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About Paul S. Brown, AIA
Expertise
How to work with an Architect. What to expect for design fees. What services are normally included; what are not included? How do I find an Architect in my area? Why do I need an Architect? How to be clear about your space needs. Why time must be managed properly.

Experience
24 years involvement in the practice of Architecture, including some teaching experience. Most of my work has been within the employment of various firms, but I have also done some small-scale projects on my own. Particular interests include Environmental Design, "Green" Design, and Appropriate Technologies. LEED (TM) Accredited Professional. I have some specific experience with Historic Preservation, Medical Facilities, Commercial Interiors, and Public School projects. Education: Bachelor of Environmental Design Degree (Architecture), 1978, Miami University in Ohio. I am registered to practice professionally in the states of Massachusetts and Maine.
 
   

You are here:  Experts > Arts/Humanities > Visual Arts > Architecture > limited liability insurance

Architecture - limited liability insurance


Expert: Paul S. Brown, AIA - 2/23/2007

Question
Thanks for you response. Actually, it's not an addition. We're renovating the first floor of our house, which used to be a doctor's office. Would you still answer the same way? I can understand if it's an addition, there's less chance of any damage happening to the original house, but since it's our first floor, we are concerned about the integrity of the entire structure.

Thanks again for your thoughts on this!
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The text above is a follow-up to ...

-----Question-----
We are considering hiring an architect, but in his proposal he wants to limit his liability to 75% of his fee (which would be about $1700). We asked him to increase the amount to $300,000, which is the amount of property protection we have in our homewowners' insurance policy. He said he'd increase the amount to the "cost of construction", which will probably be $20,000 - $30,000. He has professional liability insurance, so I'm not sure why he's insisting on limiting his liability. He's in business for himself so perhaps he's trying to keep his premiums down. In any event, we'd appreciate your thoughts on whether or not this is a reasonable condition on his part. Thank you in advance for your advice!
-----Answer-----
Hi Annette:
From the amounts, it sounds like this perhaps an addition on an existing home?
Limits of Liability are often a point of negotiation in architectural services contracts.
From your point of view, your objective is to protect your financial interests:  if this is an addition, then the worst case is that your new addition AND your existing home are destroyed as a result of the contractor's actions, and (for some reason) you are unable to collect from the contractor's insurance.  In this case the value of the claim could exceed the cost of construction.  It is unlikely, however, that any action with a value greater than the cost of the new work construction, could be attributed to the Architect's negligent design.  Anything is possible in the court system, I suppose, when the attorney's get involved, but a limit on the architect's liability equal to the total cost of construction of the new project, seems like a defensible request from the Architect's point of view.
I hope this helps.
Good luck; hopefully none of this will be important when the project is done!
- PB

Answer
Hello Annette:
Yes, my answer would essentially be the same.  Is the architect designing any tricky structural support changes that could have an impact on the rest of the (upper levels) house?  If "no", then it seems unlikely that any problems that might occur to the remainder of the house, would be attributable to an error/omission of the Architect.   If "yes", then perhaps this could be a point that you want to make in your negotiation with the Architect over the limit of liability that has been proposed.  Your logic would be: "Mr. Architect, you have a design that puts the entire house at risk if it is not properly drawn, therefor your liability should cover that potentiality."
Good Luck!
PB

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