By Hannah Ama KOOMSON
As infrastructure development accelerates, stakeholders must prioritise insurance, bonds, safety, and global standards to protect investments and lives.
Following recent signals in Ghana’s budget direction and national business conversations, one message is becoming increasingly clear. Ghana is entering a defining phase of infrastructure growth.
From renewed focus on roads and housing to broader industrial expansion, the country is fast positioning itself as a construction hub. This direction has been echoed in national discourse, including remarks by John Dramani Mahama at key economic platforms such as the Kwahu Business Forum, where the emphasis has been on building a resilient and opportunity-driven economy.
It is an exciting time. But it is also a critical one.
Because beyond the visible progress lies a less visible reality. Construction remains one of the most risk exposed sectors globally. And without a deliberate focus on protection, the very growth we celebrate today can lead to avoidable financial losses, disputes, and project disruptions tomorrow.
As an insurance broker, I have seen firsthand how a single incident on a project site can derail months of work. Delays, injuries, equipment damage, and third-party liabilities are not distant risks. They are real, and they must be planned for.
This is why risk management must move from the background to the center of Ghana’s construction agenda.
A Growing Industry Requires Structured Protection
Construction projects bring together multiple players operating under tight timelines and financial pressure. In such an environment, risk is inevitable. The difference between a resilient project and a vulnerable one often lies in the protection structures put in place from the onset.
Construction specific insurance provides that backbone. Contractors All Risk insurance covers physical loss or damage to works, materials, and equipment on site. Erection All Risk insurance supports installation and engineering projects.
Workmen’s Compensation protects workers in the event of injury or death, while Third Party Liability covers safeguard against claims from external parties. Automobile Liability insurance protects vehicles used in project operations, ensuring accidents or damages in transit do not escalate into financial loss.
Professional Indemnity insurance provides coverage for errors or omissions in design, consultancy, or project management services, safeguarding professionals against claims that could derail a project.
Performance bonds and Advance Mobilisation bonds provide security to the project owner, that the contractor will perform the work as agreed and that advance payments will be recovered if obligations are not met. Together, these instruments protect the financial and operational interests of all stakeholders involved.
For suppliers and logistics providers, Goods in Transit insurance ensures materials are protected from dispatch to delivery. Plant and Machinery insurance secures critical equipment that drives execution on site.
These are not optional considerations. They are essential tools for business continuity.
To Employers and Contract Awarding Institutions
Institutions awarding contracts must lead the charge in embedding risk discipline. Procurement processes should go beyond cost considerations to include procuring the right and adequate insurance coverage to cover any future eventualities Contractors must demonstrate valid and adequate cover before mobilisation, including Contractors All Risk, Third Party Liability, Workmen’s Compensation, Automobile Liability, and Professional Indemnity. Requirements for Performance Bonds and Advance Mobilisation Bonds should also be clearly defined to ensure project delivery.
Equally important is the adoption of globally recognised frameworks such as those developed by the International Federation of Consulting Engineers (FIDIC). FIDIC standards provide clarity on risk allocation, contractual responsibilities, and dispute resolution. When properly implemented, they reduce ambiguity and strengthen project governance.
Setting these standards at the top ensures accountability across the entire value chain.
To Main Contractors
Contractors are central to execution, and with that comes significant responsibility.
The pressure to deliver quickly must not come at the expense of proper risk planning. Getting the right insurance coverage must be treated as a core component of project strateg not afterthoughts. Aligning insurance cover with project scope and ensuring bonds are in place protects both the contractor and the project owner.
Adhering to structured contractual frameworks such as FIDIC ensures that risks are clearly understood, allocated, and managed. This protects the project, the contractor, and their long-term viability.
To Subcontractors
Subcontractors are critical to delivery, yet often the most exposed.
It is important to move away from assumptions around coverage. Being part of a larger project does not automatically guarantee full protection. Subcontractors must understand their exposure, secure appropriate insurance where necessary, and align with both safety standards and contractual obligations.
Professional discipline at this level strengthens the entire project ecosystem.
To Third Party Vendors and Suppliers
Suppliers and logistics providers play a key role in maintaining project momentum. However, they also face risks that can disrupt delivery timelines.
Goods in Transit insurance, clear contractual agreements, and defined responsibilities are essential in ensuring that disruptions do not escalate into larger project setbacks.
Building Beyond Structures
Ghana’s construction momentum presents a powerful opportunity for economic transformation. The vision shared at platforms like the Kwahu Business Forum is one of growth, enterprise, and long term sustainability.
But growth must be protected to be meaningful.
As we build, we must move beyond speed and cost to include safety, structure, foresight, and protection. Insurance, bonds, and international standards like FIDIC are not constraints. They are enablers of successful and resilient projects.
Because in the end, it is not just about becoming a construction scene. It is about building a system that works, that lasts, and that protects everyone involved.
REFERENCES
- John Dramani Mahama’s remarks at the Kwahu Business Forum, April 2026 – emphasizing infrastructure development and partnerships.
- Ghana’s 2026 National Budget Highlights – Infrastructure and construction priorities. https://mofep.gov.gh/sites/default/files/pbb-estimates/2026/2026-PBB-MOTI.pdf
- Contractors All Risk and related construction insurance overview – Swiss Re Institute, 2025. https://www.swissre.com/dam/jcr:4d66a13a-ea34-48e9-a54c-3550677d188d/pub_contractors_all_risks_insurance_en.pdf
- FIDIC Contracts and International Standards – International Federation of Consulting Engineers, 2024.
- Accra–Kumasi Expressway Development Project – project overview and strategic importance.
Hannah is a Chartered Insurance Professional and CEO of GuardRisk Limited, an insurance brokerage and risk advisory firm focused on protecting businesses and managing risk. She has more than a decade of experience in insurance broking, risk management and Marketing.
Email: [email protected]
Phone: +233242876315
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