How claims reach contractors
Construction disputes rarely involve only two parties. An owner may sue the general contractor, who in turn brings claims against subcontractors and suppliers whose work is in question. Injury cases can name the owner, the general contractor, and several trades at once. Payment disputes often come with mechanic's liens that cloud the property title and put pressure on everyone up the chain. The subcontract's indemnity clause, and whether your company was named as an additional insured on someone else's policy, frequently decides who carries the cost of the defense long before anyone decides who was at fault.
Insurance, notice, and project files
Report the claim to your liability insurer promptly and in writing, even if you think it lacks merit, because late notice can create coverage problems. If another company's policy names you as an additional insured, a separate tender to that carrier may be needed. Pull the contract, change orders, daily logs, inspection reports, submittals, photos, and correspondence for the relevant work, and instruct staff not to discard or edit them. Contracts often contain their own notice and claim procedures with short deadlines, and those can matter as much as any court rule. Avoid informal admissions to the owner or other trades while the facts are still being sorted out.
Building a defense plan
Early on we read the prime contract and subcontracts together to see how risk was allocated and whether arbitration, mediation, or a specific forum is required. We look at whether third-party claims against subcontractors, suppliers, or design professionals should be brought into the case. We also coordinate with insurers, since the carrier may appoint defense counsel and the interests of insurer and insured are not always identical. A technical consultant may be needed to evaluate the work itself. Our goal at the start is to give you a clear picture of exposure, likely cost, and the decisions that are yours to make.
