Good project management is perhaps the most important driver of success for architecture, engineering, and construction firms. Successful project management increases profitability by keeping projects on time and on budget while also reducing risk exposure, which can lead to fewer claims and lower insurance premiums.
Tim Corbett from SmartRisk®, a top-ten risk management consulting firm, presents an A&E On-Demand Webinar that discusses successful project management in today’s rapidly changing business environment.
Architects & Engineers Webinar – Effective Project Manager’s – Roles and Responsibilities
Some of the topics covered in this webinar include:
Project Management Challenges
Experience in staffing is the number one driver of claims against A&E firms. This has been particularly true coming out of the pandemic, with highly experienced staff retiring, creating a shortage of experienced project managers at a time when the industry is experiencing substantial growth. Here are some ways A&E firms can reduce claims and risk exposure, discussed in more detail in the webinar:
Promoting and Training Successful PMs
Many firms fill project management positions with staff who only have experience on the technical side of the business. While it is important for PMs to have technical knowledge, successful PMs generally have very limited involvement with the technical aspects of a project. They are focused on ensuring the client’s objectives are met, and the project is profitable. This is why it is important to have PMs with good interpersonal and relationship-building skills and training in finance, communication, leadership, negotiation, and risk management.
Involving PMs in the Full Project Lifecycle
If a Project Manager is handed a project once the contract is already signed, or comes on board after a project has already started, they may not be fully familiar with the contract, and unaware of problematic terms–terms that they may have been able to negotiate more favorably. This is why it is important that PMs play a central role in managing proposal efforts, fee and contract negotiations, and team selection. Once the contract is signed and the teams are in place, the authority of the PM must align with supporting the project efforts. This generally means having control over the budget and schedule, leading communications with project teams and owners, and directing fee and collection efforts.
Managing Challenging Clients, Disputes, and Difficult Situations
A key trait of a successful PM is the ability to anticipate risks and challenges, and solve problems. If a client attempts to shift more risk and responsibility to the firm either during contract negotiations or over the course of the project, an experienced PM needs to know when to push back. When disputes arise, a successful PM will have a dispute resolution process in place to help negotiate an outcome that is acceptable for everyone involved, with a focus on meeting the project objectives for both the firm and the client. They also set client expectations, lead communication plans, delegate responsibility, and provide clear guidance to their teams, especially in high-stress or critical situations.
As part of our AdmiralPro Delta® Design coverage, we provide all policyholders with free Risk Management and loss Control Support from SmartRisk®, a leading, independent risk performance consultancy for design professionals. The benefits of implementing an enterprise-wide risk management program include:
Admiral’s Architects and Engineers Pro Delta® Program is focused on professional liability coverage for design professionals in all disciplines, including geotechnical and structural engineering and construction management.
We offer flexible solutions that include a combination of Professional Liability, Pollution, Technology, and Privacy Breach coverages. Our primary policy form features a broad definition of professional services, flexible deductibles, multi-year extended reporting period options, and the capability to include project-specific excess limits. We also write standalone project-specific, follow-form excess, and project-specific excess policies. Our Insureds have access to complimentary risk management services, including contract review and loss prevention assistance, to help our brokers and their clients reduce risk and maximize profit.
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Products and services described above are provided through various surplus lines insurance company subsidiaries of W. R. Berkley Corporation and offered through licensed surplus lines brokers. Not all products and services may be available in all jurisdictions, and the coverage provided by any insurer is subject to the actual terms and conditions of the policies issued. Surplus lines insurance carriers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.