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Non-Compete Agreement Questions

Non-Compete Agreement Questions

Non-Compete Agreement Questions

(OP)
I am managing a project right now and we are in the need of another engineering firm to seal a set of drawings because it is in a state we do not have a license.

My supervisor has asked that I have the engineering firm I found sign a non-compete agreement so that this firm does not take our client.  Now, here are the questions:  I have heard of employees of firms signing non-compete agreements, but do companies require other companies to sign them?  Is it even something that can be done?

I have not been able to find any occurrences of such a situation online.  Any suggestions would be appreciated.  

I did search through this section of the forum and did not find the answers to my questions.

"Structural engineering is the art of modeling materials we do not wholly understand into shapes we cannot precisely analyse so as to withstand forces we cannot properly assess in such a way that the public at large has no reason to suspect the extent of our ignorance." -Dr. A. R. Dykes

RE: Non-Compete Agreement Questions

Yes, they do and often signed but the actual conditions may vary from yours. In your case, your boss does not have much bargaining power. So it would be interesting what the "other" company have to say. On the other hand there are many who would sign on anything just to get a project or money.

Enforceability of non-compete agreement is always questionable at best and varies greatly by states and type of professions. I am of course not a lawyer, but have looked through enough on the subject for my own interest. For a proper advice and language, consult your companies attorneys.

Rafiq Bulsara
http://www.srengineersct.com

RE: Non-Compete Agreement Questions

MTENG1,

My first question would be "Who made the drawings?"

In my state, it's illegal for me to stamp drawings that weren't prepared by me or under my responsible supervision...

You might search some of the threads in the Professional Ethics in Engineering forum if you're looking to have plans sealed for a fee.

http://www.eng-tips.com/threadminder.cfm?pid=765

Good on ya,

Goober Dave

RE: Non-Compete Agreement Questions

DRW brings up a very good question..

As we always suggest that people to hire an engineer when needed - I suggest you do the same and hire a lawyer versed in this area.

RE: Non-Compete Agreement Questions

If you came to me in Colorado or New Mexico (where I'm licensed) I would politely tell you to F&@K OFF and then block your calls and mark your UserID as spam.  You don't have enough money for me to risk entering into a possible anti-trust situation where we would basically be "spltting the market" by agreeing not to compete.  You need to get your own legal advice, my attorney says "don't do it".

David

RE: Non-Compete Agreement Questions

Why don't you avoid the problem mentioned above and just apply through comity for the state you need for the project?  Depending on your current state of licensure, that might take 3 to 6 months, but see if it is an option in your case anyway.

I could also make another suggestion, but that may be over the line, so I'll leave it top you to come up with that one.
 

Mike McCann
MMC Engineering
Motto:  KISS
Motivation:  Don't ask

RE: Non-Compete Agreement Questions

Many states have a provision for temporary or single project licensure.  Check into that.

The firm you are engaging has no incentive to sign a non-compete agreement, other than the potential project profit.  Not enough in my opinion.  

RE: Non-Compete Agreement Questions

(OP)
Thanks to everyone for the input, you've been helpful.  The project completion date is too short (as usual) for us to get our own license in the state.  I think based upon the comments I will consult a lawyer and go from there.

"Structural engineering is the art of modeling materials we do not wholly understand into shapes we cannot precisely analyse so as to withstand forces we cannot properly assess in such a way that the public at large has no reason to suspect the extent of our ignorance." -Dr. A. R. Dykes

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