CONSTRUCTION LIABILITY RISK: Responsibilty to find and eliminate risk paramount with contractors

There are many risks that can appear in the construction industry. Professionals who work in the industry are always supposed to deal with a wide array of dangers and issues, some of which might be a lot more challenging when compared to other similar industries. With that in mind, there are many things you have to focus on when it comes to construction liability.

Of course, the construction liability will differ based on the scope of the project and its type. But there are always some risks to be encountered and it’s up to you to make sure that you find a professional approach toward the entire experience. That’s why you need to understand the construction liability risks and you have to find the right solutions regardless of the situation.

You do have to wonder, “What type of construction liability risks are there?” I created a list for these risks so we can find the potential issues:

Scheduling and coordination

Scheduling and coordination liabilities are widely encountered by all construction managers and employees that work in this sector. Some of the liabilities included here are project delays, labor inefficiency, a higher overhead cost and problems with meeting smaller deadlines.

This type of construction liability risks can appear during those times when the work is poorly planned or when there is no good plan in place to deal with this type of problem. Also, the inability to talk with vendors and contractors in a proper manner or improper shipment schedules can also lead to problems in this regard. One thing is certain: the best way you can counteract this type of liability is to have a proper construction plan and schedule. You also need to talk with the vendors and contractors to ensure that there are no issues and that any potential problems are dealt with as fast as possible.

Job-site safety

Job-site safety is another one of the major construction liability risks. Many times, construction managers aren’t reviewing the job safety on the construction site and that can be very problematic. You must address this type of problem as fast as possible. One of the methods you can do is sticking to the training programs, procedures and practices implied by all regulations.

This is the only true way to deal with the construction liability risks related to job safety; otherwise the situation can get out of control very fast.

Hazardous sites

As you can imagine, site hazards result in a lot of construction liability risks. The construction manager is responsible for construction site security and well-being. He must make sure that all security measures are in place to deal with any potential problems. All risks and problems must be handled with a dedicated plan that will eliminate all issues that might appear. Only with the right approach can you handle any risks such as this. Nothing is impossible. If you are committed and focused on results you will see that you can even deal with the construction sites in a professional manner.

Materials

All materials used on a construction site can also bring liability if they are not handled properly or if they are not the ones suitable for that particular project. The construction manager will usually have liability for all the materials that were chosen for the design. If these are improperly purchased or they are not following the safety or design regulations, there might be a risk for litigation.

As a result, the problem you can find here can be a very demanding one. Thankfully, the construction manager can solve these issues if he chooses the right materials. If the materials chosen by the manager suit the design, results can be more than impressive in the end. Of course, a lot of work must be performed here to ensure that the value and results are nothing short of impressive all the time.

Design

Design issues can appear all the time and it’s up to you to eliminate them to the best of your capabilities and as fast as possible. Otherwise, as a manager, you will be liable for them. You will see that each of the building plans and construction plans must be reviewed to identify any negligence or any other similar issues. These must be addressed as fast as possible, otherwise results will hurt you in the long term.

You can deal with a wide range of lawsuits if you’re not fully dedicated and focused on the good implementation of the design and all of the construction plans. Issues can appear all the time due to that reason alone. All you have to do is to take your time here and the outcome can be extraordinary. You just have to bring to the front the right focus and commitment, all while making sure that everything is performed 100 percent according to the plans at hand.

How can you combat the liability risks for contractors?

There are multiple methods you can employ in this regard, depending on the situation. The more experience you have in this field, the better it will be. You will also have to identify the work scope in each contract. You will also need to make sure that the insurance is up to date and it will indeed cover all liabilities. If that’s not the case, then results will definitely vary quite a bit.

That’s exactly why you have to do all in your power in order to identify all liabilities and ensure that you acquire the right protection. It’s very important to have insurance coverage for all potential construction liability risks. If you don’t cover them, results might not be good at all, which is why a proper approach is nothing short of mandatory. Try to make sure that you focus on accessing the right approach here and the outcome will indeed pay off. If you understand all the potential construction liability risks, you will see that nothing is impossible. So, try to take your time, analyze all risks and get the necessary coverage as fast as possible.

Graden Marshall is a vice president at Cobb Strecker Dunphy and Zimmerman, an insurance, surety and risk management solutions company catering to the construction industry in Salt Lake City.