Architects and Engineers can cost your project Millions (#Insurance?)

Fixing Design Errors Before They Cost Big Money — Rectification insurance is filling a need on more design-build projects

Mistakes made by architects or engineers in the design process can often come back to haunt a general contractor later during construction.

Whether it’s a miscalculation in the dimensions of a building’s foundation or the choice of the wrong rebar, such design errors can lead to serious delays while the problem is fixed and even trigger additional damages down the line if the opening is seriously delayed.

However, a growing number of contractors, especially those working on design-build projects, are turning to rectification coverage in their construction insurance to keep projects on track.

Rectification insurance provides a contractor with the up-front cash needed to correct errors and mistakes before they snowball into more serious problems, he said.

Also known as mitigation of damages coverage, rectification insurance is now offered by as many as two dozen major carriers, up from just a handful five years ago when it was first launched.

More contractors are also buying these policies, including a growing number of mid-sized and smaller builders.

It is becoming very common now to see that (rectification coverage) in most policies for middle-market and smaller companies, $250 million and below.