Remove Contractors Remove Insurance Remove Subcontracting
article thumbnail

Is Subcontractor Default Insurance Right for Your Company?

Construction Business Owner

For some construction management firms, subcontractor default insurance policies offer a viable alternative to performance bonds. These policies are designed for the “at risk” construction manager (CM), general building contractor and design-build firm with an annual subcontract volume of $75 million or more.

Insurance 185
article thumbnail

Subcontractor Insurance: 7 Policies Subs Should Consider for Their Business

Levelset

Business insurance can help mitigate occurrences or disasters that can severely impact or destroy the good standing of your business. Let’s take a look a subcontractor insurance: when it’s needed, what happens if a sub goes uninsured, and what policies subs can use to protect their businesses from risk.

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Restoration: How to Manage Cash Flow While Waiting for an Insurance Check

Levelset

Restoration contractors can spend a lot of time waiting for payment. Even though the insurance company isn’t your customer, the property owner may be depending on that insurance check to pay for your work. Contractors need to ensure that owners know that they are financially responsible for mitigation and restoration costs.

article thumbnail

2020 Guide to Construction Cost Estimating

Job Order Contracting

liability insurance and allowance for small tools and consumables. Liability insurance based upon local contractor rates is also added as a percentage. In addition, highly specialized subcontract items may require travel and per-diem expenses for mechanics. Material costs are either.

article thumbnail

Subcontractor Default Insurance: Pros & Cons for General Contractors

Levelset

In recent years, inflation, supply chain issues, and labor shortages have only increased the likelihood of project delays, performance issues, and contractor default. While general contractors commonly use performance bonds to reduce the risk of default, a bond ultimately protects the property owner, not the GC.

article thumbnail

Additional Insured Status: Playing the Speak-Out Game on a Construction Project

Best Practices Construction Law

Reading and understanding an insurance policy on a construction project can be a lot like understanding my kids playing Speak Out. Proper insurance coverage is an important risk management tool for contractors, subcontractors, project owners/developers and design professionals. Nautilus Insurance Co. ,

article thumbnail

The pros and cons of becoming a subcontractor

Fieldwire

Here are the most important advantages and disadvantages of working as a subcontractor — and how to know if it’s a good fit for you compared to the life of a contractor. Subcontractors are specialists One of the biggest differences between subcontractor and contractor expectations is that clients often expect the latter to be generalists.