• Identify risks
• Allocate risks to the party best able to handle the risk
• Manage those risks which cannot be transferred.

It is a crucial part of every design professional firm’s project administration. It not only minimizes the administrative and financial costs of claims and disputes by assuring that all participants to the construction process are aware of their obligations and rights, it enhances their ability to produce a successful project.

Knowledge of the law and a consideration of the legal consequences of rendering professional services on a project is as important as understanding the engineering and architectural principles that underlie the professional services rendered. No matter how competent the professional is in his discipline, the likelihood that a project will be unsuccessful is increased if the legal aspects of rendering professional services are ignored. Understanding and applying the "rules" determines whether your project will be a successful business venture.

A sound "Loss Prevention" program contains four elements: