Library Claims

Thu, 29 Mar 2012 11:51:00 GMT

Library project claims tend to be less severe than claims stemming from other project types. From 2001 through 2010, the highest frequency (55%) and severity (76%) for library claims involved delays and extras. The following is an example of a library claim:

An architect was hired by a university to design a new library with a construction value of $40 million. The university used an intensive value analysis process to reduce the construction contract to $38 million. The project experienced substantial delays and cost overruns that increased the project to an eventual cost of $48.5 million. The contractor filed a claim against the university for $3 million for delays and extra costs. The university negotiated directly with the contractor and then looked to the design team for $1.6 million, alleging that the plans contained numerous design errors, and that the design team failed to respond to RFIs and submittals in a timely fashion. The claim settled for $400,000, with the architect paying two-thirds and the mechanical/electrical subconsultant paying the remaining one-third. In addition the architect paid expenses of $39,000.

For more information including risk management advice, please see our entire library claims study (access limited to current policyholders and brokers only). This study was updated with current statistics in September 2011.

Take Advantage of Our Recent Claims Studies

Wed, 08 Dec 2010 21:56:00 GMT

With the end of 2010 approaching, we would like to remind you of the four new claims studies we have added this year.

Our claims studies analyze claims that have been brought against design professionals in the Schinnerer and CNA professional liability insurance program. Each study also includes risk management advice that is specific to the project type, discipline, or problem area that is being addressed in the study. The goal of the claims studies is to educate firms about the risks they may encounter on certain projects. Hopefully design firms can use these true stories and risk management advice to avoid the same pitfalls others have stumbled upon.

This year, we have added claims studies on oral contracts, subconsultants, contractual provisions, and submittals. In addition to these new studies, current brokers and policyholders can access our entire archive of claims studies, many of which were updated this year with current benchmarking data.

Schinnerer's RM Blog - case studies tag

Library Claims

Take Advantage of Our Recent Claims Studies