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The following is a re-post from the Southeast Construction Law Blog:

Contractors, subcontractors, and A&E firms all face differing levels of liability on construction projects. Managing that exposure is a key to maintaining profitability and ensuring your business is protected.

One issue I consistently see in my practice is companies taking too much liability for their scope of work on a project. For example, what should the liability of a subcontractor be who has a small $25,000 subcontract on a $15 million project? Should the subcontractor be liable for any and all damages?

Many subcontract agreements state that subcontractors are responsible for “any and all costs” caused by a subcontractor’s delay or interference with any portion of the work. While each party should be liable for damages it causes, this determination is never as clear as it seems.

General contractors (and sometimes owners) often control the timing, means, and methods of how a subcontractor performs its work. In those situations, it is difficult for me to explain to a subcontractor that it is liable for everything it does on site. Even so, many subcontractors’ feet are held to the fire for delay costs in the hundreds of thousands or millions of dollar range when their contract was initially very small.

Architecture and engineering firms face a similar dilemma. Many times A&E firms are brought into lawsuits in the millions of dollars when their scope of work may have been small. I have seen a civil engineer sued for $12 million when it performed a $1,600 staking job on a project.

In addition, A&E firms face a different challenge. Even if an architect or engineer prevails on the claim, the A&E firm has likely spent thousands of dollars in attorney’s fees, all chargeable to the A&E under the deductible in the Professional Liability Insurance policy. Continue reading “Are You Accepting Too Much Liability on Your Construction Project?”

What if, instead of architects creating buildings only for those who can afford to commission them, regular citizens could design and build their own houses?

This is the concept at the heart of Wikihouse, an open source construction kit. With this tool, just about anyone can build a house, anywhere.

Alastair Parvin: Architecture for the people by the people

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In this fascinating TED Talk, Architect Alastair Parvin explains his vision for 21st century architecture and design: With the prevalence of open source software, 3-D printers, and other technological advances, the focus of the design industry may now shift from “thinking big” to “thinking small.” Challenging the effectiveness and affordability of one-size-fits-all.

According to Parvin, the stars have aligned to allow us a new industrial revolution, one founded on the democratization of production. Watch as he gives us a one-day-build house, compares citizen-led urban development to the barn-raising cultures of 19th century societies, and evangelizes for open source pioneer Linus Torvalds‘s philosophy: Be lazy like a fox.

How does this strike you? Is it plausible? Practical? Do you think the IKEA-fication of architecture and construction is a good idea or a bad one? Leave us a comment!

MORE: The 10 Most Inspirational TED Talks for Architects

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We recently stumbled upon Using Four Metrics to Analyze Performance of a Professional Services Firm, an article by June Jewell, President and CEO of Acuity Business Solutions.

An excerpt:

Sometimes the day to day demands of running a professional services business can be overwhelming, especially for creative and technical entrepreneurs and project managers that do not have a financial background. Trying to stay on top of administrative responsibilities, hiring and managing staff, and keeping clients happy can make it difficult to really understand how the firm is performing. Many leaders also struggle to understand and analyze reports and financial statements, and determine where to focus their attention to ensure success.

While there are many important metrics and reports that you can look at each month to gauge your company’s health and profitability, you can get a pretty good understanding of the performance of the business by looking at just four metrics – the Win Rate, Utilization Rate, Project Profit Margin, and the Average Collection Period (or Days Sales Outstanding). By looking at just these four key performance indicators, you can simplify the process of analyzing how projects are being executed and managed, and help your project managers and leaders focus their attention where it will get the most benefit.

Jewell goes into a brief explanation of each of these four metrics, so we invite you to visit her blog and read on. Some of the information might not be new to you, but it’s always good to get a reminder. Jewell is also the author of a new book: Find the Lost Dollars: 6 Steps to Increase Profits in Architectural, Engineering and Environmental Firms. You can download a free chapter on her website.

(Psst! This is anecdotal evidence that Twitter can be excellent resource for design professionals. Have you followed @aeProNet yet?)

There are probably many ways for architects to showcase their individual and firm portfolios on the interwebs, but Archilovers has to be one of the best!

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This social media network, similar to Facebook, offers architects the unique opportunity to manage an individual profile alongside a professional firm profile. Its online library of contemporary architecture projects is extensive and easily searchable. Alongside the work of internationally renowned architects, you’ll see the accomplishments of smaller design offices and individual designers featured with equal pride.

But Archilovers wants to change the way architecture and design are communicated and consumed. That’s why projects can also be organized (and searched) by Elements, Materials, and Themes! Continue reading “Archilovers: A Fresh, Innovative, International Network for Architects”

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There are few things more beautiful than a city decked out for the Christmas holidays, and for that we thank the architects, engineers, urban planners, and designers. We wish all of our readers, friends, and followers a safe, peaceful holiday. All the best in 2014!

 

 

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We read the ArchDaily blog all year round, but last week’s fun, holiday post is worth mentioning here. (If only because they saved us the trouble of coming up with 13 excellent gift ideas for architects! Thanks, guys!)

From design apps to wall clocks to art prints, these ideas are all unique, all vibrant, and all good. If you’re wondering what to get for your favorite architect this year, check out ArchDaily’s Architect’s Holiday Gift Guide 2013.

And when the wrapping paper has been discarded and the tree hauled out to the curb for the Boy Scouts to collect, when 2014 dawns, make sure you visit ArchDaily again. They’re a fantastic source of relevant, inspiring industry news.

Blog Love: TLCD Architecture

TLCD_TodayArchitects and engineers already share their voices with the world through their designs and ideas, but we love it when this group gets proactive about amplifying their voices online, too. Today we want to highlight the blog of one a/e ProNet member’s client: TLCD Architecture in California.

TLCD Today is a fun, colorful blog that deals with issues relevant to the design industry in ways both focused and abstract. The blog’s multiple authors take time to interact with design colleagues at national conferences (Healthcare Design Conference Highlights), as well as with the firm’s local business community (Local Impact of the Affordable Care Act). It’s also inspiring to see architects use their specific skill set to give back to people in need (Habitat for Humanity Build Day). Well done, TLCD! Keep up the good work. We’ll be reading!

Does your architecture or engineering firm have a blog? Share it with us in the comments below. We’d love to follow you!

Shout-out Credit:

Leslie Pancoast, CIC, RPLU
Managing Partner
IOA Insurance Services – Pleasanton, CA
Email: Leslie.Pancoast@ioausa.com / Phone: 925-416-7862

Much has been made in recent years about the low percentage of women in the engineering industry, but comparatively little progress has been made. The question remains: How do we encourage a young girl’s interest in designing, problem-solving, experimenting, developing, and building? Because if we can do that with the current generation of imaginative, technologically-inclined youngsters, there could well be a marked increase in the number of women who choose careers from among the broad range of engineering disciplines.

This new advertisement from GoldieBlox, which has “developed a set of interactive books and games to ‘disrupt the pink aisle and inspire the future generation of female engineers’”, is a fantastic start!

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Set to the tune of the Beastie Boys’ famously catchy Girls, we see the execution of a fabulous Rube Goldberg machine as a trio of excited would-be engineers uses their perpetually pink toys to play a new version of house.

There may be many answers to the question of gender disparity in the engineering industry, but this is definitely one of the more fun, optimistic ones. Well done, GoldieBlox! And just in time for Christmas.

why do i need an insurance brokerAt our fall meeting last month, a panelist asked an important question:

Why is an insurance broker necessary for design professionals? Shouldn’t architects and engineers be able to access insurance companies and purchase Professional Liability policies directly?

Members of a/e ProNet are professional, independent brokers who serve the insurance needs of design professionals. Membership in our association is by invitation only, and members must be experienced and have a minimum number of design professional clients, as well as a minimum amount of premium volume. Our members must also provide their clients with services beyond the sale of a professional liability policy.

In addition to knowing the professional liability marketplace, they negotiate the best product at the best price for their clients. That negotiation happens every year at renewal time, and because our members are independent—not obligated to any one insurance company—they are in the best position to compare and contrast policies. Often, the time and expertise this process requires is underestimated by A/E clients. With a specialist broker, the A/E can rest assured that they have an advocate annually, both in relation to their bottom line and their exposure as a professional in a demanding and risky environment.

Most importantly, though, that advocacy doesn’t end when the renewal has been processed. The rest of the year, our members’ clients can count on their specialist brokers to provide services such as contract review, accredited continuing education, and other risk management services. Continue reading “Why should Architects & Engineers use a specialist Insurance Broker?”