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A Comparison of Contract Requirements for Design Professional Liability Insurance in Design-build Highway Projects

9 pagesPublished: May 15, 2022

Abstract

In the transportation design-build (DB) industry, the responsibility of the design is transferred to the design-build team from the owner. One of the critical issues for state departments of transportation (DOTs) is design professional liability. To cover designers’ professional negligence, design professional liability insurance (DPLI) should ensure satisfactory coverages in DB projects for state DOTs. The objective of this study is to identify the variability of the DPLI policy requirements that are found in DOT DB projects. This study conducts content analysis and comparative analysis of 15 DOT archival data that consist of design-build agreements and requests for proposals. This study determines six common elements of DPLI requirements: (1) types of DPLI, (2) indemnifying party, (3) coverage amount, (4) extended reporting period, (5) retroactive date, and (6) supplemental policies. The results show that these DPLI policy elements depend on the available customizable options and requirements. Some DOTs tend to explicitly state all six elements, while other DOTs require a few of these six elements. The findings also explain the significant characteristics and implementation of each policy element. Its findings contribute to a better understanding of DPLI requirements and provide opportunities for decision-makers to reduce issues related to insurance coverage gaps.

Keyphrases: Design professional liability insurance, Design-Build, Errors and omissions insurance

In: Tom Leathem, Wesley Collins and Anthony J. Perrenoud (editors). ASC2022. 58th Annual Associated Schools of Construction International Conference, vol 3, pages 335--343

Links:
BibTeX entry
@inproceedings{ASC2022:Comparison_of_Contract_Requirements,
  author    = {Jung Hyun Lee and Baabak Ashuri},
  title     = {A Comparison of Contract Requirements for Design Professional Liability Insurance in Design-build Highway Projects},
  booktitle = {ASC2022. 58th Annual Associated Schools of Construction International Conference},
  editor    = {Tom Leathem and Wes Collins and Anthony Perrenoud},
  series    = {EPiC Series in Built Environment},
  volume    = {3},
  pages     = {335--343},
  year      = {2022},
  publisher = {EasyChair},
  bibsource = {EasyChair, https://easychair.org},
  issn      = {2632-881X},
  url       = {https://easychair.org/publications/paper/XP6V},
  doi       = {10.29007/6vff}}
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