Limiting Risk for Construction Management Firms

Posted on: April 28, 2016 by Huntersure

Construction management firms are exposed to plenty of liability risks-especially as their scope of duties is continually evolving. Regardless of the project type and method of delivery, a comprehensive Construction Risk Management Plan can shift liability and improve your clients’ bottom line. In addition, the following factors should be considered when taking on the next project.

Align the Actions with the Role

Consulting and advising should be done to the best of the firm’s ability. Further, all of the duties such as project ownership, cost estimation, and scheduling should be agreed upon by both parties all while staying within the limits of those responsibilities. Otherwise, if the construction management firm goes beyond the scope of duty, they are at risk for absorbing more liability.

Develop a Scope of Services Plan

Going hand in hand with the issue above, specific responsibilities need to be delegated. With so many variations of construction management, it is crucial to identify clear and contractual lines of authority and liability, according to Cavignac & Associates.

Be Careful with Contracts

If the firm offers any guarantees in service, be sure to provide detailed descriptions about those guarantees to limit liability. Further, all documentation, agreements, revisions, and communications with the client should be put in writing.

Evaluate Insurance Policies

Review the policies to ensure the proper limits of coverage are provided- specifically when it comes to professional liability and risk management. This could mean the difference between going out of business and coming out on top, so don’t wait.

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

Posted in: blog Construction management

Tagged: Construction Risk Management Plan reducing construction liability Risk Management Construction