A&E – Loss Scenarios

Architects & Engineers (A&E) Insurance

Loss Scenarios

Architects and Engineers often encounter unexpected problems that can lead to major expenses for clients and possible law suits- even if the problem occurred at no fault of their own. Here are some real-life examples of how these situations can evolve, and how important it is for Architects and Engineers to be covered by a program like Aspire A&E from Stuckey & Co.

Falling Panel

An architect was retained to design a new performing arts center. In order to cut costs, the city took over construction administration. Some of the finish work in the auditorium included installation of veneer core modesty panels for the front row of the balcony. After completion of the project, one of these modesty panels fell upon a patron as a result of a child kicking the panel during an event. Suit was brought against the city and the city filed a third party complaint against the architect.

Sinking House

A structural engineer was retained to design the foundation for a single family home in the Rocky Mountain region. The engineer’s design was based on a soils report prepared by a geotechnical engineer who had been retained by the contractor. Approximately six months after the house had been completed, the floor began to experience differential settlement throughout the house. Doors and windows were out of plumb and there was extensive cracking in the floors, walls and ceilings. It appears the house had been built upon an ancient slide plane which had not been detected by the geotechnical engineer during his investigation.

Cost Overrun

An architect that specialized in church design was retained to design a new church. The church told the architect they were on a limited budget. The architect completed their design and included a preliminary cost estimate of $4 million for construction. The church hired a contractor specializing in building churches. Approximately half way through construction, the architect terminated their services due to nonpayment of their fees by the church. The project was ultimately completed at a cost of $6 million. Suit has been brought against the architect alleging failure to develop a design within the budget.

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