Construction management is a broad field that can be difficult to define due to the varying services firms offer. For this reason, your firm needs to be aware of the areas of construction management liability you may face.
If you oversee or review the architectural design, you may be subject to lawsuits in design errors. If you select the materials for the project, make sure you know which items have long lead times and plan accordingly. Most important, your guaranteed maximum price needs to be as accurate as possible to avoid legal issues if bids exceed that amount.
Your job is to coordinate the progress of the project and keep it on schedule to prevent delays and extra costs. Furthermore, although you do not have more liability for inspecting and supervising the work than design professionals have, you can invite risks by expanding your range of duties.
You are accountable for ensuring that safety standards are met by creating or reviewing existing safety procedures. Recent rulings deem construction managers just as liable as general contractors for safety violations. Your responsibility includes properly transporting and disposing of hazardous materials.
It is important to review your contracts with clients to know exactly what is expected of you. Being aware of your responsibilities will help you determine what you need covered by your construction management liability insurance so you will be prepared for any likely claims.