The fine line between general contractors and architects/engineers-
Because general contractors and architects/engineers work together on projects their roles are often confused. For architects/engineers it is important not to be clumped in the same area of contractors.
Architects/engineers professional liability policy does not cover faulty workmanship:
based on or arising out of the cost to repair or replace faulty workmanship the Insured performed on any construction, erection, fabrication, installation, assembly, manufacture, remediation, drilling, dismantling, demolition, excavation, dredging, including the cost of equipment, parts, or materials furnished in connection therewith. However, this exclusion does not apply to drilling, excavation or other sampling or testing procedures required to perform Professional Services otherwise insured by this Policy.
The general contractor’s general liability policy is where the faulty workmanship will be covered. The professional liability policy is intended to cover design errors and omissions.
The architects/engineers general liability policy does not cover construction defects. The policy is intended to cover claims outside of design and not related to workers compensation. General liability policy also excludes the design work that is covered under the professional liability policy
Workers compensation does not cover your contractors. Architect/engineering firms can hire sub consultants such as landscape architects and civil engineers. However, the policy will not cover a contactor or any construction related entity.
Contracts is anther area that general contractors and architects/engineers tend to blend together. When reviewing a contract, the first key word to be aware of is referring to your firm as a design professional or a contractor. If the contract states contractors, then it probably, throughout the contract, will likely not address the architect/engineers services. Your firm’s attorney can address these issues in the contract.
If you have any questions about the differences between general contractors and architects/engineers, please call or email your Professional Underwriters agent for assistance.