Suggestions for Risk Management Practices for Your Architecture/Engineering Firm
Risk management practices are very important for any firm to keep in place and they will vary depending on the size of your firm. The key is to have risk management at your firm to help to alleviate claims.
Contracts are key for projects and good risk management. Not to just sign a contract but to review, negotiate, and know the contract inside and out. The contract is the starting point of a project and the first item that will be looked at if a claim occurs. Contracts with clients are good but also with sub consultants are important to best protect your firm. Then there is a clear understanding of what your firm’s scope of services will be and that of your sub consultants. Additionally, if your firm can include a limitation of liability in your contract that is always a good tool as well. This limits your firm’s liability on a project to either your fees or a specific stated amount.
A good and updated quality control manual is a great tool to have at your firm. This way procedures for each project and with each employee are being followed on every project. There is a set system in place to keep the project going forward with the T’s crossed and the I’s dotted.
Selection of projects and clients is a great risk management practice. It always puts your firm at risk when you are doing projects that are outside of your comfort zone. The same can be said about a client. If you have a client that has been difficult in the past, this may be a client that you might not want to move forward with on a project.
If you have questions with regards risk management please call or email your Professional Underwriters agent for assistance.