Ben Woodward

From August 2023 to August 2024, A&E and construction firms spent $38 billion on mergers and acquisitions, more than triple the number from the previous year. Investments by private equity firms were also at a record high, more than doubling.

A professional service agreement is more than a handshake in writing – it’s a foundational tool in contract risk management. It defines the scope of services, allocates responsibilities, and clarifies the relationship between parties. Most importantly, it establishes legal duties.

From August 2023 to August 2024, A&E and construction firms spent $38 billion on mergers and acquisitions, more than triple the number from the previous year. Investments by private equity firms were also at a record high, more than doubling.

As part of our Architects & Engineers coverage, we provide all policyholders with free Risk Management and Loss Control Support. SmartRisk, a leading, independent risk performance consultancy for design professionals, provides these services and a firm-specific risk assessment called an SR Risk Profile.

Good project management is perhaps the most important driver of success for architecture, engineering, and construction firms. Successful project management increases profitability by keeping projects on time and on budget while also reducing risk exposure, which can lead to fewer claims and lower insurance premiums. 

Risk Assessments give design and construction firms a better understanding of their strengths and liability exposures. They can be used to identify strategies and make recommendations to reduce risk, leading to improved risk management, and higher overall performance and profitability. 

The failure to properly document key decisions during the design and construction process is one of the biggest drivers of non-technical professional liability claims against design and construction firms.