Schinnerer's RM Blog - american institute of architects tag

AIA's Stalled Projects Database

Tue, 28 Feb 2012 12:50:00 GMT

Unless you’ve dropped out of society for awhile, you’ve no doubt heard about the ongoing stagnation of the construction market. Projects have either stalled or are abandoned at the drawing table, and thousands upon thousands of workers are still unemployed. According to AGC, while the employment rate for construction workers recently hit a two-year high, overall the construction industry’s unemployment rate is roughly double the national rate for all other markets.

Instead of requesting lawmakers to invest federal and state money on infrastructure projects, the AIA launched a stalled projects database in an attempt to match private and public investment money with projects in dire need of cash infusions. Design professionals can register projects they have worked on that have stalled and tell potential investors about the project. In turn, investors can sign up and tell design professionals about the types of investments they make. The database enables both sides to find matches that make sense. As of January 19, a little more than two months after initial launch, the database had 36 projects registered with a combined worth of more than $1.2 billion.

Finding financing for these projects could have a profound impact on the construction job market. As noted in one of the AIA’s press releases:

According to a study by George Mason University economist Stephen J. Fuller, each $1 million in new construction spending supports 28.5 full-time, year-round-equivalent jobs. If each of the projects listed in the database obtained financing, according to this equation, 28,500 jobs could be created nationwide.

It’s easy to see why this database could prove to be an important part of rebuilding the weakened economy.

Schinnerer Withdraws from AIA Commended Relationship

Fri, 06 Jan 2012 12:56:00 GMT

From 1957 through 2011, the Schinnerer and CNA program was the sole insurance program commended by the AIA. Schinnerer has withdrawn from this unique relationship so that the program can provide greater resources for the benefit of architects, AIA Knowledge Communities, and state and local components. Due to some changes in what constitutes commendation, we at Schinnerer, with CNA’s support, recognize that commendation now has different meaning and value.

We will continue to provide benefits for AIA members. For example, architects with annual billings of $5 million or less, acceptable loss ratios, and AIA membership for at least 50% of the firm’s professional staff will be eligible for a 5% discount on CNA professional liability insurance coverage. This acknowledges that active participation in the information-sharing of the AIA family of organizations provides a proven risk management value. Also, an advisory board will be created to facilitate Schinnerer and CNA’s ability to provide responsive and creative insurance solutions for the rapidly evolving profession and business of architecture.

To read the complete Guidelines article on our withdrawal from the AIA commended relationship, go to www.schinnerer.com/risk-mgmt/Gdlns/Pages/Gdlns-1-2012-AIA.aspx.

Demand for Design Services Predicted to Decrease

Tue, 22 Nov 2011 17:17:00 GMT

The architectural billings index rose 2.5 points to 49.4 last month. According to the American Institute of Architects, any reading below 50 indicates an overall decrease in demand for design services in the next 9 to 12 months. The AIA reported that while the 2.5 point increase was encouraging, they expect demand for design services to remain volatile in the coming months.

Additional Resource on Managing Condominium Projects

Mon, 06 Jun 2011 12:37:00 GMT

Much has been said about the liability risks of condo projects. Claims experience shows that condos represent one of the worst project types when compared to the billings earned for this type of work. Our claims study on habitability claims details some of the claims that are typical on a condo project, and provides tips on managing the risks of such projects.

The AIA has recently published a guide designed to help architects manage the risks of condo projects. The B509-2010, Guide for Supplementary Conditions to AIA Document B109-2010 for use on Condominium Projects provides provisions for modifying the B109-2010, Standard Form of Agreement between Owner and Architect for a Multi-Family Residential or Mixed Use Residential Project. The Guide can be downloaded for free at www.aia.org/contractdocs/index.htm, and provides guidance on how to modify the B-109-2010 to address the specific risks of condominium projects. Firms that work on condominium projects should review this guide for some insightful provisions that can help them set the appropriate client expectations for projects of this nature.

The AIA's Next-Generation Contract Documents Service

Tue, 24 May 2011 12:52:00 GMT

The AIA recently celebrated 100 years of contract documents during their 2011 convention. The convention gave a glimpse into the future, with a preview of the AIA’s next-generation contract documents service. The online, cloud-based service will be available in early 2012. It will allow users to digitally search, edit, share, and store contracts. This new service should be a welcome change for AIA contract users, as none of the current options for obtaining AIA contracts allow for digital editing or easy storage.

The AIA also released a new guide for sustainable projects. The guide will assist users in understanding contractual considerations unique to sustainable design and construction projects. The guide can be downloaded for free at http://info.aia.org/aia/sustainabilityguide.cfm.