Construction Management Risk · Insurance

Three Steps to Construction Risk Management

Construction management firms often supervise multiple subcontractors, so they are subject to liability from multiple sources. In order to minimize this liability, you should have a construction risk management plan.

Evaluate Risk Factors

For every project you undertake, consider its inherent risks and how you and your team can prevent them from happening. For example, if you will be building a skyscraper, then there is an increased likelihood of passersby being injured by materials falling from the structure. You could minimize the chances of this scenario taking place by posting warning signs in the surrounding area and partitioning off a wide perimeter around your worksite.

Strong Contract

Once you have evaluated your risks, you must incorporate them into your contract. As part of your construction risk management plan, you should have access to legal counsel who will advise you on the writing of the document. This way you can be sure that you have addressed all necessary points and appropriately defined liability.

Secure Coverage

Make sure that your E&O insurance provider is willing to assist you in matching you with the best insurance plan for your projects. If your plan is appropriate for the work you do, then your life will be much easier in the event of an incident.

When you take on a new project, you should always attempt to foresee any issues that may arise and make sure you are appropriately covered if they do. Having a construction risk management plan is one way you can provide for your company’s future.