Professional Liability Insurance
Can a Construction Manager Be Sued for Project Delays?
Yes — if schedule management failures caused the owner financial harm, the CM faces professional liability exposure. Delay damages are among the most common CM professional liability claims.
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Can a construction manager face a lawsuit for project schedule delays?
Construction managers are professional service providers. Managing project schedules is a core professional service. When scheduling failures result in delay damages — extended general conditions, subcontractor delay claims, lost revenue for the owner — the CM can be held professionally liable.
Common scenarios: a CM fails to identify critical path impacts in time to mitigate; a CM approves a subcontractor’s unrealistic schedule without adequate analysis; a CM’s coordination failures cause cascading delays across multiple trades.
Professional liability insurance covers defense costs and covered settlements for scheduling and management claims. Given the size of delay claims on commercial projects, adequate PL limits are essential for any CM firm.
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