in Re Forum Studio, Inc. and Clayco, Inc.
Texas Court of Appeals, 15th District | 2015
What This Case Means for Subcontractors
This is a procedural filing in a mandamus case involving Forum Studio and Clayco in Texas. The court remanded the case back to the lower court without ruling on the main issues. The case involves disputes over design work and insurance requirements, specifically requiring architects and engineers to carry $1 million in professional liability insurance. For subcontractors, this case highlights how insurance obligations flow down through contracts and the importance of understanding what insurance you must carry or require from others.
Key Takeaways
- •Design professionals (architects, engineers) working on projects may be required to carry $1 million minimum professional liability insurance per claim and in aggregate
- •Insurance requirements often flow down from main contractors to subcontractors and design professionals—verify what insurance you must obtain or require from your subs
- •Procedural disputes over arbitration, statutes of limitations, and temporary restraining orders can delay resolution of construction disputes significantly
Clayco was also required to cause all architects, engineers and other design professionals performing design work for the Project to maintain Professional Liability Insurance having minimum limits of One Million Dollars ($1,000,000) per claim and in the aggregate.
Frequently Asked Question
What insurance do architects and engineers need to carry on construction projects?
According to this case, design professionals may be required to maintain professional liability insurance with minimum limits of $1 million per claim and in the aggregate. The specific requirements depend on your contract terms. Always review your subcontract to confirm what insurance you must carry or require from design professionals on your project.
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