Reducing Construction Management Firm Risks

Reducing Construction Management Firm Risks

Posted on: September 17, 2015 by Huntersure LLC.

As construction management covers a broad scope of duties, the potential liabilities continue to evolve, as well. While the possibilities are determined by type of project and method of delivery, a Construction Risk Management Plan can help to delegate risk and shift liability. The following factors should be considered while taking on the next construction management project.

Ensure Actions Align with Role- If a project requires the firm to consult, those duties should be fulfilled to the best of their capability. Similarly, if the project requires advising, the full scope of work including project ownership, estimating, and scheduling should be aligned with the role.

Develop a Scope of Services Plan- With so many variations of construction management, it is crucial to identify clear and contractual lines of authority and liability, according to Cavignac & Associates. Identifying the specific responsibilities of the service will help to promote efficiency and reduce confrontation with the project owner.

Be Mindful of Terminology in Contracts- If the firm’s contracts include guarantees, include a detailed description of each so as to avoid any discrepancies. Any contract documents, correspondence with the project owner, and conversations should be navigated carefully and reviewed for liability purposes.

Hire Qualified Workers- Employees with expertise in certain fields should be utilized when the project requires such specialized skill. For example, those who have cost estimating, scheduling, administration and procurement experience should be placed on projects accordingly.

Review Insurance Policy- Discuss your firm’s current insurance policy to ensure adequate protection is in place. In particular, professional liability and risk management policies should be double checked to guarantee any claims against your firm will be covered by your provider.

At Huntersure, we specialize in providing risk management strategies for construction management firms and similar trades. Our program offers specific coverage designed to protect firms like yours. For more information, contact us today at (855) 585-6255.

Posted in: blog Construction management