Sailing the Seven C’s of Loss Prevention
Lawrence C. Weber, CPG-7120
Earning money as a professional geol- ogist is a great accomplishment, but it is only part of the requirement for being successful. You have to be able to keep your money and defend yourself against those who might want to take it from you. Of course, we are talking about the possibility of law suits and lawyer fees and all those expensive, time consum- ing aspects of getting sued. For those working as consultants, either indepen- dently or as an employee within a large corporation, knowing and avoiding com- mon pitfalls that could cost large sums in legal defense or claims are critically important. Many who have worked in the design professions or larger consult- ing companies are well acquainted with the concepts of loss prevention. Others who may venture out on their own as consultants or who work within smaller organizations focused on the science and technology aspects of a business may be less aware of the importance of loss prevention as a means of safeguarding yourself or your company from unfortu- nate legal battles. As an introduction, or as a reminder to those already well versed in loss prevention techniques, this article reviews my seven C’s of loss prevention.
Correctness
The most obvious aspect of avoiding claims and losses is to do your work with- out error or omission. While perfection is an unrealistic goal and should not be expected by either you or your client, the pursuit of perfections is admirable and clients have the right to expect a profes- sional to provide error-free work. The goal is to execute to completion without error. However, even when you have done so, others may not recognize it as such. Consequently, it is important to not rely solely upon your excellent service to avoid a dispute.
Client Selection
Basically, don’t work for a jerk. Sometimes the true character of a cli- ent is hard to determine, but for those potential clients who are unknown, it is
smart to run credit reports and dig a little into their history. Are they frequently involved in legal battles? Do they change consultants for every project? Do they operate using multiple corporate identi- ties? Can they offer suitable references or provide evidence of being a reputable business? Do they ask for the moon? Being smart about who you work for helps to avoid those expensive hassles that seem to follow the big dreamers with little cash, the ego driven know-it-alls, and the common shysters.
Contract
Your most substantive tool for loss prevention is a complete and fair con- tract. This document (something more than a verbal understanding) governs how you and your client must work together to avoid breaches of responsibil- ity. It defines the minimum expectations and prescribes remedies for shortcom- ings. In a legal contest, it is your primary defense to protect against unfounded claims and your best offense in demand- ing what is rightfully owed you. A good contract is an essential element in pro- tecting your interests.
Communication
Poor communication is responsible for most of the disagreements in the work place. It should be routine for consultants, owners, project managers, contractors, and designers to talk and communicate frequently regarding their common endeavors. But too frequently, important communication is lacking. There seems to be two kinds of people: those who want to know more but have less need of knowing, and those who need to know more but are satis- fied with knowing less. Either can get you into trouble. If an error is made, usually knowing more and choosing to ignore unimportant information is pref- erable to knowing less. So it would seem that over communicating with everyone would be safe, but that is not necessarily true. There are times when others may want to, or need to, guard information and you have to respect confidential-
ity. Consequently, it is very important to know who to communicate with and what types of information are important to each party. Remember that clients do not like surprises and that bad news does not get better with age. Being open and timely in delivering a message, whether good or bad, is your best chance of build- ing confidence and trust.
Collection
When you work hard at satisfying a client by delivering a service or project on time and within budget, you deserve the same consideration by being paid as specified in your agreement. Also, you should work only for those clients who genuinely want to pay you for your service. If a client has a mindset that says “maybe I can get away without paying,” you really should not work for that entity. Of course, even a good client can misplace an invoice, or overlook a payment date. Their business practices may not be as good as they ought to be, or the financial aspects of their business may be left to office personnel with less interest in keeping accounts current. Therefore, it is your responsibility to keep the financial aspects of your client relationships on firm footing. Do not be reluctant to ask for payment when it is due. Clients often need to pay promptly to keep their own accounting in order. Remember, a client who owes you money may be less inclined to call you when additional services are needed. So mov- ing your client off your accounts receiv- able list as quickly as possible keeps that relationship healthy and avoids your unintended role as a banker for your client’s projects.
Courtesy
It is good not to offend. The rule of conduct in civil society, and in manag- ing projects and people, should be to avoid injury to others. In this regard, the concept of injury will extend to embarrassments, insults, belittlements, and presumptions. A degree of sensitiv- ity and awareness to common courtesy helps avoid personality conflicts that
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