Mitigate the Crisis of Unskilled Construction Workers

November 1, 2021
Martin Mick - Construction Executive

As construction projects pick up in a late COVID-19 market, the industry is facing challenges from every corner. There are labor shortages, rising costs and supply chain woes resulting in razor thin margins and an increase in unskilled workers on jobsites. The Biden administration’s infrastructure bill will further stress insurance capacity and an already-tight market for construction personnel.

In a recent Insurance Journal story, Gary Kaplan, the president of construction at AXA XL, said that unskilled workers have now become number-one cause for subcontractor default insurance claims. Docutrax, an insurance verification and tracking company, analyzed a pool of 5,200 subcontractor insurance coverages and found only 18% supplied their general contractors with evidence their insurance complied with the terms of their contract with the general contractor.

Reprinted courtesy of Martin Mick, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


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