Construction claims prevention can be accomplished most effectively early in the project’s lifecycle. When the design is sufficiently complete to enable qualified contractors to submit bids for the construction work, careful review of the contract requirements and terms and conditions by the contractor offers the greatest opportunity for claims prevention. Once contracts are executed and construction begins, the prevention of claims becomes more difficult, although the impact of claims can still be mitigated through timely and effective contract administration by the contractor.
It is important for bond producers and other surety professionals to remind their contractors about construction claims prevention strategies. This article identifies solutions and suggests programs about which surety professionals should inform contractors to use to prevent, mitigate, and manage claims.