Virtual Workshop Risk Management, Legal Structures and Contracts June 29, 2025

Practice Management
1

I do not understand why Indemnification Provisions is not a correct answer for Part 1 Question 3.

Part 1 Question 3 is:

What contractual terms included in the B101 are key to minimizing the architect’s liability when developing an agreement between the owner and the architect?

a. Limitations of Liability
b. Professional Liability Insurance Limits

c. Mutual Waiver of Consequential Damages
d. Indemnification Provisions
e. Court Litigation Requirements
f. Meet and Confer Conditions

The correct answers are:

b. Professional Liability Insurance Limits
c. Mutual Waiver of Consequential Damages
e. Court Litigation Requirements

I don’t understand why d. Indemnification Provisions is not a correct answer.

The explanation given for why this is not a correct answer is:

d. Indemnification Provisions

Indemnification is a legal concept where one party accepts responsibility for liability and damages a claimant may attribute to another party.

From the B101 contract:

7.3.1 In the event the Owner uses the Instruments of Services without retaining the authors of the instruments of service, the owner releases the Architect and Architect’s consultants from all claims and causes of action arising from such uses. The Owner, to the extent permitted by law, further agrees to indemnify and hold harmless the Architect and its consultants from all costs and expenses…

So, if 7.3.1 from the B101 contract says the Owner agrees to indemnify the architect how is that not considered an indemnification provision?

Is that not a ‘contractual term in the B101 that minimizes the architect’s liability’?

2

I agree that’s definitely an indemnification clause. It’s debatable that b should be considered correct. Insurance does not minimize liability it merely shifts the risk elsewhere. e is also a bit suspect, I assume this means whether you choose litigation or arbitration as a binding solution. Many of these questions are borderline subjective.

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3

b. Professional Liability Insurance Limits is definitely correct. Professional liability insurance is required under the architect’s responsibilities in Article 2 of the B101. The ‘limit’ determines how much coverage the architect has. The higher the limit the more the architect is protected from errors & omissions and negligent acts. The architect can minimize his/her liability by increasing the insurance limits and ‘buying’ more protection.

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