HW-
Tom928
presentation_.pptxThomas J. Nelson, M.S., P.E.
Solid Proposals and Contracts:
Why bother?
Founded in 2012 as a continuation of T.O.R. Engineering’s Structural Department.
Located in Flagstaff, AZ
Licensed in 17 States primarily for
Zip Line/Challenge Course work
About Hubbard Merrell
What is a proposal?
A description of what work you will perform
Consist of varying level of detail depending on the client
Large public projects typically a very detailed proposal
Small projects for private entities can be very simple
Simple proposals still have the same basic parts
Scope of Services
Schedule
Fee
Proposals
Will be the focus of this presentation
For your class, you (hopefully) are writing a more complex proposal
Simple proposals are used for small ($ or size) projects
A majority of the projects that I work on
HM had ~160 projects in 2015
Small proposals will include a contract to actually perform the work
Contracts include the ‘legalese’ regarding payment, liability, etc.
Small project with a small fee does not mean small liability!
Simple Proposals
Liability is one of the major concerns when writing proposals and contracts
Would you write a proposal for engineering that guaranteed the contractor will construct it correctly?
Knowledge is Power
Know your discipline
Know your clients
Know what your scope is
Liability
Many documents for how to write
a “good” contract
This document is 262 pages long!
A good contract will attempt to limit
the level of liability that you acquire
An important note:
No amount of contract language
will protect you if you don’t do a
good job
Simple mistakes in proposals can open you to unnecessary liability
One of the most common mistakes I see in student proposals:
Overly strong language
With a good scope of services, overly strong language is not necessary
Words that raise a red flag:
Best
Guarantee
Eliminate
Maximum
Avoid Mistakes in Proposals
Best
We will design the best roadway for the area.
Guarantee
We guarantee the sidewalk will meet ADA requirements.
Eliminate
We will eliminate the flooding problem on the property.
Maximum
The park we will design will provide maximum enjoyment for the community.
Personal example
Avoid Mistakes in Proposals, Cont.
Be sure to write a detailed scope of services
A “fuzzy” scope of services opens to you scope creep
Scope creep is where YOU do more work without getting paid for it
Scope creep always wants to happen
Client wants more for less
If you don’t have a solid scope of services, you have no recourse against scope creep.
More Mistakes!
Example:
Proposal states: “We will provide structural engineering and drafting services for a new, 1 story masonry structure with premanufactured wood roof trusses on a conventional foundation.”
This sounds good, right?
Scope Creep
The architect sends this to you at the start of the project:
Scope Creep, Cont.
Entry
Door
WIDGET STORE AND MORE
Then, 1 week before the deadline and your design is basically complete, the architect sends you this:
Scope Creep, Cont.
Entry
Door
WIDGET STORE AND MORE
Window
Window
Your entire design to resist wind and seismic forces has to change
No more masonry shear walls!
A good thing to include in a scope of services is a sentence protecting you from changes
“We will provide structural engineering and drafting services for a new, 1 story masonry structure with premanufactured wood roof trusses on a conventional foundation. Additional design due to changes to bearing and shear walls after the 60% design submittal will be charged at our hourly rates.”
Scope Creep
Writing a good proposal is hard
Why even write a proposal?
ASFE (Associated Soil and Foundation Engineers) Case Study 100
Background Information:
A geotechnical engineering firm prepared a report for a building site and provided recommendations for a 10T and 20T driven piles
A few years later, times were tough
A civil engineer called the geotechnical engineering firm and asked for recommendations for a 25T pile for a hotel
Why Write a Proposal?
The geotechnical engineer and civil engineer agreed verbally to a $100 fee for the work
The geotechnical engineer provided the pile driving criteria
They also reviewed pile driving results from the field
They sent invoices, reminders, and collection notices to the civil engineer but never got paid
Several years later, a storm exposed portions of the foundation, and large cracks in the foundation were seen
A forensic engineer determined the piles were undersized and didn’t account for 9’ of fill added to the site
Why Write a Proposal, Cont.
The hotel sued the Architect, the civil engineer, and the geotechnical engineer.
The Architect closed the company and bought a new home in Florida
The Civil Engineer was a 1-man show and didn’t have professional liability insurance
The geotechnical engineer had liability insurance which settled for a 7 figure sum
The geotechnical engineer spent ~$100k in lost productivity
Why Write a Proposal, Cont.
Moral of the story:
Always do your best work
You never get the whole story
WRITE A PROPOSAL AND GET A SIGNED CONTRACT
Why Write a Proposal, Cont.
Always read what you sign!
You may be requested to sign a contract written by the client who you will be doing work for
Inherently there is nothing wrong with this, BUT:
The terms of these contracts may be heavily skewed in the favor of the client
One More Thing
Signing Off
QUESTIONS?
