Contractors operating in the Garden State know that new construction of office buildings, high-rises, local shopping centers and sprawling resorts within this industry must be supported by a residential construction insurance policy in New Jersey. Banks and other lenders would never take the risk of making loans for a construction project without insurance in place to protect their own interest. After all, there are general contractors along with a wide range of artisans, from landscapers and carpenters to electricians, plumbers, masons, all working on projects in order to get them completed on time and adhering to their client’s budget. This equates to a lot of possibilities that something may go wrong.
A builder’s risk policy helps to protect your interests
As a contractor, you also have a lot at stake, including your equipment, tools and any materials used in the undertaking of a construction project. There are so many risks involved in working a job site, many of which are often hazardous. Your exposures can obviously vary from one construction project to the next, and throughout each process as well. Having a builders risk policy helps to alleviate these types of concerns.
There are decisions and choices that you’ll need to make as to which available coverage options might best suit your needs, many of which need to be made before construction (or a loan) is approved. The construction lenders, as well as the developer and builder, need to do a lot of due diligence regarding all of the builders risk policies terms and conditions.
There is always the looming concern that you may experience costly construction delays, or possible increases in cost due to a covered loss under the builder’s risk policy. An example of this would be a delay in opening, which may turn out to be substantial to the client, but coverage must be added to a builders risk form in order to be covered.
Any questions or concerns that you have about some of the unwritten limitations in an all risk policy should be discussed with your broker. Speak to a qualified agent who can address your questions and concerns about Clifton construction insurance.
A Construction Manager (CM) project delivery system is based upon an owner’s agreement with a qualified construction firm to provide construction leadership and perform administration of the project as well as management within a defined scope of services. The construction management project delivery system is further refined by the amount of risk the CM assumes in performance of those services.
It takes a collaborative effort by the owner, architect and construction team to bring a project to a successful completion. This is the key to achieving the desired result for every construction project since each situation is unique unto itself. Projects often fail because of a lack of communication between the governing bodies, which brings up the subject of coverage for a construction manager at risk. The CM will often take the blame when a project undergoes lengthy delays.
The architect and the owner can also be responsible, due to poor planning or lacking the necessary funds to complete a project in a timely manner. When such issues present themselves, a good line of communication can often be a remedy to what might otherwise become a volatile situation. No one want to be considered at fault when they in fact had no control over certain events, but this often happens when one hand doesn’t know what the other hand is doing.
How conflicts expose flaws in the management process
When conflict between the owner versus either the contractor or architect exists, this is the type of situation that can ultimately affect project delivery. The alternative is construction manager at risk (CMR), a delivery method that is designed to align designer and builder to collaboratively serve the owner’s best interests.
With construction manager at risk, a contractor is under contract by the owner during the entire design process to assist in pre-construction project management services and then also to act as a general contractor during the construction process. The architect is on a separate, parallel contract with the owner, making sure that the product fits within any predetermined specifications.
In summary, the contractor is responsible for the execution and control of the work and subcontractors are bound by subcontracts to them. Examples of construction manager at risk would include performance and financial stability of subcontractors and vendors, fluctuations in material prices, schedule adherence, weather, construction means and materials, quality and other non-reimbursable general contractor delays. For questions and concerns, speak to an agent familiar with the inner workings of the construction industry.