Risk Management for Design Professionals

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Risk is a fact of life since bad things can happen at any time. Like everyday tasks, there are always risks involved when running a design firm, designing a project or managing a design team, no matter the scale of the project or the size of the firm. The design firm that does not understand this and fails to develop a plan for managing the daily risks that confront its design practice is asking for trouble. Sooner or later, an untamed risk will cause problems, possibly jeopardize the firm’s existence.

In Risk Management for Design Professionals, William G. Ramroth, Jr. takes a look at the risks associated with architecture, engineering, and planning. He discusses how possible threats or dangers can not only be identified in advance, but understood, measured, and controlled. This book provides the know-how needed to minimize these risks.

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Product Details

  • ISBN-13: 9781427754769
  • Publisher: Kaplan Publishing
  • Publication date: 10/2/2007
  • Pages: 304
  • Product dimensions: 6.00 (w) x 9.00 (h) x 0.80 (d)

Meet the Author

William G. Ramroth, Jr., AIA, is a practicing architect with over thirty years experience in architectural design and project management. He has served as the project manager for numerous building design projects ranging in size from small remodeling projects to multi-disciplinary design programs of over one hundred million dollars in construction costs. Mr. Ramroth is a member of the American Institute of Architects.

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Table of Contents

Introduction     vii
Principles of Risk Management     1
Some Outcomes are More Likely than Others Are     6
Risks and Rewards are not Always Proportional     9
Base Decisions on Logical Conclusions about Potential Rewards     14
The Whole Can Be Known from the Parts     17
Things are Predictable Within a Range     20
Facts and Utility Are Not the Same     24
The Vital Few and the Trivial Many     26
Monte Carlo or "What-If" Modeling     27
Pragmatic Inference and Risk Management     28
The Risk Management Process     33
The Steps of Risk Management     35
Determining Overall Risk     46
Comprehensive Risk Management     61
Narrow versus Wide View     63
Comprehensive Risk Management     65
The Business Plan     70
Employee Relations and Management Plan     74
Office Reporting and Procedures Plan     77
Risk and Business Development     79
Marketing, Business Development, and Sales     81
Approaches that Don't Work in the Long Run     83
Business Development Basics     86
The BD Plan     94
The Longand Short Course of Business Development     100
Go/No Go Form     104
Project Manager's Role in Business Development     110
Risk and Proposal Writing     111
Risk and Project Management     117
Project Manager Skills     118
Why Projects Fail     125
Risk Management Techniques     132
Managing Risk While Executing the Project     141
Cost, Consultants, and Codes     149
Designing to Construction Budget     150
Controlling Design Budgets     157
Consultants     157
Codes     160
Professional Liability and Contractual Risks     173
Product Liability versus Professional Liability     174
Professional Liability Insurance     177
Independent Brokers and Insurance Company Agents     179
Professional Liability Policies     180
Occurrence, Prior Acts, and Claims-Made Insurance Policies     182
The Well-Off and the Not-So-Well-Off     184
Standard of Care     185
Managing Liability Exposure     187
Claims Response Plan     187
Even the Innocent Pay     191
Professional Services Contracts      192
Working for Free     203
Risk and Construction Support Services     207
Services During Construction     209
Risk and Design/Build     230
Risk Management Rules of Thumb     235
Know the Territory     236
The 3.0 Multiplier Rule of Thumb     237
Manage Scope Creep or it will Break Your Back     239
Don't Push the Panic Button     241
The 60 Percent Rule of Thumb     242
Profitability has Two Main Rudders     244
Somebody Is Keeping Score     246
Drawings Are Never 100 Percent Complete     246
The Hurrieder I Go the Behinder I Get     248
Document, Document, Document     249
Risk Management Checklist     251
Acknowledgments     275
Notes     277
Bibliography     281
Index     285
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