From Risk to Profit Benchmarking and Claims Studies

As the graph below indicates, when looking at a group of construction contractors and other construction- related entities as claimants, the general contractor was responsible for 68.1% of claims against design professionals and specialty contractors accounted for 22.3% of the claims against design professionals. ... the general contractor was responsible for 68.1% of claims against design professionals and specialty contractors ... Although the design professional has no direct say in the selection of the contractor in a design-bid-build situation, the design professional can provide information about contractors to the client. The information the design professional provides can help the client make an informed decision and select the most qualified contractor for the project. A qualified contractor performing construction can be a significant risk management factor. For design-build projects where the design professional has been retained by a design-build contractor, design professionals should look at the factors related to contractors, but also at the factors related to client evaluation since the design-build contractor is the design professional’s client. Victor has additional resources available related to design-build risks . Contractor According to Victor program statistics, the general contractor was responsible for bringing 8.4% of all claims directly against design professionals from 2010 through 2019. However, there were other design entities that made a claim against the design professional, including subcontractors, speciality contractors, and design-build contractors.

Contractor as Claimant: Claims by Frequency (2010 - 2019)

9.0%

General Contractor Specialty Contractor Design-build Contractor

0.7%

22.3%

Agency CM

68.1%

24 • From Risk to Profit - Benchmarking and Claims Studies

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