Hi. Planning on doing a massive plumbing, electrical, and remodeling job for a 2 story mixed use building my family owns. My question is that is it an industry standard for structural engineering firms who draw up the architectural plans for the work to require clients to agree to limit the firm's liability to $20,000? Does this mean that they won't even be liable for any potential issues with the plans they put together ("direct, special or consequential damages")?
"Owner agrees to limit the liability of ------------- and its employees and agents to the Owner and to contractors and subcontractors on the project, for claims in contract, tort or warranty to the sum of the amount paid for services or $ 20,000.00 which ever is higher. Under no circumstances shall ---------------- or its employees and agents be liable to owner for direct, special or consequential damages, including but not limited to loss of use, loss of profit or claims for delay damages made by contractors or subcontractors."
It sounds like they are limiting their liability to their fee proposal and nothing else. You should call the Board for Professional Engineers and ask them about it. They would be a good resource to ask for the rules the P.E. are required to follow in terms of liability.
Sounds like they want their cake, your cake and everyone else's cake and will eat it too. Never heard of such nonsense.
@Kal Seirafi it’s industry standard. Just make sure they have insurance and you should be fine.
If the engineering is contractually only liable for $20k, then that’s all their insurance co. is liable for.