a/e ProNet Member Archives - Page 6 of 7

a/e ProNet Clients Among Newly Minted AIA College of Fellows List

By Lynda

The American Institute of Architects recently announced that its 2013 Jury of Fellows elevated 122 AIA members to its prestigious College of Fellows, an honor awarded to members who have made significant contributions to the profession. Subsequently, we are proud to announce that several a/e ProNet members have clients on this illustrious list!

Kurt Schindler of ELS Architecture (Berkeley, CA)

Martin A. Diaz-Yabor of Martin A. D. Yabor & Associates, Inc. (Miami, FL)

Kenneth D. Levien of Levien & Company (New York, NY)

Terrence O’Neal of Terrence O’Neal Architect, LLC (New York, NY)

Claire Weisz of WXY architecture + urban design (New York, NY)

Glenn Keyes of Glenn Keyes Architects (Charleston, SC)

Turan Duda with Duda/Paine Architects (Durham, NC)

Clive Wilkinson of Clive Wilkinson Architects (Los Angeles, CA)

William J. Worthen of UrbanFabrick (San Francisco Bay Area, CA)

Congratulations, lady and gentleman, on this well-deserved honor.

The 2013 Fellows will be honored at an investiture ceremony at the 2013 National AIA Convention and Design Exposition in Denver.

Calling a Ceasefire in the Certificate of Insurance Wars

By Lynda

The following is an excerpt of the February 2013 a/e ProNet Guest Essay, Calling a Cease Fire in the Certificate of Insurance Wars. You may download the full PDF version of the newsletter on our website.

In war, events of importance are the result of trivial causes. – Julius Caesar

Battles about certificates of insurance can sour relationships and sow the seeds of discord with clients at the very beginning of a project. And they are becoming more and more common.

Here is a short history of a typical certificate war: The design firm is awarded a new project. Corks pop. The team assembles. Spirits and expectations are high. The first sign of trouble is a call or an email from the project owner’s certificate checker: Your certificate of insurance is not in compliance with the insurance requirements set forth in our contract. Please reissue. The design firm calls its broker, confident that this little paperwork glitch will be simple to fix. But there is bad news. This is not a case of a misspelled name or a typo. The certificate checker is correct: The design firm’s insurance program does not, in fact, comply with the contract requirements.

This is never a good moment, but the design firm rallies and asks how much it will cost to purchase compliant coverage. But then comes an even worse moment, when the broker explains that the contract requirements are impossible to satisfy. The coverage the owner wants is no longer available, is not available from a stable and financially-sound carrier, or, all too often, never was available at all. The design firm tries to make the owner see reason, but sometimes this drama ends with calls and emails to the design firm, its broker, or both, threatening to award the job to another firm if a compliant certificate is not produced today.

Even if the problem is eventually resolved, the bad impression created by this conflict can tarnish a design firm’s relationship with the owner before it ever gets a chance to shine.

How did we get here? How did a one-page summary of insurance coverage that, by its very terms, does not “amend, extend or alter” any insurance policy become the source of so much trouble? And what can design professionals do to avoid certificate rejections and the problems they cause? Continue reading “Calling a Ceasefire in the Certificate of Insurance Wars”

Architects Step Into Contractors Liability, Size XXL

By Lynda

If you have ever gone car or shoe shopping with and for someone else (teenagers and significant others, in particular), you know the difficulty and frustration that usually follows efforts to fit and style those with strong opinions and feelings on the subject. Such shopping is more an effort in very personal comfort, feel and perception than utility. The same can be true for design professionals’ scope of services. The most recent economy has left design professionals to suffer earliest, longest and hardest, particularly those that rely on residential development. To keep busy, some A/Es are marketing a broader scope of services, including services historically reserved for construction contractors. The comfort, feel and perception of such expanded scopes of services are highly personal but come with distinct and practical liabilities and risks. Like finding the right shoe size or vehicle type, A/Es can manage expanded risks with properly fitting contracts, insurance and professional structure.

SUV v. Sedan and Dress Shoe v. Cleats

In annual magazine reviews, sedans are compared to sedans and SUVs are compared to SUVs. The same is true of legal standards by which different roles are judged. A/Es provide a professional service and are compared to other A/Es by a standard of care – what others in the same profession are doing or would have done for a similar project. A/E contracts typically take care to adhere to recitations of the baseline standard of care and avoid or disclaim responsibility for means and methods, safety, warranties and the contractor’s timely or proper performance.

Contractors provide a finished product which is judged by a good and workmanlike standard: a warranty of quality, timeliness and, usually, safe performance of the work. Contractor agreements therefore give the contractor control over and responsibility for means and methods, safety, warranties, schedule and performance.

Crossovers and Hybrids

There is a line between trucks and cars, but there are luxury SUVs and crossovers to blur the line and offer compromises of varying degree. The line between A/E services and contractor services has become equally fuzzy. Try to explain in words the difference between the scope of services of a Construction Manager/Advisor, a Program Manager and an Owner’s Representative. For example: The label is less important than the intended division of responsibility, control and money, and how that is expressed in a contract. Continue reading “Architects Step Into Contractors Liability, Size XXL”

Our Mission Statement

By Lynda

a/e ProNet was established in 1988 by a group of insurance brokers specializing in professional liability insurance and risk management services for the design community. The organization has grown to 36 member brokers, representing more than 16,000 design firms nationwide. We meet twice annually to exchange ideas and information, as well as to analyze and communicate with insurance companies. At our most recent meeting (October 2012), our Board of Directors updated the a/e ProNet Mission Statement:

To establish an internal information and resource sharing network that enhances services to the design professional community and their societies.
To provide a forum for strengthening communications with the professional liability insurance markets serving the design community.
To maintain an independent source of professional liability information, risk management, loss prevention and continuing education services for design professionals and their professional societies.
To maintain the highest ethical industry standards among our members.

Contact a/e ProNet today to see how our substantial experience advocating for the design community can benefit you!

Arch11 of Colorado Wins Multiple Awards

By Lynda

On September 7, AIA Colorado North presented the 2012 Design and Honor Awards to several architecture firms at the Dairy Center for the Arts in Boulder. We’re proud to announce that a/e ProNet client Arch11 came away from the night with quite an impressive haul, winning 5 total awards.

Honor Award for Residential: Large (Project: 2290)

Honor Award for Residential: Large (Project: Dihedral House)

Citation Award for Interiors (Project: Ignite!)

Citation Award for Residential: Large (Project: Lake House)

Citation Award for Single Architectural Detail (Project: Syncline House Sink)

Founded in 1993 by James Trewitt and E.J. Meade, Arch11 gained regional recognition for projects ranging from exceptional residences to institutional planning, mixed use development and product design. They are skilled at developing projects with ‘impossible’ sites, budgets and structural parameters, while meeting the goals of diverse clients. The firm works on projects around the country from offices in Boulder and Denver, Colorado. Read more at the firm’s website.

Congratulations, Arch11!

Responding to an RFP: Risk Management Tools to Guide the Bidding Process

By Lynda

Competition among design professionals can be fierce, so it is critical to be as prepared as possible when trying to win new projects, especially those that are put out for bid. Just as you have project quality control procedures to review a design, you also should have a similar process for responding to an RFP (Request for Proposal) to assess the appropriateness of the project for your firm, to minimize risk and to insure profitability.

When first considering whether to bid on a project, ask these questions:

Does our firm have experience with the project type?
Is our staff capable of handling a project of this size and scope?
Do we have confidence in our design team, including sub-consultants?
Can we turn in a successful project and make a profit?

Once you decide to respond to the RFP, you will take many steps to ensure your firm has a good chance at being awarded the project. You will choose a project manager and team that have the most experience with the project type. You’ll take great care in selecting your sub-consultants. You’ll follow your customary quality control procedures and review every aspect of the design phase; the costs of construction, the construction schedule and most importantly, your fees.

So, what could possibly go wrong when responding to an RFP? The answer may lie within the RFP itself.

Project Owners and Project Expectations

When you assemble your project team, you need to call upon the staff members who are best suited to understand the project and the terms spelled out in the RFP. Your team should be asking the following questions. Who is the project owner? Is it a government entity? A school district? Is the project publicly funded? Is the project owner a developer? If it is an LLC, who are the parties that comprise it? Understanding who the project owner is as well as the expectations set forth in the RFP is as important as delivering the winning bid. Continue reading “Responding to an RFP: Risk Management Tools to Guide the Bidding Process”

Is there such a thing as a Standard Contract?

By Lynda

The most common refrain I hear when talking to clients about Contract Review and Administration is: “I only sign a standard contract.”

Most clients feel there is no reason for contracts to be reviewed prior to signing, because they only sign a standard contract. Unfortunately, the only standard contract I ever see is one in which an owner or client uses and wants their consultants and contractors to sign. Ironically, one of the few things that makes any contract a “standard contract”…is the omni-present and onerous broad hold harmless/indemnity and defense clause.

Contract Review and Administration is probably one of the most important aspects of a prudent risk management and loss prevention program. A contract that any Contractor or Consultant signs should identify their rights and responsibilities to the owner and third parties. All of this should be determined at the “request-for-proposal” stage. If done here…it allows the Contractor or Consultant to identify, evaluate and treat the risks in the Owner or Client standard contract. Please remember that no one is putting a gun to the Contractor’s or Consultant’s head when he or she signs the contract; so it’s absolutely essential that the Contractor or Consultant knows what he is signing and what his rights and responsibilities are when negotiating for future work.

The prudent Contractor or Consultant should discuss all contracts with their counsel and agent before signing. Some general practice tips to consider when reviewing contracts are:

Scope of services: Think about whether the contract is exactly what you thought is was going to be in terms of encompassing more or less services, added responsibilities or services outside your area of expertise. It is also wise to describe things you are not doing to reduce the potential for misunderstandings.
Change orders: Find out if the Owner is allowed to change the scope of work once under way, and, if so, under what conditions. For instance, look at what input or options you have and what time frame you have to consider this.
Warranties and Guarantees and Performance Standards: First, you have to know if there are any. Try not to assume any and don’t agree to unreasonable ones…if you must assume any! Don’t forget that all professional liability policies exclude the assumption of liability policies which turns out to be a warranty or guarantee or performance guarantees.
Compliance with all laws, regulations, etc.: These responsibilities can be difficult to live up to since no one knows what all the laws, regulations, ordinances, rules, etc. are, much less how to comply with all of them. Continue reading “Is there such a thing as a Standard Contract?”

ProNet Client Project Profile: Klawiter and Associates

By Lynda

We’d like to congratulate a/e ProNet client Klawiter and Associates on their design for the new ADK America offices in Los Angeles, California.

See the full press release here.

“Klawiter and Associates, Inc. has provided commercial interior planning and design services to an ever-growing list of clients for nearly twenty-five years. Jim Klawiter founded Klawiter and Associates in 1985 to fill a void in the marketplace by starting a firm that understands smart business practices could be enhanced by innovative design solutions… Klawiter and Associates is an active member of the U.S. Green Building Council with a large percentage of their staff LEED Accredited.” Read more about Klawiter and Associates at their website.

To Hire or Not To Hire?

By Lynda

As the American economy recovers, all eyes are on the construction design industry, a key indicator of the economic climate. Design professionals are preparing for the next phase of recovery in a variety of ways. Not only is there the hope that new projects will begin to come in soon, but there is a backlog of projects which began two or three years ago, but stalled. These projects have been pending in different stages, some abandoned completely, many without funding to continue. Unfreezing from that limbo would mean the potential for immediate work in many design firms, and that work could require additional hands.

In the April issue of CSPE Online, The Official Newsletter of the California Society of Professional Engineers, a/e ProNet Member Reno Caldwell published a column which addresses this exact scenario. For architects, engineers, consultants, and other construction industry professionals, this will bring up one very important question:

To Hire or Not to Hire?

Excerpt:

“Raise your hand if you were thinking of hiring someone this time last year. Had I posed this question to a group of business owners in April 2011, I am confident not too many hands would have gone up. The following two questions may still be far fetched, but if the tide begins turn and the project light-switch flicks up it’s worth asking both:

When will your firm begin hiring?
Will errors and omissions liability affect your hiring decision?

“You may be thinking that errors and omissions liability has nothing to do with a hiring decision. Are you sure? Most business owners understand the importance of balancing risk for the potential reward. The term ‘reward’ probably seems distant, but many design and engineering firms have multiple projects that have long been in a perpetual ‘waiting’ mode. Your office could get busy very quickly should these projects become active within a few months of each other, and as new projects come in the door. Yes, this will be a happy day!

“However, many business owners have depleted their retirement savings in order to keep the lights on and doors open over the past three years. It will be very tempting to replenish the bank account when the economy improves. The risk management pendulum could swing quickly from ‘low risk / low reward’ to ‘high reward without considering risk.’ This move would be understandably tempting, but I urge you to take a closer look beforehand.”

To continue reading (and to get some valuable advice) visit IOA Insurance Services’ website for the full text of this article, as well as a downloadable PDF.

About the Author: Reno Caldwell is Vice President of IOA Insurance Services. He operates from the San Francisco Bay Area office in Pleasanton, CA, which he joined in 2007. He has specialized in providing professional liability insurance for design professionals, construction managers, law offices and other professional consultants since 1996. Reno is an affiliate member of the California Society of Professional Engineers; IOA is the exclusive broker of CSPE’s endorsed professional liability insurance program. reno.caldwell@ioausa.com