April 24 was National Administrative Professionals Day. And this year, we’re taking a different approach. At SDA, we’re celebrating how business professionals in the A|E industry with roles in marketing, finance, human resources, project management, and operations keep the firm in business. Instead of spotlighting individual achievements, we’re diving into the collective essence of our firms, celebrating the interconnectedness of diverse business functions that underpin design endeavors. Much like the celebrated Architecture and Engineering Weeks, let’s delve deeper all week into the intricate business ecosystem of our firms. Today's focus is Operations.

In the intricate world of architecture and engineering, the design process often takes center stage, with its creative endeavors and technical innovations capturing the spotlight. Yet, behind the scenes, two critical functions quietly ensure the success and viability of every project: contract administration and risk management.

These functions are often seen as the unsung heroes of project execution, handling the intricate details that can make or break a project’s outcome. Imagine, for a moment, the complexity of an 18-month project with four critical milestones spaced every four months. Here, the intricacies of contract administration come into sharp focus. Do you prefer invoicing four times throughout the project’s duration, or would you opt for the flexibility of monthly progress billing? The answer might seem trivial, but it has profound implications for working capital management and project liquidity.

Trained contract administrators are pivotal in navigating these intricacies, scrutinizing every clause and provision to ensure alignment with project goals and objectives. One of their critical tasks is to zero in on the Payment Clause, as well as the Limited Liability and Rights of Use clauses, to control professional liability and financial risk.

Furthermore, operations specialists are instrumental in securing signed contracts with all subconsultants, a crucial step in mitigating professional liability insurance costs. Ensuring that all subcontractors have the requisite certificates of insurance helps shield the firm from potential legal and financial liabilities.

SDA recognizes the paramount importance of effective contract administration and risk management. That’s why we’ve partnered with industry leaders like Berkeley Design Professionals to offer comprehensive webinars and conference sessions on these critical topics. Through these educational initiatives, we empower our members to stay abreast of the latest best practices and industry standards, equipping them with the knowledge and tools to navigate complex contractual landscapes confidently and precisely.

In essence, contract administration and risk management are the bedrock upon which successful projects are built. By investing in these fundamental functions and arming our members with the necessary knowledge and resources, we position them for success in an ever-evolving industry landscape.

Want to know more about contract administration and risk? Check out these SDA programs:

SDA Webinars:

Did I Say That? Managing Claims & Liability in Electronic Business Communication – Karen Serger & Bruce Miller

Risk Management Essentials of the New Normal – Diane Mika, Berkley Design Professionals