But there is another important point. The short-form contract, which is commonly used, contains limitation of liability clauses. For example, liability may be limited to 5 times the fee, with a cap of $500,000.00. Liability may be limited to claims that are claimed within 6 years. Loss of profit, consequential damages and consequential damages are excluded. Contain proportionate liability clauses to limit the damages to be paid when others are also liable. As a general rule, professional liability insurance is only necessary for the amount of the liability ceiling. Clients should ensure that they take this into account from the outset against the risk profile for their project, the purchase plan and other business requirements. These terms can be negotiated with the consulting team to ensure they are fit for the project. On the basis of the facts, it was decided that the standard agreement in the short form had not been included in the contract.
The architect had mandated the engineering office on behalf of the client. Although the model was presented to different organizations, even though invoices were issued by the engineering office and paid for by the client, it was found that it was not part of the contract. There is also no sufficient evolution of the treatment, so that the conditions can be considered applicable in the circumstances. While the architect and engineer had collaborated several times, the same arrangement was not attributed to the client. There was also the additional complexity of the architectural office, which was involved over time. While the lessons learned here are not new, they are worth repeating. The best and safest way is always a signed contract that contains all the conditions….