One of Maloney & Company’s commitments to our architect and engineer clients is to give them advice and suggestions on managing the risk they take on when providing design services. Among many risk management tips and suggestions, our clients receive a 10 page Contract Review Guide, updated annually.
Within the Contract Review Guide, we address questions like:
Q: What if I don’t sign the contract my client gave me? Or if my client doesn’t sign the one I prepared?
A: These questions have to do with ‘express contracts’ versus ‘implied contracts.’ If you were to receive a contract from your client, start rendering services while you were looking it over, invoice your client and receive payment in accordance with the terms in that (unsigned) contract, the law would probably infer the existence of an agreed-upon contract. This would be an example of an ‘implied contract’ rather than an ‘express contract’ in which both parties have signed the agreement.
Q: I have a client for whom I provide services on many small projects. It is always the same scope of services. What should I do if I can’t get them to sign a contract with me each time?
A: The answer is shown in the full Contract Review Guide.
In addition to contract suggestions, our clients also learn about owner-imposed contract requirements to resist. For example:
|▪||Design Professionals being asked to ‘defend’ the project owner|
|▪||Prevailing Party reimbursement clause|
|▪||Unilateral Consequential Damages|
|▪||Waiver of Subrogation|
Clients are taught why these are risky, and given suggestions on how to negotiate them out or alternate wording to suggest.
One of the best risk management practices for a design professional is to maintain Professional Liability Insurance, and we can help you with that. Apply Now and a member of our team will contact you and provide you with competitive quotes.