As professional liability insurance experts, we know that construction defect claims are common risk architects, engineers and contractors face with every project they take on. A construction defect claim occurs when a building system or component fails and is often the result of improper installation, design or material selection.Not only are these claims incredibly costly to correct and defend, they can also damage your reputation and negatively impact future opportunities. To protect your firm from a construction defect claim and manage your overall risk, consider doing the following:
- Keep up with current building codes and standards.
- Follow manufacturer guidelines for every product you use. Be sure to examine warranties and understand the limitations of the materials you use in construction projects.
- Pre-qualify the subcontractors you hire. Above all, ensure that the individuals and organizations you choose to partner with have the proper credentials, experience and skills to deliver a quality finished product.
- Seek legal counsel to ensure that all of your contracts are airtight and protect you against errors committed by outside parties.
- Document the construction process. This will ensure that you have a solid record of materials and practices used during a project, which will come in handy in the event of a claim.
- Implement a quality assurance/quality control program (QA/QC). QA/QC programs provide a set of standards that ensure a project is built correctly or performs as designed.
Why you need professional insurance coverage
In general, the best way to avoid a construction defect claim is through quality construction. Be sure to work only with architects, engineers and contractors who have good reputations and track records. In addition, plan and perform work in the correct sequence and with proper supervision.Keeping in mind the above tips will ensure that your projects run smoothly and are completed to a high standard of quality.The Canadian Construction Association (CCA), which represents over 20,000 member firms, recently spoke out regarding the federal government's tax proposals.Specifically, the organization joined 35 other organizations from across the country to form the Coalition for Small Business Tax Fairness, which opposes reforms that could dramatically change the way incorporated small businesses are taxed.In general, much of the backlash stems from the government's effort to close tax loopholes used by a number of small businesses. Specifically, the proposal would restrict the ability of business owners to lower their tax rate by splitting income to family members in lower tax brackets.In a letter to the Minister of Finance, the Coalition for Small Business Tax Fairness asks the government not to move forward with the proposals and instead launch meaningful consultations with the business community. The coalition hopes this will help establish tax policies that are fair and take into account the unique needs of small businesses.
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