Awards: 2005 Institute Honor Award for Architecture
Recipient: Patkau Architects, Inc.
Project: Agosta House; San Juan Island, Wash.
Client: William & Karin Agosta; San Juan Island, Wash.
Photo: James Dow
 

   
 
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Emerging Risks in Practice

 

Most professional liability insurers attempt to track the changing demands on firms so that coverage can be adapted to meet policyholder needs. Now more than ever, professionals are experiencing a transformation in how professional services are defined and delivered.

Blending or Unbundling of Services
Because of client demands, there are fewer “traditional” projects. Some clients see the separation of design and construction as inefficient. Requirements for accountability and time and cost savings are blurring the bright line that has traditionally separated design and construction.

Despite efforts by state regulators to section off specific services for licensed professionals, clients often demand the blending of responsibilities with the goal of purchasing a final “product.” At times, nonprofessionals are defining projects from feasibility through design and into operations. As a result, many design firms are finding their roles reduced as others package projects. Some design firms are becoming program managers to fill this demand.

In contrast to blending design and construction, clients are often separating out, or unbundling, the traditional design services. This can challenge the ability of professionals to provide services in a coordinated manner. As projects become more complex, many clients ignore the value of having an integrated design team that is able to develop functioning interprofessional relationships.

Confidentiality and Security
An increasing challenge is meeting the security and confidentiality needs of clients. Not limited to infrastructure projects or public clients, the security of project information can alter the practice management techniques of firms of all disciplines. Government agencies led by the Department of Homeland Security and the Department of Transportation have developed guidelines to protect security-sensitive information. But many private clients, ranging from corporations to residential clients, may impose similar constraints on the use of design information.

The practice of limiting access to, and dissemination of, client information during the design process may impede the collaborative design process. Bidding may be reshaped as security-sensitive plans and specifications are kept from many prospective contractors. Controls are established to monitor and record the use of the documents. Workers, from design professionals to construction workers, may have to meet security clearance requirements to be involved on the project. Even awards programs that indicate floors plans, structural systems, or mechanical equipment may by constrained by privacy and security concerns.

Digital Practice
Building Information Modeling will help foster the integration of the design process with fabrication and erection planning. A model-based technology linked to a database of project information presents opportunities creates challenges for design firms. As sophisticated private and governmental clients demand such integration, the professions will have to respond. Professionals will either have to segregate services into limited areas of design or expand services to become project information integrators that control the overall process and create the database of design, procurement, and construction information that is either provided to or managed on behalf of the client.

Driven by technological advances and the client’s goal of using the building information model database throughout the life of the project, the evolution to a consolidated digital model that replaces plans and specifications challenges many of the principles that have guided design firms. Questions of ownership of information, liability for design decisions, and, perhaps foremost, compensation for professional services all need to be addressed.

During this time of rapid change, construction-related professionals must reassess their preferred roles in design and construction. They must also realize that their professional liability insurance needs to be broad to provide protection for an expanding range of services and responsive to the changing needs of the professions.

Originally printed in “Guidelines for Improving Practice”, Vol. XXXV No.3, May/June 2005. Reprinted with permission of Victor O. Schinnerer & Company Inc.