Moral Hazard Mitigation
Identifying Moral Hazards
It can be difficult to appreciate the possible moral hazards in allowing consultants and legal counsel to design and implement a strategy of mitigating risk on historic manufacturing or environmentally impaired sites. While most consultants have the interest of their clients in mind it is not the only consideration they weigh when determining how best to develop a remedial approach that will ultimately move a stranded property asset back into productive use. Many consultants are paid on hours they work, samples they collect and dirt they remove. The moral hazard is whether the consultant is more interested in billable hours and additional work or getting the project completed as quickly as possible. Only your consultant knows how he is managing his struggles with these issues.
How is Fidelis different when it comes to managing moral hazards? As an Owner’s Representative, Fidelis’ compensation is not based on hours or the number of samples collected in the field. Our job is to represent the client’s strategy for getting a project or property completed on time and under budget. Fidelis works with our client’s legal, technical and development consultants to ensure that the Client’s desires are met and that the environmental work doesn’t become a ‘science fair’ project intent on sampling and studying everything on site at the expense of the Client.