April is Administrative Professionals Month, and at SDA, we’re taking time to recognize the dedicated professionals who keep A/E/C firms running smoothly. Many of our members may not always be in the spotlight—but day in and day out, they bring knowledge, leadership, and consistency to their teams. This month, we're celebrating their contributions by sharing insights, experiences, and stories that highlight the value they bring to our industry and to one another. This week we hear from Susan Lankey, CDFA. Susan is a member of our National Membership Committee, a Past National President, and a member of the SDA Mid-Atlantic Chapter. 

Every month, I make it a priority to join SDA’s First Friday Coffee Chat—and for good reason. It’s more than just a casual check-in; it’s a collaborative space where real challenges meet real solutions. Whether you’re looking for advice, fresh perspectives, or simply a way to connect with peers who understand the unique demands of the AEC industry, this is the place to be.

A Trusted Space for Honest Conversations

One of the greatest benefits of these sessions is the ability to seek honest advice in a trusted environment. If you’re struggling with a workplace issue—whether it’s holding project managers accountable, improving financial workflows, or handling team dynamics—chances are, someone else has faced a similar challenge. The open discussion format allows participants to share experiences, offer solutions, and provide fresh perspectives that you may not have considered.

Unlike structured webinars or formal training sessions, First Friday Coffee Chats feel more like a conversation among colleagues. There’s no pressure to come with prepared remarks or polished insights—just bring your questions, challenges, and curiosity. Some of the best takeaways come from spontaneous discussions sparked by a simple “Has anyone else dealt with this before?”

Diverse Voices, Valuable Insights

What makes these conversations so valuable is the diversity of voices in the room. SDA members from firms of all sizes and specialties bring a wide range of expertise. Whether you’re navigating office politics, learning new software, managing international employees, or implementing new firm policies, the insights shared come from real-world experience.

This mix of perspectives is what keeps me coming back. It’s one thing to read about best practices online, but it’s another to hear firsthand how your peers are tackling the same challenges. It’s also reassuring to know that even if no one has the perfect answer, you’ll leave each session with new ideas, a fresh outlook, and a supportive network of peers who are always willing to help.

Real-World Examples That Make a Difference

Over the past year, I’ve walked away from these chats with practical solutions that I’ve implemented in my own firm. Here are just a few examples of topics we’ve discussed:

✅ How to encourage project managers to take ownership of budgets and deadlines
✅ Strategies for training new employees on firm policies and workflows
✅ Best practices for managing remote teams and keeping them engaged
✅ How to advocate for better technology and software upgrades in your firm
✅ Ways to handle difficult conversations with leadership or team members

These aren’t just abstract concepts—they’re actionable insights that have helped me improve efficiency, communication, and overall job satisfaction.

Building Connections That Last

Beyond the professional benefits, First Friday Coffee Chats are also a great way to build lasting relationships within the SDA community. Working in firm operations can sometimes feel isolating, especially if you’re the only person in your role at your firm. These chats serve as a reminder that you’re not alone—there’s a whole network of experienced professionals who understand your challenges and are willing to offer advice and encouragement.

I’ve made meaningful connections through these conversations, and many of those connections have turned into ongoing professional relationships. Whether it’s collaborating on a project, sharing resources, or simply having someone to vent to on a tough day, the support system within SDA is invaluable.

If You Haven’t Joined Yet, Here’s Why You Should

If you haven’t attended a First Friday Coffee Chat yet, I encourage you to give it a try. There’s no formal agenda, no pressure to speak—just a welcoming space where you can listen, learn, and contribute when you’re ready. It’s one of the easiest ways to tap into SDA’s collective knowledge—and you might just walk away with the solution you’ve been looking for. So grab your coffee, pull up a chair, and join the conversation! You never know what insights or connections you’ll gain.

Thanks Susan. Our April Virtual Coffee will be our SDA National Open House in honor of Administrative Professionals Month. Join us for the conversation on April 4, 2025 at 11:00 am eastern. It’s free to attend—register here (and invite someone who needs to know about SDA to join you):  https://www.sdanational.org/events/EventDetails.aspx?id=1873455

Reviewing an ACORD 25 Certificate of Liability Insurance may seem like a straightforward task, but it’s far from a simple ‘check the box’ exercise. The intricacies involved in this process require understanding the insurance verbiage and its implications. 

It’s easy to glance past the standard verbiage at the top of each certificate without much thought. However, the wording at the top of every certificate is essential to understand: “This certificate is a matter of information only and confers no rights upon the certificate holder.”  In other words, it’s just a snapshot of the policyholder’s insurance coverages, effective dates, and insurance limits at the time of the certificate’s issue date. It does not provide anything more than that. This leads to the second box, which is equally as important: 

Important: “If the certificate holder is ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. IF SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such an endorsement(s).”

What this means for your firm

What this means for your firm is that simply stating on the certificate that the holder is an additional insured does not ensure that the certificate holder is, in fact, an additional insured. To be an additional insured can only be accomplished through a policy endorsement. If you have requested that your sub-consultant include your firm in their policy as an additional insured, you will want to be provided with a copy of that endorsement. To protect your firm, insist upon being provided with the endorsement. You may even provide them with your company’s COI as an example. Absent this endorsement (or functionally equivalent embedded language within the actual policy(ies), which must be provided in lieu of an endorsement(s)), you cannot assume your firm is protected in the event of a claim.

What is an additional insured?

Policies are written to cover the entity that purchased the coverage for its own protection. They are the named insured. To extend the policy coverage to others, a policy endorsement is required. Endorsing the policy to name your firm as an additional insured means that your sub-consultant has agreed to extend commercial general liability and automobile liability coverage to your firm for claims caused in whole or in part by your sub-consultant. Neither professional liability nor workers’ compensation coverage can be endorsed to another entity including additional insured or primary and non-contributory status, period. 

Primary and non-contributory coverage

Equally important is assuring that your subconsultant’s insurance is primary and non-contributory. Primary and non-contributory insurance is a term used in insurance policies and certificates of insurance to specify the priority and obligation of an insurance policy in relation to other applicable policies. To clarify these terms:

Primary insurance is the insurance policy that responds first in the event of a claim. It pays out up to its coverage limits before any other applicable insurance policies are triggered. The primary insurer is responsible for handling and paying the claim without waiting for other insurers to contribute.

• Example: If a contractor has a primary general liability policy and an incident occurs on a job site, this policy will cover the claim up to its limit before any other policies are involved.

Non-contributory insurance means that the primary policy will not seek contribution from other insurance policies that might be available to cover the same loss. In other words, it prevents the primary insurer from sharing the loss with other insurers. The primary insurer is solely responsible for the claim up to the policy limits without expecting payment from other insurers. 

• Example: If a client requires a contractor to have primary and non-contributory insurance, it means that the contractor’s policy will cover any claims first and in full without asking the client’s insurance to share in the payment.

Importance in Contracts

• Risk Transfer: This provision is often required in contracts to ensure that one party’s insurance policy (e.g., a contractor’s policy) will handle claims without involving the other party’s insurance (e.g., the client’s policy), effectively transferring the risk.
• Clarity and Priority: It provides clarity on the priority of coverage and ensures that the party requesting the COI (e.g., the client) is not financially impacted by claims arising from the insured party’s (e.g., the contractor’s) actions.

Example Scenario

Imagine a scenario where a contractor works on a client’s project, and the contract specifies that the contractor’s insurance must be primary and non-contributory. If an accident occurs on the job site and a claim is made, the contractor’s insurance will pay for the damages up to its coverage limit without involving the client’s insurance. This protects the client from potential premium increases or claims on their insurance policy.

Ongoing Operations and Product-Completed Operations Hazard

Another element of the Additional Insured Endorsement is in the “Who is an Insured” section of the endorsement. Some firms may include only “ongoing operations” in their endorsement. An “ongoing operations’ endorsement does not protect against post-completion claims. You want to see verbiage to the effect of “In the performance of your ongoing operations” and “In connection with “your work” and included within the “product-completed operations hazard” to ensure that claims that occur both during your ongoing services and after the project has been completed will be covered. If not, your firm stands in that coverage gap.

Summary

Understanding and enforcing these insurance requirements for your subconsultants will significantly mitigate your firm’s claims risks. Ensure that each certificate of insurance is reviewed carefully for these essential elements. Additionally, set up a system to track and monitor your sub-consultant insurance renewal dates. Many software programs have this system built-in to provide reminders. 

Want to learn more? Here are some resources.

SDA Recordings: Understanding and Complying with Client Insurance Requirements 

AIA Trust – “Understanding Insurance: Additional Insureds: Home - AIA Trust (theaiatrust.com)

SDA Blog  - Certificates of Insurance: An Essential Guide for Businesses - SDA (sdanational.org)

SDA does not endorse any products or services mentioned, and SDA does not assume responsibility for any circumstances arising out of the interpretation, application, use, or misuse of any information presented. SDA recommends that the reader consult the appropriate legal, financial, or human resource counsel before implementing the information contained herein.

April 24 is 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 Finance.

Financial management is pivotal in driving success and sustainability in the complex world of architectural and engineering firms. From navigating tax regulations to optimizing project profitability, finance professionals are responsible for fiscal health and strategic decision-making.

One often overlooked aspect of financial management is understanding and mitigating tax liabilities. In Virginia, firms are subject to a Gross Receipts Tax, which can significantly impact the bottom line.

Case in Point: Take, for instance, the scenario of a joint venture operating in Virginia. Not only does the JV incur Gross Receipts Tax, but each partner is also subject to additional taxation at the individual level. A double whammy can eat into profits and erode financial viability. However, astute financial analysis and strategic planning can uncover opportunities for optimization and savings. Consider the case of a recent joint venture where a firm’s controller identified a significant tax-saving opportunity. By strategically headquartering the JV in Colorado instead of Virginia, the venture saved $13,000 annually and $65,000 over the contract’s life. This simple yet strategic decision increased the JV’s profit dollar for dollar to the bottom line.

But tax optimization is just one piece of the puzzle. Equally important is understanding project profitability by client—a metric that can reveal hidden inefficiencies and identify lucrative opportunities. By analyzing profitability metrics, firms can weed out underperforming projects, allocate resources more efficiently, and prioritize clients with the highest returns.

At SDA, we’re committed to empowering our members with the knowledge and insights needed to navigate the intricate terrain of financial management. It’s one reason why we partner with industry leaders such as PSMJ, Profit by Design, and Morrissey Goodale during our conferences. Through these partnerships, we provide our members access to up-to-date financial analysis, industry trends, and best practices—like Deltek & A|E Clarity’s financial survey and McGraw-Hill industry trends—equipping them with the tools and strategies needed to thrive in a competitive marketplace.

Case in Point: After a member attended an SDA conference session by Mony Financial Services on deferred compensation plans using whole life insurance, she brought the idea back to her firm, the firm established and funded the plan, and it continues to be a successful part of the firm’s succession planning.

Finance is the lifeblood of A|E firms, driving strategic decision-making and ensuring long-term sustainability. By embracing financial acumen and leveraging our various member resources, firms can unlock new opportunities, optimize profitability, and chart a course toward continued success in the industry’s ever-evolving landscape.

Look for SDA’s new Certificate in Design Firm Financial Management (CDFO-FM) accreditation coming soon. CPAs and CMAs designations are helpful, but an accreditation specific to A|E|C finances will be a game changer.

Webinar Suggestions:

Benchmark Your Firm Performance for Growth – Deborah Gill

RAISE Your Value and Charge What You’re Worth– June Jewell

How to Achieve a Sustainable, Profitable Business - Mark Goodale