色多多视频

Putting your company in the best position in the event of a claim starts well before any work has been done on a project. The assertion of a claim often highlights how well-meant decisions can come back to haunt you. With that in mind, AXA XL’s Design Professional group is hosting a live webinar for their policyholders in early December to address this very topic and recommend sound advice to design firms.

To offer this expertise to other architects and engineers, Fast Fast Forward spoke with the presenters of the webinar, titled The Fight Before “The Fight,” to discuss the importance of firms positioning themselves to deal with a problem before it arises. Michaela Kendall, Esq., is the Manager of Strategic Partnerships, and Brett Stewart, Esq., is the Manager of Loss Prevention & Client Education at AXA XL.


Fast Fast Forward: What does The Fight Before “The Fight” refer to?
Michaela Kendall: The first Fight in the title refers to the approach you take and the behaviors you display when interacting with your client, from your initial meeting to contract negotiations and throughout your interactions during the project. The second Fight refers to a dispute that might arise during the project or a claim that the client might file against you.

FFF: How does the first Fight impact the second?
Brett Stewart: It’s all about using your initial interactions to set the tone for your relationship throughout the project. It encompasses the degree to which you’re able to remain cool and calm when confronting thorny issues, whether it’s the client’s unprofessional behavior or contentious contract negotiations.

Setting the proper tone before the project has begun gives you a much better chance of resolving disputes and avoiding claims. A positive, collaborative beginning can eventually lead to a successful project, a happy client, and repeat work. Setting the proper tone also gives you stronger strategic positioning when an issue—or potential issue—arises after the project has begun.

FFF: What kinds of things should you reflect on to help things go smoothly?
MK: Think about your communication style and how you want your behavior to be viewed by the client. You also need to let the client know right from the start where you can be flexible and where you refuse to bend. [色多多视频policyholders can .] There’s rarely a project that avoids all disputes, so think about your approach to conflict and how you can maintain a good relationship with the client—or other project entity—without giving away the store. In addition, prepare your project staff for the inevitable and the unexpected. Giving them the education and tools to manage any situation is vital for a successful and profitable project.

Setting the proper tone before the project has begun gives you a much better chance of resolving disputes and avoiding claims.

FFF: What should you look for during these early interactions with the client?
MK: You could view these early days as a first date. At this point, everyone should be putting their best foot forward, right? So, if the client’s being extremely difficult or incredibly unreasonable, for example, asking things of you that are unacceptable in the industry or for your firm, then it’s not going to get any better when a million dollars in damages is on the line.

FFF: What are some of the ways you can put yourself in a bad position early in the relationship?
BS: One way is being too generous in your written communications. You may be simply trying to show your support for the client, but you should view what you’re writing within the context of a possible future claim. Will your words be used to show that you were agreeing to take on additional responsibilities outside of your scope of services or agreeing to make a design change without fully informing your client of the impact to the schedule or cost? Agreeing to things without documenting them can be just as bad. Another thing to avoid is hiding when an issue arises. Successful firms run toward a problem to confront it head-on. You don’t want to be viewed later as having taken no action when others turned to you to help solve a problem.

As much as possible, try to view your behavior from another’s point of view. You don’t want to appear too “easy” in terms of negotiating, but you also don’t want to come across as unreasonably difficult to deal with, flippant, non-responsive, and the like.

FFF: How do you negotiate professionally and firmly, as well as focus on your goals, without making your client relationship tense from the beginning?
MK: Whether you decide to agree to or refuse something the client wants, the way you communicate your decision is critical. Often, it’s what you don’t say that can make a positive impact. Don’t try to justify things or offer excuses and don’t express anger or hurt. Simply and concisely state the reasons for your decision, instead of saying things like, “You should just trust me” or “This is what we do.” It’s more constructive to say, “Here are the issues that could arise,” or “This is the industry norm.” Approach each issue in a clear, unemotional way. For difficult issues, it’s best to have a conversation first and then follow up with an email summarizing your position and the agreed outcome. It can be far easier to gain consensus with a face-to-face conversation or phone call instead of merely firing off an email.

FFF: Once the project is underway, what kinds of behaviors and procedures should you continue to monitor?
BS: Ask yourself if you’re addressing issues as they arise in a professional manner. Are you training your employees to report any potential problems to you? Does a culture of risk management exist within your team and elsewhere on the project? In keeping with that culture, how are communications being worded? Is anyone else in your firm reviewing critical emails before they’re sent? Does everyone on your team understand what they should and shouldn’t say in a dispute or potential claim situation? Does your staff understand when to report a potential problem to your insurance company?

FFF: While the webinar isn’t intended as a contract negotiations primer, could you please list some of the essentials you’ll cover regarding pursuing a project and negotiating a contract?
MK & BS:

• Do a cost-benefit analysis. How far do you see this project taking you, both financially and reputationally? Just how far are you willing to go, including pricing the project below the firm’s normal fee, to get it? If it doesn’t work out, what will the damage be to the firm?
• Know your walkaway points. What could the client ask of you that would cause you to step away from the project?
• Understand your firm’s long-term strategy for growth. This should guide your approach to negotiations and the decisions you make during them.
• Don’t chase a project that would overextend your firm’s resources or capabilities. If you find yourself shorthanded or navigating all-new waters, you’re asking for problems. Stick to the projects you’re familiar with and grow strategically.
• Critically evaluate the project’s risks. Use a go/no-go project evaluation process and watch out for optimism bias—the way your desire for a project can undermine your ability to objectively evaluate risk.
• To the extent you can use your standard terms and conditions, make as few changes as possible. If you are presented with the client’s contract and have an opportunity to negotiate it, have a firm understanding of which sections you’d like to change and why, ask for what you want, and know what you’re willing to concede. Remember, if you don’t ask for something, the answer is no. If you concede a term, be sure the client acknowledges it so you get the credit.
• Make sure you have a clear scope of services. It’s surprising how many scopes are merely boilerplate language that’s recycled from one project to the next. Design professionals get nervous about changing their scope, but you should make the changes necessary so that your scope accurately reflects what you will do as a basic service, what you will do for an additional fee, and what you will never do.
• Prepare your employees to handle issues as they arise. Make sure they know the contractual obligations and are empowered to lead and communicate appropriately when an issue or potential issue arises.
• Keep it professional. Don’t let a comfortable relationship with the client or your fear of losing a project influence your best risk management practices.

Learn more about AXA XL’s Design Professional insurance programs and other special offerings like this webinar here.