How should I resolve a dispute?
Q: Is litigation, arbitration, or mediation a more favored method of resolving a dispute? A: There are many variables to consider when determining which resolution method is best for your firm, and even for a particular project. Find a knowledgeable...
Should I specify when my client pays for completion of services?
Q: Is it critical to specify when the client should pay for completion of services? A: Keep in mind that claims related to nonpayment are typically uninsurable. Therefore, be wary of “pay when paid” and “pay if paid” terms when agreeing to a contract. It‘s...
Should I name third-party beneficiaries?
Q: Does my risk increase if I name third-party beneficiaries in my contract? A: Naming third-parties as beneficiaries in your contract may allow those parties the right to bring claims directly against you. Since those parties might not otherwise have that right, by...
Who owns my project documents?
Q: Does my client own my project documents? A: It depends on your contract language. A license to use your documents is often intended only when you’ve been paid in full for your services. Also, some clients don’t understand that documents are...
Does indemnification leave me exposed?
Q: The indemnification section of my contract places the majority of responsibility on me. How can I manage this exposure? A: Your Be wary of references to damages or obligations beyond those that are proximately caused by the negligent rendering of your...
Should I be concerned about a Set-off Provision?
Q: My new client has proposed a set-off provision for our contract. Is this an issue I should be concerned about? A: A set-off provision typically allows your client to offset their own (real or potential) monetary claim against you by reducing their next...
Do contract confidentiality/prorietary requirements leave you confused?
Q: When the contract requires protection of confidential/proprietary information, what information may NOT fall into that category?A: Keeping in mind that this is not an all-inclusive list, following are some examples of information that may NOT be truly confidential...
Jobsite Safety – Contract Tip of the Week
Q: I’ve always understood that design professionals aren’t responsible for jobsite safety, yet I continue to hear about design professionals who are brought into claims that involve unsafe conditions at a project site. Why does this happen and how can I manage this...
Shop Drawings and Submittals – Contract Tip of the Week
Q: What are some of the risks associated with shop drawings and submittals and how can I manage them? A: While we have no specific recommendations or requirements for shop drawing or submittal stamp language, in our experience, a relatively simple stamp...
Hazardous Materials – Contract Tip of the Week
Q: Who is responsible for hazardous materials on site? A: Waste materials, hazardous substances, and contaminants can pose a clear danger when they’re discovered on a project site. Taking responsibility for these types of site conditions is beyond the capability of...
Rejecting Work – Contract Tip of the Week
Q: Can we reject work during site visits? A: Rejecting work may increase your risk. While you may have the authority to reject or require additional inspection for work that does not appear to conform to contract documents, you do not have the professional duty to do...
Lien Rights – Contract Tip of the Week
Q: Should I waive my lien rights? A: We recommend that you speak with knowledgeable counsel on this matter, because lien rights vary substantially from state to state. It is industry standard, however, to waive your lien rights only when you have been paid in fully...
Electronic Files – Contract Tip of the Week
Q: I have a client who wants to receive all of my design documents as electronic files. How can I protect the integrity of my design and the use of my instruments of service? A: Transferring data electronically poses not only corruption, conversion, and software error...
Accuracy of Information – Contract Tip of the Week
Q: We are required to verify the accuracy of information or data supplied by or on behalf of the project owner. Does this present a risk? A: Yes, if you do not expressly have the right to rely on the information furnished by or on behalf of the owner/client, you may...
Drawings – Contract Tip of the Week
Q: I’ve been told to distinguish between “record drawings” and “as-builts.” Can you explain how you perceive the difference? A: A: “As-builts” are typically prepared by a contractor who marks up plans in accordance with changes or clarifications that are...
