment of the current situation in construction,

errors in the application of construction technologies

and calculations, as well as imperfection of the primary

documents permitting construction, lead to risks in

construction.

Main part

. Construction risks can be associated with

uncertain situations. However, risk is the likelihood of

it happening and cannot be ignored.

Risks in construction

can be global (large-scale) or

local in scope [1]. Of course, it all depends on the place

of work and the economic situation. Risks in

construction have their own indicators and criteria, and

it is important to have a clear understanding of them.

Failure to properly assess or account for risks can lead

to various frustrations during the construction or

operation of projects.

For example: on September 16, 2023, on the Tashkent-

Jizzakh section of the 10-kilometer A-373 highway of

international importance, passing through the territory

of the Okoltinsky district of the Syrdarya, a crack

appeared in 5 beams of the intermediate device. Cracks

on the bridge appeared as a result of heavy truck

traffic. The beams of this bridge broke and the

Tashkent-Termiz highway was temporarily closed [3].

Picture 1. In the Akaltin district of the Syrdarya region, a bridge broke and the road collapsed.


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Preventing risks and losses in construction requires

builders to learn something new every day, pay

attention to something, be aware of many industrial,

technical and economic innovations, and always work

on themselves and learn. In addition to being highly

skilled professionals, builders also need to understand

many other areas of their job. Builders, despite their

extensive experience and qualifications, must be

apprentices throughout their careers in order not only

to have a personal advantage over their colleagues,

but also to serve to meet customer requirements.

Risks in construction are the main factor in the

relationship between the developer and his customer

related to the implementation of design, survey and

construction processes. At the same time, useful or

dangerous situations begin to arise at different levels.

Another example: on August 12, 2023, by order

of the United Support Service Investment Company of

the Tashkent City Hall, Bridge Construction Trust UK is

constructing a road leading to the Islam Karimov

Tashkent International Airport from Babur Street in the

Yakkasaray district the city of Tashkent and Sadyk

Tolipov Street. This happened at the site of the

reconstruction of a highway overpass, which allows

you to drive up and down the hour based on modern

construction standards. When installing intermediate

reinforced concrete devices (hammers) using a crane,

5 hammers accidentally fell from the installation site

[5]. According to the authorities, this situation resulted

in budget losses in the amount of 2 billion 760 million

soums [4].

The examples show that the construction and

operation of construction projects are not without

risks and dangers. During the construction period and

during the operation of construction projects,

unforeseen situations may arise. In the current

situation, the most important task that interests us is

to prevent and ensure the occurrence of construction

risks during the construction process, during

construction, installation and repair work. To carry out

this work, we need the same insurance companies and

cooperation with them.


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Picture 2. Five beams of an overpass under construction near the airport in Tashkent collapsed.

Let's look at the term “risks in construction” and give

it a definition. Risk itself is a danger, a failure, a wrong

situation that can result in losses and shortages.

To assess risks in construction, it is necessary to

analyze each stage:

Stage I: Development of pre-design and design and

estimate documentation.

Stage II: Construction and installation and construction

and production processes

Stage III: Installation of technological processes and

equipment

Risks in construction, like any other risks, are negative

phenomena. Therefore, in order to avoid risks

associated with the operation of constructed buildings

and structures, it is necessary to carefully study the

territory before starting construction. Obtaining

engineering-geological and climatic details of the area,

information about seismic activity and engineering

research - the composition of the earth and subsoil,

studying groundwater levels, connections with the

lithosphere, atmosphere, hydrosphere and even space

get rid of risks in time.


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Some conditions for the emergence of risks are

associated

with

economic,

political,

legal,

sociocultural, scientific and technical environmental

factors, as well as with various methods of corporate

governance, employee motivation, and the quality of

use of marketing and logistics at the enterprise [2].

These factors influence the activities of many

participants in the construction market.

The occurrence of construction risks can be grouped

as follows:

Background information

pre-project documentation

is not ideal;

Design

short design time and low cost of developing

design and estimate documentation;

Construction quality

delays in updating codes and

regulations, requirements and standards;

Time

is the unreality of determining the construction

period;

Materials

disproportion of quality indicators and

prices of building materials and structures;

Costs for construction participants

- untimely

execution of mutual settlements between the

customer,

designer,

general

contractor

and

subcontractor and suppliers;

Testing of building materials

- unreliable testing of

building materials, products and structures, the

presence of fake quality certificates;

Control

a large number of entities controlling

construction, and unreasonable interference of

residents not related to construction;

Labor resources

lack of production capacity and

inexperience of contractors;

Relationships

- interruptions in the provision and

performance of other services.

In modern society, construction risks, if they are

associated with long-term and short-term, acceptable

or significant risks in construction, are determined by

the level of personal decision-making by the client

about the amount of possible losses.

Also, most importantly, to prevent construction risks,

it is necessary to take into account the necessary

insurance from the economic and technological side

when designing construction projects.

Construction risks

were discovered during the Industrial Revolution under

Adam Smith, the founder of political economy, who focused consumer attention
on insurance that guaranteed at least material compensation for damage.

It should also be taken into account that the size of the

financial portfolio of insurance companies is limited,

since insurance is not a charity. Therefore, during

design, costs are calculated, estimates are drawn up,

technical and economic aspects of construction are

analyzed, and then they are submitted to insurance


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organizations to determine insured amounts. This

ensures that the client has the necessary measures to

prevent construction risks, especially risks associated

with loss of property.

Few people succeed in insuring all construction risks,

because insurance companies do not want to take on

such responsibility and understand the intricacies of

construction. Also, the construction budget is

measured by the amount of solid insurance, despite

the fact that risks in construction are an irregular

process.

The most convenient form of maintenance, in which

engineering research is not very expensive, is turnkey

maintenance of the facility. When all the client’s tasks

are solved comprehensively, and construction is

carried out in stages, there are more guarantees to get

rid of unforeseen dangerous situations. This allows the

general contractor to ensure compensation to insurers

in the event of unexpected losses on object.

RECOMMENDATIONS AND SUGGESTIONS

It is desirable to increase the customer’s interest in

order to prevent and reduce risks in capital

construction and minimize all losses as much as

possible. In this case, it is recommended to set up a

system for assessing situations that may happen to the

customer. In particular, regardless of the type and cost

of construction, it is necessary to reconsider the

procedure for construction insurance and its financing.

Responsibility for completing the construction of the

facility on time and putting it into operation should be

determined on the basis of mutual agreements and

contracts between the general contractor and

insurance organizations. Using the experience of

advanced and leading countries of the world, it is

desirable to develop and implement a mechanism for

the attractiveness of insuring construction projects

against construction risks for insurance companies.

This will prevent the artificial rise in price of

construction goods and services during the

construction process and the incompleteness of the

construction project, as well as ensure economic

efficiency.

REFERENCES

1.

https://stroy-trading.ru/information/article/463-

Riski-v-stroitelstve

2.

http://intjournal.ru/faktory-i-istochniki-riska-

stroitelnyh-proektov/

3.

https://kun.uz/20080404

4.

https://xabar.uz/x3bd

5.

https://kun.uz/uz/news/2023/08/13/toshkentda-

aeroport-yaqinida-qurilayotgan-yol-otkazgichning-

5-ta-tosini-qulab-tushdi

6.

B.O.Mirzayev, X.Askarov (2023). Methods for

calculating brick consumption when building walls

from silicate and ceramic bricks. Ethiopian

International Journal of Multidisciplinary Research,

10(08), 1

14. Retrieved from http://www.eijmr.org/

index.php/eijmr/article/view/876

7.

Askarov X., & Mirzayev B. (2023). Lego g‘isht ishlab

chiqarish texnologiyasini tadqiq qilish. GOLDEN


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(ISSN

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AGES

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1121105677
















































Publisher:

Oscar Publishing Services

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BRAIN,

1(5),

4-8.

Journal

article:

10.5281/zenodo.7663383 (DOI)

8.

Mamajonova N., & Mirzayev B. (2023). Monitoring

and analysis of geodetic visual deformation.

Theoretical aspects in the formation of

pedagogical

sciences,

2(5),

139-141.

https://doi.org/10.5281/ zenodo.7648355

9.

B.O.Mirzayev “Bino v

a inshootlar qurilishida

qurilish konstruksiyalarini geometrik o‘zgarmas

yassi sistema sifatida hisoblash” AIQI Ilmiy

axborotnomasi, 2-son, Andijon, 2023 dekabr, 36-38-

betlar.

10.

B.O.Mirzayev, D.I.o‘.Mamadaliyev “Temirbeton

konstruksiyalarda betonning himoya qatlami va

armatura sterjenlarining joylanishi” AIQI, Xalqaro

ilmiy-

amaliy anjuman Materiallar to‘plami, Andijon,

2023 dekabr, 314-317-betlar.

11.

qizi Mirzayeva, U. M. (2023). ‘‘FIZIKA’’FANINI O

‘QITISHDA

INTEGRATSION

TA’LIM

TEXNOLOGIYALARIDAN FOYDALANISH. GOLDEN

BRAIN, 1(28), 109-111.

12.

Nosirov, M. Z. (2023). LAZERLARDAN QISHLOQ

XO’JALIGIDA FOYDALANISH. O'ZBEKISTONDA

FANLARARO

INNOVATSIYALAR

VA

ILMIY

TADQIQOTLAR JURNALI, 2(18), 135-136.

13.

Rafailovna, R. R. (2022). ‘’LAZER FIZIKASI’’FANINI

O’QITISH

DA

ZAMONAVIY

METODLARDAN

FOYDALANISH. TA'LIM VA RIVOJLANISH TAHLILI

ONLAYN ILMIY JURNALI, 2(11), 170-171.

References

https://stroy-trading.ru/information/article/463-Riski-v-stroitelstve

http://intjournal.ru/faktory-i-istochniki-riska-stroitelnyh-proektov/

https://kun.uz/20080404

https://xabar.uz/x3bd

https://kun.uz/uz/news/2023/08/13/toshkentda-aeroport-yaqinida-qurilayotgan-yol-otkazgichning-5-ta-tosini-qulab-tushdi

B.O.Mirzayev, X.Askarov (2023). Methods for calculating brick consumption when building walls from silicate and ceramic bricks. Ethiopian International Journal of Multidisciplinary Research, 10(08), 1–14. Retrieved from http://www.eijmr.org/ index.php/eijmr/article/view/876

Askarov X., & Mirzayev B. (2023). Lego g‘isht ishlab chiqarish texnologiyasini tadqiq qilish. GOLDEN BRAIN, 1(5), 4-8. Journal article: 10.5281/zenodo.7663383 (DOI)

Mamajonova N., & Mirzayev B. (2023). Monitoring and analysis of geodetic visual deformation. Theoretical aspects in the formation of pedagogical sciences, 2(5), 139-141. https://doi.org/10.5281/ zenodo.7648355

B.O.Mirzayev “Bino va inshootlar qurilishida qurilish konstruksiyalarini geometrik o‘zgarmas yassi sistema sifatida hisoblash” AIQI Ilmiy axborotnomasi, 2-son, Andijon, 2023 dekabr, 36-38-betlar.

B.O.Mirzayev, D.I.o‘.Mamadaliyev “Temirbeton konstruksiyalarda betonning himoya qatlami va armatura sterjenlarining joylanishi” AIQI, Xalqaro ilmiy-amaliy anjuman Materiallar to‘plami, Andijon, 2023 dekabr, 314-317-betlar.

qizi Mirzayeva, U. M. (2023). ‘‘FIZIKA’’FANINI O ‘QITISHDA INTEGRATSION TA’LIM TEXNOLOGIYALARIDAN FOYDALANISH. GOLDEN BRAIN, 1(28), 109-111.

Nosirov, M. Z. (2023). LAZERLARDAN QISHLOQ XO’JALIGIDA FOYDALANISH. O'ZBEKISTONDA FANLARARO INNOVATSIYALAR VA ILMIY TADQIQOTLAR JURNALI, 2(18), 135-136.

Rafailovna, R. R. (2022). ‘’LAZER FIZIKASI’’FANINI O’QITISHDA ZAMONAVIY METODLARDAN FOYDALANISH. TA'LIM VA RIVOJLANISH TAHLILI ONLAYN ILMIY JURNALI, 2(11), 170-171.