Construction/Engineering Conflict of Interest Question

[dhoward26]

I own an engineering business (2 employees plus me) and also work for a Construction Company doing project management for small vertical construction projects ($2-$8M projects). I started the engineering company 3 years prior to starting work for the construction company. I wanted to broaden my knowledge base and have come to really like the project management side, plus it gives me great insight into the construction world and it has greatly improved the quality of my engineering companies drawings. Recently, my engineering business projects are looking like they will be crossing over with the construction company that I also work for. In essence, the construction company is wanting to pursue work on projects that my engineering company has designed or are in the process of designing.

For CM/GC (Construction Manager/General Contractor) projects, what if any conflict of interest would there be? My name may or may not be on the stamped drawings depending on who is designing them, and my company name does not reflect my personal name, nor do my billing statements. My invoices are sent out via e-mail from a specific invoicing e-mail address as well...not that any of that really matters, but I thought I should state that. In the CM/GC process, the contractor is chosen based on past work history and qualifications for the project so it doesn't necessarily have anything to do with the design of the project.

The down side I see:

1) My engineering company and the construction company I work for get into a dispute over drawings or future claims from omissions.

I'm really curious because it has the potential to limit profitability/work load for each company.

Thanks.

 

[thaidavid40]

@IFRs and @dhengr,
I am speaking with respect to the states of AL, FL, MS, TN, and MD. In all of those states, I am not allowed (insofar as they have explained to me) to be the company principal (i.e.: to have my name on the company's certificate of authorization) for more that one company at a time. That was the background for my earlier statement. Later down, @dhoward26 stated that the construction company didn't advertise for engineering, so it is obvious that he isn't their company principal, so on at least this point, he seems legally at ease.
Dave

Thaidavid

 

[IFRs]

ThiaDavid - Is the restriction for more than one engineering company at one time or any companies? Is it for companies registered in those states or any state?

 

[thaidavid40]

@IFRs,
I don't really know. My understanding is just for multiple CofAs in the same state. I suppose you could be the principal for different companies in different states - so long as you didn't practice across those state lines. However, that is a legal question with which I personally would want to solicit prior concurrence with each state board before I tried it. Getting caught violating these types of practice restrictions is very expensive. I don't really think that it protects the public welfare in any more measured way - it just ensures additional tax dollars in the state coffers.
Dave

Thaidavid