A joint venture is essentially a partnership, but only for a specific, and usually limited, purpose. Both partnership agreements and joint venture agreements usually allocate responsibility and compensation between or among the parties. Comprehensive joint venture agreements also address issues such as determining fault for performance that is deficient and establishing obligations for rectifying harm…
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Statutes of Repose Can Be Vital in Limiting Exposure
It seems that during each cycle of the state legislative sessions, efforts are made either to expand or reduce the business and professional liability exposures faced by construction-related professional service firms. In some instances, under the overall rubric of “tort reform,” efforts are made to redefine exposure and channel liability. Some efforts are highly beneficial…
Read MoreCan a Design Professional Be in Absolute Compliance with the Law?
There are two kinds of clients who insist in a contract that a design professional absolutely comply with laws, regulations, codes, ordinances, standards and a plethora of other business and design constraints. First there is the client who, perhaps with strained incredulity, asks “Do you mean to tell me that you do not intend to…
Read MoreWho Owns the Instruments of Service?
It is not uncommon for clients to request ownership of your plans and specifications. Corporate clients often assume they will somehow be of future value. Educational clients think they can create a database of project information that will help them reduce future costs. Agencies of government reason that the public, having paid for your services,…
Read MoreProject Documentation: To Write or Not To Write
In suits alleging negligence in the performance of professional services, well-drafted documents and well-kept, comprehensive records are the strongest defensive weapons available to professionals. The following practices and procedures can be vital to a firm’s continued profitability in the face of costly litigation. Planning phase Put all agreements for the performance of services in writing,…
Read MoreEmployee Benefits Help Maintain Firm Success
Your firm’s success relies on the talent, experience, and dedication of your employees. Without them, your firm may not succeed—which is why most consider their employees to be their most valuable asset. Offering your employees good benefits, including salary, health care coverage, and retirement incentives is key to retaining your top employees and in return,…
Read MoreInsurance Concerns in Mergers and Acquisitions
As architects continue to face economic challenges in the architectural and broader economic community, merger and acquisition activity is again increasing in the design firm world. Unfortunately, concerned more about clients and culture, too many firms wait until the last minute to consult with their insurance advisor. This is a bad mistake that can cost…
Read MorePlanning for Your Financial Security
Safe driving and accident prevention may help to ensure your safety, yet you can still be the victim of someone else’s mistake. Accidents kill someone every 4 minutes in America according to the 2010 Injury Facts report by the National Safety Council. In fact, accidents are the leading cause of death for adult Americans under…
Read MoreProject-Based IPD Insurance Coverage
The shared-risk/shared-profit collaborative nature of Integrated Project Delivery results in many aspects of the relationship being defined contractually. But it is unclear how courts will construe the provisions of multi-party agreements with extensive waivers of rights, unusual limitations on risk, and blurring of responsibilities. The delivery system, with its emphasis on contractual liability rather than…
Read MoreLender Assignment and Certification Requirements
In today’s economic climate, more and more, architects are being asked to address client issues relative to financing, assignment and certification. Every architect should be knowledgeable on these issues and approaches. When a client insists on assigning contractual rights to a lender that requires consent and certification of project information, most of the resulting issues…
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