Despite the politicization of the climate change conversation, there is overwhelming scientific evidence that our climate is altering in a way that is placing added stress on communities, infrastructure, and the general health and well-being of society. …
Engineers have a responsibility not only for their actions or errors but also for the actions/errors of those subconsultants or subcontractors who work under their direction. While there is much focus on managing an engineering firm’s own risk, all too often there is not sufficient attention paid to its potential vicarious liability, or so-called inherited risk, attendant to utilizing subconsultants. Developing and sticking to a process to manage subconsultant/subcontractor relationships can help minimize this risk and further enhance a firm’s success. …
Today, more owners and other project participants are looking for ways to transfer risk to engineering firms by inserting potentially onerous language in contracts. In many cases, such contractual exposures are not insurable under an engineering firm’s professional liability insurance or other policies, leaving the firm with potentially substantial uninsured exposures. …
The previous article in this series (STRUCTURE, November 2018) looked at the concept of indemnification. Stated simply, to indemnify someone means to financially protect them against specified claims from third parties. The party providing the financial protection (the “Indemnitor”) can be required to pay the amount of an award or settlement for a claim in place of the party being protected (the “Indemnitee”), or reimburse the Indemnitee for amounts the Indemnitee has already paid. …
Indemnification obligations are an important part of almost every design agreement. Stated simply, to indemnify someone means to financially protect them against specified claims. The party providing the financial protection (the “Indemnitor”) can be required to pay the amount of a judgment or settlement that is owed by the other party (the “Indemnitee”), or more commonly, can be required to reimburse the Indemnitee for costs the Indemnitee has incurred because of the specified claims. …
Part 1 and 2 of this series (STRUCTURE, February and March 2018) provided an overview of both governing law provisions and forum and venue selection provisions. A governing law provision, also referred to as a choice of law provision, specifies that the law of a designated jurisdiction will govern disputes arising out of the agreement, regardless of where the dispute is adjudicated. …
Design agreements often contain a governing law provision which specifies that the laws of a designated jurisdiction will govern any disputes arising from the agreement. Likewise, design agreements often contain forum or venue selection provisions that specify where the adjudication of any disputes will take place. …
In the best of all possible worlds, engineers and their clients will negotiate their contract, the engineer will provide the agreed-upon services, and the client will pay the agreed-upon amount. In the real world, there is always the chance that something will go wrong, there will be a dispute, and the dispute will result in arbitration or litigation. …
An engineer’s Consent to Assignment, also referred to as an Acknowledgement and Consent, is usually drafted by the bank providing construction financing for a project. A typical consent requires the engineer to agree that the bank can exercise the rights it has acquired under an assignment from the borrower (the owner); among these rights will be the right to assume the design agreement if the borrower defaults on its loan. …
Consent to Assignment for engineers, also referred to as an Acknowledgement and Consent or a “will-serve letter,” is usually drafted by the bank providing construction financing for a project. A typical consent requires the engineer to agree that the bank can exercise the rights it has acquired through an assignment from the owner; among these rights will be the right to assume the design agreement if the owner defaults on the construction loan. …