????????????????????????????????????????If you or someone you know is an architecture student, we’ve got some good news. Each year, we offer a pair of scholarships in partnership with the AIA, and the deadline for the 2015 applications has been extended through the end of the week!

The scholarship is open to fourth-year undergraduates, and graduate students of architecture enrolled in an NAAB-accredited professional degree program. The promotion and selection are handled entirely by AIA. Eligible candidates are required to submit an application to AIA’s national headquarters in Washington, DC, on their standard application form. Submissions are reviewed by jury members of the AIA Practice Management Knowledge Community. Candidates must submit a copy of their transcripts, two letters of recommendation, and an essay on how they would resolve a project management dilemma.

Extended Deadline: 17 April 2015

How to Apply

We want to help architecture students succeed. Good luck to all who apply!

Read about past winners of the a/e ProNet AIA David W. Lakamp Scholarship here.

“Brochurebiage”

brochurebiage

Yes, “brochurebiage” is a word we made up. It refers to that optimistic and puffed‐up verbiage that can creep into a professional’s brochures or other promotional materials. Many people are rightfully proud of their past work and skill and need to sell that experience and ability to prospective clients. However, use such language with caution.

Licensed professionals promoting themselves as the best around can be an effective way to attract clients. The risk comes when they enter into a contract that refers to or incorporates language in promotional material because it could needlessly raise the standard of care. In California, while licensed professionals may hold themselves to a high personal standard, the default legal standard by which professional negligence or malpractice is evaluated is the standard of care of an average professional in the same field and community. This default standard of care is favorable for licensed professionals because it means to avoid liability, they do not need to be perfect. After all, who is?

This average standard of care can be modified however through contract. Professionals sometimes inadvertently do this when a contract refers to or incorporates a proposal or other promotional item that promises superlative services or the “highest standard of care.” Including a standard of care that goes beyond what is required by law unnecessarily raises the bar for performance and exposes the professional to a greater risk of liability if there are allegations that the work was anything less than perfect. Additional problems may arise because professional liability insurance typically covers the average standard of care, so a contract promising a higher standard might not be covered, which could leave the professional on the hook alone.

To minimize this risk, avoid exaggerated language that over‐promises in contracts. Rather than say a professional will provide the absolute best services, say they work hard to provide professional services that lead to successful projects. Show clients examples of superlative work. Finally, avoid contracts that refer to or incorporate promotional materials because that could unnecessarily raise the standard of care, or limit such incorporation only to the scope or fee portion of the proposal. Highlighting past success and emphasizing skill is necessary to generate business, but exercise caution and balance when using or referring to brochurebiage in contracts.

This article has been reprinted with permission from its authors, David E. Barker and Erin Dunkerly of Collins Collins Muir + Stewart LLP in California. 

Nothing contained in this article should be considered legal advice. Anyone who reads this article should consult with an attorney before acting on anything contained in this or any other article on legal matters, as facts and circumstances will vary from case to case.

constclaim

Before a design professional decides whether or not to report a professional liability claim, or circumstance out of which a claim might arise, he or she must understand the definition of a claim, circumstance and what is required of them under their policy. The pros and cons of reporting or not reporting a claim are more fully explored in this Practice Notes.

Why Firms Neglect to Report Claims

From an insurance provider’s point of view, it seems that design firms faced with a claim (or a potential claim) too often come close to jeopardizing their professional liability insurance (PLI) coverage. Many firms resist calling their insurance provider to report the matter or ask for advice. Their reasons tend to fall within one of four categories:

Ignorance. They do not realize what their policy requires of them when they are presented with a claim or possible claim.

Fear. They fear the black mark on their claim history more than they fear the claimant.

Denial. They believe that ignoring the problem will produce the best result.

Resolve. They have read their policies, understand the risks, embraced that the issue exists andafter this careful analysis, choose not to report.

Know Your Terminology

Claims

It is critical that insurance policyholders understand their duties, responsibilities, and benefits under their PLI contract. One of the duties is to report all claims promptly.

What defines a claim? Most policies refer to it as a “demand for money or services.” So the telephone call from the angry client asking you to pay for damages they believe they have suffered as a result of your professional services would rise to the definition of “claim” under most policies.

Why is this definition important? Remember, you must report claims promptly. Failure to meet your obligations under the insurance policy may jeopardize your coverage.

Possible claims

It is important to know how your insurance policy defines a “claim” versus a “possible claim.” Possible claims typically do not rise to the definition of “claim” but could become one. Policies generally define possible claims as “a circumstance from which you reasonably expect that a claim could be made.”

Are you required to report these instances to your insurance company? Maybe. Most policies read, “if you report a circumstance,” but some state, “you must give written notice.” The circumstance provision in most policies goes on to say that if you follow the reporting requirements, “then any claim that may subsequently be made against you arising out of such circumstance shall be deemed to have been made on the date the insurance company received written notice of the circumstance.”

With some policy forms, firms have a fair amount of discretion on whether to report a “circumstance,” unlike the requirement that you promptly report all claims. Keep in mind that most PLI policies for design firms are claims-made, which means that insurance cove rage is not retroactive to an unreported occurrence. Continue reading “To Report or Not To Report? A Potential Claims Question…”

nutes_and_boltsNuts+Bolts is a “an exclusive ArchNewsNow monthly series to provide A/E professionals with practical tips for a more successful, profitable practice.” All ten articles currently listed are worth a read, and we hope the series is slated to continue. The authors are architects, consultants, insurance professionals, and financial advisers, all of whom offer a timely perspective on the state of the design industry. After perusing the library, here are four posts with the potential to help you and your firm in a risk management capacity:

#1 Nuts + Bolts: Mission Possible: Increase Your Value Without Lowering Your Fees

In this economic climate – or even in a good market – it may be tempting to lower your fees to stay competitive. However, lowering your price is not something you should immediately consider when faced with reduced revenue. As an alternative, you should seek to inject as much value into your services as possible. This will allow you to increase the intrinsic worth of your services, encouraging your clients to pay an appropriate fee for quality, not just quantity. But if you’re convinced that lowering your fees is a solid strategy that will boost your bottom line, think again. Here are a few reasons not to.

#2 You Can’t SELL If You Can’t TELL

You went to architecture school to become a good communicator…right? I’ll take a risk and say that chances are you probably didn’t. But if you want to be a great architect, engineer – or any other kind of professional – you need to know how to communicate clearly and effectively. You simply can’t avoid it. You communicate every day, whether you are meeting with colleagues in your office, talking to a client on your cell phone, e-mailing a consultant, or tweeting your followers. While we live in the digital age, and communication may seem to flow easily, there’s a lot more room for error. We’ve all had that gut-wrenching feeling of hitting the “send” button on an e-mail that had the wrong content or went to the wrong person.

#6 Changing Habits: The Secret to Successful Time Management

No time to grow your business? Learn to set aside time, clearly identify goals, and change bad habits, and you’ll transform your business development efforts from a waste of time into a productive enterprise. Most budding architects are initially attracted to the design side, rather than the business side, of their profession. As a result, many architects never develop the skills necessary to build their businesses. But just as design and project management are part of your daily routine, you should set aside time for business development as well. How do you make time for business development when you’ve been avoiding it or aren’t sure how to fit it into your day-to-day practice? The trick is to fundamentally and permanently change your habits. This sounds daunting, but you can achieve it if you follow these practical steps.

#8 Best Friends Don’t Make the Best Partners

In popular culture (and at most architecture schools) the architect is often portrayed as a lone figure, from Howard Rourke in Ayn Rand’s seminal work, The Fountainhead, to Frank Lloyd Wright, to Frank Gehry. Most people perceive architects to be creators working alone in the dark. Contrary to popular belief, it takes more than a single artist to make a great building. Most architects know that. What’s less obvious is that, in reality, most successful architectural practices are not sole practitioners but partnerships.

About the Authors of the Nuts+Bolts Series:

Michael S. Bernard, AIA, Principal, Virtual Practice Consulting

Mary Breuer leads Breuer Consulting Group

Founder of integrated communications firm Hausman LLC, Tami Hausman

Donna L. Maltzan is a business development trainer, facilitator, consultant and coach

Michael M. Samuelian, AIA, AICP, vice president at Related Companies

Stanley Stark, FAIA, LEED AP, a New York City-based architect who has held senior leadership positions with major firms including HLW, HDR, and Francis Cauffman

Steve Whitehorn, managing principal of Whitehorn Financial Group, Inc., the creator of The A/E Empowerment Program®

pisaIn high-stakes professions like Architecture or Engineering, mistakes can be devastating. This is why professional liability insurance is so important! But to keep today’s post on the lighter side, we’ll point you to something happier in this vein. a/e ProNet member Professional Design Insurance Management Corporation recently shared this post, 5 Mistakes in Architecture with a Silver Lining, on their company blog:

Mistakes are part of life. Mistakes in architecture are part of many lives. However, failures lead to learning – and sometimes it leads to great discoveries.

Improvements in Design

Much of what we know today about technology, architecture, and almost every other subject imaginable comes from past failures. Some were discovered in a lab, but many others were discovered in the field. Any time a failure happens, professionals in that industry make concerted efforts to learn what caused it in order to improve future works.

Fidenae Amphitheater is one example of a structure that collapsed due to inadequate design. As people piled in to watch gladiator fights, the building collapsed due to the collective weight, teaching future engineers to account for the weight that a structure can accommodate.

Thinking Long-Term

Durability is very difficult to determine without experience. Developers can conduct numerous tests to determine whether a design will hold up for months, even years, but what about decades? Over time, we’ve all learned that certain materials aren’t ideal for a building’s design, for instance, and we’ve had to tear down multiple buildings and reconstruct them with materials that have proven durable over time.

Before an earthquake destroyed it in 1303, the Lighthouse of Alexandria was considered one of the Seven Wonders of the World. A more recent example is the John Hancock Tower, which had structural problems that led to windows falling and extreme swaying. This helped engineers learn the unique needs of extremely large buildings like skyscrapers.

Considering External Factors

Testing is almost always conducted in a closed environment, without factoring in things like weather conditions and user error. Once a product or design leaves the lab, though, those conditions become all too clear. Often it is only by actually letting the world see your handiwork that you can find its flaws and fix them.

The world learned this lesson through projects like the Tacoma Narrows Bridge, which didn’t survive a windstorm, going down in history as one of the biggest bridge design failures.

Out of Sight Shouldn’t Be Out of Mind

Often the most important elements in a design are those that can’t be seen. This is clear in the fact that the supporting foundation of a building must be carefully checked for structural integrity. Failure to be extremely cautious during the development phase could become a public safety issue later.

One of the best examples of this is the Leaning Tower of Pisa, which shifted due to being built on marshy land, emphasizing the importance of ensuring a structure’s foundation is reliable. In 1928, the collapse of the St. Francis Dam highlighted the importance of continual inspections of dams and similar structures to keep the public safe.

Consider Other Disciplines

One of the most important lessons that can be learned from history is that there is no limit to learning. One industry can learn from the mistakes of those in another industry. Even basic building design concepts can provide valuable physics insight that can be used in a wide variety of applications.

Many of the successes we have today are thanks to our past failures. Through a process of trial and error, we find out what works and what doesn’t. If we can simply learn to see small setbacks for exactly what they are, we’ll find the courage to keep moving forward despite our mistakes.

PDI has lots of other great blog posts. We suggest you pop over there and read up today.

PNN_1407The construction phase is a dynamic time of a project and a design professional’s involvement is significant from a risk management perspective since it allows the design professional the opportunity to provide input during the construction of the project.  Since no designs are perfect (and, moreover, are not expected to be perfect to still meet the standard of professional skill and care), all designs require some level of interpretation that is best done by the design professional who created them.  During construction, the design professional can visit the jobsite to determine if construction is proceeding in general accordance with the plans and specifications and clarify the design intent when necessary.  This article addresses issues design professionals should consider if they provide services during this phase.

Do you have the resources?

The firm must have sufficient staff to devote to this important phase of the project.  The services during this phase require experienced professionals who know how to handle themselves on the jobsite and how to successfully complete tasks in the office.  If junior professionals perform construction phase services, the firm must ensure senior professionals are available to (and actually do) mentor the junior staff.  A successful mentoring program requires regular and meaningful communication between junior and senior staff who need to be proactive to nurture the mentoring relationship.  Mentoring is a two-way street:  it will not be effective if busy senior professionals do not devote time to advance junior professionals’ development and junior staff must take the initiative to seek out senior staff for guidance.

What does your contract say?

Industry standard documents have relatively balanced language regarding the construction phase.  However, design professionals are often faced with a client-

proposed document that may not include appropriate language for the design professional’s involvement in the construction phase. Continue reading “Construction Phase Services: Considerations for a Successful Outcome”

Wortham_logoJust as nobody wants to think about insurance until they need it, nobody wants to spend their time thinking about things like Crisis Management Plans. But, as with insurance, the only way a Crisis Management Plan can be useful to you is if you have established one before the crisis comes.

One of our members, Wortham Insurance & Risk Management, recently published a Risk Management Bulletin on OSHA Inspections, and it’s relevant to this precise consideration.

Who are you going to call? When the OSHA inspector shows up or a serious accident occurs at your worksite… who are you going to call? If you answered Ghostbusters… you may be in trouble. May I suggest having a system in place that outlines the procedures to be followed in the event of an emergency or OSHA inspection?

Based on the nature of the risk for construction operations it is very important for every organization to have a Crisis Management Plan which includes how to deal with governmental agencies.

What is a crisis? An explosion, a worker fatality, a bad truck accident, a hurricane? All of these can potentially be a crisis. So, when is a crisis reached? When questions arise that can’t be answered. (Kapuscinski 1932) The key to crisis management is to know the answer to the questions before they happen.

When it comes to an OSHA inspection the process should be no different.

Develop policies and procedures so all parties know the law and their individual responsibilities. The goal is to make the inspection process go as smooth as possible while maintaining control of the environment as much as possible. If you are prepared this will create a positive impression for the compliance officer and result in fewer citations for the organization.

To continue reading this valuable bulletin, including sections on knowing your rights and making a reliable plan for OSHA inspections, download the full PDF of the newsletter here.

2015Since 12:01 a.m. on Thursday morning, some of us have resolved to run a 5K by Easter, or to hike a few of Colorado’s famous “Fourteeners,” or to try every brewpub in Portland before 2015 is out. Some have decided to spend more quality time with our families, or learn how to use a food processor, or solve the NYT Sunday crossword at least once without help. These are all excellent personal goals for the new year. In case you’re looking for similar inspiration for New Year’s Resolutions for your business, we thought we’d point you to Mark LePage’s The Entrepreneur Architect Podcast.

The following is an excerpt from the blog post accompanying a recent episode titled Top 10 Ways Architects Can Earn More Money:

“As a requirement for licensure, registered architects are responsible for the health, safety and welfare of every occupant in every project we design. Like any small business, architects must pay the typical operating expenses required to remain buoyant, such as utilities, professional service fees, consultants’ fees, insurances and several other overhead expenditures. But wait… for architects, there’s more. To protect us from the liabilities inherent in our responsibilities as licensed professionals, most architects also purchase an additional Professional Liability insurance policy costing several thousand dollars each year.

“Then, there’s that little thing called profit.  Every business, including architecture firms (yes, its true!), must earn a profit. It’s one of the rules to “the game”. In order to continue pursuing our success as architects, we must not only cover our expenses and take home a salary, we must make enough to reinvest into the business.

“Most sole proprietors and small firms I know, struggle to meet the minimum requirements of operation. Forget about profit.

“Simply stated… Architects just don’t make enough money.

“On this episode of The Entrepreneur Architect Podcast, I am sharing my top 10 ways architects can earn more money.”

New year; new bottom line. We hope this resource helps you in your endeavors this year. All the best to our readers in 2015!

About the Podcaster:

Mark R. LePage, AIA, a licensed architect in the State of New York, is the Partner in Charge of Operations at Fivecat Studio Architecture, a leading residential architecture firm located in Westchester County, New York (about 40 minutes north of New York City). Mark and his wife, architect Annmarie McCarthy, launched Fivecat Studio in 1999 at the age of 29 with no money and no clients. Together they have grown the regional firm to a staff of six, managing projects worth more than $10 million. Mark is the founder of Entrepreneur Architect, this online education resource inspiring architects to build better businesses. He launched the blog in 2007 as a personal project to document ideas for business success. In 2012, Mark relaunched Entrepreneur Architect at EntreArchitect.com and introduced the The Entrepreneur Architect Podcast. Working to become an influential force in the profession, Mark’s mission is to teach sole proprietors, small firm architects and students the importance of business success in the profession of architecture.

PNN_1405Seen any changes the past thirty years in the delivery of professional design services?  Sure, you have—particularly in the area of construction documents. Raised stools and drafting tables, pounce, and lead-darkened calluses on the middle finger of the draftsmen have, for the most part, yielded to CAD. Although CAD’s promise of error-free drawing may have proven elusive, many of its other promises have been fulfilled. Some even appear understated in hindsight—in part because CAD and the Internet seem to have been made for each other. Their combined effect reduces trying to list all the ways CAD has changed project delivery to a futile exercise.

Like CAD in the ‘80’s, BIM seems to hold similar promise today—a fact not lost on contractors, A/E’s, and project owners alike. Digital models are more-and-more often offered or requested as “deliverables.”  And multiple models for the same project are not uncommon—as building team participants explore their usefulness at various stages of design and construction. Some models are used much like enhanced CAD construction documents, provided and controlled largely by the A/E. But many incorporate data contributed by sources other than licensed design professionals, including suppliers, fabricators, contractors, and subs. Not surprisingly, many contractors and construction managers view BIM as a means for carving out an increased share of the project delivery pie—and are taking full advantage of it as both a marketing and performance tool. Some of them have even become the primary creators and custodians of digital models. Of course, that is not altogether unnatural. After all, it’s hard to ignore a tool that can show what will be built—and also to be useful in actually building it. Continue reading “The Design Professional in the Age of BIM: Things that change; things that don’t.”