Be a Good Neighbor: Strategies to Mitigate Risk of Damage to Adjacent Properties

Posted by & filed under BDP Blog.

By Andrew Mendelson, FAIA
Executive Vice President, Chief Risk Management and CX Officer
Berkley Design Professional, a Berkley Company

May 9, 2023

One of the emerging 21st Century perils for design professionals, particularly for structural and geotechnical/CMT engineers and architects, is the potential impact of new projects on the condition and even the integrity of adjacent properties.

An architect or engineer’s legal duty is to their client according to the scope and terms of the professional services agreement as well as the responsibilities embodied in state statutes for licensed professionals. However, consideration should be given to adjacent property owners during the planning stages and efforts should be undertaken to protect against claims that could be made by other “injured parties” on adjacent properties.

In states where the applicable law embodies the principle of “joint and several liability,” disproportionate responsibility and financial exposure can be allocated to the design professional—even if their actions had very little to do with the cause of damages to an adjacent structure.

Trends in design and construction claims and litigation indicate the casting of an ever-widening net with plaintiffs seeking defendants with deep pockets, such as the professional liability insurance policy and the assets of a firm. Therefore, it’s prudent for design professionals to be proactive in managing risk with respect to potential exposure for damages beyond the property line of the project, especially in dense urban or suburban areas.

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Andy Mendelson Presenting at ACEC Illinois Alternative Project Delivery Workshop

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Overview of Types of Alternative Delivery Models

Presented by:
Andrew D. Mendelson, FAIA, EVP, Chief Risk Management Officer, Berkley Design Professional

Monday, May 15, 2023

Andy Mendelson, FAIA, executive vice president and chief risk management officer, will be presenting at the ACEC Illinois Alternative Project Delivery Workshop with IDOT and Tollway on Monday, May 15.

Andy will give an overview of varying types of Alternative Delivery Models in his presentation. The workshop is located in Lombard, Illinois at Harry Caray’s Ballroom. The workshop will last from 8:30am to 6:30pm.

For more information on the workshop HERE.

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To Sub or Not to Sub

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March 14, 2023

To sub or not to sub, that is the question.

Should a firm retain a subconsultant that flows through them on a project, or should a firm let the owner directly retain the other design professional?

It’s probably not the first time that an architect or engineer has seen this question posed, nor will it be the last.

I raise this question not because it is an exciting topic, but because it is a very relevant claim scenario that I have seen time and time again.

Here are some things to think about:

  • Has your client considered what it would do if its subconsultant stopped responding to phone calls or emails?
  • What would happen if the subconsultant simply shut its doors without notice to your client in the middle of a project?

I know that a firm would not think this scenario would happen to them, especially if the subconsultant is a firm that your client has worked with in the past and has a good relationship with. But it happens.

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AIA Contract Documents Free Webinar | Top Five Risk Avoidance Strategies for Contractors

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Presenter:
Andrew D. Mendelson, FAIA, Berkley Alliance Managers, EVP, Chief Risk Management & CX Officer

Date: Tuesday, April 4, 2023
Time: 1:00 – 2:00 p.m. EST

Register Now

Construction is a risky business, especially in today’s climate.  Attend a free webinar where expert presenters will review the top 5 strategies contractors can utilize to avoid and mitigate risk on their construction projects.  Presenters will discuss the process for contractors to develop company policies, processes, and protocols to facilitate quality control and financial success, including how to establish a standard process for authorship, review, and approval of proposals and contracts.  The importance of working with design professionals and subcontractors who have experience in the project type; promoting a safe and collaborative work environment; and encouraging thorough communication and sharing of best practices will also be explored during this session. 

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Holmes Murphy A&E Webinar Series | AIA Contract Documents: Insights & Impacts

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Presented by:
Andrew Patton, A&E Technical Consultant, Holmes Murphy
Diane Mika, SVP, Chief Risk Management Officer, Berkley Design Professional

Thursday, October 19, 2023
12:00 pm – 1:00 pm Central Time
Registered for AIA Continuing Education Credits

Register Now

The newly released documents at the heart of the AIA Contract Documents program — the A201-related AIA Owner–Architect Agreements — are revised by the Documents Committee on a 10-year cycle. 

This session will provide insight into the AIA’s revision process. Subject matter experts and practitioners will share their experiences with all participants as they examine the newly revised Owner-Architect agreements. The program will prepare attendees to select appropriate AIA contracts for their project and practice, as well as to evaluate the suitability of alternative contract terms and language.

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Holmes Murphy A&E Webinar Series | From Scope Creep to Profitability

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Presented by:
Paula Dixon, Senior Vice President, Holmes Murphy
Diane P. Mika, SVP & Risk Management Officer, Berkley Design Professional

Thursday, June 15, 2023
12:00 pm – 1:00 pm Central Time
Registered for AIA Continuing Education Credits

Register Now

Change challenges the basic premise of project management: the control of resources to meet a certain objective by a specific date within a finite budget. Scope creep happens when there is an expansion of services provided without a corresponding increase in the design professional’s fees or recognition of additional risk exposure. The good news is that while change is inevitable, scope creep is not.

Join us for a workshop that will help you learn the triggers for change and how to manage the change process to maintain your client relationships — and your firm’s profitability.

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Diane Mika Presenting at Human Capital Management Excellence Conference

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Mutually Assured Success: How to leverage external training to manage risk, boost learner engagement and educate customers

Presented by:
Diane P. Mika, Senior Vice President, Director of Risk Management Education, Berkley Design Professional
Adam Ballhaussen, Senior Director of Customer Education and Advocacy, Docebo

Tuesday, January 31, 2023
1:15 PM to 1:45 PM

When an action or system benefits all parties involved, it’s called mutually assured success. For example, when an employee education program helps people grow their careers and equips them with the skills that their organization needs. It’s a win-win.

Berkley Design Professional—a professional liability insurance company for architects and engineers—built an extended enterprise learning program that created mutually assured success for them and their clients. Policyholders who use the LMS make fewer claims, smaller claims, and renew their policies more often. Both parties are saving time and resources on claims, payouts, and deductibles.

Even more incredibly, these tailored learning programs were so compelling and effective that making them available to prospective customers helped Berkley close more deals, going from a conversion rate of 15% to over 90%!

Join this session to learn how Berkley DP’s team built and deployed their BDP Risk®️ learning platform with Docebo and their secrets and tips for exceptional results.

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What’s in a Name?

Posted by & filed under BDP Blog.

Why names matter on a professional liability insurance policy

By Cindy Russell
Assistant Vice President, Senior Claims Examiner, Berkley Alliance Managers, a Berkley Company

December 8, 2022

Let me introduce myself. My name is Cindy Russell; well, my full name is Cynthia Russell. Maybe you need to know my maiden name was Ellis. Why does all this matter? Depends on what you need it for: looking up my records at the doctor’s office (Cynthia Russell), if I’m calling the financial company that has my IRA (Cynthia Ellis Russell) or social media (Cindy Russell), for example.

For architects and engineers, it matters for insurance coverage, contract considerations and the name by which the public knows them.

A design professional liability insurance policy (and likely other types of policies) provides coverage for a specific firm name or names. If a claim is made against a firm name that’s not included on the insurance policy, coverage may not be provided for that claim.

Sometimes even a small difference has a big effect. For example, John and Julie’s Architectural Group is a Named Insured on a policy but it also uses the legal name of J&J Architectural Group in certain markets or maybe it used that name previously but changed it a couple of years ago. A claim is made against J&J Architectural Group and that claim is based on a project it took on under this alternate name or the prior name. However, this additional name wasn’t provided to the insurance broker (or the insurance company underwriter) so it’s not a Named Insured on the professional liability policy and because of this it may not have coverage for the claim.

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Free Webinar: Pre-Construction Services: Cure or Curse?

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Presented by:
David A. Ericksen, Esq., Attorney at Law, Collins + Collins
Andrew D. Mendelson, FAIA, Executive Vice President, Chief Risk Management Officer, Berkley Design Professional

Thursday, December, 8, 2022
10:00 a.m. Pacific Time/1:00 p.m. Eastern Time
Submitted for AIA CES Approval
1.5 RCEP Professional Development Hours

Berkley DP policyholders who participate in this program can qualify for a 15% Risk Management Education credit. Contact your agent for further information*

This webinar has been recorded and is available on demand for Berkley Design Professional policyholders and our appointed agents and brokers on the BDP Risk® Learning Management System.

bdp Risk® lms login

Third-party review and comment on any design professional’s work product can be uncomfortable. It exposes the design to critique, second guessing, and “alternative” views. However, it can also validate and improve the design before any deficiencies lead to economic harm and consequences. Drawn from real-life cases in the media and courts, this program will highlight the potential risk and risk management opportunities emerging from third-party pre-construction design review by other design professionals, contractors, and construction managers. In addition, it will offer corresponding strategies to help you successfully engage in those processes as the designer or the reviewer.

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