By Mark Jackson, JCJ Insurance
Construction Administration (CA) Services helps bridge the gap between design and construction. Being involved during the construction phase provides the best opportunity to notice when the project fails to conform to the design documents and to identify and correct design errors or omissions. Unfortunately, some owners, and design firms, view Construction Administration as an optional service, one that can be reduced or eliminated to remain competitive on fees or reduce the cost of a project. However, performing CA on your projects is one of the most effective ways to reduce exposure to professional liability claims.
Most claims against design firms arise during the construction phase. During construction, the primary responsibility shifts from the design professional to the contractor and the design team has the least control over this part of the project. If the design team steps away after issuing construction documents, errors, omissions, or misinterpretations may go unnoticed until substantial work is complete—often when corrections are far more expensive and contentious. When design professionals remain involved during construction, they gain real-time visibility into how their design is being interpreted and executed in the field. This oversight allows potential issues to be identified and addressed early, before they evolve into costly defects, disputes, or claims.
Many of these professional liability claims stem not from flawed design, but from misunderstandings that occur during construction when the design team is not involved. Design professionals who participate in construction are better positioned to clarify scope, address constructability questions, and prevent informal field decisions that can unintentionally alter the design. Construction Administration also strengthens the design firm’s ability to demonstrate that the project was built in general conformance with the intent of the construction documents. Site observations, responses to RFIs, submittal reviews, and documented communications create a clear record of professional involvement and decision-making during construction. In the event of a claim, this documentation can be critical in defending the firm’s standard of care.
Equally important, CA services help manage client and contractor expectations. On virtually every project there are design errors and omissions that should not cause legal liability for the design firm. It is crucial that the entire team understand that some design changes will be necessary as the work progresses, and that contractors will be paid under change orders for the extra costs they incur as a result of the design changes. The owner should be responsible for these associated costs unless negligence is established.
An additional way to manage expectations during Construction Administration is to understand where problems come from and how these issues can be addressed. It is helpful for your firm to have a plan in place for:
- Unforeseen site conditions
- Scope reduction by client to “save” money
- Code/standard changes and interpretations
- Opportunity to correct errors
- Defective drawings and specifications
- Design changes during construction
Unfortunately, there are situations where an owner chooses not to retain the design firm for Construction Administration. When this occurs, design firms should take proactive steps to manage their risk. First, the firm should clearly document the owner’s decision in writing, including a description of the services that will not be provided and the associated risks. This may include clarifying that the firm cannot verify conformance with the construction documents and that changes made during construction without the firm’s involvement may affect performance, code compliance, or long-term durability.
As an alternative, firms may wish to offer limited or periodic construction-phase services—such as milestone site visits or on-call consultation. While not a substitute for full Construction Administration, these services can provide some level of oversight and help reduce misunderstandings that often lead to claims. Design firms should also consider modifying their agreements to include appropriate limitations of liability when CA services are excluded or limited.
I have heard the phrase regarding performing CA services. “You can either be at the table or on the menu. You cannot be both.” In today’s complex construction environment, Construction Administration is not just a value-added service, it is a critical component of responsible professional practice and effective risk management. From an insurance company’s perspective, projects typically present a lower risk profile when the design firm provides Construction Administration. And firms that consistently advocate for CA services or clearly document the risks when those services are reduced or declined, are better positioned to defend themselves if a claim arises.
While Construction Administration requires time and resources, it should be viewed as a strategic investment rather than as an added burden. By staying engaged through construction—or by clearly defining and documenting the consequences when you are not—design firms protect the integrity of their work, reduce the likelihood of professional liability claims, and strengthen long-term client relationships.