7 Risk Mitigation Strategies for Client / Architect
Dec 12/22
by Andrii Byndych
Where there’s understanding, there’s success. In this blog, we delve into another insightful article from Pro-Demnity, an invaluable source of practical information for architects and design professionals.
Related blog:
Pro-Demnity: Dispute resolution for Architects
Where there’s understanding, there’s success. Today, we delve into another insightful article from Pro-Demnity, an invaluable source of practical information for architects and design professionals. The article discusses the often overlooked risk factor for architects—the Client / Architect relationship. While architects typically focus on risks related to contracts, delays, and substitutions, they tend to neglect the potential risks associated with effectively building client relations.
The author claims that by implementing “7 Risk Mitigation Strategies”, Architects can reduce their liability risks and foster a better understanding and relationship with their clients. The article emphasizes the importance of maintaining a climate of understanding with clients to avoid financial penalties, liability risks, and damage to reputation.
Seven Risk Mitigation Strategies
1. What Does an Architect Do?
This question may seem a little reductive, and in many cases it is. After all, if your client doesn’t know what an Architect does, why did they hire you? But that is precisely the question. Too often, clients harbour inaccurate notions about the architect’s professional duties and responsibilities. A client’s understanding of where your role begins and ends (and being reminded of it throughout a project) will go a long way to fostering increased respect. It cannot just be explained in your Client / Architect Agreement. Even if they read it and sign that they understand it, they will only live the experience through your good example.
We are convinced that our risks would be less if everyone better understood what an architect is and does.
—Atkins and Simpson. Managing Project Risk, p. 211
2. Know Your Client
Before you even start, establish the nature of their investment in this project. Is it purely financial (e.g., a corporation), or is there also a large personal component (e.g., a young couple building their first home)? How do they make decisions? Who are their influencers? What is their tolerance for risk? How do they see project risk being addressed collaboratively? Knowing these things (and their potential impacts) as well as asking more questions to improve your understanding of your client’s needs and concerns, will help you to build an effective, productive, relationship.
3. Understand Goals and Expectations
Seek to understand. What are your client’s unstated aspirations? Are they realistic (considering budgets, schedules, building science, physical reality, etc.) and can you satisfy them? Will you and your client measure success in the same way? Pro-Demnity files are packed with examples where a client’s “dreams were dashed,” by an architect’s encouragement or failure to discourage unachievable objectives. In practical terms, might the project require professional expertise that you don’t have? Consider obtaining specialists’ support, or politely rejecting work that is not in your wheelhouse.
[T]he vast majority of claims against design professionals are not rooted in design errors or omissions but rather are the result of not meeting client expectations. —Managing client expectations to effectively manage risk
4. Be attentive to time and money
These are the twin gods of design. Be straight-up when discussing budgets and schedules, and monitor them ceaselessly. Don’t ignore or fail to share uncertainties. The client deserves to understand the status of their project. When discussing disbursements and extra charges, be straightforward, proactive and reasonable. Otherwise, your client may feel that additional expenditures just add insult to injury. After all, it is the client’s money.
5. Establish the Client’s level of involvement
Discuss your client’s desired level of participation in the process and establish rules of interaction that are practical and productive. Over-engaged clients can present real risks if they circumvent your authority or pressure you into making unwise choices. Disengaged clients may create risks that result from decisions postponed or documents unsigned.
6. Do the “paperwork” right
Use standard contracts for your firm, vetted by your lawyer. Some clients seek an unfair advantage by using their own contracts or inserting “murder clauses” into standard forms. When in doubt, seek legal advice. Make sure you both have the same understanding of what you are agreeing to. Beyond this, write everything down, document all meetings, actions, or conversations—and get your client to sign off at key milestones. Use the opportunity to check their understanding of things. Don’t confuse an amicable Architect–Client relationship with a reduced need for documentation. Claims that involve poor record-keeping are numerous and undermine your defense.
7. Communicate
This may be the single most important feature in client management. Before, during and after your involvement in the project, maintain communications. Phrases such as “If I had only known…,” “This was a complete surprise to me,” “I just assumed…,” when uttered by a client, too often accompany an expensive claim. It’s much better to hear, “Thanks for keeping me in the loop….I’ve got another project I want to talk to you about.”
As we navigate through this article, we come across the term “client management”. At Statslog, we believe that this term might have a negative connotation of manipulating the client into making what you want them to do. Instead, we prefer to call it a “contract administration of Client / Architect agreement”, and as a contract administration software company, we are committed to make this task as easy and smooth as possible for architects and design professionals.
Source: “Client management as a risk management strategy” by Gordon Grice B.Arch, OAA, FRAIC // Aug 3, 2022
https://prodemnity.com/client-management-as-a-risk-management-strategy/