Site Inspections – Contract Tip of the Week

Q: The contract proposed by our client references site inspections. I’ve been told in the past that this is inappropriate, but my client is insisting that I’m wrong. Who’s right here?

A:  It’s important to acknowledge that the term inspection may raise the standard of care for your services. However, inspection is often used to refer to two specific obligations: (1) an inspection to determine that a project is substantially complete (generally, ready for use or occupancy); and (2) to determine the final completion of the project, when all punch list items have satisfactorily been completed.

The Risk Specialty Group and RLI Design Professionals are pleased to feature our Contract Tip of the Week series. Each week, we’ll review a question submitted by a design firm relating to the subject of contracts. Keep in mind, though, that these discussions are general in nature and in making specific business decisions, it’s important to review your options with a knowledgeable attorney.