Potential Client is a Middle Man - Contract Questions

[PengStruct]

I've been doing a little work with a guy who provides designs for temporary structures. He finds PEs like me to review and seal his work and do inspections. Now, one of his clients, another contractor who is doing a significant portion of work on a new building wants me to engineer shop drawings. The first guy wants me to address the proposal to him and he says he will put my language in his proposal to the second contractor. I'm assuming this is so he can both add a little money on top and so I don't get to cozy with his client.

My question is this contract arrangement legit? Do I need to worry about what he says in his contract or am I covered because he is signing mine?

 

[Ron]

If you are in the US, you are treading on thin ice....potential plan stamping claim.....not good.

Be careful with these situations. Make sure you can make ALL engineering decisions and that they are not compromised by your direct client, who appears to be a broker.

 

[PengStruct]

Thank's Ron. I really do make all the engineering decisions and do all the engineering and design work, calcs, etc. and believe this is the standard way this type of work is done. I'm basically the "in house" engineer for some of these fabricators and contractors. When the EOR requires them to submit signed and sealed shop drawings they have a rough draft of the drawings done and then send to me for review and to mark up changes and finally to stamp them.

I'm more concerned about the contract arrangement so, for this job I think I will insist that my contract be with the original client and not a "broker" as you called them.

Thanks again for your input.

 

[wannabeSE]

I don't know the legal aspect. But ethically, part b of ASCE Canon 4 seems to address this issue.

http://www.asce.org/code-of-ethics/

b. Engineers shall not accept compensation from more than one party for services on the same project, or for services pertaining to the same project, unless the circumstances are fully disclosed to and agreed to, by all interested parties.

 

[SPDL310]

First off I am not a PE or a civil engineer, but this business arrangement doesn't seem that unorthodox to me. I have seen plenty of oil field fabricators offer similar services for lifting devices and manifold skids for turn key packages. There are even firms in my area that exclusively do this type of work.

WannabeSE I don't see an issue with that. He would only be charging one party for his services. That party is then charging a third party for engaging his services.

PengStruct what are your contract concerns? Are they about liability or are they about payment and billing. I assume that your contact would be with the fabricator. The liability as EOR would be on you so you should bill appropriately for site visits ECT. About the payment I would want language in the contact that your payment is net billed from invoicing, with no contingency on their clients payment.