For architects, engineers and other design consultants, Professional Liability insurance (Errors & Omissions insurance) can seem like an annual headache. Once a year the app gets dropped in your lap; thus begins a process that, at times, seems fairly–er–intimate.

Cue the bright lights.

Report your billings! Tell us how many jobs you’ve completed! What kinds of projects did you do? What percentage of your billings went to subcontractors? How many employees left your firm? Describe your loss history!

Contracts require the coverage, so there’s no getting around the process, but does it really need to feel like you’re getting the third degree? Is the requested information that important?

According to the 2011 ACEC/AIA/NSPE annual Professional Liability insurance survey of carriers, Professional Liability insurance premium “rates depend largely on four main characteristics:”

  • Annual Billings
  • Type of Practice
  • Claims History
  • Project Types

So, yes. Your application matters every year. Your insurance broker will take this year’s application and place it side by side with last year’s. This can provide the kind of overarching perspective needed to secure fair renewal terms for your firm, both from your current insurance company and from other companies for your comparison. It’s a drill, certainly, but it can save you money and ensure that your firm is appropriately covered based on its unique practice.

Insurance premiums are often a major part of a design firm’s overhead, and the most commonly asked question at renewal time is usually, “Will my professional liability premium be going up this year?”

For an accurate answer, it’s best to go to the source. Sixteen Professional Liability insurance providers responded to the survey mentioned earlier; among them are several of a/e ProNet’s sponsors, including:

RLITravelersVictor O. SchinnererLibertyBeazleyCatlinHCC

The results of the survey are broken down and explained in the most recent issue of Engineering, Inc. (an ACEC publication); these include some interesting projections about the future of Professional Liability insurance, its underwriting parameters and its premiums.

Though experts do not expect the long-sustained “soft market” to change dramatically, “about half of the carriers that responded… anticipate a slight increase this year. Seventy-five percent of respondents expect price hikes in 2013.”

The full article is available along with the rest of the Engineering, Inc. Jan/Feb 2012 issue here. It goes on to address several more important insurance renewal questions, including:

  • How do I pick a Professional Liability insurance provider?
  • What limits should I purchase? How high should my deductible be?
  • If my business is down, why should I continue to carry Professional Liability insurance?
  • What steps can I take to keep my premium down as the design and construction industries continue to recover?

The full results of the 2011 ACEC/AIA/NSPE annual Professional Liability Insurance survey of carriers will soon also be available at the ACEC website.

After a year-long investigation, the Los Angeles District Attorney’s office charged German architect Gerhard Albert Becker last Wednesday with involuntary manslaughter in the death of L.A. firefighter Glenn Allen.

On February 16, 2011, more than 80 Los Angeles firefighters responded to a blaze at a 13,500-square-foot mansion in the Hollywood Hills; the home, valued at $11M, was slated to be the backdrop of reality TV show Germany’s Next Top Model later that same month. As the fire spread, the second and third floors partially collapsed, burying veteran firefighter Glenn Allen under hundreds of pounds of lumber and plaster debris.

Though Allen’s colleagues were able to dig him out with chainsaws, the firefighter ultimately succumbed to his injuries; he died two days after the fire.

As reported by the L.A. Times, “Building inspectors said Becker had told them there were no plans to build fireplaces in the home, and none were spotted during a final inspection. After the fire, investigators discovered that he had installed four outdoor fireplaces inside the home, a violation of city building codes.”

This is a case worth watching for design professionals as it is, according to Southern California attorneys Brian Stewart and Ryan Harley (both of Collins Collins Muir + Stewart LLP), “the first time in memory that a designer (or contractor for that matter) has been charged criminally with manslaughter in connection with design or construction of a building.”

The following is an excerpt from a short article released by CCM+S which provides a brief explanation of the allegations:

“After a year-long investigation, Mr. Becker was recently charged by the District Attorney with one count of involuntary manslaughter in connection with the death of Mr. Allen. As used here, involuntary manslaughter is defined as an ‘unlawful killing which takes place during the commission of a lawful act, which involves a high risk of death or great bodily harm, that is committed without due caution or circumspection.’ See California Penal Code section 192(b)(2). Acting ‘without due caution or circumspection’ is akin to criminal negligence, and basically amounts to reckless behavior which a normal prudent person would not have engaged in under the circumstances. For comparison, this is the same statute which was recently used to convict Michael Jackson’s doctor Conrad Murray.”

You may download the full PDF at the a/e ProNet website.

Cream of the Crop: The 2012 AD100

As we perused the 2012 Architectural Digest Top 100 list of architecture and design firms, “trailblazers and standard-bearers whose work is imaginative, intelligent, and inspiring,” we were excited to see a few familiar faces! Congratulations to the ProNet clients who made the cut:

Allan Greenberg Architect has offices in New York City, Washington, D.C., and Greenwich, Connecticut. As Architectural Digest’s profile notes, “Historically inspired facades, ample but thoughtful doses of ornament, and, of course, columns of all orders distinguish his celebrated work.”

Backen, Gillam & Kroeger Architects has offices in Sausalito and St. Helena, California. Principal “Howard J. Backen has a well-earned reputation among top Napa and Sonoma vintners as the go-to guy for beautifully designed houses and wineries alike,” according to the Architectural Digest profile.

McAlpine Tankersley Architecture is an Alabama firm whose portfolio “is replete with artistic houses fusing oriel windows, swooping slate roofs, and quirky asymmetrical wings.” The Architectural Digest profile also mentions “the company’s interior-design branch, McAlpine Booth & Ferrier Interiors, and the handcrafted furniture line produced by the McAlpine Home division.”

Once again, congratulations to our celebrated clients on this honor. And don’t forget to check out the rest of the 2012 AD100.

Since its June 2011 completion, the new Poetry Foundation Headquarters in the River North district of Chicago, designed by a/e ProNet client John Ronan Architects, has turned quite a few heads. First, it received a glowing write-up in the Architectural Record:

“In keeping with the art form it serves, the new Poetry Foundation is a respectful, restrained building that employs an economy of means and methods, just as a good poem employs an economy of language.”

Then, earlier this month, the graceful, angular building received the Honor Award from the American Institute of Architects. While this could be simply another feather in the hat of the prestigious Chicago architect, John Ronan continues to hold fast to the basic integrity at the foundation of his practice. In a recent interview with the Chicago Tribune, Ronan pointed out, “There’s sort of an ethical imperative when you’re doing public architecture to serve the public and not your own ego. Where do you want to put that money: on geometry, a weird shape, or put it [into interior] spaces?”

The following is an excerpt from the Jan. 15 Chicago Tribune profile of Ronan, a piece entitled Rising star John Ronan has risen:

“Last week was a good one for Ronan. His Poetry Foundation building, an austere but richly layered modernist design at 61 W. Superior St., won a prestigious Honor Award from the American Institute of Architects. And his South Shore International College Prep High School, at 75th Street and Jeffery Boulevard, was splashed across four pages of the January issue of Architectural Record magazine. Meanwhile, he’s leading the search committee for a new architecture school dean at the Illinois Institute of Technology.”

Anyone can see that the client is happy, too. In its official press release regarding the design award, the Poetry Foundation also likened Ronan’s design to a poem:

“Designed by the Chicago firm John Ronan Architects, the building, which includes 22,000 square feet of interior space and a nearly 4,000-square-foot public garden, takes its cues from the art form it represents. Like a poem that invites multiple readings, the space encourages repeat visits, revealing itself slowly over time.”

As in the appraisal of any kind of magic, it is difficult to measure the success of architecture. Certainly, every building has its measurable characteristics: functionality, a publicly pleasing aesthetic, green materials (per the Poetry Foundation HQ press release, the new structure is “built to comply with the US Green Building Council’s Silver Level LEED Rating System”). But beyond that, one must consider the measure of the intangible.

In this case, Ronan’s client believes the new structure accomplishes what Poetry Magazine founder Harriet Monroe’s original vision for her publication was in 1912, “A modest effort to give to poetry her own place.” We congratulate John Ronan Architects for all of these achievements.

a/e ProNet client Andrew Skurman Architects recently handled the interior redesign of a five-bedroom apartment in one of San Francisco’s loveliest buildings. The following is an excerpt from the article in the February 2012 issue of Architectural Digest:

“Skurman began by gutting the five-bedroom space, carving out a new master wing with his-and-her studies, dressing rooms, and baths, as well as a single sizable bedroom. He also softened the apartment’s straight lines by designing an oval entrance hall with a ceiling dome, adding another dome in the master bedroom, and constructing a graceful apse in the library. Like many classic Beaux Arts apartments, the Shansbys’ home now has gently curved crown moldings and elegant plasterwork, with fluted pilasters surrounding the doors and windows. (The dining room’s etched-mirror moldings, inlay, and door panels are the only details that survive from the preexisting interiors, which were designed by Valerian Rybar and Jean-François Daigre.)”

You can read the rest of the Architectural Digest article here.

Andrew Skurman Architects, an award-winning residential architectual design firm based in the San Francisco Bay Area, designs some of the most striking, sophisticated and architecturally appealing custom houses and interiors being built today.  The firm specializes in residences inspired by the classical architectural traditions of French châteaux, Mediterranean villas and Georgian country houses.  We draw from our extensive architectural library of European & American design and work closely with our clients to identify historical precedents that meet their needs, tastes and lifestyle. (Excerpted from the firm’s bio on the Andrew Skurman Architects website.)

Green Projects

By now, most architects and engineers know that green projects are special. They require close attention to a different set of details, further education regarding materials and relevant research, and possibly an enhanced caution when it comes to contracts. You know this. But does your insurance broker?

The following is an excerpt from a newsletter authored by a/e ProNet member Meade Collinsworth of Collinsworth, Alter, Fowler & French, LLC in Miami Lakes, Florida.

“The more I read and research this topic, the more concerned I become with the potential for uninsured claims that can arise out of these projects. In fact, a “green project” is not just another project! I think the very first place that you should begin to review the exposures that arise from green projects would be your client contracts. It is absolutely essential that all contractors review their contracts prior to signing them in order to understand their rights and responsibilities in order to mitigate misunderstandings. This is the reason I am going to concentrate on the contract review process in this articles as I believe this will assist you in meeting your due diligence needs on green projects.”

The full-length PDF version of the article can be found at our website, here.

San Francisco’s waterfront is ready for a new kind of upgrade. The proposed 8 Washington development was the combined vision of Landscape Architect Peter Walker of Berkeley-based PWP Landscape Architecture (a/e ProNet client) and Architect Craig W. Hartman of Skidmore, Owings & Merrill. More details about the project can be found at 8washington.com.

The following is an excerpt of an article published in December by the World Interior Design Network (WIDN).

“[The 8 Washington Development] will lead to creation of pedestrian corridors which will connect Pacific Avenue and Jackson Street with The Embarcadero, a play space for children with interactive sculptural gardens, as well as an expanded health and aquatics centre. There will also be creation of cafés, restaurants and retail units, and centralized underground public parking lot for the Ferry Building Waterfront Area. The overall public open area and parks constructed as part of the project will extend over 30,000 square feet while an extra 40,000 square feet private recreation zone will be built inside a new fitness and outdoor aquatic centre.

The existing surface parking space will be transformed into a public park spanning 16,740 square feet as part of the project. Pacific Park will comprise a play garden spanning 4500 square feet. The garden will sport climbable art sculptures and interactive water features. There will be three separate zones consisting of play areas for different age groups. The look of the Park will be complemented through installation of various public artwork.

The Park will further feature rolling lawns which can be used as a play area for kids and a lounge area for adults. A cafe comprising outdoor seating will be located adjacent to the Park. There will also be additional rooftop café seating.

The park will encompass the fitness and aquatic centre through an expanded and upgraded Drumm Street Garden Walk and links south to the proposed Jackson Commons pedestrian corridor. The corridor will connect Jackson Street with The Embarcadero. The project will widen Jackson Commons. There will be creation of 6650 square feet of landscaped area which will feature cafes, restaurants, and retail units in its northern and southern portions.”

To read the full-text article please visit the WIDN website.

WIDN is a new information resource focused on the global interior design community. Its aim is to provide a free source of intelligence and inspiration to the industry, as well as to act as a hub for World Market Intelligence’s premium databases, software tools, consulting and research services which are aimed at industry professionals. Free-to-access services available at WIDN.com include daily news, newsletters, comment, opinion and project studies as well as an extensive database of products and suppliers.

The following is an excerpt from the October issue of a/e ProNet’s monthly publication, ProNetwork News, now public and available on our website.

Excerpted from an article by Drew Seaman and Tom Waggoner of Straub, Seaman & Allen, P.C., St. Joseph and Grandville, Michigan. This is the second of two parts. You may access previous issues of our ProNetwork News here.

“In the last issue, we presented the first of two parts of a practical guide to risk management protocols for the design professional. We first addressed the selection of clients and projects, and recommended that both be assessed in light of your firm’s strengths and culture before engagement.

We then presented a detailed list of tips on how to navigate the sometimes-treacherous waters of the contract. The most important take-away from this section is that your firm needs to establish and maintain a document and contract review process, helmed by your most able staff, and to enlist the aid and counsel of an attorney who is an expert in the field.

We will now address the final four topics in our risk management procedure review:

• Communications

• Contract Document Reviews

• Surveys

• Construction/Contract Administration

Communication

No one piece of risk  management advice is more repeated, or more important, than to document all communications throughout the course of the project. All communications, including oral conversations, should be documented in some fashion.

Your firm’s communication protocol should address these matters:

• Letters, notes, memos, e-mails and plans and specifications

• Protocols for file documentation”

Click here for the full-length PDF version of this article.

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 local a/e ProNet broker for early access to these excellent newsletters.

Skyscrapers

Ten years ago, the tallest buildings in the world were The Petronas Towers in Malaysia. Measuring 1,482 feet (including their decorative spires), they eeked out the top spot in 1998, beating Chicago’s Willis Tower (then Sears Tower) by just over 30 feet. While the record was controversial, the sparkling towers dominating Kuala Lumpur’s new skyline reminded the world of something significant:

You can’t keep a good industry down.

Since then, the record has been broken twice. In 2003, construction was completed on the 1,671-foot tall Taipei 101 in Taipei, Taiwan. Just over six years later, Burj Khalifa rocketed through the record, rising to 2,723 feet above the streets of Dubai, UAE.

Unfortunately, the completion of Burj Khalifa coincided with the crash of the global economy. Today, the massive building is about half empty. Dubai’s government even had to seek a bailout from its neighbor, Abu Dhabi. And yet, for many, the world’s most-skyscraping skyscraper remains an emblem of optimism.

In a global economic climate which has rendered so many industries sedentary, those in the design community have been far from immune, but architects, engineers, and their fellow consultants have found themselves in a unique position. What they produce is visible, tangible, and permanent. And we, the people, going about our lives and succumbing to the struggle, cannot help but notice the product.

Buildings ascend from the concrete, sleek and shining and reflecting the sky. Parks sprout in the midst of concrete chaos, a breath of cool, green air. Bridges span dark waters and bring cities together. The news on TV and the radio and the internet may be bad, but when we see the steel skeleton of a new building coming together down the street, men in yellow hardhats operating heavy machinery, it’s hard not to hope the tide is turning.

Theatergoers paid a total of $31.3 million last weekend to watch 49-year-old Tom Cruise choose to accept his fourth mission as Ethan Hunt in Mission: Impossible – Ghost Protocol. This time Agent Hunt is in Dubai and, in a much-talked-about sequence, he scales the flat, glass walls of Burj Khalifa, dangling more than a thousand feet above the ground. While audiences hang on tightly to their popcorn, their hope pushing Agent Hunt to the top of the tower, they will also see, possibly for the first time, that imposing architectural and engineering marvel, the tallest building in the world, an impressive bit of reality playing backdrop to Hollywood’s thrill ride.

That reality is also a reminder for everyone that it’s okay to ask, “What’s next?”

Architects and engineers may not be racing for the sky in 2012. Rather, some trends point to a renewed desire to practice locally, finding beautifully pragmatic solutions which benefit their own communities. It’s a foundational move, something strong to support a hopeful and enterprising future.