Cost for signing/sealing one drawing
Cost for signing/sealing one drawing
(OP)
My first post here, although I've used this site for help in the past without posting anything.
I am a licensed PE (electrical) and have been venturing into side gigs more and more recently. My side work has picked up where it's almost as much as my day job. Recently, a potential client reached out to me for assistance creating a single line diagram for a solar farm that will be grid tied to the local utility. They need this drawing to be signed/sealed by a PE. I am willing to do the design and sign/seal it but I have two questions:
1) What is an average cost for something like this. I haven't done a one off sign/seal to date. FYI I am located in New York.
2) Should I be worried about insurance? I am in process of creating my own PC (professional corporation), but I don't have any insurance set up yet.
Any and all comments are greatly appreciated.
Thank you.
I am a licensed PE (electrical) and have been venturing into side gigs more and more recently. My side work has picked up where it's almost as much as my day job. Recently, a potential client reached out to me for assistance creating a single line diagram for a solar farm that will be grid tied to the local utility. They need this drawing to be signed/sealed by a PE. I am willing to do the design and sign/seal it but I have two questions:
1) What is an average cost for something like this. I haven't done a one off sign/seal to date. FYI I am located in New York.
2) Should I be worried about insurance? I am in process of creating my own PC (professional corporation), but I don't have any insurance set up yet.
Any and all comments are greatly appreciated.
Thank you.





RE: Cost for signing/sealing one drawing
RE: Cost for signing/sealing one drawing
RE: Cost for signing/sealing one drawing
RE: Cost for signing/sealing one drawing
RE: Cost for signing/sealing one drawing
The (small) company where I work was started by the person who is now my business partner and it started out as a sole proprietorship, but one of the things I pushed for (having told my previous boss that I didn't need him any more!) was to incorporate the business. That was done several years ago and we haven't looked back. Consider that a bit of encouragement if you wish ...
As for the cost for such a service ... as mentioned, you have to take into account that you are now responsible for the design. I'd quote it just as any other job. Figure out how many hours it will take you to do the necessary calculations and factor in some allowance for things-gone-wrong and multiply that by some reasonable hourly rate. A bit of digging should turn up what a normal hourly rate for engineering services is in your area.
RE: Cost for signing/sealing one drawing
Once the paperwork is finished for my PC, I'll look into the insurance thing. Another former colleague of mine who has his own PC also recommended insurance if I will be stamping documents.
@oldestguy the fact that this will be through my PC means they cannot come after my home or wife or anything else. I am not worried about that.
@BrianPeterson I'll look into the COA requirements in my state, thanks for the headsup. As far as cost I have an idea of what a "fair" rate is, I'm just not sure if this client, or future clients, will want to pay someone who is just starting his business.. regardless of the fact I have my fair share of experience.
Thanks again..
RE: Cost for signing/sealing one drawing
I have not worked started or worked for my own corporation, so just a friendly bit of advice for consideration...you should seriously look very deeply into the legalities of this. While true that generally the employees of a corporation are not held personally liable for the actions of the corporation, the principles/decision makers of a corporation can be held criminally and personally liable for the actions of the corporation. If a design that you have stamped and certified were to fail and cause loss of life, the lawyers for those families will pursue every means available for compensation. Your stamp on the drawing is a great big target.
RE: Cost for signing/sealing one drawing
http://www.nspe.org/resources/professional-liabili...
Maui
RE: Cost for signing/sealing one drawing
http://www.skellengerbender.com/publications/PDFs/...
Maui
RE: Cost for signing/sealing one drawing
@maui thanks for the links I'll take a look.
In this particular case, the design is a small PV array that will be grid tied to a local utility. The purpose of the sealed drawing is to get approval from the utility company. At this point, should I be concerned with liability at all? I would imagine if the application is approved and the job requires formal engineering documents at that point I would have to worry about insurance. Opinions?
Also, I could always begin the work and obtain the insurance while I'm designing the job correct?
RE: Cost for signing/sealing one drawing
RE: Cost for signing/sealing one drawing
Consider that there may be other documentation required (and I'm speculating here, I'm on the opposite hemisphere) such as Safety in Design documentation to be handed to the contractor, supporting calculations and so on. Where I am the utility doesn't expect PE sign off unless the system is over a certain size, so it may not be relevant.
RE: Cost for signing/sealing one drawing
I'm not sure where you are located, but you seriously need to consult an attorney and your statutory exposure on this one. In my state, even if an engineer works for a company and the services were provided through the company, because he/she is separately licensed from the company (as an individual), they can be sued individually. It happens routinely. I'm involved in at least 3 cases currently where the design professional and the company were both sued for the DP's actions.
RE: Cost for signing/sealing one drawing
I am a military spouse getting started in this field as a career transition after 10 years in manufacturing. I am preparing to attend some conferences this year. I would love to interview or ask you a few questions to find out what you did to get started in this field and land your first clients. Let me know.