Watch How you are Compensated when there are Multi-Prime Contracts
Sometimes it is in the best interest of the project to award several prime contracts for construction work. Preparing documents for a multi-prime arrangement will require considerably more work for the design professional. Where it is known at the outset that a multi-prime arrangement will be utilized, it would be wise to reflect this in the project description and provide for increased compensation for the engineer’s basic services…unless compensation for basic services is on the basis of a factor such as direct labor or salary costs method of payment. When either of these are used the increased number of hours worked will automatically produced increased compensation.

Engineer Agrees to Monitor Contractor’s Compliance with Certain Laws or Regulations
There are times when the engineer may agree to monitor contractor’s compliance (when the engineer possesses that expertise) especially with respect to conformity with local building codes, the Davis-Bacon Act or safety regulations. This is a responsibility not customarily assumed by the engineer. Some government agencies may require that the contract documents contain the actual language of statutes in which case there is nothing you can do. However, this is generally not necessary because most standard contracts contain language with the requirement to comply with all laws and regulations applicable to the performance of the work making it unnecessary to reference specific statutes.

The Difference between Special Services and Extra Services
Special services are those which may or may not be foreseen at the beginning of design stages and are not normally included as basic services. Extra Services are those that arise as a result of unforeseen circumstances during the design or construction process. Examples of special services are exterior cladding systems or antennas or flagpoles. Examples of extra services are services resulting from change orders or changes because of cost overruns outside the control of the engineer. For a comprehensive list of services see CASE document # 962 National Practice Guidelines for the Structural Engineer of Record available for purchase by clicking here.

Agency Personnel that Know Regulations but not Engineering
Some agencies have increasingly placed responsibility for negotiation and agreement in the hands of “procurement specialists” who are well versed in regulations but lack experience with design and construction. When such specialists are not advised by qualified professionals or choose to ignore their advice this leads to, among other things, lack of communication. In the interest of obtaining a contract a firm will sometimes accept terms that are unfavorable or even unrealistic. This strategy could be a source of problems for both parties. This is where a “meeting of the minds” and an accurate scope of work are paramount to prevent problems before they happen.

Click here to return to Newsletter Archives