Engaging subcontractors or subconsultants can change a Project Manager’s liability and insurance exposure.

A client may still pursue the Project Manager where a subcontractor:

• Makes an error
• Causes damage
• Fails to complete work
• Does not meet the required professional standard

What should be considered before engaging them? #

This can include:

• Clearly documenting their scope
• Checking qualifications and experience
• Checking applicable licences
• Requiring appropriate insurance
• Obtaining current Certificates of Currency
• Considering appropriate Professional Indemnity limits
• Using written subcontract terms
• Documenting instructions and changes
• Disclosing subcontracted services to your insurer
• Checking how your own insurance treats subcontracted work

A Certificate of Currency confirms certain information about insurance in place at the time it is issued.

It does not confirm that every activity, liability or future claim is covered.

Does having the consultant engaged directly by the client help? #

It can change the Project Manager’s contractual exposure, but it does not necessarily remove claims involving:

• Selection
• Coordination
• Monitoring
• Instructions
• Reporting

The contracting structure should be considered before the consultant or contractor is appointed.

You can also read our guide to engaging subcontractors.

Contact our team before materially changing how subcontractors or subconsultants are engaged.