(a)

1. (1) The design professional shall carry professional liability insurance covering negligent acts, errors, and omissions.
2. (2) A copy of the current certificate of insurance shall be included as an attachment to the standard professional services contract.
3. (3) The minimum policy value shall be five hundred thousand dollars ($500,000) except that the value shall be increased to a minimum of one million dollars ($1,000,000) for projects where the estimated construction cost is between five million dollars ($5,000,000) and twenty million dollars ($20,000,000).
4. (4) For projects exceeding twenty million dollars ($20,000,000) in estimated construction cost, the policy value shall be a minimum of five percent (5%) of the estimated construction cost.
5. (5) The design professional may utilize a project-specific professional liability policy for projects exceeding five million dollars ($5,000,000) in estimated construction cost.
6. (6) The design professional shall be required to disclose the size and nature of all pending claims against his or her liability insurance during the negotiation phase.
7. (7) The design professional shall maintain this insurance in force after the completion of the services under the contract for a period of one (1) year after substantial completion of the construction.

(b)

1. (1) The review, approval, acceptance of, and payment for any of the services required by the Design Review Section or department shall be construed to operate as a waiver by the owner of any rights or any cause of action arising out of the contract.
2. (2) The design professional shall remain liable to the state for reasonable project costs which are incurred by the state as a result of negligent acts, errors, or omissions on the part of the design professional.
3. (3) This liability shall extend to the prime design professional’s subcontractors and consultants in the performance of any of the services furnished.

(c)

1. (1) The design professional may be held responsible for reasonable project costs resulting from his or her professionally negligent acts, errors, omissions, or other breaches of the applicable standards of care established by Arkansas laws or rules.
2. (2) Liability may include, but not be limited to, the design professional’s own cost of labor and other in-house cost, any resulting contractor change order cost including demolition, cutting, patching, repairs, or modification of work that is already in place.
3. (3) The design professional may also be held responsible for any contractor or owner delays or damages, and any judgment, fines, or penalties against the department resulting from the design professional’s professionally negligent acts, errors, omissions, and other breaches of the applicable standards of care.

(e)

1. (1) Upon determination that there may be design professional financial responsibility involved, the design professional shall be contacted by the department.

2. (2) The design professional shall be:

   1. (A) Advised of the design deficiency;
   2. (B) Informed that it is the agency’s opinion that the design professional may be financially responsible; and
   3. (C) Requested to provide a technical solution to the problem, including a cost estimate.
3. (3) The design professional shall be given the opportunity to take the measures necessary to minimize the consequences of such defects within a timely manner without jeopardizing the integrity of the project.

4. (4) The department project coordinator shall:

   1. (A) Promptly inform the Design Review Section of the issue; and
   2. (B) Keep the Design Review Section informed until the issue is resolved.

(f)

1. (1) If the design professional refuses to cooperate in the negotiations, the department shall have the right to proceed with the remedial construction and/or change order negotiations without the design professional.
2. (2) Disputes shall be resolved as set forth in the standard professional services contract.

(g)

1. (1) Alternatively, the design professional may discharge its financial responsibility through negotiations with, and direct payment to, the contractor.
2. (2) This action must be participated in and approved by the owner.
3. (3) Evidence of the department’s participation and approval of these negotiations and a description of the corrective action and cost incurred by each party shall be reported in writing to the Design Review Section for record.