This clause requires the contractor to conduct a comprehensive risk assessment and prepare a detailed method statement that identifies potential hazards, evaluates their likelihood and impact, and specifies mitigation strategies. The risk assessment typically covers health and safety risks, operational risks, environmental risks, and project-specific hazards. The method statement then documents how the contractor will execute work while managing these identified risks. This clause creates a contractual obligation to think systematically about dangers before work begins and to document that analysis. The clause serves dual purposes: it demonstrates due diligence in risk management (important for regulatory compliance and insurance purposes) and it allocates responsibility by making the contractor explicitly accountable for identifying and mitigating foreseeable risks.
From a liability perspective, this clause is critical because it creates a documented baseline of known risks and agreed-upon controls. If an incident occurs, the existence (or absence) of a thorough risk assessment and method statement becomes key evidence in determining whether the contractor exercised reasonable care. A well-documented assessment can demonstrate due diligence and potentially limit liability exposure, while a deficient assessment can be used to prove negligence. The clause also creates an implicit warranty that the contractor has identified material risks—if a "foreseeable" risk was omitted from the assessment and later causes injury or damage, the contractor may face enhanced liability for that omission. Additionally, the clause may require the client to review and approve the assessment, which can create shared responsibility or, conversely, may be interpreted as the client accepting the identified risks.
If you are the contractor, prepare a thorough, detailed risk assessment that demonstrates genuine analysis rather than a generic checklist. Engage relevant expertise (safety professionals, engineers, subject matter experts) in the assessment process and document their involvement. Clearly distinguish between risks you will control and risks that are inherent to the project environment or client operations. Include a statement that the assessment is based on information available at the time and reserve the right to update it if conditions change. Obtain written acknowledgment from the client that they have reviewed the assessment and approved the method statement. If you are the client, review the assessment critically—don't simply rubber-stamp it. Ensure it addresses your specific site conditions and operations, and require the contractor to address any gaps you identify. Maintain the assessment as a living document that is updated as work progresses.
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires the contractor to conduct a comprehensive risk assessment and prepare a detailed method statement that identifies potential hazards, evaluates their likelihood and impact, and specifies mitigation strategies. The risk assessment typically covers health and safety risks, operational risks, environmental risks, and project-specific hazards.
Why should I care about this clause?
The method statement then documents how the contractor will execute work while managing these identified risks. This clause creates a contractual obligation to think systematically about dangers before work begins and to document that analysis.
What are my options?
The clause serves dual purposes: it demonstrates due diligence in risk management (important for regulatory compliance and insurance purposes) and it allocates responsibility by making the contractor explicitly accountable for identifying and mitigating foreseeable risks. From a liability perspective, this clause is critical because it creates a documented baseline of known risks and agreed-upon controls.
How does this affect small businesses?
If an incident occurs, the existence (or absence) of a thorough risk assessment and method statement becomes key evidence in determining whether the contractor exercised reasonable care. A well-documented assessment can demonstrate due diligence and potentially limit liability exposure, while a deficient assessment can be used to prove negligence.