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 be inadequately compensated for any risks or changes that result from an unforeseen condition. Consider clarifying that you retain the right to reasonably rely upon any information provided.

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.