Put simply, gaining control immediately after a course-of-construction loss is the key to an effective and equitable adjustment. Like any loss involving physical damage, the adjuster has much more of an opportunity to influence the scope of a loss in the early days of the adjustment than he does later in the process after restoration is underway.

Furthermore, if business interruption coverage is a component of the case, controlling the progress of restoration and the subsequent recovery of the project is paramount. Action taken early on in the adjustment of a course-of-construction loss provides the framework of the adjustment and the basis for the quantum of loss.

How does the adjuster gain control of a construction loss when it seems the contractor and his principal hold all the cards? The adjuster should immediately establish adjustment procedures that are reasonable and understood by the insured. Basic procedures include how the investigations for cause and origin, scope and quantum, and subrogation potential will be accomplished. To ensure effective investigations by the consultants, the adjuster should be present to introduce the consultants and their purpose. No matter what coverage and contractual arrangements may be present, an atmosphere of cooperation and coordination should be encouraged. Responsiveness and communication on the part of the adjuster can do much to foster a positive environment.