This fourth installment of Thinking Like an Owner reframed risk management as a proactive, system-based approach rather than a defensive or fear-driven exercise. Led by legal experts from Lee Shoemaker, the session emphasized that risk is an inherent part of the construction industry—and that thoughtful preparation, documentation, and clarity can significantly reduce exposure while supporting better project outcomes.

A central takeaway was the importance of understanding risk in two primary forms: the risk of not getting paid and the risk of claims or lawsuits. Both can severely impact firm health, especially when they overlap. Panelists stressed the value of strong front-end practices—clear scopes, realistic fees, retainers, and careful contract review—to prevent problems before they escalate. Fixed fees, vague scopes, and unexamined “pay if paid” clauses were identified as common pressure points that designers must actively manage.

The discussion highlighted contracts as living tools, not paperwork to be signed and forgotten. Designers were encouraged to define default risk tolerances, understand deal breakers, and use strategies such as limitation of liability, waivers of subrogation, and clarified scopes to balance risk and reward. Equally important was ensuring internal teams understand contractual obligations so daily decisions align with agreed responsibilities.

Documentation emerged as a recurring theme—from meeting minutes to RFIs to email communication. Everything creates a record, and clarity today prevents disputes tomorrow. The panel also introduced the concept of “pre-claims,” encouraging designers to involve insurance carriers early for guidance before situations turn into formal claims.

Finally, the session reinforced that insurance is only effective when designers report issues promptly, communicate carefully, and avoid premature admissions of fault. Risk management, when approached thoughtfully, protects not only firms—but the quality, integrity, and sustainability of the lighting design profession itself.