Blog Archives - Page 6 of 30

a/e ProNet Holds Annual Spring Meeting in Arizona

By Lynda

For the last few sunny days, a/e ProNet members from across the country have gathered in Scottsdale, Arizona for our annual Spring Meeting (March 1-3). a/e ProNet brokers are independent. Technically, we operate as competitors. Membership is by invitation only. We come together voluntarily as recognized leaders in our industry, meeting the insurance needs of architects and engineers. Our combined premium volume, experience, and national reach make our meetings an attractive target for insurance companies, premium finance companies, and other professionals. With our two annual meetings, we keep our fingers on the pulse of the insurance industry and advocate for our clients.

The Spring Meeting

The purpose of our Spring meeting has changed over the last three decades. Invited representatives from the companies and industries mentioned above present to the group on educational topics. This year, attorney David Ericksen of Severson & Werson in San Francisco also organized a series of five panel discussions:

Non-Traditional Project Delivery Methods
Cyber Communication Conundrums
The Prime/Sub Team: Roles, Responsibilities & Risks
Contract and Claims Connections
Material Transparency & Building Green

Ericksen staffed these panels with underwriters, claims adjusters, etc. from companies like Victor O. Schinnerer, AXIS, Hanover, RLI, Beazley, and several other a/e ProNet sponsors. The panel environment increases the awareness of each company regarding their competitors’ products and services. As well, it gives our members a quick, comprehensive understanding of the market’s overall perspective on these issues. Continue reading “a/e ProNet Holds Annual Spring Meeting in Arizona”

To Do in 2017: Take An Online Architecture Course

By Lynda

Ray and Maria Stata Center (MIT) designed by Pritzker Prize-winning architect Frank Gehry

Every day, technology opens new doors to current and future generations. Nowhere is this more apparent than in education. Video streaming capability allows anyone to “attend” classes at renowned universities, for example.

Harvard Graduation School of Design

One of the most recent examples is an introductory level architecture course from The Harvard Graduate School of Design. “The Architectural Imagination” begins on 23 February 2017, and will be available on edX, the Harvard/MIT-developed platform for “massive open online courses” or MOOCs. It will be taught by Eliot Noyes Professor of Architectural Theory K. Michael Hays, Professor of Architectural History Erika Naginski, and G. Ware Travelstead Professor of the History of Architecture and Technology Antoine Picon.

“Architecture engages a culture’s deepest social values and expresses them in material, aesthetic form,” reads the course description. “In this course, you will learn how to ‘read’ architecture as a cultural expression as well as a technical achievement. Vivid analyses of exemplary buildings from a wide range of historical contexts, coupled with hands-on exercises in drawing and modeling, bring you close to the work of an actual architect or historian.”

Harvard is offering this course for free, though there is a $99 fee required in order to receive a certificate of completion. As indicated by Archdaily, “The Architectural Imagination” is one of several architecture-related courses available on edX. Browse the catalog, and you’ll find others from “institutions including MIT, ETH Zurich, and the University of Tokyo.”

MasterClass

Another fun option for continued learning comes from MasterClass. This private education platform offers a series of video courses with some of the biggest names in arts and entertainment. The stated goal of MasterClass is to “give anyone the ability to gain the wisdom and knowledge of the world’s best creators.” Their current roster includes luminaries like Aaron Sorkin (screenwriting), Annie Liebovitz (photography), Dustin Hoffman (acting), Serena Williams (tennis), James Patterson (writing), and Gordon Ramsay (cooking). As of this spring, the great Frank Gehry (architecture) will add his name and skills to the list.

“At 19 years old, Frank Gehry was a truck driver taking sculpture classes at night school,” reads the course introduction. “His vision for what architecture could accomplish went on to reshape our cities’ skylines, and the imaginations of artists and designers around the world. Now this master builder invites you into his never-before-seen model archive for a look into his creative process.”

The MasterClass platform puts students in close touch with their instructors via engaging online classes, interactive assignments, course materials, student community and Q&A. All classes are available online for $90 each.

If You Build It, They Will Sue: Condominium Projects – Part I

By Lynda

Do architects owe a “duty of care” to the homeowners of a condominium project with whom the architects have no contractual privity? According to the California Supreme Court, they do. What does this mean in practical terms? The answer is that architects are now more than ever exposed to potential future claims and lawsuits brought by homeowners and the homeowners’ associations years after the project has been completed even where the architect’s design decisions are trumped by those of the project developer, and the architect’s role in the construction phase of the project is limited.

The purpose of this paper is to provide background on an architect’s potential liability to its client and third parties on condominium projects as well as guidance on how to prospectively address the concerns highlighted by a recent California Supreme Court decision and many other lawsuits in which architects have been sued by third parties. Specifically, we address the following topics: assessing your owner client, important contract provisions, and insurance issues. The intent is to provide a roadmap for architects in assessing their risks on condominium projects and a practical approach to addressing those risks. While it may not be possible to fully insulate architects from all risks, it is certainly a good practice to have a firm understanding of those risks and to address the risks up front. Benjamin Franklin is attributed with the statement: “In this world nothing can be said to be certain, except death and taxes.” For architects who design condominium projects, unfortunately, lawsuits should be added to that list. Continue reading “If You Build It, They Will Sue: Condominium Projects – Part I”

AIA Names Leddy Maytum Stacy Architects Nation’s Top Architecture Firm

By Lynda

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Leddy Maytum Stacy Architects, an a/e ProNet client hailing from San Francisco, California, has received the coveted AIA Architecture Firm Award for 2017.

“Firm principals William Leddy, FAIA, Marsha Maytum, FAIA, and Richard Stacy, FAIA, began collaborating in 1983 and the belief that architecture is the synthesis of poetics, economics, technologies, and meaning has always been embedded in the firm’s culture. Dedicated to addressing issues of resource depletion, climate change, historic preservation, and social equity, LMSA and its leadership clearly demonstrate that architects can help their communities adapt to a complex and rapidly changing world. To that end, the firm’s proficiency in diverse building types – from affordable housing to the adaptive reuse of historic structures – has been recognized with more than 140 design awards and are only one of three firms to have ever received eight AIA COTE Top Ten awards.”

Founded in 2001 by principals Marsha Maytum, Bill Leddy and Richard Stacy, LMSA is well known in the region for its long list of modern, sustainable projects. This includes the Ed Roberts Campus in Berkeley and North Beach branch library, as well as multiple low-income apartment buildings in the Bay Area. LMSA’s Plaza Apartments and Rene Cazeneve Apartments house “formerly homeless residents who need on-site support services to try to rebuild their lives.”

As noted by SFGate.com, “In announcing the selection, the AIA praised Leddy Maytum Stacy for its ‘highly influential work that advances issues of social consciousness and environmental responsibility.’ Only two other San Francisco-based firms have received the national firm award in the past 45 years: EHDD in 1986 and Gensler in 2000.”

LMSA has consistently ranked among the Top 50 firms each year since 2011. It considers itself “a teaching practice committed to developing complete, well-rounded architects, leaders in the profession and effective global citizens.” Read more in Architect Magazine.

Congratulations to Leddy Maytum Stacy Architects on this honor from the AIA! Your commitment to social consciousness and environmental responsibility is an inspiration.

Shout-out Credit

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

Construction Contracts and Bankruptcy: The Ultimate in “Value Engineering”

By Lynda

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You have just learned that the other party to your contract has filed for bankruptcy. That party owes you money for past work and the project is not yet completed. This is a difficult and confusing situation that your firm might encounter.

In this Practice Note, attorney Jeremy W. Katz provides insight into the bankruptcy mechanism and the steps you might take to protect your firm’s interests.

A prime designer or lead contractor on a design/build project files bankruptcy. Can a design professional/consultant working under contract to the entity filing for bankruptcy protection pack up its gear and walk off the job site or stop work? Can the consultant enforce its mechanics’ lien rights against the real property’s owner? Can the consultant look to the bankrupt’s payment bond for payment? A bankruptcy filed by one party to a construction contract creates significant problems that put at risk the other party’s right to payment. When this happens, the non-debtor party to the construction contract should be ready to act.

The construction business is a volatile one, and it makes little difference if times are good or bad. Prime contractors, consultants, subcontractors, and property owners are constantly filing for bankruptcy protection. They can be huge companies, such as Washington Group, International, Enron, and PG&E, or they can be small mom-and-pop operations. But no matter how large or small the bankruptcy, creditors are likely to suffer, because rarely are they paid in full. All bankruptcies have a ripple effect; the goal is to keep the waves as small as possible. In order to best protect its interests, the creditor should have some knowledge of creditors’ rights and remedies. This knowledge allows the creditor to recognize, anticipate, and act upon issues that arise in a bankruptcy.

This article identifies some of the issues that arise when a bankruptcy is filed, as well as steps a design professional/consultant or subconsultant can take to protect its interests in the project contract. First, this article describes the bankruptcy process from a general standpoint. Second, it discusses specific issues related to the bankruptcy of owners and primes, whether they are design firms or contractors on a design build project. This article is not intended to be a comprehensive study of the topic, nor is it a substitute for a good bankruptcy lawyer. Its purpose is to allow a consultant to identify problems that may affect a construction contract when a bankruptcy is filed. This knowledge makes it more likely that the contractor will fare better than other creditors in the fight to be paid.

Download the full article–Construction Contracts and Bankruptcy: The Ultimate in “Value Engineering”–to continue reading the following sections:

How Bankruptcy Works – An Overview
Pending or Executory Contracts
Perfect Your Mechanics’ Lien Rights!
The Automatic Stay
Unauthorized or Preferential Transfers, or Having to Give Money Back to the Debtor

If you have further questions on construction contracts and bankruptcy, contact your local a/e ProNet broker. We’re here to help!

Indemnification Clause Templates for Architects & Engineers

By Lynda

We’ve posted several times about the confusion surrounding so-called “standard contracts,” as well as the most commonly misunderstood clauses in design professional contracts. When reviewing a new contract for the first time, it can be helpful to know what sound contract language looks like. In February, we published an issue of ProNetwork News titled Template of Reasonable Contract Clauses for Design Professionals. In it, author Kent Holland of ConstructionRisk, LLC lays out 16 templates to help architects and engineers deal with contract review and negotiation.

The following is an excerpt of the Indemnification clause portion of the newsletter, including six different templates for this deceptively complex contractual requirement:

In the examples provided below, some include an obligation to indemnify a client for reasonable attorneys fees and defense costs. To the extent the a/e is required to pay attorneys fees for its client only because it obligated itself do so by the indemnification clause (i.e., attorneys fees would not be imposed on the a/e by a court under common or law or statute), then these costs will not be covered by insurance. The contractual liability exclusion will bar their recovery.

Sample 1:

Consultant shall indemnify and hold harmless the Client, its officers, directors, employees, from and against those liabilities, damages and costs that Client is legally obligated to pay as a result of the death or bodily injury to any person or the destruction or damage to any property, to the extent caused by the willful misconduct, negligent act, error or omission of the Consultant or anyone for whom the Consultant is legally responsible, subject to any limitations of liability contained in this Agreement. Consultant will reimburse Client for reasonable defense costs for claims arising out of Consultant’s professional negligence based on the percentage of Consultant’s liability.

Sample 2: For California contracts must add that there is no duty to defend:

Consultant shall indemnify and hold harmless (but not defend) the Client, its officers, directors, employees, from and against those liabilities, damages and costs that Client is legally obligated to pay as a result of the death or bodily injury to any person or the destruction or damage to any property, to the extent caused by the willful misconduct, negligent act, error or omission of the Consultant or anyone for whom the Consultant is legally responsible, subject to any limitations of liability contained in this Agreement. Consultant will reimburse Client for reasonable defense costs for claims arising out of Consultant’s professional negligence based on the percentage of Consultant’s liability.

Continue reading “Indemnification Clause Templates for Architects & Engineers”

Two a/e ProNet Clients Win AIA Indiana Design Awards

By Lynda

Normal Hall in the evening shortly before unveiling. Photo credit: arcDESIGN

Last month, AIA Indiana announced the winners of their annual awards. Happily, a couple of familiar names were among the group.

ONE 10 STUDIO Architects came away with two awards. The first was a Merit Award (Preservation / Adaptive Reuse / Reservation) for the Marion County Public Defender Agency project.

Jury Comments:

Though entered as an adaptive reuse, this project was the strongest interior as well. A small number of elements (red doors, wood ceiling panels, white walls) are employed to create spaces that elevate the program – a public defender’s agency. The new systems are clearly articulated and juxtaposed with the historic shell that contains them.

ONE 10 STUDIO also achieved a Citation Award – New Construction (Project cost greater than $1 million) for their Reliant Partners project.

Jury Comments:

This small commercial building is expressed as a simple, wood frame pavilion placed upon a masonry plinth. This strategy allows the lower level bank to appear (appropriately) secure, while allowing the upper level office space to be airy and filled with daylight. The scale of the building appears to complement the neighborhood without copying the neighbors.

Also honored with a Citation Award (Preservation / Adaptive Reuse / Renovation) was arcDESIGN for their project at Indiana State University Normal Hall.

Jury Comments:

This project lovingly restores a series of public spaces lost and hidden by years of ill-conceived renovations. The preservation component of the project was thoroughly researched and painstakingly executed – recapturing the grandeur of this academic building. The work was very clearly communicated allowing the extent of the renovation to be completely understood.

Congratulations to all the Indiana design firms who won! And good luck going forward.

Shout-out Credit:

Holly Gill-Gaither, CIC
Agent, Professional Liability
Walker & Associates
Email: holly@walkeragency.com / Phone:317-759-9320

Cyber Security Awareness & Last Week’s DDOS Hack

By Lynda

Navigating your continuously connected life

If you used the internet last Friday, chances are you experienced a few problems. Twitter, PayPal, Spotify, Netflix and AirBnB were just a few of the major websites struggling throughout the day. News sites across the country, including The New York Times and The Wall Street Journal, had trouble, too. This was the result of a distributed denial of service (DDOS) attack, a brand of malicious hacking that the cyber security industry knows well.

A typical DDOS attack involves a hacker or hackers using malicious software to infect thousands of computers. They then control those infected machines to coordinate an attack, overwhelming a website with too much traffic until it crashes. Friday’s DDOS attack was more complex and more powerful.

First, the hackers didn’t use a mere “bot-net” of infected computers. They used millions of infected webcams, closed-circuit TV cameras, DVRs, routers… the so-called Internet of Things.

As NPR technology reporter Alina Selyukh explains:

“We’ve all been buying these new things, connecting them to Wi-Fi. Internet wonks will call this the internet of things. Experts have been warning that these things are never secure. This is the most visible example so far of what happens when hackers hijack a tremendous number of them.”

The other thing that set this attack apart was the target. Certainly, the major companies affected by the rolling attack throughout the day were targets, but it does not appear that any one of their websites was hit individually. Instead, the hackers targeted a company called Dyn.

“[I]t is the kind of company that sits between you and a website that you’re trying to access. When you type in a web address, it makes sure that you land exactly where you intended,” Selyukh told NPR. “And Dyn’s clients are some of the most popular websites and services out there.”

Friday’s events prove that technological innovation often advances faster than technology security. We’re all vulnerable when that happens.

National Cyber Security Awareness Month

October is National Cyber Security Awareness Month (NCSAM), an initiative created to bring awareness to issues like this one, and to encourage collaboration between government and industry to serve the American public. As part of the annual campaign, Stay Safe Online offers a collection of resources to educate and assist you in shoring up your own cybersecurity. These are useful both personally and professionally, so we hope you’ll check them out.

And for those interested in insuring against potential losses due to cyber risks, many top tier professional liability insurance carriers also offer cyber liability insurance for design professionals. Here are just a few:

PUA Cyber Liability Insurance

RLI Cyber Liability Insurance

Travelers Cyber Liability Insurance

Victor O. Schinnerer Cyber Liability Insurance

Keep those passwords strong!

Hargreaves Wins Rosa Barba Prize for Int’l Landscape Design

By Lynda

In Barcelona last month, a/e ProNet client Hargreaves Associates received the Rosa Barba International Landscape Prize for Queen Elizabeth Olympic Park. Senior Principal Mary Margaret Jones was on hand to collect the 15,000 Euro prize and spoke briefly about the project, which she helped design for the 2012 Summer Olympics in London.

The park converted an abandoned industrial area of the capital. After years of pollution damage, the riverbank needed rehabilitation, and Hargreaves found a way to do it. At 270 acres, Queen Elizabeth Olympic Park is the largest park created in Europe in more than 150 years.

As Jones said, the goal was to develop the area in a beautiful, sustainable way. Hargreaves Associates collaborated with London’s LDA Design on the innovative master plan. They combined traditional British landscapes with forward-thinking trends in green design. They hoped it would continue to be an asset to the city in the years after the Games had come and gone. The theme of the 9th International Biennial of Landscape Architecture was “Tomorrow Landscapes,” so the olympic park was the perfect candidate for the prize.

Learn more about the development of the park

Watch a short film on the creation of the park posted by the UK Landscape Institute. Or read more about the design at the Hargreaves website:

“The head gardener of the Olympic Park says,”This may have the feel of a Chelsea show garden, where everything has been grown to be at its best for the same limited period of time, but it really isn’t. After the Games, everything will be allowed to flower at its natural time of year. I’ve been a gardener for 35 years and I’d always previously worked on private estates because most municipal gardens are a bit crap. But this park is absolutely stunning.”

Congratulations to Hargreaves Associates! Read more about the award and ceremony at World-Architects.com.

Shout-out Credit:

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