Recent studies from Victor O. Schinnerer show that besides residential projects, schools and colleges generate the highest number of claims and the most expensive claims, particularly in New York, New Jersey, Pennsylvania, and Massachusetts. This is due to a number of factors.

• School projects don’t usually involve an individual client, but rather an elected school board with diverse wants and expectations which can cause controversy.
• Funding is usually issued through bonds, which rarely provide room for unexpected expenditures.
• Contractor selection is usually based on competitive bidding, which motivates contractors to underbid school projects. This is one of the greatest risks for design professionals, because it often results in cutting corners. Claims for delays and extra costs are common because of this, and design professionals should prepare the owner for these possibilities during project bidding.
• Many school districts around the country have created their own professional services agreements that don’t fairly allocate risks and responsibilities. It is important to speak with a risk management professional to review these contracts, so the design professional isn’t signing off on uninsurable guarantees and expanded standards of care.

Identifying and analyzing the risks of each project with your risk management professional is important, especially with residential and school projects!