Risk Management Flashcards
(54 cards)
1
Q
Define standard of care
A
legal concept- level of skill and diligence that a reasonably prudent architect would exercise in the same community, same time frame and similar situation
- law doesn’t require perfection
2
Q
Regardless of Number of Employees, what are some legal requirements? (7)
A
- Wagner Act (National Labor Relations Act)
- Equal Pay Act
- employee eligibility verification
- wages and fair labor standards act
- occupational safety and health act (OSHA)
- health insurance portability and accountability (HIPAA)
- employee retirement income security act (ERISA)
3
Q
Wagner Act
A
allows private sector employees to form unions
4
Q
equal pay act
A
- equal pay for same duties, responsibilites, and experience
5
Q
occupational and fair labor standards act
A
- establishes minimum wage, overtime, pay, record keeping, and labor standards
6
Q
Occupational Safety and Health Act (OSHA)
A
- requires employers to provide safe work environment
7
Q
Health Insurance Portability and Accountability (HIPPA)
A
- provides privacy of individual with health info
8
Q
Employment Retirement Income Security Act (ERISA)
A
sets minimum standard for pension plans
9
Q
For employers with more 15 Employees, what are some legal requirements? (3)
A
- consolidated omnibus budget reconciliation act (COBRA)
- Civil rights act
- age discrimination employment ADEA
10
Q
Consolidated Omnibus Budget Reconciliation Act COBRA
A
- requires employers with more than 20 employees to continue group medical coverage even if employment is terminated
11
Q
Civil Rights Act
A
prohibits discrimination on basis of sex, race, color. religion or national origin
12
Q
Age discrimination Employment ADEA
A
prohibits discrimination for person over 40
13
Q
For employers with 50 or more employees, what are some legal requirements? (1)
A
Family and Medical Leave ACt (FMLA)
14
Q
Family and Medical Leave Act (FMLA)
A
- requires companies give up to 12 weeks of unpaid leave for child/spouse/parental care without jeopardizing employees job
15
Q
define the agency
A
the person who acts on behalf of another principle in dealing with another (third party)
16
Q
who’s the agent, principal, and third party
A
- agent = architect
- principal = owner/client
- third party = contractor
17
Q
what is an agent legally required to do?
A
act on behalf of the principal’s best interests
18
Q
a contactor is considered a…
A
vendor!
- supplies specific product at fixed price
- acts primarily in their own interest
19
Q
standard agreement forms and general conditions of contract attempt to minimize…
A
potential problems by clearly assigning duties and responsibilities of various parties
20
Q
define duties
A
- legal obligations or responsibilities that one person owes to another in a specific relationship, such as contract or professional role
21
Q
what are 3 ways to establish duties?
A
- by contract
- by legislative enactment
- architect’s conduct… aka implied duties/what they’re held liable for
22
Q
what are architect’s implied duties
A
- cooperating with contractor
- not interfering with contractor’s work
- giving relevant info to contractors
- assisting owner in coordinating work
23
Q
define liability
A
- legal responsibility for injury to another person or damage to property
24
Q
define negligence
A
- failure to use due care to avoid harming another person or damaging property
- aka not being careful enough and causing someone to get hurt or something to get damage
24
what are 4 conditions for architect to be negligent?
- duty - architect had a job to do
- breach - architect didn't do job the way they were supposed to
- cause- because of that, something bad happened
- damage - someone got hurt or something got broken and it cost money to get fixed
25
what are 3 common defense of claims to protect architect?
- betterment
- statute of limitations
- statute of repose
26
define betterment
- an improvement to a property that enhances its value more than mere replacement, maintenance or repairs
27
how is betterment used as a defense against a claim, in an example:
client approved wood paneling, but architect by accident showed a painted finish, therefore architect must submit change order to correct mistake. the client may claim that architect should pay cost of change.
** architect could defend and claim that owner would have had to pay for wood paneling anyway, therefore architect should have to pay only for extra charged above original cost of labor and materials
28
statute of limitations
- sets time limit within which a state can be made, beginning at the date of substantial completion
- time depends on state
29
statute of repose
- similar to statute of limitations
- time is short and time begins the day the problem is discovered
30
what are some strategies for managing risks
- know the client
- use well written contracts and follow thoroughly
- make sure appropriate employees are assigned to each project
- quality control program
- maintain thorough documentation
- be very careful about last minute changes and substitutions
- carry liability insurance
31
Under the concept of privity... architects are protected from what?
claims by parties with whom they have no direct contractual relationships
32
where is the concept of privity stated?
AIA General Conditions of the Contract for Construction
33
Explain Indemnification Clause
holds harmless owners/architects for any damages/claims/losses from work on project
34
why would a court not support indemnification
when architect is primary reason for damage or injury in those situations
35
3 things to minimize third party claims
- don't include language in contract that expressly states or implies responsibility
- don't give directions concerning methods of construction
- point out obvious construction safety problems to contractors
36
What is traditional copyright?
protection of drawings, specs, and other pictorial or graphic representation of an architect's work
37
what is copyright of building themselves?
protection of buildings themselves, under Architectural Works Copyright Protection Act
38
what's a derivative, in terms of copyright
works that look similar to first design
- cannot be made
- includes modifications to original buildings
39
what aia contract specifies copyright? who owns building design?
- AIA B101 - standard form of agreement between owner and architect
40
how much time within completion of building / should official registration of copyright be made? is this required?
3 months
not required
41
architects grant limited license to owner for...
- constructing
- using
-maintaining
-altering
- adding to project
42
what insurance is required for architects under AIAB101?
- professional liability
- general liability
- automobile liability
- workers compensation
43
what happens if owner wants higher coverage that contractually obligated for arch?
- owner pays additional cost
44
explain professional liability insurance, what does it cover?
- protects in case architect's actions causes bodily injury, property damage or other damage
- aka malpractice insurance or errors and omissions insurance
- examples- incorrect specifications, mistakes on drawings negligence
45
what does professional liability insurance exclude?
- intentional wrongful acts
- claims for cost estimates being exceeded
- claims arising from express warranties
46
explain general liability insurance
- protects against claims of property damage, liability and personal injury caused by architects or their employees, consultants, or other people hired by architects
47
explain property insurance, what does it protect?
protects architect's buildings and building contents against disasters, ie fire, theft, and flood
48
explain personal injury protection
- protects architects against charges of slander, libel, defamation, misrepresentation, tort
49
tort definition
civil wrong which causes injury to another person
50
explain automobile insurance
covers liability and property damage to vehicles owned and used by the business
- includes employees who use their own cars while on company business
51
workers compensation
- mandatory in all states
- protects employees in event of injury caused by work related activities
52
what insurance is required for owners under AIA A201- general conditions of the contract for construction?
liability insurance and property insurance for full insurable value of work
- and boiler and machinery insurance
53
what kind of all risk insurance does the owner need? what does this mean
- property insurance should be all risk
- broader in coverage and includes hazards except those specifically excluded in policy
