Betterment on Construction Projects, part 2 (more cowbell) (law note)
Another question about betterment, and about A/E insurance policies:
I am confused on why the A/E even carries error and omission insurance. I must re-read one of the policies. And if betterment protects the designer, why not the construction contractor who omits a work activity from his bid?
Betterment is a legal concept that covers anyone involved. Usually, though, the situation arises when the contractor submits a change order request for a missing item, and then the owner wants to get reimbursed by the designer for the cost. So, the contractor is getting his payment in the form of a change which, sometimes, is something he may have previously considered in his bid anyhow. So in that sense, the contractor doesn’t really need the protection of the betterment, as he is getting paid for the change.
But, regardless of betterment, there are many other types of claims that can be made against the A/E such as errors (as opposed to omissions) for which insurance is a good idea.
Your turn: Have you ever omitted something on your plans, that the owner then wanted you to compensate him for, despite the fact that he had no actual damages? Share below.
PS: Wondering about the picture in this post? Saturday Night Live fans will remember the classic More Cowbell skit with Christopher Walken and Will Ferrell. Since this is my 2nd post on betterment, it seemed appropriate. Photo credit: Danielle Scott.