| Risk Management Tips for Structural Engineers |
August 4, 2006 |
The Extent of the Engineer’s Professional Responsibility
It is difficult to develop in the abstract the extent of the engineer’s responsibilities. Too much depends on the specifics of each assignment. Courts have held engineers responsible for injuries resulting from the construction process despite the fact that the process and the injured party were under the control of the contractor. There are other situations where liability has been extended to include functions for which the engineer’s training does not qualify him. Thus the reason why protection for engineers in the form of limitation of liability or indemnification are now included in many contracts.
Early Warning System
The sooner a problem in the project can be discovered, the sooner it can be rectified…and at a cost far less than if discovered later. Try obligating the contractor, subcontractors and vendors to advise you and the owner immediately of any problems found. Put something in your contract with the owner to this effect and ask that the same language be included in the owner/contractor agreement. You must convince your client that there well may be errors or omissions in the documents and your goal is to find the problems and fix them quickly.
Oral Understandings Wiped Out
Most owner/engineer agreements contain an important statement to the effect that the written contract, with its exhibits and schedules, constitutes the entire agreement between the parties. All other writings or oral understandings are wiped out and of no legal effect. Both parties should know that there are no understandings that are not covered in the agreement and no reliance should be placed on any other understanding oral or otherwise.
Giving the Owner Assurance of what the Project will Cost
Construction cost may be a very important consideration for the owner. A limit of cost may be established and noted specifically in the agreement. There is a difference in probable cost, which the engineer is usually prepared to furnish, and formal estimates of construction cost. Your contract should explain the extent to which you able to go in giving the owner assurance, in advance of bids, what the project will cost. If the owner seeks a more definitive estimate of cost, they should employ a party skilled in cost estimating.
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