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Sports Facilities Claims Study

From 2000 through 2009, the average indemnity payment for a sports facility claim was $132,945. As is consistent with other types of claims, clients filed the most claims (66%), and the majority of these claims were made against architects (53%). The following is an example of a sports facility claim:

A design professional was retained to provide architectural and engineering services for the design of a city-owned sports arena. The general contractor bid the project on a guaranteed-maximum-price basis. The concrete subcontractor filed suit, claiming more than $3.8 million in delays and extra costs, which included an allegation that the final revised drawings added $950,000 worth of work. However, the general contractor would not allow additional time. The subcontractor also alleged that there were design deficiencies, the work had to be completed out of sequence, and the city changed its mind about parts of the project after the subcontractor had already mobilized staff for the work. This forced the subcontractor to accelerate the work, incurring additional labor costs, overhead, and other expenses. Although the design team may have been slow in responding to RFIs, investigation revealed that the general contractor did not pass many of the RFIs to the design team in a timely manner. The claim settled for $950,000, which included a $125,000 contribution from the design team; defense costs were $76,000.
 
For more information including risk management advice, please see our entire sports facility claims study (access limited to policyholders and brokers).
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Posted by Scott Sweeney on July 24, 2012 7:44:00 AM EDT #

Cutting Down on Building Noise

For years, vertically-oriented systems in buildings have been rigorously tested so that construction materials and processes could be designed to reduce noise levels. However, little to no testing has been performed on horizontally-oriented systems. Architectural Testing, Inc. (ATI) has bucked that trend by opening a new test facility in Pennsylvania that aims to test the noise levels in horizontally-oriented systems. The hope is that these tests will lead to “better testing of construction materials and systems like ceiling tiles, pipe lagging systems, skylights, roof assemblies and floor and ceiling systems, which dramatically affect interior sound levels” according to a recent entry on the SmartPlanet blog.

While architects and other designers believe that the way to deal with proper acoustic management is through proper design of walls, ceilings, and windows with “passive” materials, the testing of materials from ATI includes “active” materials that could respond to changes within the building. So far, the company has been pleased with the results of cork-based “acoustic rafts,” which are cheaper and environmentally-friendly. While researchers try to determine the ultimate effect of noise reduction in buildings, the ultimate goal is to “reduce sound transmission through walls — but also the potentially irritating sounds made by materials rustling or flapping due to air movement.”
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Posted by Scott Sweeney on July 19, 2012 8:59:00 AM EDT #

Does Design Affect Learning?

Modern schools in Finland

Students from Finland routinely place higher than most on international reading, math, and science tests. Could their academic achievements have anything to do with the design of their learning environments? Members of Finland’s education ministry believe so, explaining that the environment and design of the schools in Finland are more supportive of learning than traditional factory-style schools.  A traveling exhibit at the Finnish embassy in D.C. displays the design of seven Finnish schools that were opened within the last 11 years. They exemplify a new look for schools in Finland: a move away from factory-style buildings to modern, spacious campuses with clustered buildings and lots of space for gatherings both indoors and outdoors. The abundance of open spaces allows for easy sight lines for adult supervision (thus potentially combating the type of bullying that has been in the news here in the U.S of late).

The classrooms are equipped with huge windows to allow natural light to spill in. A 2008 study conducted by researchers at the University of Georgia validates the importance that natural lighting can play in education. The study analyzed 71 schools, and found that students exposed to more natural light had higher vocabulary and science scores. The same study found that students learning in classrooms with views of the outside had higher test scores as well.
 
The design of the Finnish schools, taken in conjunction with their students’ high international test scores and the findings of the University of Georgia study, may be enough for U.S. educators to take notice when it is time to design and construct new schools for our youth.
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Posted by Scott Sweeney on July 13, 2012 11:32:00 AM EDT #

Liquidated Damages

from the desk of Nahom Gebre

We often see clauses that attempt to make design professionals responsible for liquidated damages caused by schedule delays. Liquidated damages provisions determine in advance the measure of damages if a party breaches the agreement, whether or not it exceeds or falls short of the actual damages. The challenge for design professionals is that they are legally responsible for damages that are due to their negligence in the performance of professional services; liquidated damages provisions, however, contractually predetermine the damages without having to show that they are caused by negligence. This is a contractual assumption of risk. The professional liability policy will pay for damages to the extent that they are caused by negligence in the performance of professional services; the policy will not pay for a contractual obligation to pay liquidated damages that are not shown to be caused by negligence in the performance of professional services. The CNA professional liability policy specifically excludes coverage for liquidated damages.
 
From a risk management standpoint it is best if the contract is amended to acknowledge the importance of the schedule but ultimately to state clearly that you will be responsible for those damages that are caused by your negligence in the performance of services. For further information, you can review our management advisory on liquidated damages at www.schinnerer.com/risk-mgmt/Documents/ManagementAdvisories/Liquidated-damages.pdf. (Access is limited to brokers and policyholders.)
 
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Posted by Scott Sweeney on July 5, 2012 9:54:00 AM EDT #