PDI is a proud member of a/e ProNet, a network of independent insurance brokers specializing in insuring design professionals. The below is an excerpt from a book available in electronic format from a/e ProNet.
At its most basic level, risk management for design firms includes selecting and signing sound contracts. a/e ProNet’s Risk Management & Contract Guide for Design Professionals (2005) can assist with the specifics of this process.
An excerpt from Chapter 7, Some Do’s and Don’ts of Contract Language:
7.2 Words to Avoid
Certain words create the impression that the design firm has a greater duty or responsibility than required by the generally accepted standard of care and scope of services stated elsewhere in the contract. Some words that risk managers often advise the design firm to avoid using in their contracts to the greatest extent possible include the following:
- “supervise contractor’s work”
- “control contractor’s work”
- “direct contractor’s work”
- “guarantee or warrant either your services or the contractor’s work”
- “certify that contractor’s work meets the plans and specifications”
- “inspect contractor’s work to assure it meets the plans and specifications”
This risk management guide was previously out of print, but has since been re-released in electronic format. Visit the a/e ProNet Web Store to purchase and download your copy today! Also available is our most recent guide, Risk Management for Design Professionals in a World of Change (2009). If you have any questions about these resources Contact Us.
PDI is an Indianapolis-based wholesale brokerage firm with a national network that includes thousands of insurance agents, brokers, architects, engineers and contractors in all 50 states. Since PDI’s beginning in 1980, we’ve handled a single line of coverage: errors & omissions (E&O) for design professionals.