Posted by Robert Phelan on Fri, Dec 04, 2009 @ 07:58 AM
Whenever we watch modern-day spy and war movies, it seems that C4 is the explosive of choice on most missions. It's a plastic explosive which means it can be molded into different shapes depending on its intended use, and it's extremely powerful, 1.34 times the explosive power of TNT. When it is detonated, gases are released at 26,400 feet per second. Everything nearby disappears.
What does this have to do with how contractors manage risk? As I've said earlier, I want to make this insurance and risk stuff easy to remember. C4 the explosive destroys everything. C4TM, the contract compliance process, is what you need so your business isn't destroyed. I know that is a reverse analogy, one C4 destroys and the other protects but I just want you to remember my C4TM and here's what it is:
1. Contract
2. Compliance
3. Certificate of Insurance
4. Check
There it is. Four simple steps. Not too complex. Easy to remember. No insurance mumbo jumbo. Just four easy words to remember.
Not so fast. There is a lot of process embedded in those words. Each one is a critical element. Leave out any one of them and the whole thing falls apart. If that happens, you're the one left with all the risk.
In the next four posts I'll dig deeper into each one of these elements. Then you'll know how to work with your Risk Advisor to build your own process. This blind side will be protected and you can move on to others where your Left Tackle may be missing.
This video shows just how little C4 can cause a huge damage to a structure, and begs the question of how much C4 are you ignoring when you sign construction contracts?