Risk management program for architects/engineers-

The beginning of the year is a good time to assess what your firm is doing for risk management.  It is important to have risk management program at your firm so that projects, that may have issues, don’t turn into claims.

Reviewing contracts is a good risk management tool.   Is your firm reviewing the terms with your attorney for legal purposes and your insurance company for insurability?  The contract sets the tone as to how the project will move forward.  It is crucial to have a good contract that protects your firm in the event of issues that may come up on a project.

Continuing education is another great risk management tool.  This isn’t just for the principles of the firm; this should be for all staff.  There is always something to be learned at in person seminars and on webinars.  Most insurance companies offer webinars for free.  Associations will often offer in person seminars as well.

Does your firm provide construction administration services on projects?  This is another great risk management practice.  This way your firm has eyes on the project through the construction phases.  While this may not prevent 100% of the issues, it will help to catch issues before they get out of hand.

Also having written in-house quality control procedures and a client/project selection process are helpful.  This way everyone at your firm is following the same procedures before and during the project.

Working on project types that your firm is familiar with is a good practice.  To do something outside of the realm of your firm is riskier than what is familiar.  Also, to have repeat clients is helpful, your firm is familiar with the client and vice versa.

If you have any questions about good risk management practices, please call or email your Professional Underwriters agent for assistance.