Recent Claims Trends in the Construction Industry

Construction projects have a lot of moving parts going on at one time, including duties of workers, keeping everyone protected and safe, moving tools and resources around a worksite, and many other aspects that come with high levels of risk. Success on a project depends on the effort of all involved in a project, but the responsibilities and risks between the parties can change from project to project.

With this in mind, it’s important to note that construction claims and litigation regarding these liabilities are complex and require a fully fleshed-out claims management team that consists of attorneys, consultants, and experts in the construction field.

Here are the different types of claims that are common in the construction industry and will be trending this year.

Bond Claims

Owners of private projects have the right to demand surety bonds to make sure that all the parties involved in a project will make good on their promises and agreements listed in a contract. Different bonds protect different parties involved and when and if a party breaches a contract, a specific claim can be made against that party.

Mechanic’s Lien Claims

Subcontractors and suppliers, the parties who typically make claims in this category, place a lien on properties that were improved by materials, equipment, and labor they supplied for the project if they weren’t paid by the general contractor who oversaw the project. This claim gives the suppliers and subcontractors a chance to recover the payment they are legally owed.

Breach of Contract

This is defined as a failure to perform any promise that constitutes all or part of a contract. If the breach ends up causing damage to the party who doesn’t breach the contract, they have the right under the law to find a remedy through suing the breaching party.

Personal Injury

There are usually two situations in which personal injury claims mix with construction litigation. The first scenario relates to injuries that happen on the site itself and involves workers or bystanders. For a personal injury claim, an unsafe act or unsafe condition needs to be established as the reason for the injury. Claims usually have to prove that OSHA safety standards weren’t followed as they were supposed to.

The second situation in which injuries can be claimed are injuries that involve existing building elements after a project is completed. This can include slips, falls, and trips on walkways or even situations in which defects from a completed construction project led to an injury. Regardless of the scenario, professional liability can be pursued by contractors and insurance providers looking to keep risks low.

Construction Delay Claims

Construction delay claims have to do with any issues related to schedule impacts. On a construction site, timing is everything and a lot is riding on sticking to a schedule. Delay claims generally relate to any events and circumstances that are not planned for and call for extensions to deadlines or even prevent the work process from being done as planned.

What claims usually try to point out is whether the delay affected the path of the project and the ultimate integrity of the timeline. There are many different possible causes of a delay, such as poor management and administration, financial problems, permits and approvals, differing site conditions, weather, acts of god, and site access.

About Genesee General

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