The benefits of computer-aided design (CAD) in terms of increased productivity, efficiency and accuracy continue to grow as CAD developers introduce technological advances year after year. Yet despite its many advantages, CAD also poses substantial challenges, particularly in the area of professional liability.
Computer-aided design (CAD) software has made incredible strides since first appearing on the scene in the 1980s. Today, virtually every design firm from the sole proprietorship in a home office to international mega-giants rely on CAD as their bread-and-butter design tool. Year after year, CAD evolves to include more and more sophisticated capabilities. New forms of electronic design, such as Building Information Modeling (BIM), continue to advance and improve, enabling today’s leading architects and engineers to deliver a wide range of design and client services unimaginable only 20 years ago.
Drafting a clear and comprehensive scope of services has long been recognized as an important tool in reducing your professional liability risks. Often overlooked, however, is that a complete and accurate scope of services can also boost your bottom-line profitability. By itemizing all of the valuable services you provide to clients and including a list of additional services you recommend, you increase your chances of getting adequately paid for your contributions to a successful project.
The professional liability insurance marketplace has continued to be soft. That is, there is significant capacity within the insurance industry and major carriers are in heated competition for your insurance dollars. Because of this intense competition, rates have remained relatively low.
Architects and engineers face a constant challenge of keeping current with new developments in construction technology and materials. When there is a significant change in the construction industry, such as the trend toward sustainable or green design, that challenge intensifies. Suddenly you are asked to comply with a new set of construction standards and owner expectations and there may be scant history to rely upon as design guidelines. Over time, these developments become the new standards of care to which you must comply when specifying materials.
Value Engineering, or VE, is a process designed to identify ways to reduce costs and improve function and performance. This system for improving the ratio of function to cost was originally developed by General Electric during World War II as a method or re-engineering products. The success of that effort led many industries, including the design and construction field, to apply the same VE principles, sometimes under the name of value analysis or value management.
In today’s economy, where projects can be rare and budgets tight, it is critical that you achieve adequate fees for all of the valuable services you deliver. You also need to take steps to help ensure that the project is adequately funded so that you receive full payment for the services you have agreed to provide. Here are a few tips to help you ensure that you end up with a satisfied client and an adequate profit at project completion. Some of these tips can also reduce your professional liability risks at the same time!
Today, more and more clients are demanding energy efficient buildings that combine green building materials with more airtight structures. Design firms worldwide are responding to this demand by developing innovative plans that increase energy efficiencies and thereby reduce the ongoing costs of building operations.
A well written and signed contract with your client can be the cornerstone of a successful and claims-free project. Yet it is surprising how many design firms continue to start new projects with simply a verbal agreement and hearty handshake.
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