Questions and Answers
What should an architect certify when providing professional opinion?
To the best of their knowledge, information, and belief
What can badly written scopes of services lead to?
Claims and lost revenue
What do overbroad scopes rob architects of?
Ability to invoice for extra services
What do good scopes of services set forth with precision?
Signup and view all the answers
What is the origin of the word 'risk'?
Signup and view all the answers
How do professional liability insurance companies determine premiums?
Signup and view all the answers
What is the best approach to managing risks in architecture?
Signup and view all the answers
What do prudent firms use to manage risk in architecture?
Signup and view all the answers
What are some problems that can arise from working without an agreement between an architect and a client?
Signup and view all the answers
How is the standard of care in architecture practice defined?
Signup and view all the answers
What is the impact of unsigned draft agreements?
Signup and view all the answers
What does professional liability insurance cover for architects?
Signup and view all the answers
Why should owner-generated agreements be systematically evaluated?
Signup and view all the answers
What do most client-developed agreements seek to prescribe?
Signup and view all the answers
What does XLGroup's Risk Drivers research identify as the four greatest areas of risk for architects?
Signup and view all the answers
What are key issues in agreements for architects according to the text?
Signup and view all the answers
Why is working without an agreement considered an unmanageable risk?
Signup and view all the answers
What is essential in identifying and removing deal breakers and finding deal makers in contracts?
Signup and view all the answers
What can be learned and mastered?
Signup and view all the answers
What does XLGroup's Risk Drivers research focus on?
Signup and view all the answers
What does the director of operations for Tsoi/Kobus & Associates oversee?
Signup and view all the answers
Why are negotiation and contracts crucial in managing risk according to the text?
Signup and view all the answers
What are identified as examples of deal makers and deal breakers in contracts according to the text?
Signup and view all the answers
What does the AIA Documents Program outline?
Signup and view all the answers
What is the responsibility of architects regarding means and methods for construction?
Signup and view all the answers
What is typically not covered by professional liability insurance for architects?
Signup and view all the answers
What do building officials and jurisdictions require after construction?
Signup and view all the answers
How have AIA standard agreements managed risks associated with issues in architecture practice?
Signup and view all the answers
Study Notes
-
The text discusses risk management strategies for architects, focusing on negotiation and contracts.
-
The director of operations for Tsoi/Kobus & Associates is responsible for the firm's risk management and quality assurance/quality control practices.
-
XLGroup's Risk Drivers research identifies communication, project team capabilities, negotiation and contracts, and construction phase services as the four greatest areas of risk for architects.
-
Negotiation and contracts are crucial in managing risk, as they set forth the responsibilities of each party and can impact profitability and insurability.
-
Key issues in agreements for architects include profitability and insurability.
-
Working without an agreement is an unmanageable risk, as there are no clear rules for settlement and the party due something may end up paying instead.
-
Effective negotiation is essential in identifying and removing deal breakers and finding deal makers in contracts.
-
Negotiation skills can be learned and mastered, as discussed in "Negotiating Agreement."
-
The text provides examples of deal makers and deal breakers in contracts, such as larger fees compensating for increased risk or exclusions from professional liability insurance policies.
-
The liability bucket is a concept used by some clients to measure the standard of care in architecture projects, with any excess of error and omission (E&O) change orders above a certain percentage indicating a breach
-
There is no legal definition or threshold for the standard of care, and it must be argued and established before the finder of fact in each claim
-
The standard of care is not explicitly defined in the text, but it is mentioned that plaintiff's experts argue that certain mistakes were so egregious that no competent architect would make them
-
The AIA Documents Program outlines the range of AIA contract documents used in building design and construction
-
Means and methods for construction, including the means by which the project is built, are not the responsibility of the architect
-
Guarantees and certifications are common requests from clients, but beyond a guarantee to perform to the standard of care, they are not covered by professional liability insurance
-
Architects are often asked to guarantee or certify the quality or completeness of their design, but these guarantees and certifications are not typically covered by professional liability insurance and may expose the architect to unmanageable risk.
-
Building officials and jurisdictions require certifications of compliance with codes and plans and specs after construction.
-
AIA standard agreements have effectively managed the risks associated with these issues for decades through carefully considered language in the architectural services agreements and the general conditions for the contract for construction.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
