The facts
An engineer, Marc, was hired and retained to provide multidisciplinary services for the renovation of a commercial building. The main focus of the renovation was the installation of a new rooftop ventilation system to meet the company’s needs. Marc was hired by the commercial business client to do this work after submitting a proposal that included structural reinforcement work, connections to the ventilation system and partial supervision of the project.
Meanwhile, the client also hired a contractor, Robert, to handle the installation of the ventilation system for the renovation project. Robert assured the client that he would provide shop drawings sealed and signed by Marc. However, things took a turn when Robert proceeded with the installation without Marc’s knowledge and without confirming the weight of the ventilation equipment relative to the load-bearing capacity of the structure.
Just a few days after the ventilation system was installed the structure collapsed because the weight of the system exceeded its load-bearing capacity.
The result
Upon investigation of the collapse, it became clear that a written contractual agreement had never been finalized—neither between the client and the engineer—in this case, Marc, nor between the client and the contractor, Robert. As a result, this lack of documentation led to confusion over the approval of plans and specifications for structural reinforcement. To make matters worse, Marc had not communicated any risks associated with the absence of shop drawings during the installation process. Despite this, Marc would still be held responsible for the entire mandate outlined in his initial proposal.
This situation serves as a crucial reminder that engineers can be held liable even when they are unable to fulfill their mandate due to site conditions or the actions of others. A written contract not only clarifies the engineer’s responsibilities but also empowers them to manage their obligations more effectively in similar situations.
Risk factors
Risk factor #1
- A well-drafted contract defines the consultant’s specific duties to the client. This ensures that the parties are aligned and any liability of the consultant should be limited to that which is outlined in the contract.
- The courts will look to a contract to determine the intent of the parties. In the absence of a contract, the court will make a decision that may not reflect everybody’s expectations.
Risk factor #2
- Make written records of all communications.
- Always, particularly in the absence of a written contract, ensure written records and notes are kept to memorialize communications between parties. Written records not only help consultants document issues emerging over the course of a project, but they may also speak to the intent of the contracting parties and help provide clarity in this regard if a dispute arises.
Risk factor #3
- Maintain good communication within the project team and have a specific project plan.
- Victor’s claims experience has shown that losses can ensue when project team members don’t fully understand the project plan, their roles and responsibilities.
This claim scenario is for illustrative purposes only. Please remember that only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions.