It can prove difficult to obtain construction management insurance because there are so many liabilities that exist in the construction industry, let alone the overall management of construction. Below are some of the most common construction management risks.
Construction Management Risks
Project Scheduling: Project scheduling is one of the most important components of project management because it has the biggest impact on overall project costs. Sometimes delaying a project for just one day can result in the loss of several thousands of dollars. Because there are so many potential reasons for rescheduling (weather, equipment availability, staff illness, etc.) it can be difficult to find a construction management insurance policy that covers and all project scheduling related losses.
Site Safety: Construction managers are responsible for ensuring the overall safety of the work site and the adherence to any and all OSHA regulations. These responsibilities include developing safety plans, providing safety training and monitoring safety-related compliance.
Cost Estimates: A construction manager is responsible for creating all cost estimates and if actual costs vary from bid estimates there is a risk that a claim will be filed.
Material Selection: The selection of materials can pose liability as availability can vary which can impact the project timeline and be very costly. Selecting sub-optimal materials can also pose a liability concern.
Design: Some construction managers are responsible for final sign off on design specifications, and if any lawsuits result from design errors the construction manager can be held responsible.