Does my architecture/engineering firm need a risk management program?
The answer is yes, all firms need some sort of risk management at their firm. No matter the size of your firm there needs to be risk management measures in place.
One of the most important risk management tools is a written contract. No matter the size of the project or who the contract is with there should be a written contract in place. This will help the claims representative and attorney in the unfortunate event of a claim to defend your firm. Additionally, it provides the guidelines for the project, including the scope of services, payment of fees, etc.
Quality control procedure is another great risk management tool. If your firm has multiple employees working on a project the quality control ensures that tasks are being completed in the same manner. This also provides the best quality service to your firm’s clients.
Having a client and project selection process is also good for risk management. Your firm will want to work with clients that have the means and a clear picture of the project details. Also, it is best for your firm to work on projects that you have experience with.
Attending risk management seminars and webinars are not only good for the principals of the firm but for the staff. Risk management seminars provide education on contracts, red flags for projects, scope of services and much more. Seminars may also give the opportunity to ask questions of how best to handle specific situations.
Risk management can only benefit your firm to help to prevent claims in the future. Even if you have a small firm, having some type if risk management is useful. Having claims can be costly in both money and time, anything to prevent that is always good for your firm. If you have any questions with regards to risk management please call or email your Professional Underwriters agent for assistance.