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Minimizing Risk in Construction Projects

Minimizing Risk in Construction Projects

Construction is a rewarding but often dangerous field. In the event of an accident or a mistake, the manager of the project can be held liable, to the tune of hundreds of thousands of dollars. One strategy for minimizing construction management risk is to define the roles and risks of all who are involved in the project.

Assign Risk

When you are formulating the contract, be sure that the roles of all parties are defined, and that each party is assigned risks in a logical manner. For example, if the contractors’ main role is to perform construction, and they had no part in the design of the project, the liability for design errors should be assigned to the designers rather than the contractors. Explicitly stating who is liable for all facets of the project is an important aspect of minimizing construction management risk.

Adhere to Roles

Once you are in the working stages of the project, be sure that all parties adhere to their defined roles. This ensures that parties do not act beyond their qualifications. For example, construction managers should supervise and make executive decisions, and they should take care not to transfer these duties to their subordinates.

Minimizing construction management risk is an important part of keeping your business viable. By defining the roles and risks of all participants in your project, you can make sure your company is secure if any issues arise.