Travelers - Stamped, Sealed and Delivered newsletter
In this edition August, 2012
[+] The importance of shop drawings in the design professional's practice
[+] Contractor led design - build meets A&E professional liability coverage: What's covered and what's bare?
[+] Claims corner - Spring 2012
[+] Legislative & litigation roundup
[+] Access other Travelers risk management resources for architects and engineers [+]
The importance of shop drawings in the design professional's practice
While not all projects require the preparation of shop drawings, those that do present unique challenges and potential liability exposure to the design professional. Therefore, it is important that the design professional be aware of its obligation concerning the review and approval of shop drawing prior to the commencement of construction. Shop drawings are an essential element to many projects, providing detail as to how particular elements of a project are to be constructed and installed.
Read more Contractor led design - build meets A&E professional liability coverage: What's covered and what's bare?
According to the Design-Build Institute of America (DBIA) current statistics show that 40% of non-residential construction is design-build. The study concedes that a majority of these projects are larger in size (in excess of $10 million) but the trend is clear. Design-build continues to expand as a delivery method. And with residential construction mired in the worst recession since the Great Depression, design-build will continue to assume a more prominent role in construction at large not to mention in large engineering projects where it has traditionally been more utilized.
Read more Claims corner - Spring 2012
A recent claim provides one example of what can go wrong in projects where Building Information Modeling (BIM) is used. Our insured was retained to provide engineering design services by the prime architect. The project was a school gymnasium. After construction started it was learned that a roof elevation had been missed or otherwise was wrong because the roof needed to be raised by two feet. It was determined that the architect was using BIM software while our insured was using CAD.
Read more Legislative & litigation roundup
Kansas. The economic loss doctrine should not bar claims by homeowners seeking to recover economic damages resulting from negligently performed residential construction services, held the Kansas Supreme Court in David v. Hett Construction. According to attorney Mike Norris of Kansas City, the key factor seems to be that the owner has to allege that the contractor breached an independent legal duty (i.e. contractor failed to perform its work in a workmanlike manner), aside from the contractor's contractual duties. If the owner alleges an independent legal duty, he will be allowed to pursue claims for economic losses under a negligence theory.
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This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations.

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