The facts

An engineer named Nick was hired to design a new shopping centre and oversee its construction. When unexpected costs arose, the owner sought ways to reduce overall expenses. One of the first decisions made was to limit Nick’s role in supervising the project, reducing his presence from full-time to part-time. Nick accepted this change without questioning its implications, not considering the risks it posed to the quality of his work.

Under the new arrangement, Nick was to be called in by the contractor to supervise the pouring of the concrete slab, ensuring that the quality and amount of concrete met the required standards. However, due to a misunderstanding, the contractor poured the concrete without his oversight. This left Nick in a difficult position, as he had to certify that the work was completed according to the plans and specifications. Lacking the opportunity to perform necessary checks, he faced a critical decision: should the concrete be removed and redone? Such an action would likely lead to project delays, additional costs and potential profit losses for the owner, who would likely seek to hold Nick accountable. 

The result

Had the owner understood that reducing Nick’s supervision could lead to such complications, they might have reconsidered their decision. Unfortunately, this situation highlighted a missed opportunity to educate the client on the importance of adequate oversight in construction projects.

Risk factors

Risk factor #1

• Educate your client.
• A client must understand the purpose and importance of supervision or field review services, as well as the potential repercussions when supervision or a field review is not performed or is insufficient.

Risk factor #2

• Don’t certify what you have not seen. If a consultant is required to certify work, it’s imperative that the work be adequately reviewed in person prior to issuing certification.
• Before agreeing to issue certification, it’s important to establish the nature of the certification in a written contract so that it is clear and specific.

This claim scenario is for illustrative purposes only. Please remember that only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions.