Proactive Contract Negotiation and Risk Management for Architecture and Engineering Firms
Successful design professionals implement effective risk management practices in order to focus on creation of the built environment and avoid the distraction and expense of a lawsuit. We understand that contract negotiation isn’t the most glamorous part of running a design firm, but it’s one of the most critical. Strong contracts protect your business and preserve your professional relationships.
Strategic Risk Guidance for Design Professionals
We identify and evaluate contract risk and manage those risks through effective negotiation strategies without becoming a roadblock or deterrent to our client’s valued relationships and projects. We know what the market will bear when negotiating professional services agreements and are uniquely positioned to propose creative solutions resulting in mutually agreeable terms, whether the project is a small residential renovation or a design-build project with a billion-dollar budget.
We work with you to select the right contract form for each engagement based on project delivery method and complexity, then ensure it includes appropriate risk management provisions tailored to your practice and the specific project.
The Importance of Professional Liability Insurance
Design firms procure professional liability insurance as part of a comprehensive risk management program. We advise architects and engineers on issues — whether during a contract negotiation or during a project — which may jeopardize jeopardize coverage under their professional liability insurance policy, with the goal of neutralizing insurability threats so that our clients can rely on their professional liability insurance in the unwelcome event of a claim.
Risk Management Training and Education
We draw on our industry experience to provide constructive and cost-effective solutions for contracts. We recognize the investment that goes into effective negotiation of a contract, and pride ourselves on the value we provide our clients.
In support of our clients’ internal risk management programs, we have delivered in-house risk management seminars on a wide range of subjects:
- Professional liability insurance coverage and limitations, and maximizing value under the policies;
- Contract negotiation essentials, including an overview of industry-standard terms and conditions and how those provisions are enforced by courts;
- Project-level documentation, outlining the importance of contemporaneous communications and strategies for memorializing important discussions;
- Construction phase services, identifying the types of claims pursued against design professionals related to construction phase services and practical solutions for minimizing the risk of those claims;
- Lender certifications and consents, cautioning against potential pitfalls; and
- Demystifying the claims process, reviewing what to expect in the event of a claim and lessons for avoiding escalation of a claim.
We find that, by sharing real-world legal decisions involving architects and engineers through in-house risk management programming, our clients are better able to avoid situations that might otherwise lead to a protracted claims process.