From Risk to Profit Benchmarking and Claims Studies

The Client

Perhaps the most important step in assessing potential risks for any project is to evaluate your client. Clients often spend great effort in evaluating potential design professionals. They do this because the selection of the right design professional is a crucial first step in maximizing the potential success of any project. The same is true for design firms. Frequency of Claims by Claimant Id (2010 - 2019)

Since nearly two-thirds of claims against design professionals in the Victor program originated from the project owner, design professionals should take the same level of care in the selection of their clients. It is not surprising that the project owner is the largest source of claims against design professionals since in most situations it is the project owner that has retained the design professional. Therefore, it is with the project owner that design professionals have a direct obligation. Design firms need to be thorough in their evaluation before deciding to work with a particular client, whether the client is the project owner or a general contractor that has retained the design professional for a design-build project. Design firms should select clients that understand, appreciate, and value the services of design professionals. This can help avoid claims alleging professional negligence, disputes involving fees, and other potential disputes that may arise during the design or construction of a project.

Project Owner/ Client Third Party Property Damage General Contractor

6.4%

4.2%

2.7%

7.6%

8.4%

Bodily Injury (Worker) Bodily Injury (non-worker)

61.9%

8.8%

Specialty Contractor

All Others

13 • From Risk to Profit - Benchmarking and Claims Studies

Victor

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