ProNetwork News

When your office receives a request for qualifications (RFQ) or a request for proposal (RFP), do you immediately hear “Get the project descriptions! Who has the resumes? Show them how great we are…we have done hundreds of these projects. Get on it!” This represents the proposal preparation process for most firms. However, this approach may inhibit a firm’s objective: to attract clients and increase their loyalty to the firm. In turn, the common approach may actually interfere with rather than promote selection for a project! The assertion that qualifications and experience earn projects is a myth.

Recent court decisions and increasingly onerous client demands are creating substantial insurance related difficulties for design firms. This article will focus on the potentially hazardous and surprising consequences of adding clients and others as additional insureds to the A/E’s general liability insurance (CGL) policy(s). A recent Illinois Appellate Court Decision illustrates this threat:  Patrick Engineering Inc. (Patrick) v. Old Republic General Insurance Co (Old Republic). The basic facts are:

No engineering project is without risk. Somewhere between the goal of designing the best bridge, building or water treatment facility and running a profitable business lurks the ever present possibility of litigation. A legitimate disagreement can occur, a company can make a mistake, or a firm or government entity—or a member of the public—can file a lawsuit that forces the firm to defend itself and its work. “A lot of risks exist and they’r e not necessarily related to the quality of the work performed,” says John Moossazadeh, a senior vice president at Kleinfelder in San Diego.

We continue our overview of insurance products of interest to design professionals with this review of property coverages that may apply to the needs of your particular practice. As always, we encourage you to ask your broker what insurance is right for you.

In the last 20 years, regional and smaller design firms based in the U.S. have found a new demand for their  services in the international marketplace. Foreign clients now seek the services of boutique firms and specialty consultants, and what was once the sole domain of large design firms is far more common. This article will discuss the international liability exposures (except for professional liability) faced by architects and engineers who provide services abroad.