State and Federal Contruction Projects
While government construction contracts can be a lucrative source of business, contractors face a complex set of challenges when bidding and working on these projects. Construction firms must understand and comply with regulations that guide the bidding process as well as additional regulations if the project is awarded including environmental, legal and safety. HUB is here to help.
State and federal construction contractors must also comply with specific insurance requirements such as higher coverage limits, additional types of insurance or specific endorsements. Failure to meet these requirements can result in contract termination, fines and penalties or legal liability.
Having the appropriate insurance and risk management in place is essential to protect both your business and the government agency. To ensure coverage, state and federal contractors should consider several types of insurance including:
- General Liability Insurance
- Workers’ Compensation Insurance
- Builder’s Risk Insurance
- Professional Liability Insurance
- Cybersecurity Insurance
Specialized insurance and consulting for state and government contractors
Government construction contracts can be large-scale or high profile, involving complex regulatory requirements. Risks such as public scrutiny, compliance requirements and the potential for significant delays or cost overruns necessitate specialized insurance coverage.
- Surety bonds are a critical risk management tool when working as a contractor on public work. While mandated for many projects, surety bonds are an invaluable tool for contractors serving as a financial guarantee that contractual obligations will be fulfilled. There are various types of surety bonds including bid bonds, performance bonds and payment bonds.
- In addition to safety and legal regulations, construction companies that contract with the government must meet regulations that dictate wage and fringe benefit payments. While it is mandatory to comply with these prevailing wage regulations, HUB can help contractors gain a competitive advantage that will help you bid more competitively and increase profits, employee satisfaction and loyalty.
Having comprehensive and specialized insurance coverage is not just a legal requirement but a strategic necessity for state and federal construction work. Working with an experienced broker helps protect your construction firm from unforeseen events, ensures compliance with stringent government regulations and supports the successful completion of projects.
Contact a HUB construction insurance specialist to get started.