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Hidden PI risks in listed building projects: what architects need to know

Scaffolding surrounding the roof of a building during renovation or repair work under a clear blue sky

For many architects, getting to work on a listed building is the dream job. It offers a rare insight into what it was like to build these historic properties.

However, working on a listed building does come with a unique set of challenges. And when problems do arise, the consequences can be significant for both clients and architects. Being aware of these risks is a key part of projects running smoothly and protecting your business against professional indemnity (PI) claims.

Why listed buildings create additional risk

When you’re working on a listed building, you need to strike a careful balance between modernising the property and preserving its historic significance.

Part of the process will be getting Listed Building Consent from your local planning authority. These applications tend to face more scrutiny than standard planning submissions and may take longer than expected to progress. Historic England found that only 80% of listed building applications received a decision within the target timeframe compared to 89% of ordinary planning applications.¹ The additional complexity that comes with listed buildings means that architects can find themselves exposed to risks that might not arise on other projects.

For example, a design that appears feasible from a structural and technical perspective might still be denied, not because it isn’t viable, but because it’s considered to negatively impact the building’s history.

Another example could be selecting materials that meet the standards for modern building,  but are deemed inappropriate for the property from a heritage perspective.

When things like this happen, clients may start to question the professional advice offered and the architect may find themselves facing PI claims.

How PI claims arise in practice

Some common reasons that clients made PI claims against architects include:

tick iconAdvisory mistakes – If planning applications are submitted incorrectly or without full taking into consideration the heritage aspect, and it leads to costly delays and additional costs

tick iconDesign errors – Mistakes on drawings that aren’t noticed until construction has already begun, resulting in costly remedial work

tick iconTimescale issues – If a project doesn’t meet the agreed timelines or if the architect misses an application deadline

tick icon Poor supervision – Problems arising from insufficient leadership during the project

tick iconNegligence – Situations where an error or an omission causes a financial loss for the client

For projects surrounding listed buildings, these situations can be even more complex due to the heritage considerations involved. This can increase the likelihood of claims and the cost of resolving them.

The importance of specialist advice

If you’re new to heritage projects, you could consider bringing in experienced professionals to assist you. Their knowledge and expertise can make the whole process run smoother and you can make informed decisions and help reduce the chances of issues arising throughout the project.

While getting specialist support may incur an additional cost, it can prove invaluable if it helps you avoid costly remedial work and other complications.

Don't overlook scope management

Another idea to consider is having clear boundaries and responsibilities from the beginning. To help prevent scope creep and successfully deliver the project, take some time to outline the agreement in writing including:

tick icon Exactly which services will be provided throughout the whole project

tick iconIf there are any limitations or exclusions

tick icon Who is responsible for what throughout the project

tick iconIf any external specialists are needed to support

Having these details clearly documented means that there’s less chance for misunderstandings later in the project.

Let's talk

Even the most experienced architects can’t eliminate risks entirely. The best laid plan can encounter challenges with planning permissions, delays or objections. When listed buildings are involved, the additional heritage considerations can make those challenges more complicated and potentially more costly to fix.

However, with the right combination of experience and professional indemnity cover, architects can minimise the risk of disputes.

By taking a proactive approach to risk management and ensuring appropriate cover is in place, architects can help protect their projects and their reputation.

Find out how Everywhen's professional services insurance can help protect architects and other professionals against the financial impact of professional indemnity claims.

diane-caplehorn

Diane Caplehorn

Head of Partnerships – Direct

About Diane

Diane is a respected industry leader with over 25 years' experience within the insurance sector. She works across a wide spectrum of insurance products and policy development, delivery and optimisation for health and beauty, professional risks and martial arts clients, including managing partner relationships helping clients in protecting their businesses. Her areas of expertise within the sector include Micro-SME, Medical Charities.

Diane currently works at Everywhen as Head of Product – Direct. Everywhen combines regional care with national reach, deep sector knowledge and strong insurer relationships to deliver tailored solutions across 55+ schemes. We help our clients navigate everyday and emerging risks with confidence, always and at all times.

She previously worked for 14 years at Gallagher’s as Executive Director.

Sources:

  1. Planning Indicator Data | Heritage Counts | Historic England

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.