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Tax, SDIRAs & Cost Segregation

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Khaled Seirafi
  • Investor
  • Tysons, VA
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114
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Structural Engineer's Limited Liability

Khaled Seirafi
  • Investor
  • Tysons, VA
Posted Jul 10 2018, 11:38

Hi. 

I'm planning to have a structural engineer to create architectural as-built floor plans for a 2 story mixed use building I own in California. These plans will be used to create specific structural plans for a large plumbing, electrical, and remodeling job in all the residential units. I have an issue with one of the terms in the proposal regarding limiting liability: 

"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."

I want to make sure that the engineer's company has Errors & Omissions/Professional Liability insurance. However, if there any problems with any future work based on these plans that require legal action and if a court rules against the engineer, the above term would remove any liability of his to pay my legal costs. Am I wrong in thinking this? I've asked engineers about this and they said that this is pretty standard language, but that it's common to see clients ask to have such language removed.