Key Takeaways
- Contractor abandonment recovery: secure the site, document everything, engage backup contractor, send termination notice, resume work.
- Having a pre-qualified backup contractor reduces abandonment recovery time from weeks to days.
- Prevention measures: financial due diligence, milestone-based draws, 10% retainage, and 48-hour non-response escalation.
- Direct material purchasing on large projects prevents draw funds from being diverted to non-project expenses.
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Test Your Knowledge
1.What is operational risk?
2.What is a risk register?
3.What is the Recovery Time Objective (RTO)?