Pro-Tecktion

Jim Davidson  

A fact of business life is there is often a big difference between what coverage you think you have and what is covered by an insurance policy. When a contract is let, the expectation by all is that everybody will be adequately insured for the job's risks. Unfortunately, those most affected usually do not know (and, maybe do not want to know) whether they will be covered until after a claim occurs.

An absence of expected coverage can be devastating when it comes to regulated and hazardous substances. The odds that there is "no coverage" for environmental exposures goes up when you have to pay extra for the proper insurance coverages. The higher the risk, the greater the cost. Regrettably, the decision to purchase environmental insurance is, at times, influenced by cost, not protection. Some businesses simply refuse to buy the appropriate coverages and, when the need for this coverage arises, they rationalize their failure to purchase pollution coverage, "It's just a few times a year...or It's just too expensive; it makes me non-competitive."

Given the "cradle to grave" nature of controlled materials, it is imperative that exposed businesses purchase the ìrightî coverage. To keep the cost of that coverage down, they must make every effort to be loss free. This means, among other things, they must require adequate coverage for those with whom they conduct business. Anyone who handles environmentally sensitive materials should consult with an insurance agent or broker skilled in environmental placements who is familiar with the business.

Gerry Giaimo  

For better or for worse, legal counsel has become the industry’s boarding pass for first-class construction projects.  From the initial contract negotiations, permitting and financing stages through completion, attorneys serve to advise parties and champion their interests.  Yet, many companies don’t secure counsel until disputes arise, often after the contracts have been executed.  These companies lose out on the most critical (and cost effective) benefit that derives from legal counsel: anticipating and avoiding disputes through proper contract drafting and negotiations.

Indeed, great counsel acts as a radar for the legal “black holes” that pepper the constellation of construction project issues.   Between government regulations, statutes and common law obligations, there are potential problems lurking in every aspect of the construction project.  The involvement of a construction law attorney at the inception will insure a sensitivity to contractual terms common in the industry, such as those involving delay damages, indemnification, insurance requirements and environmental liabilities.  Whether you are a project owner, general contractor or subcontractor, you will also need to understand the compliance obligations associated with CERCLA, OSHA, worker’s compensation laws, mechanic’s lien statutes and project bonding.