b'INSURANCE COLUMN10. Contractual protection .An ironcladproject was intended as residential rentalmanagement tactics outlined here. Realize contract with the developer is para- units operated by a single owner. Note thatthat you may wield a significant bargaining mount to a successful condo project.if the property is changed to any other use,advantage, particularly when the developer This begins with a detailed scope ofincluding condominiums, the client agreesis having difficulty finding a design firm services, including the developmentthat you will be released from all liabili- willing to take on its condo project. of completed designs and plans,ties. Also require that the client agrees to construction observation services andindemnify you and hold you harmless for all maintenance manuals for the condoservices you performed on the project. FOR MORE DETAILS:corporation. The contract shouldRob McLeod, CAIB, CIP cover the developers commitment toHOLD FIRM ON YOUR DEMANDS Professional Liability Insurance Broker establish a contingency fund, your rightDirect: 604-629-2680 to maintain ownership of your plans andDesigners considering condo projectsrmcleod@mpib.com specifications (to ensure the developermay question whether they will have the1500-1166 Alberni Street doesnt reuse your plans without yourbargaining power to insist on all of the riskVancouver, B.C. V6E 3Z3knowledge), your right to terminate your services should the developer fail to live up to the contract, the establishment of mediation as the dispute resolution technique of choice, and the prohibitionUse An RCABC Memberof unauthorized changes to your plans. Its Chaos Without UsAlso, attempt to use standard association agreements that include a Limitation of Liability clause, and look out for onerous clauses in client-drafted agreements (including standard form supplementary conditions). These often have firms agree to uninsurable clausesfor example, indemnity provisions that are not limited to a firms negligence.BEWARE OF THESE STEALTHY SURPRISESBelieve it or not, even designers who purposely avoid taking on condominium projects may find themselves caught in the condo liability net. The first problem is the condo conversion, an existing rental apartment or other residential or commer-cial structure you designed that is later converted for condo use. Even though you never gave approval for such a conversion, you may find yourself sued by the condo corporation, particularly if the developer is nowhere to be found.The second and more insidious problem is the so-called stealth condo. Here, a devel-oper hires a designer for a purported rental apartment complex. At or near substantial completion of the project, however, the developer suddenly converts the units to condominiums. The designer now faces all of the added liabilities of a condo complex with no added contractual protection or design fee. 604-882-9734rcabc.org Your best defense here is to include a clause in your contract for designing anyFind the complete Roofing Practices Manual at: RoofStar.carental apartment complex which states your SPRING/SUMMER 2021 13'