Good risk management practices for architecture/engineering firms-
Risk management will not look the same at every firm but the bottom line, of what is important, is to have some sort of risk management at your firm.
The largest risk management practice your firm can have is having a strong written contract for all projects. This contract can be an association contact or your firm’s standard contract. If your firm is signing your client’s contracts be sure to have those contracts reviewed by your firm’s attorney for legal issues and by the insurance company for insurability. It is also beneficial if your firm can implement a limit of liability clause and payment terms in your contracts.
Collecting certificates of insurance for your sub-consultants is also a good risk management practice. The certificate of insurance should include the same limits on the specific policies that your firm is required to carry for the contract. Keeping up to date on the certificates of insurance is key as well.
Attending risk management seminars and programs is a great risk management tool. There is always something to learn at seminars. Whether your staff attends them in person or online, there is always something to learn from the knowledge that others share. This knowledge, in turn, will be greater risk management for your firm.
Having written in-house quality control procedures are a great tool for risk management. This will help with having the same procedures in place for every project, even if different staff are to work on the project.
Other beneficial risk management practices are organization peer reviews, project selection process, client selection process and insurance policies in place to meet your firm’s needs.
If you have any questions with regards to risk management practices for your architect/engineer firm please call or email your Professional Underwriters agent for assistance.