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

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 Project Management.

Effective project management is the linchpin for success in the dynamic world of Architecture, Engineering, and Construction (A|E|C) projects. Three factors are pivotal in ensuring the firm completes projects on time, within budget, and to the highest quality standards.

• Schedules

• Resource allocation

• Documentation and Reporting

Even before starting the project, the project team needs to set the project up with the most favorable contract terms, including insurance terms, billing and progress payment schedules, change orders, contingencies, and the overall risk management structure. The Project Management Assistant’s knowledge of contract administration aids the team in starting off with the best possible terms.

Establishing schedules, allocating resources, and project budgeting lie at the core of project management. However, once accomplished, the day-to-day administration of those tasks is not the PM’s first choice in priorities. Here is where PMAs excel. Once the PM develops the detailed project timelines and milestones, PMAs manage the daily tasks, time-keeping, meeting management, and reporting, ensuring that every aspect of the project progresses smoothly and efficiently for the PM. And the PMA turns all of that information into billable dollars, preparing and sending client invoices.

Resource scheduling is another critical aspect of project management, ensuring that the right resources are allocated to the right tasks at the right time and billed to the correct project and phase. By optimizing resource utilization software and minimizing downtime, PMAs maximize efficiency and productivity, driving the project toward its ultimate goals with precision and effectiveness. Overseeing the team’s time and expense management through software, documentation, and organization, the PMA maximizes timely billing and profitability.

Comprehensive documentation is equally essential in project management. From meeting minutes to change orders, PMAs work with project managers to meticulously record every aspect of the project’s progression, providing a clear and transparent record of decisions, actions, and outcomes. This documentation is a valuable reference for the project team and provides a crucial line of defense for disputes or claims.

In our organization, we understand the importance of equipping PMAs with the tools and resources they need to excel in their roles. In 2023, SDA conducted an 8-hour project management workshop facilitated by project, financial, and risk management experts and provided a PM toolkit for future reference. Our SDA website offers a wealth of resources, with e-books, examples, and checklists, including the perfect liability clause and the use of Betterment as a defense in Errors and Omissions (E+O) negotiations to reduce pay-outs. These resources provide valuable insights and strategies to help PMAs administer daily tasks, permitting project managers to navigate complex challenges and mitigate risks effectively. Project Management is one of the six keystones of our Certificate in Design Firm Administration.

By embracing best practices in scheduling, resource allocation, and documentation, PMAs empower their teams to deliver exceptional results and achieve excellence in every endeavor.

For more information, check out these resources:

SDA Recorded Webinars

Pontifications on Creating & Maintaining Protective Project Files – Mike Murtaugh

Watch Out for that Project/Project Risk Analysis – Brian Baumgardner/Patty Huntley

SDA Innovation in Education Resources

Betterment Defense in Construction Law 

Contract Administration: The Perfect Indemnification Paragraph