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AECOM legal counsel, Nora Fung, has told young engineers that they have to be careful dealing with their liabilities in any major project.
Ms Fung warned over one hundred attendees at an ACE Progress Network event that they should be careful to avoid contractual clauses that suggest they “shall indemnify” the project. This can lead to limitless liability if there are problems with the project and liability need not be linked to negligence or a legally enforceable claim.
Instead, Nora Fung suggested that they should seek to have a net contribution clause included in the contract. This could ensure that each party liable in respect of a given damage should only have to pay the client for the proportion of the damage they are responsible for.
While she stressed that net contributions were of benefit to engineers, she accepted that some clients would try to avoid agreeing to such a clause.
Nora Fung went on to speak about further contractual issues that engineers may face before concluding with an overview of dispute resolution.
Alternative dispute resolution might involve negotiation, mediation or adjudication. The decisions over which route is taken might depend on relations between the client and engineer. Expert determination and arbitration were also highlighted. Ms Fung made it clear that litigation remained the option only where alternatives were not appropriate or had failed.
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