As 2021 draws to a close, we’re sharing the year’s most-read risk management articles and news items.*

Architects showed interest in a broad range of topics – from specific advice to broader planning and risk mitigation solutions. Reading about COVID-19 and the impacts to the profession as well as to professional liability insurance ranked 1st again for the second year running. In second place is a seasoned lawyer’s perspective on the typical pitfalls faced by Architects in litigation. And rounding out the top three is the 16th edition of the Straight Line which reviewed several relevant books on the subject of project risk and general risk management.

1. COVID-19 Resources for Architects
2. 5 Things a Pro-Demnity Lawyer Doesn’t Want to Hear from an Architect
3. Firmness, Calamity and Delight – The Straight Line Issue #16
4. Dispute Resolution Wordings
5. 6 Ways to Reduce Risk
6. Excluded Services Endorsement
7. Do Your Fees Adequately Reflect Project Risk and Scope?
8. Planning for Risk
9. Navigating Risk: What Practice Leaders Do
10. 25 Things Within An Architect’s Control
11. Retirement from Practice Program

Most of the reads take less than 3 minutes, delivering valuable expertise to support architects in their professional roles, while providing relevant and useful solutions that help architects to manage, mitigate, avoid, transfer, or assume risk with eyes wide open.

What better way to start planning for 2022 than to learn from 2021?

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*The rankings were driven by stakeholders including (but not limited to) architects, architectural technologists, architectural practice leaders, partners and principals, risk leaders, insurance decision-makers, policyholders and ancillary professionals (i.e., lawyers, engineers), as derived from website visits and page views from January 1, 2021 to December 23, 2021.

At this year’s COP 26 summit in Glasgow, global attention is poised on commitments and actions. Here in Ontario, for several years now, Pro-Demnity remains steadfast in its commitment to operate and invest in a responsible, sustainable manner. This commitment is reflected in our investment philosophy and, aligned with the architecture community of practice which we proudly serve.

Environmental, social and governance (ESG) considerations are foundational to our Investment Policy, meaning we actively incorporate ESG factors in our investment strategy and, when assessing new investment opportunities. 

To this end, the proactive divestiture of investments from fossil fuels and pipelines began several years ago under the stewardship of our Board of Directors. Since September 2018, Pro-Demnity has not invested or reinvested in fossil fuels and pipelines[i]. This divestiture heralded a new approach to business whereby sustainable thinking has become more broadly integrated in Pro-Demnity practices and planning.

Our ESG philosophy includes the selection of investment managers and sub-managers who draw on the expertise of financial management advisors to ensure portfolio investments continue to align with corporate, fiscal and social values, as well as upholding a fiduciary duty to act in the best interests of the Company (and by extension, our policyholder clients). Pro-Demnity’s investment manager is a signatory to the United Nations Principles for Responsible Investment (RI). As an affiliate, it is committed to meeting the UN’s PRI goals, grounded in the following six core Principles:

• Incorporate ESG factors into investment analysis and decision-making processes.
• Be active owners and incorporate ESG issues into ownership policies and practices.
• Seek appropriate disclosure on ESG issues from the entities in which we invest.
• Promote acceptance and implementation of the Principles across the industry.
• Work together to enhance our effectiveness in implementing the Principles.
• Report on activities and progress towards implementing the Principles.

Rigorous assessment, monitoring and evolution of our investment portfolios in accordance with our ESG philosophy, all factor significantly in our investment processes today and into the future.

We also acknowledge that sustainability efforts require ongoing meaningful action.  As Pro-Demnity continues to expand its ESG practices as a key ally within the architecture community, we are committed to the collective movement that makes positive contributions towards a more sustainable future.

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[i] Our active investment strategy in this portfolio is to hold assets to maturity. There is only one investment in pipelines in this portfolio, a bond expiring in July 2023. It was decided to let this bond mature in 2023 and not reinvest in it.

Last month, the profession lost one of its dearest and most accomplished members. Chris Fillingham, whose contribution to the profession and culture of architecture in Canada was exceptional, passed away suddenly on September 19^th. As a practising architect for half a century, he led teams that created many notable buildings in Canada. But his major contribution extends beyond geographical boundaries and beyond the normal services of an architect, to the advancement of the profession itself. He is fondly remembered by Pro-Demnity in this tribute as we extend our deepest sympathies to his family.

Chris was born in England in 1943 and moved with his family to Canada, at the age of three, settling finally in Toronto. His interest in architecture was evident from an early age, so it was no surprise when he entered the University of Toronto architecture program in 1962. Classmates from those years – several of whom remained friends and colleagues for the next 59 years – remember Chris as a smart, witty, dependable and considerate person with a remarkable range of interests.

Any architect who graduated during the mid-sixties with proficiency in the game of bridge probably owes those skills to Chris Fillingham. Little did any of us know that, aside from our prescribed courses, those card-playing skills – negotiation, rationality tinged with optimism, teamwork, calmness, and a sense of humour – would be required in architectural practice and would distinguish Chris as an exceptional professional.

Graduating in 1968, Chris embarked on a professional career that thrust him quickly into organizational and managerial roles: from 1972 to 2004 with Dunlop Farrow Architects in Toronto, ultimately as principal; from 2004 to 2021 with Stantec, Toronto, as senior principal, vice president and consultant. His wisdom, warmth and generosity affected all those who worked with him.

There was no time in Chris’s career when he wasn’t somehow engaged in furthering the profession. Almost immediately after registering, he became a Member of the Standing Committee on Fire Safety in Buildings (1976), a position he held for 10 years. After this, he was appointed a director of the Ontario Urban Development Institute. This was followed by an impressive number of professional and community appointments and activities, including: Director, Building Industry Strategy Board of Ontario (1985-1988); consultant to External Affairs Canada and Presenting Canadian Experience in Wood Frame Construction to the Japanese Government as it Relates to Fire and Structural Safety (1987); First Vice President, Construction Industry Advisory Committee to Minister of Economic Development and Trade, Ontario (1989); … and, most notably, OAA president (1999–2000), RAIC president (2004–2005) and Board Chair of Pro-Demnity Insurance and its predecessor (2001–2015).

Chris’s participation in OAA governance came at a particularly challenging and precarious time for Ontario architects. Coming on board when the profession was still suffering from the effects of the early-1990s recession, he was instrumental in nurturing a resurgence that has continued to this day. Beginning as a councillor in 1997, followed by a vice presidency in 1998 and culminating in presidency in 1999–2000, Chris‘s contributions were numerous and significant.

During his presidential year, Chris assumed the task of restoring optimism to a profession that had suffered through a debilitating decade. During his tenure, the OAA undertook a number of major initiatives:

• a Regulatory Review
• the first annual OAA Conference (held in Windsor, 1999)
• the first Celebration of Excellence, consisting of a gala black-tie dinner, attended by 600
• initiation of the Continuing Education Program – a feature of the Conference – in order that “The public will benefit by knowing that Ontario architects are the best: committed to keeping current and following a path of life-long learning.”
• the OAA’s first website
• a new and, for its time, radically progressive OAA marketing identity
• commissioning of two CAUSE projects, reaching into two Ontario communities to highlight the public value of architectural services.

Addressing the OAA membership in his quarterly President’s Message, Chris outlined his larger objectives and aspirations for the profession – echoing the goals he strived for in his own professional life:

“One of my goals for ’99 is to establish and foster relationships with others in the building industry, government and related organizations. This, combined with a stronger connection to the public, is key to strengthening the architectural profession.”

Perspectives, SPRING ‘99

“Leadership in the building industry is enhanced by networking with other associations and allied organizations. This interaction is imperative to the strengthening of our profession. … By creating an extended team, we can benefit from the realization that we’re all in this together.”

Perspectives, Autumn ‘99

“More than ever, we cannot think of ourselves solely as architectural practitioners in Ontario. We need to recognize and take advantage of the opportunities that exist in the broader world market.”

Perspectives, WINTER ‘99

In 2004, Chris was elected president of Canada’s national body, the RAIC. In his year-end message to architects across the country, Chris reiterated his ideals of reaching out as a profession, beyond international borders:

“As president of the RAIC, I have emphasized these [national and international] relationships over the past year – this means building solid foundations with our architectural colleagues across the country and with others in the design and construction industry. All in all, I believe good relationships reap untold dividends and this relationship building is more than worth the time and resources invested.”

RAIC President’s message, 2004

Chris’s efforts toward collaboration and effective communication with the construction industry were recognized by his being named 2003 recipient of the Jock Tindale Memorial Award and the 2010 Donald P. Giffen Construction Industry Achievement Award – the first architect so recognized. The criteria for these honours include: “an individual who has demonstrated a high standard of ethics and integrity in dealings with industry participants” and “distinguished by the exemplary dedication and leadership they have shown in pursuing the construction industry’s common goals and interests.” There is no argument that Chris met these criteria.

In recognition of his efforts toward international professional understanding, Chris was awarded honorary membership in both the American and Australian architectural associations, two organizations whose medallions Chris wore with great pride.

In 1987, the OAA initiated its Indemnity Plan, a professional liability program, whose intent was to make mandatory liability insurance available to all architects at a reasonable cost. During his years on OAA Council, Chris had become involved with the evolution of the Plan and held to the belief that a stronger, more secure insurance plan was essential to the health of the profession. In 2001, in pursuit of this belief, he joined the Indemnity Plan development committee and, with the transformation to Pro-Demnity Insurance Company in 2003, became the first board chair – a position he held for the next 12 years. After ceding the chair to his successor Bill Birdsell, Chris stayed on the board to ease the transition. Amid the uncertainty that he must have experienced during that year, Bill described Chris’s demeanor in two words: “calm and focused.”

Past Pro-Demnity President & CEO Byron Treves had this to say about Chris’s contribution to Pro-Demnity and to the profession:

“Chris brought a high level of overview of the profession, from both an association and a practice perspective. His charisma and calm manner were invaluable in the years leading up to the transition to an insurance company, involving negotiations with the government, the red tape commission and the change in relationship with the OAA. His collegial approach as the Board Chair was a blessing in those challenging times, to both the board members and senior management.

Many important changes occurred during his time as Chair of Pro-Demnity, including the introduction of the increased limits program, catastrophic reinsurance protection, the water ingress issues involving wall design, Bill 124 relating to the Building Code Act and its insurance requirements, and the pressure from FSCO (Financial Services Commission of Ontario) to transfer the regulation of solvency to OSFI (Office of the Superintendent of Financial Institutions). His calming influence cannot be over-emphasized. He intuitively understood the role of the Chair, the Board and Management.“

In the last year of his chairmanship, Chris helped to initiate Pro-Demnity’s own newsletter, The Straight Line, now in its 17^th issue. In his Board Chairman’s Message, Issue No. 1, December 1, 2015, Chris wrote:

“This is the inaugural issue of The Straight Line. … Articles will cover a broad range of topics that will engage Ontario architects—whether in practice or not—and others with an interest in the profession.

The Straight Line will provide a forum for commentary from experts outside the profession whose special knowledge can assist us by explaining areas of law and business that lie beyond our daily experience but could affect us in unanticipated ways.“

As always, Chris’s interest was in strengthening the profession by ensuring that it remained a complete entity – one that looked outward as well as inward.

Chris’s professional mantra was “We’re all in this together.” We owe it to him, in his absence, to adhere to this ideal as best we can. And, as suggested in his published obituary, “Raise a glass to this extraordinary man and a life well lived.”

Christopher Fillingham Scholarship Fund

Chris’s legacy to the profession he loved is profound, evidenced not only through the impact achieved through his project work and governance roles, but more important, through the many architects he
mentored and taught throughout his career. In his memory, The John. H. Daniels Faculty of Architecture, Landscape, and Design, Chris’s alma mater, has established a scholarship fund to assist students at the faculty.

In light of Chris’s contribution to the profession, in particular his long service to Pro-Demnity, we have provided support to the fund. We are sharing information about how to contribute to the fund for those who may wish to designate a personal or corporate gift in Chris’s memory.

Making a Donation

1. Make a secure gift via credit card over the telephone by calling Stacey Charles, Alumni and Development Officer at (416) 978-4340; OR
2. Make your cheque payable to: “University of Toronto.” Indicate designation of the gift “In memory of Christopher Fillingham” in the notation field or in a note accompanying the donation, and mail to: John H. Daniels Faculty of Architecture Landscape and Design, Office of Advancement, 1 Spadina Crescent, Toronto, ON M5S 2J5, Canada

Donations will be acknowledged with a charitable tax receipt. BN 1081 62330 – RR0001.

Thank you for considering support of the Christopher Fillingham Scholarship Fund.

Delivery of Construction Services is an exclusion

Some Architects have chosen to expand their business models to include the Delivery of Construction Services under a variety of names – including Contractor, Project Manager, Construction Manager, Design-Builder, etc.

The OAA, and likewise, Pro-Demnity do not have a specific prohibition against an Architect (i.e., a licenced member of the OAA) from participating in the Delivery of the Construction Services using a different business entity to do so; however, those Delivery of Construction activities are not regulated by the OAA and are not considered usual or customary services of an Architect. Subsequently, the Delivery of Construction Services fall outside the applicable coverage that the mandatory professional liability insurance program is intended to provide to Ontario Architects. 

The introduction of the Excluded Services Endorsement in Pro-Demnity policies clarifies the distinction between Construction Phase Architectural Services as the usual and customary services of an Architect, from the Delivery of Construction Services, which are not usual or customary.

The Delivery of Construction Services exclusion was first introduced as an “Excluded Services Endorsement” to all policies starting January 1, 2022, and is now reflected as an Exclusion to the policy as of April 1, 2024. Please refer to Item 29 of the Exclusions section of your policy.

Hold on to your hat

Where the Architect takes on two roles with respect to a project, for example, as the Architect responsible for the design, construction documentation, Construction Phase Architectural Services (i.e., General Review, Contract Administration, or both), AND as a participant in the Delivery of Construction Services on the same project,
Pro-Demnity’s ability to provide a defence to the Architect for their regulated professional services, is being prejudiced by the conflict of interest. Our experience arising from claims where an Architect attempts to wear two hats at the same time through two separate incorporated entities, is that the Architect undermines the strength of their own legal defense as professionals, given the difficulty of separating “Architect Inc.” from “Developer Inc.” if both are represented and embodied in a single person.

Conflicts of interest in this situation provide an enduring risk regarding future claims, which may come from other parties involved in the project such as contractors or consultants, the owners/users of the building, and people who may be affected by the project, such as adjacent landowners and passers-by. 

This dual arrangement significantly increases the exposure to costs and liability for construction-related claims and damages than the Architect participating in the mandatory program, would otherwise be exposed to. 

Further, damages that should be assessed against the party delivering the Construction Services (i.e., a contractor, project manager, construction manager, design-builder, etc.) are being transferred to the Architect. 

The Delivery of Construction Services exclusion ensures that the Professional Liability Insurance Program reinforces an equitable playing field for all Architectural Practices with respect to covered professional liability risks. 

Bolstering the Architect’s role

The mandatory Professional Liability Insurance Program provides Ontario Architects with valuable protections and coverages specific to their professional services as Architects.

The Delivery of Construction Services exclusion bolsters the regulated role and status of Architects in Ontario and strengthens the integrity of the mandatory program. By clarifying the insured risk for Construction Phase Architectural Services, we’re protecting the mandatory program from inappropriate exposures and enhancing collective trust.

Architects adhering to their usual and customary professional services are not affected by this exclusion. Architectural practices can rest assured that their coverage from Pro-Demnity remains intact when performing their duties in the delivery of Construction Phase Architectural Services (i.e., General Review Services or Contract Administration Services, or both).

To learn more, read the Delivery of Construction Services exclusion (Item 29 of the Exclusions in the policy).

Thank you to all who participated in our first risk management education survey. The survey is now closed and the input is being analyzed by an external third party. Reporting of the results will be available in September/October 2021.

In conducting this survey, Pro-Demnity is seeking to better understand the needs of architectural practices in managing uncertainty and risk. We want to learn what activities best support risk management in practice. What do firms do that increase the effectiveness of service delivery, reduce errors in documentation, and optimize resources? What risk management knowledge and skills gaps exist that, if filled, would strengthen client relationships, and increase business opportunities?

Survey results will help inform Pro-Demnity’s risk management education programming and offerings.

Pro-Demnity is conducting a survey to better understand the needs of architectural practices in managing uncertainty and risk. We want to learn what activities best support risk management in practice. What do firms do that increase the effectiveness of service delivery, reduce errors in documentation, and optimize resources? What risk management knowledge and skills gaps exist that, if filled, would strengthen client relationships, and increase business opportunities?

Prospering in architectural practice means seizing opportunities while minimizing or managing risks. Pro-Demnity is the architects’ protective ally, supporting firms in the management of uncertainty as well as professional and insurance risk.

Participation in this survey will support the architectural profession and the business of practice. Results of the survey will shape Pro-Demnity’s continuing education offerings. Your participation is encouraged, valued and greatly appreciated.

This survey is being conducted by an external third party. All feedback collected via Qualtrics is confidential and anonymous. All data will be aggregated. Data that is shared via this survey will not influence any architectural firm’s specific premiums or rates in any way. The survey link will be available until 6 p.m. EST on Wednesday, June 23, 2021. The aggregated results of the survey will be shared with policyholders in late September.

Prospering in architectural practice means seizing opportunities while managing risks. Pro-Demnity is the architects’ protective ally, supporting firms in the management of uncertainty as well as professional and insurance risk.

Pro-Demnity is conducting a survey to better understand the needs of architectural practices in managing uncertainty and risk. We want to learn what activities best support risk management in practice. What do firms do that increase the effectiveness of service delivery, reduce errors in documentation, and optimize resources? What risk management knowledge and skills gaps exist that, if filled, would strengthen client relationships, and increase business opportunities?

Participation in this survey will support the architectural profession and the business of practice.  The survey will be released in the next week. Your participation is encouraged, valued, and appreciated.

Product offerings such as mandatory annual practice insurance, increased limits and spike-up coverage are presented as Insurance Solutions on the site. The Risk Education section provides a more comprehensive selection of learning on risk topics to enhance architects’ resiliency to claims and other practice risks. The Risk Services offering makes it even easier for architects to contact us for complimentary, confidential risk management advice or help to better understand the coverages, benefits, limits and exclusions of professional liability insurance.

Other website features include:

• Improved searchability, making it easier for architects to access expertise and our knowledge through our library of bulletins, newsletters, and though-leadership. 
• Ability to pre-book meetings and appointments with Underwriting, Claims and Risk Management directly from the site.
• Mobile responsiveness, enabling architects to connect with us through any mobile or tablet device.

The website is part of Pro-Demnity’s communications and brand initiatives in response to client feedback and input gathered through a comprehensive client relationship survey in 2019.

Over his thirty-one-plus years of service to Ontario architects, as Vice President of Claims at Pro-Demnity, David crafted a reputation as tireless defender of architectural practices and reliable source of knowledge and experience in architecture, construction, insurance and human nature.

During his six-and-a-half-decade professional career, he has embodied those very qualities the G. Randy Roberts Award was designed to celebrate. Now, in his 90^th year and still energetic and enthusiastic, David has retired from active duty. David’s extraordinary service to the Ontario architects, tutoring them, defending them, and protecting them from financial harm, has been necessarily behind-the-scenes, invisible and highly confidential, coming to light only through his much-heralded Claims Stories.

The Claims Stories are popular amongst architects and interns alike, offering up relatable situations and quandries that professionals can learn from.  The Pro-Demnity Claims Stories are being updated with new delivery formats under consideration to reach the broader architectural community of practice.

Read more about David and his contributions to the profession in Issue 13 of The Straight Line