Structural Liability

14 years ago

Hi all, we're in the process of getting bids for building a 2-story home that will cost around $300K to build. So far, we've received 2 bids for the structural plans. One comes in at $1800 with liability not to exceed $50K and the other one at $2500 with liability not to exceed $100K. Obviously the structural plans are something we don't want to go cheap but my question is $50K or even $100K of liability seem too little for anyone? God forbid something happens to the house, that's only how much they're goingn to be reliable for? Please let me know what's on your structural contract and what's the ideal amount that we should see on the contract. Is the liability amount something we can negotiate with the engineer or that's something that's limited to how much insurance that they buy. Thanks so much for any input.

Trinh

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Comments (7)

macv
14 years ago
I've not run into that before. Is the structure of your house unusual or difficult to design?

I would check to be sure they are licensed and insured.
nguyendtt
Original Author
14 years ago
The structure is not hard to design but is just a little modern (boxes with a couple overhangs). The "limitation of Liability" line on the contract reads:

"To the maximum extend permitted by law, the Client agrees to limit (company)'s liability for the Client's damages to the sum of $50,000 or (company)'s fee, whichever is greater. THis limitation shall apply regardless of the cause of the action or legal theory pled or asserted."

Macy, when you said "I've not run into that before." What exactly does that mean? Did you mean you've never ran into any structural problems?

Thanks.
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nguyendtt
Original Author
14 years ago
macv, sorry I just realized I mispelled your screenname.
jdubb
14 years ago
It is standard to have that in a structural fee. I am sure the engineer's have more liability on their policy. Ask them to change it to what makes you feel comfortable, but within reason. We have clinets ask for increases to the value of the house on a regular basis.

Their insurance company urges them to limit their liability as much as possible.

The structural stuff may be easy, however, the engineer has to consider construction issues that get covered up that he may have to prove were not his fault.

jdubb

jdubb
macv
14 years ago
What I meant is that I've done few building projects in the past 40 years where I did not hire a structural engineer and none of them limited their liability. Are you sure they are licensed and insured?
nguyendtt
Original Author
14 years ago
Thank you jdubb and macv. Yes they're licensed and insured, i was just puzzled by the contract. In the city that I live in, Aurora, CO, a structural plan is required when you submit for a building permit. Jdubb, I will try to negotiate the liability limit to the cost of construction. Thank you for all your advice.
macv
14 years ago
IMHO, if these professionals are not willing to be held responsible for the quality of their services, they should cut their fees in half.

I suspect the contract liability limit would not hold up in court in some states.

Structural Liability

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