Professional Liability 3

[TXPE4mdc]

Does anyone know the assumed liability if I am listed as a registered PE for a company according to the TBPE? I am not sealing drawings or performing engineering really.
I figured if I was listed according to the TBPE that i would been seen as liable until proven (likely expensively) otherwise. My company has E&O insurance so I am covered on that front. Another concern is that I am employed on a contract basis as a drafter with minimal engineering effort (yes the economy is that bad) and certainly do have not oversight of designs that are issued. Should I have more say in the design if I am listed (or regardless of my status according to TBPE) and should I request higher pay for the use of my PE number even though I am not sealing drawings. They are afterall advertising there is a PE on staff.

 

[Ron]

The liability for the design, if you sign/seal it is yours. You might still incur liability for a design if you have a Duty to Warn and do not do so, as MaddEngineer pointed out.

The best way to protect yourself is to have a contract with your employer and have a clause in there limiting your liability and an indemnification clause that covers you in the event of a claim, that requires the company to pick up any liability you incur.

Short of that, get your own professional liability insurance.

 

[MaddEngineer]

It sounds like you are hired as an independent contractor NOT an employee. Is this correct.

If this is correct then (from my understanding) technically you are not being directly supervised but you are providing a consulting or drafting service for your client.

I believe, however, even if you are considered an employee under your current corporate hierarchy, you may still be considered an independent contractor from a professional liability standpoint. For example most states regulate what companies may provide professional engineering services and those companies typically must have a PE (or only Design Professionals) as an officer. So if your company is not licensed to provide engineering services then technically you are working as a independent contractor since only you are licensed as an individual to provide professional engineering services. Now I believe the laws are different in manufacturing if you company is providing proprietary equipment, but, I believe it must be tested under rigorous procedures and not be a one-off design.

Now you also say you are the engineer of record (EOR) and defer connection design to others. However, as EOR you still may be responsible to review the design by others for suitability for use. (I'm not a lawyer, but, you probably should be named on your companies E&O policy if they do have one, if not they should get one).

 

[TXPE4mdc]

I am hired as a contractor from company A so I am not a direct hire of the company (B) I am providing services for.

As for Texas, in order to provide engineering services you must be registered with the TBPE. In order to be registered you must have at least one full time engineer ons staff. The company (B) I am consulting to is registered and has 3 PEs (though no structural) on staff that qualify the company to be registered. They are officers.

I am engineer of record on anything I design. I do review some of the designs of my supervisor. Yes, the connection design is deferred to others.

The company I am consulting to, does have E&O insurance. Can I be named on an E&O policy if I am not a direct employee? It sounds like Ron has a good idea to have a contract indemnifying me and limiting my liability.

 

[MaddEngineer]

I think Ron's advice is a good idea...

If I understand correctly you are an employee of Company A who is contracted by Company B.

Company A is not registered with the TBPE as an engineering service provider, but, Company B is.

Company A is a temp agency or "Job Shop Agency"?

So you have a contract with Company A who has a contract with Company B, is that correct?

Keeps getting trickier by the minute... do you have to sign/seal your work (i.e., do you get paid more) can one of the other officers not do that. I don't know if I have any more answers/advice for you on this one other than Ron's.

 

[TXPE4mdc]

Haha yes, it does get a bit confusing. If I wanted gray area to be my focus I would have been a lawyer or politician!

Your points are all correct. I dont know if Company A is registered or not, but I would assume not because they are not provided engineering services.

I am not being asked to sign or seal my work...
My understanding is much of the work is issued without seal and/or signature. But the engineer responsible for the work is identified by intials on the individual drawings issued. So the gray area is across several issues. work not being sealed, non-engineers performing engineering, lack of engineering. Im not sure where to draw the line between comfort and risk.

It is not an ideal situation - most PEs wouldnt be doing drafting work. But the economy here in Houston is struggling at best so any work is welcome. That being said, i dont want to jeopardize what i worked quite hard to earn.

Where do i start to look into the contract as Ron suggested and for professional liability insurance.

 

[MaddEngineer]

Now I'm no lawyer, but, I believe that common law work for hire doctrine apples and the law of agency applies.

http://en.wikipedia.org/wiki/Work_for_hire

http://en.wikipedia.org/wiki/Agency_(law)

Based on "work for hire" doctrine and "law of agency" you are considered a special agent (read limited duration or capacity) and should be indemnified as if you were an employee.

Also based on "work for hire" doctrine I believe your designs will be the property of the company you are acting as a special agent for since they do have the capacity to perform engineering design services.

Your direct supervisor may not be licensed but he is working as an agent for the officers who are licensed to practice engineering. Essentially he is carrying out their wishes. This still doesn't alleviate you from the requirements of "Duty to Warn", however, I think you are covered regarding tort liability, such as negligence. A tort means a wrongful act that creates a private injury upon which a suite may be brought as opposed to a crime that is a public offense.

I think you should spin this by your local law school (I think they usually offer some kind of legal outreach services) or legal aid society for verification of these assumptions.

 

[Ron]

TXPE....is the work you are doing offered to the public? Is it incorporated into anything that has to do with the public? If so, both companies, if not licensed by the Texas Board, may be in violation of state law....and, guess what...as the only licensed engineer in the group, they would come after you FIRST, since most state boards have more jurisdiction and control over the licensee, than others.

Check with your board. Talk to them directly, not by email or letter. Talk to their general counsel. He can give the interpretation that would apply to you.

 

[TXPE4mdc]

The services are for private companies that are not used by the public - oil and gas production plants. The company I am employeed by (not providing engineering service for) does not issue services to the public but private companies.

There are several PEs on staff at the company I am contracted to. If i was the only PE on staff, I would certainly worry because there would be serious issues with the Texas Board. I am the only structural engineer for the company though.

I will call my Board. They can best answer questions regarding my concerns. Thank you for your input.

 

[rbulsara]

Private companies would be part of the public. Public here does not mean the people walking on the road only.

If your company is listed as an engineering service provider, it is considered company providing service to public. A private co. can also retain such companies. Check out the state's business listing, which the company is located.

Rafiq Bulsara

http://www.srengineersct.com

 

[Ron]

rbulsara...thank you! That is correct. Just because you provide services to other companies, does not mean it isn't "for the public".

 

[EddyC]

Are oil & gas plants considered license exempt in your jurisdiction? Perhaps that exemption also extends to engineering subcontractors as well?