Enhance Your Risk Management: Importance of Project Selection

MARch’S MONTHLY RISK MANAGEMENT TIP

Enhance Your Risk Management: Importance of Project Selection

Selecting the right clients and projects is not just a matter of business preference—it's a critical component of effective risk management. Ignoring key factors in project selection can significantly increase your exposure to potential claims. As professionals in the design industry, it's imperative to carefully consider various aspects before committing to a project.

 

Key Factors to Consider Include:

  • Quality of the client: Assess the client's reputation, experience, communication style, financial stability and past experiences to gauge compatibility.

  • Type of project: Consider the complexity, scale, and potential risks associated with the project type.

  • Project funding: Ensure that the project's budget aligns with your firm's expectations for quality and profitability.

  • Scope and fees: Evaluate the scope of work against proposed fees to avoid underestimating resources or overcommitting.

  • Firm's capabilities: Be realistic about your firm's capacity and expertise to deliver on project requirements effectively.

  • Fairness of the contract: Review contract terms to ensure equitable distribution of risks and responsibilities.

 

Mitigating Risks Through Project Evaluation:

Project selection isn't always a straightforward decision. Many projects present multiple secondary risk factors that, when combined, can pose significant challenges. By utilizing tools like a New Project Evaluation form, you can systematically identify and assess potential risks associated with each project.

Making Informed Decisions: Once potential risks are identified, you have two options:

a) Determine whether or not the job is worth taking to begin with.

b) If you decide to proceed, develop strategies to manage and mitigate risks effectively. This may involve transferring risks through insurance or contractual provisions, educating clients on comprehensive services, and crafting precise contracts that protect both parties' interests.

 

Take Action Today: If you're interested in accessing our New Project Evaluation form, email kpotter@cavignac.com, and we'll provide you with our checklist.

GET IN TOUCH!

Ready to elevate your risk management strategy? Contact us today to discover how Cavignac can tailor a comprehensive insurance and risk management solution for your design firm.

At Cavignac, our focused expertise gives our design professional clients a critical advantage. If there's anything we can do to assist you, don't hesitate to reach out. Visit www.cavignac.com or call us at 619-744-0585.

 
 
 

Thank you to our annual Sustaining partners

T.B. Penick & Sons, Inc.

CONSTRUCTION, DESIGN-BUILD, INNOVATIVE CONCRETE SYSTEMS

It takes an agile company like T.B. Penick to meet today’s aggressive schedules and tighter budgets, offer cutting-edge methodologies such as BIM, advocate best practices and offer safe and sustainable construction practices.

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lighting industry with innovative products and best in class service. 

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