| Risk Management Tips for Structural Engineers |
May 11, 2007 |
Spirit of Cooperation
The working relationship between owner, contractor and engineer is based on a spirit of cooperation. Volumes have been written with warnings to engineers about the pitfalls of legal exposure. What may not be emphasized enough is the positive side. When a professional does what he or she has been trained to do and stays within the orbit of their expertise, the risk of being sued is considerably reduced. The temptation to assume greater authority should be tempered with an evaluation of potential liability exposure.
Minimize Client Dissatisfaction
A good way to minimize client dissatisfaction, control the quality of projects and anticipate problems is by authorizing a peer review. It should not be conducted by whoever is responsible for your technical services. Owners have more recently become involved in initiating peer reviews but a firm initiating a review has also long been an industry practice. Whether internal or external a peer review can be critical to the success of a firm. There is more peer review information on the ACEC website at www.acec.org or call 202 347-7474 at ACEC and ask for Sarah Kaska.
Providing Services Prior to Signing a Contract
Many professionals do this and not only in the engineering profession. It may be to show the client that you are serious and eager to get started on their project. Some insurance policies may make reference to the time when services are rendered but a formal agreement is not signed. You should know what your policy says. In any event you may want to write a letter of commitment as you understand your role in that time period and it may encourage the execution of a formal agreement.
The Unsophisticated Owner
If your client is an unsophisticated owner, they may place heavy reliance on the engineer for guidance on all decisions affecting the project. This may happen after the engineer has been awarded the contract after explaining the breadth and depth of his or her expertise…which only serves to increase the reliance on the engineer by the client. The engineer should be mindful of the risks involved by overstating their capability and avoid inducing his or her client to rely on expertise and experience that they do not have or are not prepared to provide.
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