Risk and insurance guide for construction companies
A construction project lasts months, but some liabilities last years. Ten questions to know which risks you accept when you sign, how much liquidity your guarantees and retentions tie up, how to control your subcontracting chain and which liabilities remain after handover. With a final checklist for your next project.
Before your next project
Could your team answer these?
- What risks do you accept when you sign the contract?
- Do you have the guarantee capacity you need?
- How much liquidity is held back on each project?
- Which liabilities remain after handover?
Inside
Four stages, ten questions
Before tendering or signing
- 1Do you know which risks you are accepting in the contract?
- 2Does your insurance meet the project’s requirements?
- 3Who insures the works, and to what extent?
Liquidity and guarantees
- 4Do you have the guarantee capacity your business needs?
- 5How much risk are you taking on with your clients and contractors?
- 6How much liquidity is tied up in each project?
During construction
- 7Is the risk in your subcontracting chain under control?
- 8Do you know what to do when damage occurs on site?
After handover
- 9Which liabilities continue after handover?
- The insurance map: each risk, with its cover
- 10Have you also protected the continuity of your business?
10 years
is how long liability for structural damage to a building can last, counted from acceptance. A project lasts months; some liabilities, years.
Source: Spanish Building Act (LOE), art. 17The final checklist
Ten actions for your next project
- Review the contract before signing.
- Check your insurance against the project’s requirements.
- Decide who insures the works and to what extent.