Design-Build Risks and CRIS Insurance CE Course Outline

Design-Build Risks and Insurance Course Overview
Introduction to Design-Build Construction
1. Design-Bid-Build
2. Design-Build Construction
3. The Design-Build Movement
  1. What’s Driving the Change?
    1. Single Point Accountability
    2. Accelerated Completion
    3. Multiple Design Options
    4. Transfer of Design Risk
  2. Disadvantages
    1. Cost?
4. A Unified Process
  1. The Customer
  2. The Architect/Engineer
  3. The Contractor
  4. The Subcontractor/Supplier
5. Impediments to Design-Build
  1. Public Procurement of Design-Build Services
  2. Professional Practice Impediments
6. Information Resources
Identifying Design-Build Risks
1. Pre-Contractual Risk Considerations
  1. Type of Project
  2. Owner’s Objectives
  3. Structure of the Design-Build Team
  4. Type of Cost Guarantee
    1. Lump Sum Payment
    2. Cost Plus
    3. Guaranteed Maximum Price
  5. Licensing Laws
  6. Teaming Issues
2. Contractual Considerations
  1. Design Liability
    1. Standard of Care
    2. Design-Builder’s “Exposure Gap”
    3. Limitations of Liability
  2. Design Development
    1. Progressive Sign-Off
    2. Deviations and Alterations
    3. Bridging
    4. Design Specifications versus Performance Specifications
  3. Ownership of Documents
  4. Limitations and Waivers
  5. Indemnification
  6. Owner Funding and Payment
  7. Cost of Work
    1. Additional Fees
  8. Safety Responsibilities
    1. Bodily Injury
    2. Hazardous Materials
  9. Differing Site Conditions
  10. Termination and Suspension
  11. Dispute Resolution
  12. Liquidated Damages
  13. Design-Related Delays
  14. Professional Liability Insurance
Chapter 4 Indemnity, Insurance Requirements, and Limitations of Liability
1. Indemnity Provisions
  1. Statutory Limitations
  2. Patent and Trademark Infringement
  3. Taxes
  4. Hazardous Substances
  5. Indemnities versus Warranties or Guarantees
2. Insurance Requirements
  1. General Liability
    1. Joint Venture Liability
    2. Design Liability
    3. Contractual Liability
    4. Completed Operations
    5. Additional Insured Status
  2. Umbrella Liability
  3. E&O Insurance
    1. Claims-Made Coverage
    2. Contractual Liability
    3. Additional Insureds and Cross-Liability
    4. Guarantees
3. Limitations of Liability
  1. Scope of Limitations
  2. Validity and Effect
Coverage for Professional Services in Traditional Insurance Policies
1. Contractor Insurance Program
  1. "Soft Costs" Coverage
    1. Delayed Completion and Force Majeure Insurance
    2. Systems Performance Insurance
  2. General Liability Insurance
    1. Professional Liability Exclusions
  3. Professional Liability Insurance
  4. Surety Bonds
Contractors Professional Liability Insurance
1. Coverage Trigger
  1. Retroactive Date
  2. Notice of Circumstance Provisions
  3. Extended Reporting Period
2. Covered Organizations
  1. Covered Persons
3. Covered Services
  1. Covered Acts
    1. Who Performed the Services?
    2. When Were the Services Performed?
    3. Is Negligence Required To Trigger Coverage?
4. Covered Damages
5. Covered Territory
6. Policy Term
7. Exclusions
  1. Express Warranties or Guarantees
  2. Faulty Workmanship
  3. Damage to Owned Property Exclusion
  4. Contractual Liability
  5. Pollution
  6. Mold
8. Defense and Settlement of Claims
  1. Consent To Settle Provisions
9. Deductibles
10. Limits
11. Policy Conditions
  1. Notice of a Claim
  2. Subrogation
  3. Other Insurance
  4. Cancellation
12. Rating
Architects and Engineers Professional Liability Insurance
1. Project Role
  1. Prime Contractor/Designer (Design-Builder)
  2. A Sub to the Design-Builder
  3. Agent for the Owner
  4. The Importance of the A/E’s Professional Liability Program
2. Architects and Engineers Professional Liability Insurance
  1. Coverage Trigger
  2. Coverage Parameters
    1. Covered Persons/Organizations
    2. Covered Acts, Errors, or Omissions
    3. Covered Damages
  3. Coverage Territory
  4. Covered Defense Costs and Settlement Procedures
  5. Exclusions
    1. Related/Affiliated Entities
    2. Discrimination/Discrimination for Handicap
    3. Contractual Liability
    4. Express Warranties/Guarantees
    5. Faulty Workmanship/Insured’s Work
    6. Products Liability/Insured’s Product
    7. Workers Compensation/Employer’s Liability
    8. Prior Acts Coverage
    9. Extended Reporting Period 90
3. Professional Liability Insurance Application
  1. Other Insurance
  2. Jurisdiction and Venue
4. Underwriting Considerations
  1. Underwriting Guidelines
    1. Limits Requested
    2. Retentions/Deductibles
    3. Endorsement Offerings
    4. Assessment of Risk Factors
  2. Required Documentation
    1. Contract Review
Training the Project Team
1. Limitations of A/E Professional Liability Insurance
2. Limitations of Contractors Professional Liability Insurance
3. Project-Specific Professional Liability
  1. Insured versus Insured Claims
  2. Deductible and Self-Insured Retention Options
    1. Owner Pays All
    2. Lead Design Firm Pays All
    3. Owner Pays Difference
    4. Allocation Based on Fee
    5. Allocation Based on Fault
    6. Develop a Loss Fund
  3. Market Instability
4. Owners Protective Professional Indemnity Insurance
5. Coordination with Other Project-Specific Coverages
  1. Bodily Injury Coverage
  2. Waivers of Subrogation
  3. Other Insurance
  4. Deductibles
  5. Warranty Statement for Retroactive Coverage
  6. Delayed Completion/Consequential Damages
6. Managing a Successful Program
  1. Negotiating Effective Contracts
  2. Limitations of Liability and Waivers of Damages
  3. Warranties and Guarantees/Faulty Workmanship
  4. Dispute Resolution
7. Communication
8. Tracking Change Orders
Bonding Design-Build Projects
1. Overview of Bond Underwriting Process
2. Bonding Challenges in Design-Build
  1. Design Risk
  2. New Roles and New Relationships
  3. Lack of a Clear Scope
  4. Increased Completion Costs
  5. Performance Warranties
3. Surety Response to Design Build Challenges
  1. Addressing Design Risk
    1. Contract Review
    2. Bond Form Language
    3. Contract Organization
  2. Addressing New Relationships and Roles
    1. Teaming Agreement
  3. Addressing Performance Warranties
4. Conclusion