Transcript Risk Management Issues And Contractual Obligations

RISK MANAGEMENT ISSUES
AND CONTRACTUAL
OBLIGATIONS
Curt Sumner, LS
Executive Director, ACSM
COMMUNICATING FEELINGS AND
ATTITUDES
Others receive your communications in the following
ways:
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7% by the WORDS you say
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38% by the TONE OF VOICE you use
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55% by your NONVERBAL messages
STATISTICS FROM RESEARCH BY DR. ALBERT MEHRABIAN, UCLA, PRINTED IN SELLING POWER MAGAZINE
OCTOBER 2004 ISSUE
Barriers to Communication
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Poor Listening Habits
Personality Differences
Improper Use of Language
Invalid Assumptions
Lack of Initiative
Lack of Awareness
Weak Verbal Skills
Poor Communications Lead to Unmet
Expectations
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Improper assumption of what is
expected
Impatience
Attitude
SCOPE of SERVICES
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67% of CLAIMS
AGAINST
SURVEYORS ARE
BROUGHT by the
PROJECT OWNER
COMMON SOURCE
OF CLAIMS…
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Claimant ID, Surveyors, 1990-2000
General
Contractor
18%
Third Party PD
11%
SubContractor
2%
UNMET
EXPECTATIONS
BI/Worker
1%
Project Owner
67%
BI/Non-Worker
1%
Insurance
Company
0%
WHY MANAGE RISK?
INCREASE PROFITABILITY
 IMPROVE BUSINESS
RELATIONSHIPS
 SATISFY CLIENT
EXPECTATIONS
 AVOID DISPUTES
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CLAIMS AND
DISPUTES CAUSE...
 LOSSES
 INSURED AND UNINSURED
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LOST PRODUCTIVITY
ADVERSARIAL RELATIONSHIPS
DAMAGE to REPUTATION
WHAT IS LIABILITY?
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FOUR ELEMENTS ARE REQUIRED
TO PROVE LEGAL LIABILITY:
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DUTY
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LEGALLY SANCTIONED OBLIGATION
BREACH
CAUSATION
DAMAGES
SOURCES of DUTY
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COMMON LAW
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STATUTORY LAW
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JUDGE MADE LAW
 PROFESSIONAL STANDARD of CARE
CREATED by the LEGISLATIVE BODY
 STATE LICENSING REQUIREMENTS
 CODES and REGULATIONS
CONTRACT LAW
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WHAT the PARTIES AGREE TO
CONTRACT ESSENTIALS
“YOU GET WHAT YOU
NEGOTIATE -- NOT WHAT
YOU DESERVE”
CONTRACT ESSENTIALS
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FOUR ESSENTIAL ELEMENTS...
1. Assign Responsibility to the Party in the
Best Position to Carry it Out.
2. Assign Responsibility with the Authority to
Fulfill It.
3. Assign Each Responsibility to Only One
Party.
4. Create Reasonable and Realistic
Expectations.
RISK MANAGEMENT MODEL
REQUIREMENTS (PROGRAM)
•INPUTS: CONSTRAINTS (BUDGET, SCHEDULE, ETC.)
CONTEXT (LEGAL, ECONOMIC, ETC.)
PHASE 1
PHASE 2
PHASE 3
RISK
ANALYSIS
RISK
RESPONSE
RISK
CONTROL
• IDENTIFICATION
• ASSESSMENT
•PROBABILITY
•SEVERITY
• AVOID
• RETAIN & MITIGATE
• TRANSFER
•INSURANCE
•CONTRACT
OUTCOME
• PLAN IMPLEMENTATION
• MONITORING/MITIGATION
• DISPUTE/CLAIMS MANAGEMENT
ALTA/ACSM SURVEYS as a
RISK MANAGEMENT TOOL
Define Responsibilities of Parties
Establish Scope
Set Expectations
Establish Standard of Care
OTHER
CONTRACTUAL ISSUES
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CERTIFICATIONS
DISPUTE AVOIDANCE/DISPUTE RESOLUTION
TRANSFER OF ELECTRONIC INFORMATION
ENVIRONMENTAL HAZARDS
INDEMNIFICATION
INSURANCE REQUIREMENTS
STANDARD OF CARE
CONCLUSIONS
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RISK MANAGEMENT TOOLS CAN HELP
SURVEYORS MANAGE and AVOID
CLAIMS
ALTA SURVEYS HELP MANAGE RISK
by ESTABLISHING REASONABLE
STANDARDS and SCOPE of SERVICES
CONTRACTS CAN EXPAND DUTIES
ESTABLISHED UNDER COMMON and
LEGISLATIVE LAW