Claims Against Design Professionals on Design-Build Projects

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Claims Against Design Professionals on Design-Build Projects

Transcript Of Claims Against Design Professionals on Design-Build Projects

Claims Against Design Professionals on Design-Build Projects
(…and other projects)
RLI Design Professionals DPLE 201
June 19, 2019

RLI Design Professionals is a Registered Provider with The American Institute of Architects Continuing Education Systems.
Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-AIA members are available on request.
This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.
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Copyright Materials
This presentation is protected by US and International Copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speakers is prohibited.
© RLI Design Professionals
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Disclaimer
This information is not legal advice and cannot be relied upon as such. Any suggested changes in wording of contract clauses, and any other information provided herein is for general educational purposes to assist in identifying potential issues concerning the insurability of certain identified risks that may result from the allocation of risks under the contractual agreement and to identify potential contract language that could minimize overall risk. Advice from legal counsel familiar with the laws of the state applicable to the contract should be sought for crafting final contract language. This is not intended to provide an exhaustive review of risk and insurance issues, and does not in any way affect, change or alter the coverage provided under any insurance policy.
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Subject Matter Expert
J. Kent Holland
ConstructionRisk, LLC 1950 Old Gallows Rd., Suite 750 Tysons Corner, VA 22182 www.ConstructionRisk.com
*For case notes and articles on design-build decisions and other case law, visit: www.ConstructionRisk.com. For research or for free newsletter, visit: “ConstructionRisk.com Report”

Course Description
Litigation can be confusing and tedious event for legal professionals. It is no wonder that design professionals also find it confusing to
navigate. In this webinar we review litigation on design-bid-build, as well as on design-build projects, focusing on lessons learned from
court decisions addressing standard of care, warranties, prime contract incorporation by reference, third party claims against design professionals, limitation of liability, indemnification, and site safety responsibility. We will discuss their implications for your services, and ways to allocate and mitigate risks through more
favorable contract terms and conditions.

Learning Objectives

Participants in this session will:

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Identify risks for design professionals arising out of design and design-build contracts;

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Learn risk management ideas and strategies from recent court decisions;

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Gain a better understanding of how to mitigate claims against design professionals by third parties and contractors; and

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Discuss ways to improve contract language to better allocate and mitigate risk.

Standard of Care and Warranties

Case Law Warranty of Habitability
Designer not subject to implied warranty of habitability in the design, construction and sale of a condominium complex.
*Trial court dismissed the suit against the designer. This court affirmed dismissal.
Board of Managers of Park Point at Wheeling Condominium Ass’n v. Park Point at Wheeling, LLC, 2015 IL App (1st) 123452.

A/E Does Not Warrant Perfection

“ Thus, generally speaking, only builders or builder-sellers warrant the habitability of their construction work. Engineers and design

professionals such as [Architects] provide a

services and do not warrant the accuracy of

their plans and specifications.
Contract Lesson: Architects and engineers should be careful not to agree to contract prov to guarantee a perfect plan or satisfactory result, as it may elevate your standard of care.

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Board of Managers of Park Point at Wheeling Condominium Ass’n v. Park Point at Wheeling, LLC, 2015 IL App (1st) 123452.
Design ProfessionalsRisksServicesPresentationArchitects