Following a unanimous decision by its board of directors, the American Subcontractors Association launched a campaign challenging leaders in the construction industry and public policy makers to renounce business practices and public policies that shift virtually all insurable risks down to subcontractors. Often, subcontractors are made liable by contracts and through insurance policies for risks that they cannot control. To address misallocation of risk, ASA is asking legislators and groups developing model construction contracts to review and appropriately revise legal and contract language.
"Subcontractors should accept liabilities for risks that they control, but not for risks controlled by others," said ASA President Richard Kohls, vice president of finance for The Fenton Rigging Co, Cincinnati. "It's not enough just to acknowledge that the problem exists. ASA is telling leaders why the problem exists and what they can do about it."
