Construction Management Hurdles: Government Regulations

Posted on: June 9, 2017 by Huntersure

In this series of posts, we have explained some of the common challenges that construction management firms face in today’s legal landscape. The nature of their work poses inherent threats of customer dissatisfaction, contractual concerns, and legal liabilities, but there is also the hurdle of overcoming government regulation issues. As we dive deeper, ensure your clients are protected with Construction Management Liability insurance.

Identifying relevant building codes.

Construction codes, building requirements, and licensing regulations have added increased liabilities for construction managers. Some of the most common codes that need to be followed include:

• Basic/National Building Code (BOCA Code)
• Uniform Building Code (UBC)
• Standard Building Code (SBC)
• International Building Code 2000 (IBC)
• National Electric Code (NEC)

According to the University of Delaware, these codes provide for public safety by establishing minimum construction standards for structural integrity and fire safety. Local building codes are based on one of the model codes, but often include modifications that are unnecessarily restrictive. Some local codes are outdated and obsolete and prohibit the use of often superior, more cost-effective materials and systems.

In addition, permitting requirements, contractor licensing laws, and the associated costs are also escalating. Quality of code administration is also a concern, as are the delays caused by waiting for inspection. Public works projects that receive Federal or State funds are also subject to greater process and administrative regulation. Timely resolution of issues is often entangled in bureaucratic red tape.

Preventing claims.

For new construction managers, these numerous regulations and codes can unknowingly lead to claims. To prevent them from occurring in the first place, firms should implement a sound training program, provide mentorship regular feedback, and review their existing insurance policies.

About Huntersure

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.

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Tagged: construction management hurdles Construction Management Insurance construction management liability government regulations