The following article presents some key points to consider when reviewing or making a contract with a Client of Subconsultant. This little glossary also relates to disputes or claims which may arise during or after the design/construction process.
Summary List of Key Considerations
- Duty of Care
- Decennial Liability
- Priority Rule
- Stringency Rule
- Licensing Requirements
- Indemnity Clause
- Response Time
- Force Majeure
Each point is explained briefly below.
Duty of Care
This is also referred to as the Standard of Care. It means that the design consultant or contractor has a duty of care to ensure that another party does not suffer unreasonable harm or loss. The duty of care can be expressed explicitly in the contract. Even if there is no contract, the consultant/contractor still have some unwritten obligations.
Example Case Study ②
Decennial Liability
Building owners may not notice dangerous defects in the building during or immediately after construction, so what happens if the building suffers a collapse or partial collapse after a few years? As the name implies, Decennial liability is introduced in contracts to hold the consultant/contractor to account for the design for at least 10-years after completion of the building.
Priority Rule
This is a clause usually included in contracts to specify which design documents take precedance for construction, especially when there are contradictions. A general example is as follows:
- Contract Agreement
- Specifications
- Design Drawings
- Design Report
Stingency Rule
The contract may include a clause which addresses conflicts or inconsistencies and request the party to follow the most stringent requirements (as well as notifying the engineers).
Licensing Requirements
Very often, contracts may stipulate a requirement for the Consultant to have all requisite licenses as required to undertake their work or duties.
Indemnity Clause
See here: https://www.structuremag.org/?p=11105
Response Times
In order to avoid response time performance issues, the contract may include clauses to penalise the party for slow or late responses and failure to meet agreed deadlines.
Force Majeure
This is a popular term in the construction industry. The literal French translation would be "greater force". Broadly speaking, this relates to unforseen circumstances beyond the reasonable control of a party which lead to losses, delays, or impeded performance.
Example Case Study ②
Conclusion
More examples of interesting case studies relating to civil or Structural Engineering can be found at the following links below:
Other Resources:
https://www.istructe.org/resources/training/lecture-contracts-terms-of-appointment/
https://docs.acec.org/pub/18803059-a2fd-2d06-cc39-a6d1dd575265