RISK MANAGEMENT GUIDANCE
Well-written contracts can help firms manage risk. However, contracts that unfairly shift risks to a party that cannot control those risks can be a source of claims for design professionals. It is important that design professionals evaluate their professional services agreement to identify sources of potential risks and develop an appropriate response.
Factors to consider when evaluating a professional services agreement include:
• having a clear scope of services;
• balancing responsibility and authority;
• having clear payment terms;
• having a clear and equitable termination provision;
• having an equitable dispute resolution provision; and
• balancing risk and reward.
For more information on factors to consider when evaluating your contract, please refer to the contracts section of the Risk Management Matrix on page 52 .
41 • From Risk to Profit - Benchmarking and Claims Studies
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