The professional world can be a minefield for a skilled profession like architecture. That’s because when a project encounters a problem, there’s often a significant economic loss. Impacted stakeholders may consider legal action over revenue lost due to a delay, unforeseen costs incurred due to budgeting errors or construction mistakes, and even payments made as part of other judgments or settlements involving other third-party claims.

It’s standard practice to involve lawyers when there is a loss that needs to be recouped. Projects are complex and many factors typically combine to result in a problem. However, when they do, it is often the architect who is blamed. Liability risks for architects usually involve one or more of the profession’s regular activities. Here’s what to know about eight of architecture’s key risks.

1. Design, Instructions and Documentation
Some of the most important duties an architect performs are also some of the riskiest from a liability standpoint. Activities involving design, instructions and documentation often fall under scrutiny by clients and other stakeholders. An error or omission here can lead to project delays, budget overruns, build quality issues and even safety hazards. Rightly or wrongly, when there is a problem with a project, its architect often faces blame. A wide range of strategies can be employed to minimize these risks.

2. Free Informal Advice
When you’re in a highly skilled profession like architecture, it’s not unusual for friends or family to seek out your advice on design projects. Almost always, this is advice given freely and informally — without any contracts or protections in place — because of the close nature of your existing relationship with them. While it’s natural to want to use your skills and expertise to help those you know, it’s also situation that can lead to a costly lawsuit. Architects are held to high standards, even for free work, so having the proper protections in place is key.

3. Pro Bono Services
Doing good for others is also not without its risks. Professional services provided pro bono to individuals, charities or other organizations are still expected to meet the high standards of the design profession, despite the absence of a fee for service. Even when the services you provide are flawless, there’s still a chance of being sued — remember, clients are prone to looking first at the architect when something goes wrong. In the past, famous architects have been drawn into lawsuits for their work with charities, so proper contracts and risk management are a must.

4. Inspections, Observations and Valuations
With nearly every project, architects have to recommend services, conduct inspections, document findings and convey results to clients. These professional activities can also come under scrutiny if there is a problem with the project. In particular, there’s a high risk for economic loss with certain services, such as pre-purchase inspections, construction observations, condition reports and cost estimates. Ensuring that the information is accurate, complete and clear can help minimize claims of professional negligence.

5. Specializations
Specialized architectural services are in high demand. But a number of factors can create risks for those who practice in these areas. On the one hand, there can be cases where architects are faulted for lacking a specific skill or knowledge for performing services in a specialist area. On the other hand, even those with all the proper qualifications can face complex claims, including both first-party negligence claims from the current client as well as third-party tort claims from the project’s future inhabitants, workers, visitors or others claiming an owed duty of care. Careful project selection, clear communication and precise contracts can help control the risk.

6. Certifications
Projects where buildings are certified to meet particular standards, such as green building performance standards, are another area where architects can face heightened liability risks. But whether a particular building meets current or future performance standards may depend on many factors out of the architect’s hands, such as its construction, operation, use and maintenance. Managing these risks comes down to clear communication and careful contracts disclaiming of any guarantees or warranties due to factors beyond your control.

7. Contract Administration
An architect’s contract administration duties may also fall under scrutiny. Project stakeholders may consider legal action if there are significant problems involving the supervision of a contractor, issuing of certificates or resolution of disputes. The risk can be significant when these are all normal challenges an architect may have to navigate during contract administration. Minimizing the risk often comes down to clear communication, careful documentation and well-worded contracts.

8. Contracting
In the field of architecture, various forms of contracting out work can be common. However, practices like contracting, subcontracting, consulting, secondment of staff and other forms of job rotation or temporary work can be a risk. This is because the individual or firm responsible for contracting out the work could be held liable if the contracted person or entity causes an economic loss for the project’s client. Best practices here are to be very cautious about making any professional introductions or recommendations and working only with carefully vetted subcontractors or consultants.

Liability Protection for Architects

Following best practices can help architects minimize the risk of a liability lawsuit. Yet even doing everything right won’t protect against every lawsuit. Having the right insurance can help.

The Lockton Affinity Architect + Engineer Insurance Program offers Professional Liability to a broad range of design professionals, including architects, engineers, landscapers, contractors and more. A host of coverage benefits are included, such as pre-claims assistance and free contract reviews.

Request a price indication today to find out what our coverage will look like for you.