Signing as "Designated Principal Engineer" for company's COA
Signing as "Designated Principal Engineer" for company's COA
(OP)
I work for a large industrial corporation and am one of the few engineers, in a management position, with a PE license. I have been asked to take on the role of "Designated Principal Engineer" in the Certificate of Authority for various states in which we conduct business (total number of employees > 1,000). We do not provide "engineering services" in the traditional A/E or consulting sense as we are a manufacturer (we hire AEs for all building modifications and any design requiring a PE seal); however, I can see much of the work could be constructed to be engineering in a court of law exposing me to legal risks. My company has full professional liability insurance and is willing to include me as a named insured on the policy.
I'm seeking advise and opinions before moving forward.
-Is it reasonable to request additional compensation and/or benefits? If so, what is considered fair and reasonable for this role?
-Should I consider additional insurance or request my company provide additional coverage, policies, etc.?
-Other considerations and questions I should be asking my manager and our attorneys?
Any feedback is greatly appreciated.
I'm seeking advise and opinions before moving forward.
-Is it reasonable to request additional compensation and/or benefits? If so, what is considered fair and reasonable for this role?
-Should I consider additional insurance or request my company provide additional coverage, policies, etc.?
-Other considerations and questions I should be asking my manager and our attorneys?
Any feedback is greatly appreciated.
RE: Signing as "Designated Principal Engineer" for company's COA
I would push for an indemnification. That way, regardless of what happens, the company is legally bound to defend you at their cost. If they do that, my understanding is that they are essentially taking all of the risk from you (with the exception of personal risk to your license, which follows you around regardless). So in that case, I would say no to the additional compensation. If they don't, then it comes down to your comfort level with the amount of insurance. If you think it is sufficient to cover the risk, then I wouldn't worry about it. If you think it's insufficient and still leaves you reasonably exposed, or there's a chance you could be held responsible for the deductible somehow (which I would doubt), then compensation commensurate with your elevated risk exposure would be called for.
RE: Signing as "Designated Principal Engineer" for company's COA
Why aren't the AE contracts structured to limit your employer's professional liability?
www.SlideRuleEra.net
RE: Signing as "Designated Principal Engineer" for company's COA
For the services they provide (primarily building/structural modifications and improvements), they are; however, we are a large manufacturer with many production/process changes that don't always go to AE firms (e.g. conveyor/assembly line modifications, robot cell relocation, etc.). These projects are carried out by other process groups outside of my department. My concern is related to the many unknown activities these groups could be leading without my knowledge and oversight.
The various state's Professional Engineers and Surveyors code language states-
"In order to qualify for a certificate of authority, a corporation, firm or partnership must have at least one licensed professional engineer as a principal officer, partner or designated principal engineer of the firm who has management responsibility....
It further states-
"An engineer who renders occasional, part-time or consulting engineering services to or for a corporation, firm or partnership may not, for the purposes of this section be designated as being responsible for the professional activities of the firm."
RE: Signing as "Designated Principal Engineer" for company's COA
I am not convinced that a Certificate of Authorization is required for your industry. unless I am mistaken and from the references I have seen, that only applies to engineering or architectural firms that offer engineering services (to the public). your firm manufactures items and does not offer engineering services.
RE: Signing as "Designated Principal Engineer" for company's COA
RE: Signing as "Designated Principal Engineer" for company's COA
I too question the need for a COA and don't see a problem for you.
www.SlideRuleEra.net
RE: Signing as "Designated Principal Engineer" for company's COA
RE: Signing as "Designated Principal Engineer" for company's COA
My previous experience has taught me, when a company gets sued, everyone involved becomes named in the claim. Having my name on a public record seems an easy target for an attorney in the event something bad happens.
RE: Signing as "Designated Principal Engineer" for company's COA
TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! https://www.youtube.com/watch?v=BKorP55Aqvg
FAQ731-376: Eng-Tips.com Forum Policies forum1529: Translation Assistance for Engineers Entire Forum list http://www.eng-tips.com/forumlist.cfm
RE: Signing as "Designated Principal Engineer" for company's COA
RE: Signing as "Designated Principal Engineer" for company's COA
In that case, I consider it reasonable for you to request the creation of and promotion to "Chief Engineer", or something like it.
Alternatively, the attorneys can pursue the manufacturing exemption and leave you out of it.
"Designated Principal Engineer" sounds like you are made the "fall-guy".
www.SlideRuleEra.net
RE: Signing as "Designated Principal Engineer" for company's COA
If you (and no one else at your company) are not stamping anything, then I don't see how your name on the COA will add anything to your personal liability. Every state is different, some require only one name, some want all of the names of all of the PE's licensed in that state that will be stamping drawings.
Most states do have the requirement that the person on the COA actually has the final say for engineering decisions (essentially is the EOR). If you have that in your current role I'm not sure the higher compensation is warranted, if you don't, I would say that it is.
RE: Signing as "Designated Principal Engineer" for company's COA
Since I started my own business 15 years ago I have been the designated engineer on the COA. Just recently in my state the state board did away with the COA....now companies only have to "register" with the state as an engineering business.
RE: Signing as "Designated Principal Engineer" for company's COA
RE: Signing as "Designated Principal Engineer" for company's COA