18 - Installation, Commissioning, Parts, Service, Modifications

This Risk Feature refers to the completed operations, including installations, service and repairs, part sales, rebuilding, retrofitting, modifications, commissioning; and abandonment of jobsites. These operations occur after a product has been completed and away from the manufacturing plant/office. Cumulatively, these operations are commonly called ‘Completed Operations’. Because Completed Operations frequently present a greater potential severity exposure compared to the manufactured product these exposures need to be carefully considered when evaluating the overall risk.

What do we look for?

Exposures

  • Installers are not properly trained/licensed.
  • Risk rebuilds, modifies, retrofits products.
  • Non OEM parts and/or low parts inventory.
  • Inadequate risk transfer controls for commissioning, subcontractor installs, etc.

Controls

  • Management program for off-site work.
  • Pre and post jobsite inspections
  • Obtaining and updating employee or  subcontractor licenses, certifications, etc
  • Formal sign-off & certification on completion of jobs  by customers.
  • Written procedures for field jobs.
  • Use of OEM parts.
  • No to limited retrofitting, rebuilds, etc.

Risk improvement ideas

  • Establish a formal procedure for training, certifying, and retraining installers.
  • There needs to be formal, written, signed contracts whose legal clauses transfer commissioning and installation risks to customers and subcontractors respectively.

Resources

  • REEL Document: Contractual Risk Transfer.
  • REEL Document: Introduction to Product Liability
  • REEL Document: Completed Operations Technical Abstract 20090513

Internet sites

Standards

  • ASTM International.

Risk topics

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