A Zurich-sponsored study found that in 2007, the U.S. construction industry reported 15,000 new defect claims, which totaled more than 3 billion dollars in settlements. Industry-wide, legal defense costs are now equal to or greater than indemnity costs on most construction-defect claims.
Beyond insurance and legal costs, construction defects cause project delays and can ultimately affect your company’s reputation and ability to obtain future work. Additional research conducted by the Construction Industry Institute (CII), the Lean Construction Institute (LCI) and Stanford University found that exposures to defect claims can be reduced through the implementation of formal quality management programs.
The Zurich Services Corporation has developed a quality management program which helps to ensure that the design and construction of a project meets the quality requirements established by the owner. Our program consists of both consultative services and best practice tools, which are designed to help develop or enhance existing quality management programs.
- Review and evaluate existing quality management manuals, inspection forms and procedures
- Evaluate the use of best practices such as the use of third-party consultants, digital photography, document archiving and retrieval, material verification, inspection checklists and forms, lessons learned and zero defect programs
- Provide a 90-minute construction-defect-awareness presentation for employees best practice tools
- Quality assurance/quality control (QA/QC) self-evaluation assessment
- Sample quality management manuals for both general contractors and trade subcontractors
- CII and LCI documents related to quality management
- Risk topic on the importance of quality control manuals in the quality management process
- Additional resources and reference materials on the topic of quality management in construction
Planning for design and construction risks prior to mobilization is one of the more complicated issues contractors face, but also one of the most important steps in quality assurance and control. Adequately mitigating the risks associated with contract language and ensuring that you have the appropriate coverage are areas where Zurich professionals can assist you.
- Contractual-risk-transfer best practices: We address the risks associated with contract language and help ensure that your general liability coverage is appropriate for your business.
- Understanding and managing professional liability risks: Our experienced risk engineering professionals offer a consultative approach to mitigating these types of risks.
- Contract management and education: We provide thought leadership, training and consultation on contract development and administration, as well as regulatory developments and legal decisions.
An effective approach to quality assurance and quality control can give every project a strong foundation for customer satisfaction and minimizes the potential for construction-defect litigation later.
Zurich can help you maximize the time you spend building and minimize time spent on rework.