Construction management risk is a complex topic for many professionals. It essentially involves assessing a management firm’s potential for encountering legal action. There are many different types of construction risks, each with a unique set of definitions and participants. If you have ever considered working with a risk assessment firm, here are some of the basic approaches to construction risk.
The first type of construction management risk approach involves the role of the advisor. This approach is primarily used in the public sector, but it may also be applied to private building projects. It basically asserts that a construction management firm will serve as an overseer or advisor throughout the building process. These particular companies may even coordinate the work of contractors or offer pre-building services (ex: estimations, scheduling, reviews, etc.).
The second type asserts that the construction management company will assume the roles of both the constructor and manager of the project. This type of company holds all the subcontracts, and will gain the most financially from the construction project. The company may also be responsible for ensuring the safety of all those working at the site.
Contact an Insurance Provider
In summary, construction risk management is simply a method used to determine contractor and management liabilities. This type of assessment can be extremely beneficial to a company, both financially and legally. For more information, business owners should contact an insurance company that specializes in risk.