I saw this article titled “Unfamiliar Jobs Boost Builders’ Risks” recently on BusinessInsurance.com and was struck by how relevant it was to the building industry here in Northern Virginia.

In a nutshell, it talks about how, with the economic downturn, builders and contractors have been forced to look for new ways to perform their work, which can lead to them taking on unfamiliar jobs and tasks. This opens the door to many issues.

For one, these new territories can increase risk, said William Sullivan of Hartford Financial Service Group Inc.’s construction group. “Contractors taking project in unfamiliar areas involve themselves in new relationships with subcontractors that have employees ‘who might not be fully trained’. They are also working in territories that have a different claim legal environment.” Therefore, they encounter risks that they may not be familiar in managing.

Even mergers bring unfamiliar territory. Where someone might have only built buildings in the past, they might be now asked to build a road, for example, said Paul Becker, president of the construction division of Willis North America in Nashville. “It feels like contracting and it looks like it, but they have nothing to do with each other.”

Danger can come even with a move to a different state, with varying laws, regulations, soil conditions, predictability of costs, labor pools, etc. And those who are winning the bids may be less experienced than the experts who bring understanding of the job.

The article also stressed that contractors need to keep their insurance companies advised.

Lower Risks with Först Consulting Group

This article relates to Först Consulting Group because homeowners and contractors in Northern Virginia can run into issues when someone they hire is not familiar with the techniques or skills involved with a building project. This can lead to shoddy workmanship, loss of materials or time, or even litigation down the road. We want to prevent all that.

Call us if you have questions, or doubts, about a construction project on your property. We have a variety of consultation, monitoring and preventive services we can offer, as well as a free consultation.