Understanding the Liability Risks that Face Construction Managers

Posted on: November 12, 2015 by Huntersure

Construction managers (CM’s) are often responsible for a variety of tasks. While the term has a general, loose definition, professionals in the field will often give a diverse personal description. Depending on the type of project and the scope of work required, a Construction Management Professional Liability Program should be in place to protect the operations. The following risks apply to these professionals.

Potential Risk Exposures

Design- Construction managers often review the design and building plans for the construction. As such, they are subjected to potential lawsuits regarding these plans in the event of error or negligence.

Materials- CM’s are liable for the materials they choose for the design. If these are purchased in error or the materials fail to follow the design or safety regulations, they are at risk for litigation.

Hazardous Sites- When building on an existing hazardous site, the construction manager could potentially absorb that liability. As certain materials need to be disposed of, the CM could be seemed an “operator” of the site and the disposal and thus subject to severe sanctions in the event of an accident, according to Cavignac & Associates.

Job Site Safety- Construction managers are often required to review the safety of the job site, its procedures, training programs, and monitor its practices. In turn, if anything were to go awry, they would assume responsibility.

Scheduling & Coordination- Project delay, increased overhead costs, and labor inefficiency claims can result from poorly planned work scheduling between contractors, vendors, and more.

Preventing Liability Risks

In order to combat these risks, construction managers should be chosen wisely. Experience is the best tool for success, so those who have previous advisor experience are typically wise candidates to select. Next, it is critical to identify the scope of work in the contract provided. As there are often numerous aspects that need to be managed, construction mangers need to provide documents that outline their roles and responsibilities. Last but not least, ensure their insurance coverage is up to date and covers the extent of their liabilities.

At Huntersure, we understand the broad scope of risks that construction managers face. Our coverages seek to protect your clients’ operations to ensure their success. To learn more, contact our knowledgeable specialists today at (855) 585-6255.

 

Posted in: blog Construction management

Tagged: CM Risk Exposures Construction Management Insurance Construction Management Professional Liability Program