Construction management companies and individual consultants have tremendous responsibilities. They must be methodically attentive to details and manage many different moving pieces. As a part of their overall risk management strategy, managers need to secure insurance coverage that comprehensively addresses the full measure of their potential liability.
Managers May Have to Answer for Mistakes That Are Not Theirs
Over the course of a project, a construction manager is typically responsible for coordinating the efforts of many different parties. They may have to communicate closely with clients, general contractors, subcontractors, engineers, architects, and building inspectors. Managers may ultimately be accountable for one of these parties’ mistakes.
Interruptions to Work and Delays May Be Costly
A fundamental part of a construction manager’s duties is keeping a project on schedule. Timely completion of work is one of the principal reasons that clients engage consultants to represent their interests and oversee performance. The economic repercussions to a client may be substantial when managers cannot effectively steer projects on track. Delays that occur for any number of causes may precipitate construction management liability claims.
The costs associated with liability claims could be equal to the costs of a project. Adequate protection with liability coverage may prove to be a vital asset for principals in construction management companies.