Don't want to get sued 1

[chris9]

How can a consultant protect himself from being sued for engineering design work if it goes wrong. PII insurance may not cover everything so what else can be done as a preventative measure apart from the obvious of not making any mistakes.

 

[jimbo]

No one can prevent you from being sued, as you do not control that activity.

In 30 years of consulting work [sole proprietor] I never was sued. I did not have E&O insurance, which may have discouraged some from suing me. I did not have a great amout of money either. (The "blood out of a turnip" gig.)

My attorney said that you (me) have a reputation for vigorously opposing any suit. We don't acquiece to any demanded settlement. The word gets around. We will fight you.
That reputation was acquired while working for a corporation partially owned by me. It was sued.


Buy a dictionary, keep it nearby and USE it. Webster's New World Dictionary of American English is recommended, and Webster's Collegiate Dictionary.

 

[denoid]

When you do work as a consultant, prepare contracts for the work you perform for clients, and see to it that they are signed before you begin the work. If your branch of engineering has a standard "boiler plate" type contract, start with that and modify it for each project you take on. Make it extremely clear what is included in your services, and what is not. Make it extremely clear what you will be responsible for, and what you will not. Make it extremely clear how you will be paid and when, as well as what additional services may be outside the scope of your work. Include a clause, if you so desire, how disputes will be settled (mediation, arbitration, etc.), to try to keep the lawyers out of it as much as possible.

As Jimbo said, anyone can sue you for anything they want to, but it makes it pretty difficult for them if your position on goods & services is spelled out up front.

 

[chris9]

Are there any standard clauses a consultant can use?
Where can I find a standard contract that I can modify?
Is a signed contract by fax OK or do you need the original?

 

[denoid]

Chris9:

I see that your area of specialty is "automotive". I'm not familiar with those types of consulting contracts. (Mine is "structural" relating to building design, so we typically follow AIA -American Institute of Architects, architectural contracts for buildings). Perhaps other Automotive or Mechanical Engineers can answer that question for you, as well as your question on standard clauses for those types of contracts. Or, if you know any industry lawyers well enough to ask for some free advise, they might steer you in the right beginning direction.

In the case of our contracts, we have various size contracts for various sized projects. Sometimes a "letter contract" is sufficient to get across all of the information I outlined in my first response. And, yes, we do tell our clients to read it, sign it, and fax it back so we can get started on his project immediately.

 

[ml13]

Contracts are a start, but they won't address every eventuality. iF someone is litigation-happy, they will find some reason to sue you, as our colleagues have already noted.

Look at it this way: Your career will be defined, not from the absence of errors, but your response to them when they occur (works in a marriage, too). If you talk to your professional liability carrier, the thing they will tell you is communication is the hands-down best approach to avoiding litigation. Talk to your carrier about some loss prevention materials that they may be able to send your way.

When you do make a mistake, admit it and work twice as hard and fast to correct it. That will go a long way to avoid a suit, if it would even come to that.

There is a book entitled "Engineers, Architects and Lawyers and the High Stakes Games they play," by Tony Kyzer. Don't agree with everything there, but a good read.