A design professional’s project and client selection processes can determine whether the design professional will recognize success on a project. While we all want challenges, a project that is beyond the design professionals’ skill set or office capabilities; or represents unreasonable owner expectations given the budget is doomed from the beginning. Similarly, a client that is dedicated to completing a project through the quickest and cheapest means possible may also compromise the design professional’s chances of success.

Regardless of the efforts the design professional may undertake to address the above during any subsequent project phase, the design professional’s risk exposure will remain high. It is critical that the design professional evaluate the risks and rewards of any potential project prior to undertaking any design or administration work.

A final decision for accepting any project should take into account the exposure, probability of occurrence, and magnitude of loss that the design professional faces. Some risks are unknown, but by identifying potential risks in advance their impact can be diminished.

Project Selection Criteria

Establishing selection criteria (“Go/No Go” Evaluation) for a project can provide you with a realistic means of objectively assessing a project and client. This process could include the following:

• Identifying those who have a stake in the outcome.

It is not often easy to determine who is the client. On a commercial retail project are you working for a tenant or property owner? The answer to this question has significant consequences regarding rights and obligations. If you are doing a medical complex, or residential real estate developer, are you working directly for the owner or a legal entity established by the clients. Project specific limited liability corporations or partnerships afford clients with legal protections that affect your rights.

• Defining the customer’s expectations. (Is the customer dedicated to constructing the same quality project as you?)

• Defining the customer’s budget. (Is the budget reasonable for the envisioned project?)

• Defining the customer’s commitment to the project.

• Review of the client’s financial capabilities.

Are you going to get paid? Does the owner have enough finances in the project to take care of changes? If either answers are questionable, you will be the party footing the bill in one way or another.

• Review of the client’s reputation.

If your competitor won’t work for the client, why do you?

• Determining whether the project is worth initiating.

• Defining the project goals including but not limited to the end product.

• Determining the project scope of the project.

• Deciding whether a profitable outcome is feasible with the associated project risks.

• Defining the statement of work that establishes the ground rules of the project and promotes clear expectations.

• Assessing the feasibility of project time constraints.

• Assessing the allocation and availability of both internal and external resources.

• Assessing office capabilities.

Are you overstretched? Do you have qualified staff available to do the project?

• Assessing the project team.

• Assessing site suitability for the project.

Does planning and/or zoning board approvals look problematic? Is the client’s funding dependent upon governmental approvals? If so, who is going to pay for your design work if you start before approvals are received?

• Identifying special project requirements such as but not limited to required easements; site access; soil conditions; financing requirements, etc.

Performing a project selection review process will provide you with a wide view of what to expect from the client and the project. It will also provide you with information from which to decide whether to accept or decline the project. While no one wants to say “no-go” with regard to a project, it sometimes is in the best interest of the design professional to do same. Unreasonable project conditions and owner expectations are just two reasons that you may want to walk away from a project. Fees lost by turning down a project will often be less than legal fees spent defending claims arising from a risky project or unreasonable client.

With project selection in hand, you are in a position to evaluate your risks and the steps you need to take to control them. Specific contract needs can be developed in advance of the “okay” to commence design work. In those situations where you are requested to commence design activities prior to contracting, documentation of decisions made by the owner and you during the selection process should be documented and circulated to the owner as well as your team. Your contract requirements and expectations should also be included in that documentation. This type of documentation is essential for claim control. It is not atypical for memories to fade or conflict. Documentation prevents this from happening.

Documentation during the project selection process is also critical to maintaining continuity between you and the owner, and among your staff. Documenting decisions made by the owner concerning the project budget and design will prevent future disputes from arising over certain design decisions. Similar documentation of decisions and intents should be maintained with regard to initial discussions that may take place with regard to potential consultants.

Practice Case Study
Review the Project Selection Case Study (link) and Case Study Discussion (link). Use the Project Selection Worksheet (link) as a guideline to discern the risks as you assess and select projects.