When you do construction for a government agency and something goes wrong, you could find yourself in a complicated situation. Working with the government is different from working with regular clients. You could be liable for some issues while other things are not your problem, and it is easy to conflate these matters.
So what happens when your team makes a mistake during a government project? Here is what you should know.
The government is somewhat of a self-insurer in many cases. After a government agency accepts the services or supplies that you offer, it generally cannot hold you liable for any problems with those things. However, the scenario could get tricky when you damage or lose the end product during construction. You may be able to avoid liability for high-value products such as bridges and large-scale facilities, but you will not get the same relief with most other items.
It is also important to look at the different ways that a government agency can bend the rules. For one, you must be mindful of any contract clauses that would allow the agency to hold you accountable for certain problems. You should also consider any insurance that you use that could cover defects in your services; the agency could exploit this. Lastly, you must make sure that none of your team members do any intentional damage to government property.
You should not let contract disputes confuse or intimidate you, especially when it comes to the government. There are loopholes that could work in the agency’s favor, but by preparing for them early on, you can protect your business and move forward.