Risky Business31 July 2014
ACA – QLD/NT’s July lunch forum in Brisbane, titled ‘Risky Business – a claims overview’, focused on claims trends and included an interactive session about the process involved when you have a claim.
This session was presented by John Moore, partner of Thynne and Macartney lawyers, and Carl Brooks, partner of AB+M Architects. John has extensive experience in the area of professional Indemnity and Carl discussed the business aspects of managing the risk.
The discussion included the following:
- Opportunistic claims
- Misconceived claims
- Valid claims
- Combination claims – multi party
- Contractual claims
- Certification claims
- Contract administration claims
- Incorrect specification claims
- Breach of duty of care (negligence)
- Misleading and deceptive conduct
- Assumed obligations
- Remediation / Rectification
- Delay claims
- Loss of profits / Consequential loss
- Personal injury
- Legal costs
- Your costs – not recoverable
- Human costs
- Impact of the GFC
- Cutting costs
- Reduction in gross fees
- Staffing levels still economically balanced
- Risk – spreading yourself too thinly + unexpected:- staff sickness + holidays + LSC
- Less experienced staff (less cost) require more supervision
- Less experienced staff at greater risk of errors if unsupervised
- Will your remaining staff be poached when work increases?
- Will you be able to secure experienced staff when you need them?
- Careless mistakes – leading to very large claims
- Work not being checked – otherwise obvious mistakes being missed
- Directors having to step up at coal face – but cutting corners
- No retainer agreements – lack of definition of what was required
- Working outside your expertise of competency
- Forgetting about the basics
- Not bothering to confirm important matters in writing – leaving yourself exposed
- Understaffing – no capacity for mentoring, which leads to mistakes and claims
- Undercutting fees – not allowing sufficient margin for jobs – why work for nothing?
And, lastly, a very important risk management tip in relation to the signing of design and inspection certificates … READ CAREFULLY BEFORE YOU SIGN.comments powered by Disqus