| Risk Management Tips for Structural Engineers |
February 16, 2007 |
Gaining Mastery of the General Conditions
Construction administration calls for a thorough knowledge of the general conditions. The more complete your grasp of the details of that document, the more perfect will be your mastery of the many situations which it controls. No important decision affecting the owner's rights should be reached without consulting the general conditions since something in them is probably affected by it.
Fast Tracking…If Everything Goes Right
Projects in which construction begins before design is complete aka fast tracking - have a single purpose - to make more money for the owner. It is also known as phased construction. As with any short cut there are risks. Unless conditions are ideal, some have called the risks "tremendous". You have to make many assumptions which later could prove to be untrue. Explain to your client there could be changes delays etc resulting in extra costs and these should be anticipated in the project budget. Because it is your client that will mostly benefit, it is your client who should bear the brunt of the risk and your contract should clearly reflect the risks your client must retain.
Written Agreement Supersedes Oral Agreement
Sometimes clients claim that the contract was supposed to say something that it did not say. It is a longstanding principle of contract law that a written agreement supersedes all prior oral agreements or understandings. Your client and you should review the final agreement to assure it says what you meant it to say and contains all your intentions as to your services. Some contracts contain an "integration" clause that says in effect the agreement is final and complete and supersedes all previous written or oral communications.
Squeezing Fees for Subconsultants
Multiple prime projects are those where the client contracts directly with their consultants as opposed to the traditional method…owner/prime consultant/sub-consultant. Although a legitimate delivery system, some owners choose the multi-prime method for the wrong reasons - to save money by squeezing fees for sub-consultants or eliminating administrative fees for what would be the prime consultant. Experience has shown this rarely results in savings and sometimes complicates the coordination of consultants. With many disciplines working on the design without a focal point, details can fall through the cracks and risks increased.
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