As reported in  the Practice Advisory (issue 15), a new restriction on coverage has been introduced by Pro-Demnity Insurance Co. Entitled "Excluded Services Endorsement,” it will be added automatically to new professional liability insurance policies and/or upon renewal of existing policies, effective January 1, 2022.

Construction phase architectural services (i.e. General Review, Contract Administration, or both) where the OAA licensed member is also delivering construction services (e.g. Construction Management, coordination of jobsite activities, etc) on the same project will be excluded from the coverage. The new endorsement in the Pro-Demnity policy better defines the distinction between construction phase architectural services as the usual and customary services of an OAA licensed member, and the delivery of construction services that is not usual or customary.

If your business model includes the delivery of construction services, please contact your insurance advisor and your legal counsel. For additional guidance/detail on this policy change, refer to resources on Pro-Demnity’s website.

In light of this insurance change, Practice Tip PT 26, Conflict of Interest Guideline–Provision of Architectural Services and Construction Services will be updated. You can access the Architects Act and regulations here.