Service – Strategy – Results

When the design fails during construction

by | Jul 21, 2021 | Construction Law

Business owners in Houston, Texas, and the surrounding areas may want to learn more about their options when a building design fails during construction. According to one study, building errors continue to happen even with advanced electronic data processes and more stringent regulations. Data revealed that in 2017, less than a third of buildings were on time and on budget. Additionally, 1 in 10 construction workers had injury during that year.

Management errors in construction

Management tools must be in place to prevent injuries and other negative outcomes. Some construction management errors have included the following:

  • Failure to properly oversee subcontractor work
  • Failure to receive engineering approvals for suggested field changes to plans and specifications
  • Failure to adequately perform value engineering through the services of a hired consultant
  • Inability to stay within budgets and schedules

Contractor’s professional liability insurance

Known as CPrL, this insurance covers damages that may arise from negligence or mistakes and omissions in the professional services of a contractor. It applies to contractors, designers, builders, construction managers and specialty sub-contractors. Contractor’s protective indemnity and rectification/mitigation insurance are recent additions.

What does CPrL cover?

This coverage commonly consists of several parts. They are the following:

  • Professional liability – For a third party, it might cover project management, construction management, use of building modeling information and technical opinions.
  • Protective indemnity – For the first party, it covers damages by the contractor for errors created by the design professionals. Damages may have a limit through the coverage of the design professional.
  • Rectification/mitigation – It pays for expenses incurred from professional services during the correction of negligent acts and omissions performed by the insured. Usually, this would lead to a professional liability claim.

As companies are asked to do more in less time, construction failures can happen. In addition, spur-of-the moment field changes lead to risks becoming more widespread. Risk management strategies may be a part of the business plan and construction.

If you or your business has a construction litigation issue, it may be wise to consult an attorney with experience and knowledge of this type of law. A professional may help with trial or arbitration and work to help you get optimal results.