Suits tend to center around four areas:
- Client expectations unmet (desired level of certification not achieved, project failed to qualify for incentives, energy savings not realized, sustainable elements increased cost or caused delay)
- Elevated standard of care
- Uninsurable guarantees or warranties
- Problems caused by new products or systems (didn't work as advertised, weren't installed properly, weren't operated or maintained properly)
The best tools for managing such risks are well-established, according to Erger:
- Define and document the client's goals. (Don't guarantee that goals will be achieved; set and reinforce reasonable expectations throughout the project; don't assume risk of factors you can't control)
- Set a reasonable standard of care. Don't allow elevated language about your performance to creep into the contract (such as incorporation of marketing language from your initial proposal)
- Don't warrant or guarantee outcomes (specific level of a standard, specific energy savings, etc.)
- Do due diligence when specifying products. Get the owner's informed consent for using new products, and document your research -- even if most if it is digital. Print it or take screen shots, and put it in a project file that you can find later
(more on handling green-build risk . . . )
- See more at: http://www.bdcnetwork.com/insurance-expert-managing-green-liability-risk-not-so-different-normal-risk-mitigation#sthash.M6jjHdlQ.dpuf