Surety Bond Quarterly - Summer 2015 - 11

THE INSTRUMENTS OF SERVICE ARE THE "DRAWINGS AND SPECS" PRODUCED
BY THE LICENSED DESIGN PROFESSIONAL OR FIRM DURING THE CONSTRUCTION
DOCUMENTS PHASE OF THE UNDERLYING CONTRACT BETWEEN THE OWNER
AND THE ARCHITECT.
the owner's interests, for the specifier to make changes
to the warranty time periods or other attributes that can
significantly change the underlying risks of the bond.
For example, the specifier might change the general
conditions so that the contractor is made a co-guarantor
of equipment and materials for the full term of the warranties offered by the supplier and/or manufacturer. In
a more common scenario, a specifier will simply fill in
the blank for warranty requirements with what he or she
believes is a suitably high number to protect the owner. In
other circumstances, the specifier might alter liquidated
damages or consequential damages provisions as well.
Research shows that many of these risk issues are
exacerbated by the low prestige in which specifiers are
held by the architectural profession. This low prestige,
combined with the predilection of designers to use a
disproportionate amount of the design fee for visual work
alone, leaves specifiers with unreasonably short time
frames to do their work. This increases the likelihood
of errors that can create heightened risk for the project.
The fact that an unrecognized core node of risk is now
in the open means that it can be productively addressed

to benefit all parties on the project. Given the rapid expansion of new mechanisms for information acquisition in
the construction industry, it is crucial that sureties pay
attention to the quality of specifications to help ensure
project success.
●
Ujjval K. Vyas, PhD, JD, is a construction attorney and
principal of Alberti Group, a Chicago-based interdisciplinary consultancy specializing in risk management,
performance, and policy related to the built environment. The Alberti Group conducted the CSI research
report discussed in this article. Vyas can be reached at
uvyas@albertigroup.net or 312.810.1008.
Reference
See "Seventy-four percent of the owners polled ..." and following
paragraph in 2004 FMI/CMMA Owners' Survey, p. 7, available at http://
www.cmaafoundation.org/files/surveys/2004-survey.pdf. These surveys
indicate that there has been a concern with design document quality for
quite some time. Anecdotally, there has been an even longer period of
decline. See also "The 2010 FMI/CMAA Owners' Survey indicated ..." in
2010 FMI/CMAA Owners' Survey, p. 5, found at http://www.cmaafoundation.org/files/surveys/2010-survey.pdf.
1

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11
14-08-14 1:41 PM


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Table of Contents for the Digital Edition of Surety Bond Quarterly - Summer 2015

NASBP Upcoming Meetings & Events
2015-2016 NASBP Executive Committee
From the CEO - There is Poetry in Surety Claims, Surely
Practical Insights: What You Need to Know - Hiding in Plain Sight: Specifications as a Source of Risk
Profile: President Susan Hecker
Developing Your Leadership Vision
Liability Issues - Can Public Owners be Held Liable to Subcontractors and Suppliers for Failure to Require General Contractors to Obtain Required Payment Bond?
An Introduction to Probate Bonds
Class Act - Surety Team’s Cooperative Efforts Enable School to Open on Time
NASBP’s Attorney Advisory Council - Participants Opine on Current Risk Management Challenges and Business Opportunities
The AIA Describes Updated and Expanded Design-Build Documents Family
Contractor Practices That may Result in Construction Claims to Recover for Delays and increased Costs
NASBP Annual Meeting Speakers - Veterans can benefit private sector, but need help finding jobs
Index to Advertisers
Surety Bond Quarterly - Summer 2015 - cover1
Surety Bond Quarterly - Summer 2015 - cover2
Surety Bond Quarterly - Summer 2015 - 3
Surety Bond Quarterly - Summer 2015 - 4
Surety Bond Quarterly - Summer 2015 - 5
Surety Bond Quarterly - Summer 2015 - 6
Surety Bond Quarterly - Summer 2015 - 2015-2016 NASBP Executive Committee
Surety Bond Quarterly - Summer 2015 - From the CEO - There is Poetry in Surety Claims, Surely
Surety Bond Quarterly - Summer 2015 - 9
Surety Bond Quarterly - Summer 2015 - Practical Insights: What You Need to Know - Hiding in Plain Sight: Specifications as a Source of Risk
Surety Bond Quarterly - Summer 2015 - 11
Surety Bond Quarterly - Summer 2015 - Profile: President Susan Hecker
Surety Bond Quarterly - Summer 2015 - 13
Surety Bond Quarterly - Summer 2015 - Developing Your Leadership Vision
Surety Bond Quarterly - Summer 2015 - 15
Surety Bond Quarterly - Summer 2015 - Liability Issues - Can Public Owners be Held Liable to Subcontractors and Suppliers for Failure to Require General Contractors to Obtain Required Payment Bond?
Surety Bond Quarterly - Summer 2015 - 17
Surety Bond Quarterly - Summer 2015 - 18
Surety Bond Quarterly - Summer 2015 - 19
Surety Bond Quarterly - Summer 2015 - 20
Surety Bond Quarterly - Summer 2015 - 21
Surety Bond Quarterly - Summer 2015 - An Introduction to Probate Bonds
Surety Bond Quarterly - Summer 2015 - 23
Surety Bond Quarterly - Summer 2015 - 24
Surety Bond Quarterly - Summer 2015 - 25
Surety Bond Quarterly - Summer 2015 - 26
Surety Bond Quarterly - Summer 2015 - Class Act - Surety Team’s Cooperative Efforts Enable School to Open on Time
Surety Bond Quarterly - Summer 2015 - 28
Surety Bond Quarterly - Summer 2015 - 29
Surety Bond Quarterly - Summer 2015 - NASBP’s Attorney Advisory Council - Participants Opine on Current Risk Management Challenges and Business Opportunities
Surety Bond Quarterly - Summer 2015 - 31
Surety Bond Quarterly - Summer 2015 - The AIA Describes Updated and Expanded Design-Build Documents Family
Surety Bond Quarterly - Summer 2015 - 33
Surety Bond Quarterly - Summer 2015 - Contractor Practices That may Result in Construction Claims to Recover for Delays and increased Costs
Surety Bond Quarterly - Summer 2015 - 35
Surety Bond Quarterly - Summer 2015 - NASBP Annual Meeting Speakers - Veterans can benefit private sector, but need help finding jobs
Surety Bond Quarterly - Summer 2015 - 37
Surety Bond Quarterly - Summer 2015 - Index to Advertisers
Surety Bond Quarterly - Summer 2015 - cover3
Surety Bond Quarterly - Summer 2015 - cover4
Surety Bond Quarterly - Summer 2015 - outsert1
Surety Bond Quarterly - Summer 2015 - outsert2
Surety Bond Quarterly - Summer 2015 - 43
Surety Bond Quarterly - Summer 2015 - 44
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