Posted on: May 22, 2017 by Huntersure LLC.
In our previous post, we discussed some of the major risks that construction management firms face. As legal complications and lawsuits account for the majority of claims, we’re going to take a closer look at what these legal concerns consist of. As we dive deeper, ensure your clients are protected with Construction Management Liability insurance.
According to FWHT Law, most contracts contain a differing site condition clause that allows for an equitable adjustment to the contract price and time under the following two conditions:
A change in work or duties requires a “changes” clause to be signed by both parties before moving forward. This covers changes to method, design, and extent of the job. However, if the owner of the project requests a “cardinal” change contractor, this is considered a breach. The difference between a permissible and a “cardinal” change is a matter of degree. A cardinal change is outside the general scope of the project and entitles a contractor to new compensation rates and termination remedies, explains the article.
There are four types of claims that can come about due to scheduling conflicts.
At Huntersure, we understand the legal implications of challenges faced by the construction management industry. We strive to provide comprehensive coverage at competitive rates to safeguard each component of your client’s firm. For more information about our offerings, contact us today at (646) 751-3030.