Contracts for Architects/Engineers
Contracts are the beginning of a project and set the tone for how the project will proceed. Contacts are extremely important for design professionals. Not just having the contract but reading and knowing what is in the contract is also essential.
All too often we hear of architecture/engineering firms that proceed with design work without a contract or based on a verbal agreement. While we all want to go on someone’s word, the world doesn’t quite work that way any longer. Good contracts are imperative for a successful project. And not just the success of the project but if your firm were to be sued a contract is your protection in the event of a claim.
If your firm is able, there are contracts available with several associations, such as AIA. These contracts are set up to not only protect your firm but to proceed with the project that suits the needs of all parties involved.
If your firm doesn’t use an association contract always have your firm’s attorney review the contract. The attorney will be able to point out the portions of the contract that may cause legal issues or are not in the best interest of your firm.
Most insurance companies will review contracts for insurability as well. This is not a legal review, but it will let your firm know if your insurance policy will cover your firm based on the clauses in the contract.
After the review of the contract always negotiate with your firm’s client with regards the adverse language. This will help the project to move forward in a smoother manner since all parties understand the expectations.
If you have any questions with regards to contracts and contract reviews please call, or email, your Professional Underwriter agent for assistance.