Design Professionals Riskopolis
Design professionals involved in certain project types may face operational exposures that increase the risk of adverse claims and financial loss. Great American’s Professional Liability uses interactive, illustrative platform to provide examples of the variety of exposures, specific to your operations.
Take a look at the lurking dangers - below, there are six identified risks for you to uncover. Is your firm protected from the exposures below?
Click the red circles on the image to view the exposures.
There are many potential risks for design professionals, it’s important to navigate and mitigate risk before it happens. Design professionals face high risks from design flaws, system failures, and site conditions—especially in complex projects—leading to costly claims, delays and potential liability.
Water Intrusion Due to Negligent Façade Design and Construction
Within 18 months of occupancy, tenants reported water stains, mold growth, and musty odors. Investigations revealed widespread water intrusion through the façade during rain events.
Key Issues:
- Design Deficiencies:
- Inadequate flashing and drainage provisions.
- Poor integration of window systems with the weather barrier.
- Failure to account for differential material movement, causing joint failure.
- Construction Defects:
- Improper installation of sealants and weather barriers.
- Unauthorized deviations from design specifications.
- Insufficient quality control during façade assembly.
Consequences:
- Damage to interior finishes and tenant property.
- Mold remediation and temporary tenant relocation.
- Legal action against architect, engineer, and contractor.
Claim Resolution:
Settlement: $3.8 million
- Architectural Firm: $1.6M for waterproofing and detailing errors.
- Structural Engineer: $600K for inadequate coordination.
- General Contractor: $1.6M for construction defects.
Lessons Learned:
- Design robust water management strategies (flashing, drainage, movement joints).
- Ensure interdisciplinary coordination for envelope continuity.
- Implement strict construction oversight and quality control.
- Conduct water testing before occupancy.
HVAC and Electrical Failures in Mixed-Use Development
Post-occupancy, tenants reported uneven heating/cooling, frequent outages, and excessive noise. Investigations revealed undersized HVAC units, poor zoning, and inadequate electrical load calculations.
Key Issues:
- Mechanical Design: Undersized HVAC, poor zoning, inadequate sound attenuation.
- Electrical Design: Underestimated peak demand, panel placement conflicts, poor coordination.
- Integration Failures: No clash detection; ductwork and conduit conflicts with structural elements.
Consequences:
- Tenant dissatisfaction and early lease terminations.
- Costly retrofits for HVAC and electrical systems.
- Legal action for professional negligence.
Claim Resolution:
Settlement: $3.7 million
- Mechanical Engineer: $1.7M
- Electrical Engineer: $1.5M
- Architect: $500K (liability for subconsultants).
Lessons Learned:
- Perform accurate load calculations and system sizing.
- Use BIM and clash detection for coordination.
- Validate performance through commissioning before occupancy.
Excavation Delays Due to Unanticipated Subsurface Conditions
A regional transit hub project faced unexpected expansive clay and high groundwater during excavation, contrary to geotechnical reports.
Key Issues:
- Limited borehole data; inadequate contingency planning.
- Expansive clay and high groundwater caused instability and delays.
Consequences:
- Increased costs and 3-month delay.
- Contractor filed claim for differing site conditions.
Claim Resolution:
Civil engineer’s insurer paid $600K for inadequate site investigation.
Lessons Learned:
- Conduct comprehensive subsurface investigations.
- Include contingency measures in design documents.
- Use risk registers to track geotechnical uncertainties.
Bridge Reinforcement Due to Miscalculated Load Capacity
A vehicular bridge completed in 2025 showed structural cracking during inspection. Design underestimated traffic loads.
Key Issues:
- Outdated traffic models; undersized structural components.
- Cracking and fatigue detected during inspection.
Consequences:
- Emergency retrofits and partial closure for 6 weeks.
- State filed claim for professional negligence.
Claim Resolution:
Structural engineer’s insurer paid $2.5M for repairs and economic damages.
Lessons Learned:
- Use current traffic data for load calculations.
- Validate models through peer review.
- Incorporate redundancy and adaptability in design.
Defective Construction in High-Rise Condominium
A 30-story luxury condo tower completed in 2023 faced water intrusion, HVAC issues, and cracking. Multiple claims filed by owners and association.
Key Issues:
- Waterproofing failures, HVAC zoning errors, structural movement.
- Poor interdisciplinary coordination and undocumented field changes.
Consequences:
- Extensive repairs and reputational damage.
Claim Resolution:
Settlement: $6.5 million
- Architect: $2.2M
- MEP Engineer: $1.8M
- Structural Engineer: $1.1M
Lessons Learned:
- Rigorous coordination and documentation for high-rise projects.
- Engage stakeholders early to manage expectations.
- Conduct phased inspections and monitoring post-construction.
Sports Field Failure Due to Improper Drainage
A synthetic turf football field completed in 2024 failed due to poor drainage and subbase design.
Key Issues:
- Undersized drainage system; improper grading and crown setting.
- Subbase not compacted; missing geotextile layers.
Consequences:
- Field closure for a season; full reconstruction required.
Claim Resolution:
Settlement: $2.75 million
- Landscape Architect: $1.2M
- Civil Engineer: $950K
- Contractor: $600K
Lessons Learned:
- Validate drainage and grading through modeling and testing.
- Ensure coordination between design professionals and specialty contractors.
- Perform mandatory inspections before turnover.
