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Client Selection in Design Build ARCHITECTS & ENGINEERS RISK CONTROL – A LOSS LESSON The Incident A structural engineer (SE) agreed to assist an architect and design builder propose on a correctional facility in the northwest United States. The design builder submitted the successful proposal and the team went to work. The design builder, to control overall costs, limited the design team’s construction-phase services to submittals, shop drawings and requests for information. The SE was unable to convince the architect and design builder that they needed to conduct structural site observations. During construction it was determined that several of the interior walls in the cell blocks were not designed in accordance with applicable code requirements. To meet security requirements, metal closures at the top of these walls had to be replaced with masonry block. The SE provided the required fix in a response to a request for information. The fix, however, was not implemented in the field. Upon completion of construction, the owner was unable to obtain an occupancy permit due to numerous design and construction defects, including the security issues with the cell block walls. The corrective work took longer than a year to complete. The owner filed suit for $10 million dollars. More than 20 defendant contractors and design firms went to mediation. The overall design-related claims exceeded $4 million dollars. The structural claims settled in mediation for less than $500,000. Lessons Learned 1. Project and Client Selection – Correction facility design is complex and requires detailed attention to security requirements. Design coordination among the various design disciplines is critical. The design builder settled with the owner for $10 million, admitting that their project management team lacked the requisite skills and expertise. 2. Project Delivery – Design-build project delivery is challenging and, if not adequately managed during both the design and construction phases, can lead to problems. 3. Construction Phase Services – Limiting the structural engineer’s involvement during construction can be problematic. Designbuild delivery increases the temptation to cut corners and make field decisions without input from the design team. 4. Communications – Effective communications is the foundation of good design. Using requests for information to convey design changes can lead to problems if not adequately managed. The SE would have been better served by issuing supplemental design documents for the needed changes to the interior walls. For more information, visit our Web site at travelers.com/riskcontrol, contact your Risk Control consultant or email Ask-Risk-Control@travelers.com. rmplusonline.com Travelers Casualty and Surety Company of America and its property casualty affiliates. One Tower Square, Hartford, CT 06183 The information provided in this document is intended for use as a guideline and is not intended as, nor does it constitute, legal or professional advice. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. In no event will Travelers or any of its subsidiaries or affiliates be liable in tort or in contract to anyone who has access to or uses this information. Travelers does not warrant that the information in this document constitutes a complete and finite list of each and every item or procedure related to the topics or issues referenced herein. Furthermore, federal, state or local laws, regulations, standards or codes may change from time to time and the reader should always refer to the most current requirements. This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers, nor is it 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. © 2014 The Travelers Companies, Inc. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. Doc#: LL1212 Rev. 3-14