Blog Archives - Page 26 of 29

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

John Tenuto Named Regional President of IOA

By Lynda

Since its founding in Florida in 1988, Insurance Office of America (IOA) has added more than 20 branch offices across the country. Today, IOA is the largest privately-held agency in Florida and one of the fastest growing agencies in the U.S. At its National Sales Meeting in Orlando last month, the company appointed a/e ProNet Member John Tenuto as a Regional President of IOA.

Tenuto is Senior Vice President and Managing Partner of IOA Insurance Services, and he is the Branch Representative of the San Diego office, which he opened in 2005. Tenuto was appointed to the IOA Board of Directors in 2010, and this latest move by IOA places him in the position of Regional President over all IOA’s offices on the west coast.

Tenuto began his insurance career in 1985, developing his expertise at a number of prominent brokerages in both Northern and Southern California, including HRH, Barney & Barney, and Dealey, Renton & Associates. He also founded Tenuto & Associates Insurance Services in 1994, which was acquired by HRH in 2001. His practice focuses on providing his clients with property and casualty insurance products and various risk management services. Tenuto specializes in representing design and construction related firms.

“We are at a place in our company’s life where it makes sense to have more local leadership,” said IOA Chairman and Founder John Ritenour in last week’s announcement. “John is a huge asset to IOA and really cares about what we are building out west.”

Congratulations, John! And good move, IOA!

Pinterest Pride: An Homage

By Lynda

a/e ProNet has been an advocate for architects, engineers, and other design consultants for more than 20 years. This advocacy includes an abiding interest in protecting the integrity and sanctity of the products delivered by design professionals. We’re proud of what our clients can do and have done to better and beautify communities across the globe.

Taking that pride one step further, we’ve created a Pinterest board dedicated to showcasing the fantastic designs of our ProNet Members’ clients!

Buildings, bridge, amphitheaters, parks, homes, aqueducts, highways, theme parks, wineries, storefronts, and resorts surround and inspire us daily. But as Peter W. Jones, AIA, President of AIA Florida recently reminded us, “Behind every magnificent structure is an architect who helped create it.” In fact, behind every magnificent structure is a team of imaginative, experienced professionals who worked together to meet that goal. And we’re proud to say that many of those professionals are the clients of our members.

If you love design, follow our Pinterest board today!

a/e ProNet at SDA’s EDSYMPOSIUM12

By Lynda

Longtime design industry advocate, a/e ProNet, announced this week that ProNet President Leslie Pancoast will make a presentation at EDSYMPOSIUM12, the 42nd annual education conference hosted by the Society for Design Administration (SDA), an affiliate of The American Institute of Architects.

For more than 50 years, the SDA has promoted education and best practices for design firm administrative personnel. EDSYMPOSIUM12 will take place from May 2-5 at the Embassy Suites Hotel in Portland, Oregon. a/e ProNet will sponsor Saturday’s luncheon, where Pancoast will make a two-fold presentation: Introduction to a/e ProNet and Professional Liability—Coverages, Nuances and Endorsements. SDA members will learn more about a/e ProNet and its active support for the design industry, as well as receive a brief overview of professional liability coverage and the standard endorsements available from most professional liability insurance providers for architects and engineers.

About Leslie Pancoast

Pancoast has specialized in the insurance needs of architects, engineers and other design consultants for more than 20 years. She is a Managing Partner of Insurance Office of America (IOA), one of the largest privately-held insurance agencies in the country. She is also the Branch Manager of IOA’s San Francisco Bay Area office, operating in California as IOA Insurance Services, which she opened in 2005. Pancoast has earned the designations of Commercial Insurance Counselor (CIC) and Registered Professional Liability Underwriter (RPLU). She has been an active board member of a/e ProNet since 2005, and currently serves as the membership’s President.

About a/e ProNet

Established in 1988, a/e ProNet is a national network of specialist brokers. The group focuses on providing educational resources and risk management services to its members’ clients. Its member brokers represent a combined annual professional liability premium volume exceeding $300 million, giving top-tier insurance companies a major incentive to work closely with a/e ProNet to enhance their various a/e programs.

As well, a/e ProNet makes a wide range of Risk Management resources available to all design professionals via their website, including ProNet Practice Notes, Guest Essays, ProNetwork News, Contract Concerns, Typical Coverages, and Frequently Asked Questions.

a/e ProNet is excited about the opportunity to partner with the SDA in order to provide this value-added educational resource to design firm administrative personnel across the country.

Additional information is available about a/e ProNet by visiting their website, following them on Twitter, and/or Liking their Facebook page.

Right of Set-off on Unrelated Projects

By Lynda

The following is an excerpt for the most recent ProNet Guest Essay by Frank L. Pohl, Esq. and James C. Washburn, Esq.:

“Frequently, general contractors will work with the same subcontractor or supplier on two separate, unrelated projects. When that happens, the situation may arise that on the first project (Project A), the subcontractor defaults on its contract, resulting in a back-charge that exceeds the subcontractor’s contract balance, i.e. the subcontractor owes the general contractor money. On the second project (Project B), the subcontractor satisfactorily completed its work and is due money from the general contractor. It may seem obvious that the general contractor would have a right of set-off, allowing the general contractor to deduct the amount due from the subcontractor on Project A from the amount that the general contractor otherwise owes the subcontractor on Project B. Seemingly, the general contractor should only have to pay the net difference or be able to avoid paying the subcontractor anything if the back-charge on Project A exceeds the amount due on Project B. However, as outlined in this article, that seemingly straight-forward right to “net out” the competing claims might not always be available.

“There are several different factors that can frustrate the general contractor’s right of set-off. In some jurisdictions, state statutes may prohibit the general contractor from withholding from the subcontractor the amounts received from the owner for the subcontractor’s work, such statutes holding that those funds are held in trust for the benefit of the subcontractor. Some states might even find the withholding of funds received by the owner for the subcontractor’s work to be statutorily criminal. On projects covered by a payment bond, courts in some jurisdictions have held that even if the general contractor has a contractual right to set-off, the Surety may not. As a result, in those jurisdictions, notwithstanding the contractor’s contractual right of set-off, the subcontractor may be entitled to recover the full amount on Project B (from our scenario above) from the Surety without any deduction of the amounts the subcontractor owes on Project A. Given that the general contractor must almost always indemnify the Surety, such a result has the practical effect of eliminating the contractual benefit of a right of set-off. Additionally, in certain circumstances, by the discretion afforded to judges under the rules of civil procedure, courts have required the two competing claims to be handled by separate lawsuits independently and without regard to the general contractor’s claim of set-off. This article discusses these scenarios and others that impact the right of set-off.”

To continue reading, download a the full PDF version of this article at our website.

About the Authors:

Frank L. Pohl, Esq. and James C. Washburn, Esq. are partners in the law firm of Pohl & Short, P.A. in Winter Park, Florida. Pohl & Short, P.A. is a business boutique law firm concentrating in four main areas of business law: commercial litigation, real estate law, corporate law and trusts and estates. Mr. Pohl has been advising clients involved in all aspects of real estate development for over 30 years. Mr. Washburn practices construction law and is Board Certified in Construction Law by The Florida Bar.

This article is intended for general discussion of the subject, and should not be mistaken for legal advice. Readers are cautioned to consult appropriate advisors for advice applicable to their individual circumstances.

ProNet Client Project Profile: Mark Cavagnero, FAIA

By Lynda

The AIA recently published a profile of a/e ProNet client Mark Cavagnero Associates of San Francisco, CA. This year alone, this highly acclaimed firm has received the AIA California Council Firm Award, the Contract Interiors Award for Historic Restoration (UC Berkeley Durant Hall), and the IIDA Northern California Chapter Merit Award (East Bay Center for the Performing Arts). A full list of Cavagneros projects, clients, and awards can be found here.

The following is an excerpt of the AIA article entitled Mark Cavagnero, FAIA: Growing Big Ideas:

In 28 years of architectural practice, Mark Cavagnero, FAIA, has come to realize that his job is to give words and meaning to this voice that communicate ideas about clients, organizations, and communities… Cavagnero works mainly with public nonprofits and what he refers to as other “nonprofit-like” institutions. In addition to government clients at the city, state, and federal level, his firm works with cultural and educational institutions such as the Fine Arts Museums of San Francisco, the Oakland Museum of California, and the California Film Institute. Not surprisingly, when asked to distill key lessons from his years of practice, his thoughts immediately drift to concept and vision. Cavagnero has learned that it takes patience, active involvement, leadership, and a broad, generous understanding of function to execute a big idea, whether for a nationally recognized museum or a small community pool.

According to the company bio, “Mark Cavagnero Associates’ design process begins with a careful investigation of the client’s goals and the project site… The firm welcomes the constraints of program, site, and budget as frameworks within which to create engaging architectural spaces. It is in the focused response to these project elements that the essential character of each project finds its voice. The purity of response—in form, material, and relationship to light and context—is always the firm’s goal.” To read more about Mark Cavagnero Associates, visit the firm’s website.

We applaud this recognition of Cavagnero as an architect who champions the broader ideals of his field, and we urge everyone to read the full profile here.

ProNet Client Project Profile: Parish of St. Sophia – Valley Forge, PA

By Lynda

In honor of Easter Monday, we’d like to give a shoutout to a/e ProNet client CJK Design Group of San Francisco, California.

For CJK’s Founder and Principal, Christ J. Kamages, Architecture is spiritual work. The deep Christian Orthodox traditions of the Kamages family led Christ to consider a career in the priesthood. But an apprenticeship with Christopher Kantianis, AIA in Boston in the 1960s exposed him to architecture, design, and Byzantine theories and styles. An MIT science fair award for Byzantine Architecture, where he elegantly demonstrated how to place a round dome on a square base, permanently sealed his career and life mission. (Full Bio for Christ Kamages)

Kamages and his Design Team have a proven record of over two-hundred successfully completed projects. They stand ready to provide premier services that are reflective of each client’s vision and aspirations. Their deep appreciation of the spiritual diversity of their clients, their traditions and aspirations, has a major impact on CJK’s design approach and sensibility. (Full Vision for CJK Design Group)

On March 10, the Dome & Drum, Pendentives and Apse of the new Parish of St. Sophia in Valley Forge, Pennsylvania were revealed to a crowd of spectators. The impressive Byzantine temple was designed by a/e ProNet client CJK Design Group of San Francisco, California. Dr. George Kordis, the internationally renowned Iconographer, was present to give a short talk on the theological significance of the iconography inside the dome. The next day, the Parish blessed the 6th Century Justinian-inspired Crosses, also designed by CJK Design Group, and raised them into position over the enormous copper domes.

More details about the project, including photos of the dazzling iconography, can be found at PROCESS, CJK’s blog.

Congratulations to the Parish of St. Sophia on a spectacular new facility, and congratulations to CJK Design Group on a design both functional and beautiful, which stands as a beacon of the Orthodox faith.

Your Company’s Auto Liability – What’s Covered? What’s Not?

By Lynda

Other than Professional Liability claims, Auto Liability claims are the largest exposure faced by Architecture and Engineering firms.

If your design firm is small to mid-sized, often “a standard BOP (Business Owner’s Policy) is sufficient to meet your property and casualty coverage needs. A BOP combines the basic coverage requirements a small to medium sized business owner would need in a package.” Those insurance companies that understand the specialized needs of design firms sometimes combine certain coverage enhancements within their standard BOP. These enhancements can include extended coverage for architectural models, a waiver of subrogation (as is often required by project Owners during contract negotiations), and even some limited Auto Liabilty coverage.

“If your firm does not own any autos, the BOP can usually include ‘Hired and Non-Owned’ auto liability coverage. This would pay for damages to a third party, on behalf of your company, if an employee causes an accident while using a rented car or the employee’s own car while on company business. This addresses liability to others, but what about damage to the rented car? Some but not all insurers will provide this protection in a BOP; it’s usually referred to as Hired Physical Damage coverage.”

Our latest ProNetwork Newsletter, Your Company’s Auto Liability – What’s Covered? What’s Not?, focuses on the necessity of this coverage. A coverage which, if both architect/engineer and broker aren’t careful, can be overlooked at renewal time.

What does Hired Physical Damage cover? And why/when would you need this coverage?

Your star employees requests permission to attend a conference hosted by your state professional society. The conference is about 200 miles away. Public transportation isn’t an option; therefore, with an eye toward keeping expenses down, your employee decides to rent a car to drive to and from the event in one day. He asks you about taking out the rental car company’s insurance coverage. You mean to call your insurance broker, but, pressed for time, you decide that the BOP must cover this and you know that the extra insurance from the rental company would cost anywhere between $15 and $50 for the day.

Tragically, on the way home, your employee swerves to avoid some large debris in the roadway and inadvertently hits an oncoming car with a young adult driver and three co-workers who were headed home from a client’s golf outing. No one is killed, and fortunately your employee walks away unharmed. The other four, however, are not as lucky. All four are hospitalized, miss time from work, and require significant rehabilitation. Both vehicles suffer total loss.

To read about the outcome of this “doomsday scenario,” and to understand how Hired Physical Damage coverage can help, download the full PDF version of our newsletter here.

ProNetwork News is the latest value-added resource produced by a/e ProNet. Each monthly edition includes an informative, timely article relevant to the design industry and authored by an industry expert. Contact your a/e ProNet broker for early access to these excellent newsletters.

About the Author: Barbara Sable is Assistant Vice President for RLI’s Professional Services Group. She is responsible for developing the content of RLI’s risk management programs and addressing the day-to-day needs of policyholders. RLI is an a/e ProNet Platinum Sponsor.

Beazley & Engineers Without Borders (USA)

By Lynda

A couple of weeks ago, a/e ProNet Tweeted about the student chapter of Engineers Without Borders at San Jose State University. The young engineers are reaching out to the country of Ecuador with a plan to purify the water there. EWB-USA currently has 350 projects ongoing in 45 developing countries. It’s exciting to see the organization succeeding in its mission:

EWB-USA supports community-driven development programs worldwide by collaborating with local partners to design and implement sustainable engineering projects, while creating transformative experiences and responsible leaders.

This is why we’re proud to announce that one of a/e ProNet’s Silver Sponsors, Beazley Group, is reaching out to support EWB-USA.

Beazley Group (BEZ.L), a leading insurer of architects and engineers professional liability risks, is making its risk management webinars available to Engineers Without Borders USA (EWB-USA) as part of the non-profit’s new online training program.

James Schwartz, US architects & engineers focus group leader at Beazley, said: “Beazley is an innovator in providing design professionals with insurance and risk management services, and has done so for more than twenty-five years. We are pleased to offer our on-demand webinars to a wider audience through Engineers Without Borders USA in order to support its valuable work. Engineers Without Borders already provides exceptional education opportunities to its participants. Adding our presentations on a range of topics impacting design firms is a perfect complement to its vision.”

Beazley currently offers live risk management webinars to its brokers and insureds, attended by hundreds of design firm professionals as part of its overall risk management program. These recorded 90-minute webinars – which include topics such as international projects and advanced sustainable design – will be provided to EWB-USA members by the non-profit organization’s training partner, Contract Solutions Group (CSG).

Click here to read to full press release.

Beazley has been a key market for architects and engineers professional liability for more than 25 years. They insure firms of all sizes. From construction managers to environmental consultants, Beazley covers professionals in the full spectrum of the A&E industry. They also offer Privacy Liability Coverage as part of their basic A&E policy. Click here to read more about Beazley’s professional liability insurance program for Architects and Engineers.