Structural Engineer Firm Limited Liability

[Khaled Seirafi]

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." 

[James Martin]

I read those often in my day job.  In short, it is common for the group writing the agreement to put that language in there, it is also common for the group signing that agreement to reject that language.  I went through this recently with a company and in the end it was basically, if you want to do the work, that language can't be in there (there is a longer story with mine, but it isn't really relevant here).  I really wanted to use them, they really wanted to do it, so in the end they relented, but it was totally up to them.