Permits – Contract Tip of the Week
Q: Is obtaining the applicable permits for a project within my reasonable scope of services as a design professional? A: In most cases, this responsibility falls to the contractor. However, if you agree to accept this responsibility, be sure that your...
Geotechnical Services – Contract Tip of the Week
Q: We need to subcontract geotechnical services on a project. Can we be held liable for these services? A: Yes. If you engage any type of subconsultant, you can be held vicariously liable for their services. Industry standard documents typically exclude the...
Purchase Orders – Contract Tip of the Week
Q: We’re working with a new client who requested that we use a purchase order as our form of agreement. Would you have concerns about that approach? A: Purchase orders are sometimes employed due to a client’s accounting procedures or system workflows. Since purchase...
Standard of Care Provision – Contract Tip of the Week
Q: I’ve heard conflicting opinions about including a standard of care provision in my contract. What are your thoughts and recommendations? A: The law recognizes that professionals must exercise reasonable judgment and skill when performing their services on behalf...
Warranties or Guarantees – Contract Tip of the Week
Q: How do warranties or guarantees affect the standard of care? A: Warranties or guarantees often go beyond the normal standard of care required in performing professional services. They may obligate you as a design professional for damages beyond those...
Force Majeure – Contract Tip of the Week
Q: What is “force majeure” and how does a force majeure provision impact my contract? A: A force majeure is an occurrence beyond your control that may impact your ability to perform your contractual obligations. Typical force majeure events might include...
Change in Agreement – Contract Tip of the Week
Q: My client made a change in our agreement without notifying me. How can I address this? A: It is in your best interest—and arguably in the best interests of both parties to the agreement—to include terms in your contract that require either party to notify the...
Subconsultants – Contract Tip of the Week
Q: We need to hire subconsultants for a portion of our services. Does my client need to approve? A: Check your agreement. It’s not unusual for the owner/client to require prior approval of subconsultants. One way to address this in order to avoid any lapses in...
Complex Requirements – Contract Tip of the Week
Q: My contract contains complex insurance requirements that I don’t fully understand. Can you help? A: Yes! Please contact your insurance broker, who can work with RLI to review, explain, and address the insurance requirements in your contract. Also, please keep in...
Additional Insured – Contract Tip of the Week
Q: When can a party be named as an additional insured under one of my insurance policies? A: A party, preferably a specific party that is part of the contract chain, can be named as an additional insured only when required by written contract and only on certain...
Assuming Liability – Contract Tip of the Week
Q: What are the various ways in which my firm can assume liability, and how does my insurance coverage respond in those circumstances? A: Depending on where you practice, you may assume liability under common law, tort law, statutory law, by contract, or by your...
Common Professional Liability Requirements – Contract Tip of the Week
Q: What are some common professional liability insurance requirements in contracts that are actually not available in the commercial insurance marketplace? A: RLI’s professional liability insurance policy does not provide coverage on a primary, noncontributory basis....
Joint Venture – Contract Tip of the Week
Q: We’re joint venturing with another firm who wants to be covered under our professional liability insurance policy. Can we add them? A: The RLI professional liability insurance policy provides coverage for your participation in a joint venture, but only for your...
Proximate Cause – Contract Tip of the Week
Q: What does “proximate cause” mean and how does this affect my professional liability insurance coverage? A: Proximate cause in the realm of professional liability means that there is a direct line of causation from your firm’s negligent act to another party’s...
Punitive Damages – Contract Tip of the Week
Q: What are punitive damages and does my insurance program cover them? A: Punitive damages are additional damages that a court may award to further “punish” a defendant for the harm or damages that the defendant caused the plaintiff. For example, if a court determines...
