Oversight Long Over-Due

After the partial collapse of two condominiums and damage to a third from a falling boulder in the Amapas and Conchas Chinas neighborhoods, the municipal government has taken steps to supervise construction sites. The municipality does not have the resources to post full-time supervisors. Instead, special supervision units have been set up by sharing resources of the municipal Civil Defense, Urban Planning, Environmental and Ecological departments – with the objedctive of avoiding disasters.

In essence, the municipality is treating the forecast outcome of another potential collapse to be similar in nature to a hurricane hitting the immediate local area.

This is good news from an operational risk perspective as it should improve the standard of excavation and development. However, there is potential for increased insurance risk, which not only impacts on secondary market sales but may prevent financing.