AIA California is standing up for members and the practice of architecture by helping members navigate contracts that can quietly shift unfair liability onto design professionals. Don’t get caught off guard by onerous indemnification clauses—especially those that sneak in a “duty to defend”.

In 2017, SB 496 strengthened Civil Code Section 2782.8 to ensure architects and other design professionals can only be required to defend clients in proportion to their share of fault—and that this protection can’t be waived. Yet many agencies still use outdated, noncompliant clauses that demand architects cover defense costs upfront, creating unfair and often severe financial burdens, especially for smaller and under-resourced firms.

Confused as to what this may mean to your bottom line?

Accepting these terms in your contracts can result in…

• Immediate, out-of-pocket legal costs—often before fault is determined.
• Uninsured exposure beyond what professional liability policies cover.
• Severe cash-flow strain that disrupts operations and project delivery.
• Diversion of resources away from staff, technology, and growth.
• Paying to defend claims unrelated to the architect’s actual work.
• Potential six-figure hits that threaten small or emerging firms.
• Higher insurance costs tied to defense-related claims.
• Reduced ability to pursue work due to excessive contractual risk.

Faced with these onerous contract conditions? We have created a campaign to assist – resources you can use in negotiations and a process where AIA California will advocate on your behalf with the agency – more information and these practice resources are available here.

Protecting architects from onerous duty-to-defend clauses by advocating for fair laws, challenging noncompliant contracts, and giving you the tools to avoid risky terms—just one more way AIA California is working for you.

Nicki