Dan Buelow talks to Colleen Palmer, Risk Manager for Beazley DP, on the topic of negotiating limitation of liability (LOL) clauses in design professional agreements. Some firms have had considerable success in getting LOL clauses in their agreements. Dan and Colleen discuss the benefits of this clause and the arguments and rationale as to why LOL clauses are both important and reasonable to have in every professional agreement. We review some sample wording and tips on negotiating this important clause – and compare and contrast the benefits of an LOL compared to that of a design contingency and waiver of consequential damage provisions.

Dan talks to Sue Yoakum, from Yoakum Law LLC, about the importance of establishing design contingencies. A design contingency helps establish expectations that architects and engineers’ drawings and specifications will not be perfect. Whenever there is a claim against a design professional on a project, there is often the question if there has been a breach of the design professional’s standard of care. When do you cross from non-negligent errors and omissions (not a breach of standard of care) to errors and omission that arise to a breach of the standard of care? Sue discusses this and how a design contingency can mitigate claims and the benefits to the project owner of having their project come in on budget and schedule – by setting aside funds for issues that can and should be expected on a custom design project. Sue also shares some suggested contract wording and reviews some important considerations when it comes to negotiating a reasonable percentage of the Cost of the Work to be used as a design contingency.

Dan talks to Charlie Woodman, Senior Director of Risk Finance & Analytics for WTW Construction, about Captives as an alternative risk transfer solution for design professionals.

Dan talks to David Ericksen from the law firm Collins + Collins on the risks and the business challenges design firms face with evolving technology. This podcast reviews the risks associated evolving digital technology, new products and sustainability. There is no profession that has been impacted more than the design profession when it comes to technology and the incorporation of new technology into a consultant’s services and the design process. How does this impact the design firm’s standard of care – and what should the design professional consider when it comes to establishing and managing client expectations? Dave addresses all this and offers important advice on how firms can mitigate unreasonable performance based exposures associated with evolving technology, sustainability and even climate change - and the importance of securing informed consent from their clients.

In part II of our podcast on Communication and Documentation, Dan continues his discussion with Frank Musica, Risk Management Consultant for Victor. Dan picks up where he left off on reviewing how important words are when it comes to all the forms of documentation and phases of a project the risks associated with evolving technology. This discussion focuses on the significant risks associated with emails and important advice on document retention. This podcast will offer practical measures the design firm can take to implement effective documentations and communication practices to reduce your risk to costly claims and client disputes.

In part II of our podcast on Communication and Documentation, Dan continues his discussion with Frank Musica, Risk Management Consultant for Victor. Dan picks up where he left off on reviewing how important words are when it comes to all the forms of documentation and phases of a project the risks associated with evolving technology. This discussion focuses on the significant risks associated with emails and important advice on document retention. This podcast will offer practical measures the design firm can take to implement effective documentations and communication practices to reduce your risk to costly claims and client disputes.

Dan talks to Frank Musica, Risk Management Consultant for Victor, in a two part series on Communication and Documentation. In part one of this series the focus is on the standard of care and the importance of documentation and effective communications in order to manage professional liability risk. Dan and Frank talk about why most claims against A&E firms are rooted in poor communications and documentation practices. This discussion includes a review of the fundamental tension between risk management and marketing, advice on the documentation and communication process in the contract formation and CA phases - and managing client expectations.

Every firm must ultimately decide if a prospective project is a “go” or a “no-go” and if they should commit valuable time and resources. Dan talks to Andy Mendelson, FAIA, Chief Risk Management Officer for Berkley DP, about the critical “Go No-Go” considerations every design firm should include when assessing a new project opportunity including project team capabilities, financial impact, contracts and client selection.

In part two of our discussion on Design-Build (DB), Dan and David Hatem, a Partner at Donovan Hatem LLP, discuss David’s recent white paper release on addressing the inherent and unsustainable risks associated with DB infrastructure projects. Dan and David focus on the critical issues identified in the paper and recommendations made, including improving procurement, contractual practices and underwriting approaches in assessing the risk.