The design work your firm does is extremely important. Every good project starts with a strong contract. Keep in mind that before a project begins the contract and negotiations on the contract are important.
Many firms will use a professional association contract for various project types. These are always a great resource for contracts for architecture and engineering firms. If your client would like to revise some of the terms of the professional association contract be sure your firm understands those changes in the terms. You may also reach out to your firm’s attorney and insurance company to review the revised terms. Attorneys can review the contract for legal issues and the insurance company for review of insurability.
Your firm may have your own contract developed by your firm’s attorney; these types of contracts are great as well. Again, if your client wants to negotiate terms have your attorney and/or the insurance company review the changes.
The contract may be your client’s drafted contract. Be sure to review the contract carefully to understand the provisions of the contract. Again, if there are questions your firm’s attorney and insurance company can provide assistance.
The key is to have some sort of written agreement and with favorable terms for your firm. A written agreement is always going to be easier for your insurance company to defend, rather than a verbal agreement. The other key to the contracts is to have your attorney and insurance review. Your attorney may not be familiar with your firm’s insurance policy but can address legal issues. Additionally, your insurance company cannot address legal issues, but they can provide feedback as to provisions that may or may not be covered under your insurance policy.
If your firm has any questions with regards to contracts on projects please call, or email, your Professional Underwriter agent for assistance.