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O P I N I O N
Subconsultants and risk Since firms are liable for the work performed by their subs, it’s imperative that a comprehensive plan be in place before selection and work begins.
W ell-run design firms focus significant attention on managing risk. Besides issues involving an architect’s or engineer’s interaction with the owner, active risk management also calls for addressing exposures associated with any subconsultants or subcontractors (e.g., a driller taking soil borings), utilized on a project. In effect, design firms are legally responsible for services provided by their subs.
Dan Knise
WHAT CAN GO WRONG? Consider a recent claim involv- ing a parking garage project. An architect retained an MEP engineer to design a retainage structure and pumping system for storm-water control. The MEP specified pumps to empty a holding tank which separates sediment from storm water be- fore it enters the municipal storm water drainage system. The MEP decided to install two 2-1/2 inch pumps for this task, even though there were four 8-inch drain pipes funneling run-off water into the holding tank. During the first big thunderstorm, the tank overflowed, flooding the garage. The “fix” required replacing the pumps and piping with larger capacity models and cutting new holes in the concrete decks and cost more than $90,000.
error, the project owner also sought to hold the architect accountable; noting that the architect’s responsibilities included choosing qualified subconsultants, overseeing their work, and ensuring its correct completion. This “vicarious liability” can create substantial financial risk for firms retaining subconsultants and needs to be carefully managed. ESTABLISHING SOUND SUBCONSULTANT PRACTICES. Design firms need a thorough process for selecting and retaining subconsultants/subcontractors. The objective: Ensure client satisfaction while insulat- ing your firm (and your insurance program) from losses caused by the subconsultant. Key aspects of a subconsultant risk management plan include: ❚ ❚ Choose qualified firms. This is a vital first step in controlling subconsultant risk. Check each firm’s
See DAN KNISE, page 8
Although the MEP clearly was responsible for the
THE ZWEIG LETTER April 25, 2016, ISSUE 1149
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