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Risk in Context Podcast: Risk management priorities as inflation impacts construction projects

In this episode of Marsh’s Risk in Context podcast, Richard Gurney, talks to Kelly Outram, and Gaurav Kapoor. They look at the different ways in which inflation is impacting the construction industry and projects and discuss actions that contractors and project owners can take to address multiple risks.
Construction engineers discussion with architects at construction site or building site of highrise building with Surveying for making contour plans is a graphical representation of the lay in land.

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24/05/2022 · 2 min read

From the skyrocketing price of steel, lumber, and fuel to the significantly increased cost of skilled labor, the construction industry has been hit hard by the current inflationary environment. And as the insurance market adjusts to inflation, insureds are facing higher costs for coverage.

In this episode of Marsh’s Risk in Context podcast, Richard Gurney, global head of construction within Marsh Specialty, talks to Kelly Outram, head of global contractor development at Marsh, and Gaurav Kapoor, the strategy and operations leader for global construction. They look at the different ways in which inflation is impacting the construction industry and projects and discuss actions that contractors and project owners can take to address multiple risks.

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Key takeaways

Multiple factors affecting construction industry.

Increased demand for infrastructure and an evolving — and shrinking — labor market, together with scarcity of essential materials, are having a major impact on ongoing construction projects and new bids, often leading to increased costs and delays.

Rapidly increasing costs complicating bidding process.

Higher prices for everything from essential materials to labor are eating into contractors’ already slim margins. Further, it is becoming more difficult to accurately predict future costs in order to successfully bid for new projects.

Higher prices require coverage review.

As the costs to rebuild following a loss continue to increase, insureds should assess whether their existing insurance policy and limits will suffice to cover a loss. 

About our speakers

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Richard Gurney

Global Head of Construction

  • United Kingdom

Richard Gurney is the global head of construction and is responsible for developing overall strategy and service delivery on a global basis. Based in Marsh’s London office, he has extensive experience working with the construction industry and has assisted multinational clients and many of the world’s largest projects.

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Kelly Outram

Head of Global Contractor Development, Marsh Specialty

Kelly Outram is the head of global contractor development within Marsh Specialty. She is responsible for development strategy and coordinating teams across the globe to bring the best offering to our major clients.

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Gaurav Kapoor

Global Strategy and Operations Leader, Construction Practice

Gaurav Kapoor is the global strategy and operations leader for the Construction Practice. He is responsible for implementing strategic initiatives and operational efficiencies that align with the strategic priorities for the global practice.

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