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Why does a General Contractor need General Liability Insurance when a construction project is fast-tracked and you are forced to multi-task?

Construction projects are carried out in a specific order as per the program of works. Here’s why:


  • Logical Sequence of Works


There is a logical sequence of activities in the program of works of any construction project. Construction is carried out from the foundation upwards. Therefore, rationally, it is not possible to put up a roof without the framework structure of the building. 

The critical path of the project dictates that all critical activities are carried out one at a time, in the outlined sequence. This depends on the precedence relationship between activities. While some activities can only begin after another is completed, others can be carried out concurrently to reduce the estimated project completion time. 

The proper sequencing of works in the schedule also enables the contractor to allow for technical requirements such as the required period for concrete to cure, before beginning the next activity.



  • Productivity & Schedule Management 


The allocation of a particular order of work to construction activities enables the general contractor and the contractors to set the effective rate of work and productivity by outlining the duration of each activity.

This will, therefore, necessitate the contractor to work within the stipulated duration, to avoid any time overruns or consequently inconveniencing the contractor carrying out the next activity in the sequence.


  • This is why General Contractors need Professional Liability coverage 


However, sometimes project delivery dates are brought forward. This creates additional stress for all contractors. The main reason to fast track project delivery is to save owners money by limiting the amount of construction time and therefore begin to quickly generate revenue from the completed building.

When construction projects are fast-tracked, the quality of work is jeopardized. As a contractor, you must protect your business by adding Professional Liability coverage to your Contractors General Liability insurance. Professional Liability insurance (also called Errors and Omissions coverage is designed to protect your General Contractor business, your workers, and other professionals against claims of inadequate work or negligent actions, both of which can easily happen when you are forced to hurry.


  • Resource Allocation


The sequencing of activities is very important in the allocation of limited construction resources among contractors. Equipment, tools, materials, and labor are often shared on the construction site. Therefore, establishing a given order to processes will ensure that any equipment or resource is allocated to only one specific contractor at any given time. This also guarantees allocative efficiency, by ensuring that a resource is assigned to the best possible use at all times.

Resource allocation also includes budgeting. The allocation of funds is done gradually as per the cash inflows, giving priority to the leading critical activities in the sequence. This ensures that funds are set aside for the procurement of materials and resources in advance to allow adequate time for suppliers to organize and prepare for delivery.


  • This is why General Contractors need equipment breakdown insurance


Equipment breakdown insurance covers damages caused by internal forces. This includes operator error, power surges, electrical shorts, mechanical breakdowns, or motor burnout.  A General Contractor General Liability insurance policy does not cover equipment breakdown. Your insurance agency should customize your coverage by adding this type of insurance to your program. 


  • Proper Planning and Quality Control


All construction activities are interconnected. Therefore, compromised quality in one activity might affect the quality of other activities and the entire project’s integrity. Allocating a given order to work activities ensures that the quality and approval of a preceding activity is carried out before the next works are carried out. 

For instance, if plumbing pipes leading to the roof storage tank are not tested and approved before installation of the ceiling, then in case of any leakages, the ceiling might have to be redone. A more sensible approach would be to complete all quality control checks for that activity before proceeding to the next.


  • Site Safety


Sequencing and organization of work also allow the general contractor and the contractors to ensure that workers are coordinated and organized in such a way as to ensure maximum safety on site. For example, when installing the roof, and there are risks of falling objects and tools, it would be advisable to ensure no other contractor is working on that floor, for safety reasons.


  • This is why General Contractors need General Liability Insurance


General Contractor General Liability Insurance is necessary for your construction business as it provides

third-party bodily injury and property damage coverage. 


Get customized General Contractor General Liability Insurance


Many general contractor business owners are so busy doing the job that you forget to check whether your General Contractor General Liability Insurance covers common liability claims. Now is the time to check.

At Contractors Liability, we specialize in Contractor Insurance. This means that we know the risks your general contractor business faces each day on a busy construction site. Our years of experience tell us exactly what coverage a construction business like you needs for peace of mind. A bonus is that we also get the best rates!  For a free quote, contact or call us at (866) 225-1950.

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