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RE: Plan Reuse Fee

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From:           	Charles Espenlaub <Cespenlaub(--nospam--at)martinaia.com>
To:             	seaint(--nospam--at)seaint.org
Subject:        	RE: Plan Reuse Fee
Date sent:      	Wed, 9 Feb 2000 15:34:03 -0500 
Send reply to:  	seaint(--nospam--at)seaint.org
Organization:   	http://www.seaint.org

> If they do not want to pay you for the liability on the 2nd, 3rd, etc.
> building, then you may be able to get the owner to provide you with a
> hold harmless for any liability for any errors/omissions of the
> non-model buildings.  In other words if you make a mistake, you only
> have to pay to correct it on the first building, and he eats it on the
> rest. 

You forget about liability to third parties who may be injured by some error or omission. 

I would not accept an agreement where the owner agrees to defend and 
indemnify.  If the owner goes bankrupt, there will be nobody to defend or pay 
any claim or judgment.   If the owner does not want to pay you for your 
liability exposure, have them purchase an insurance policy from a major 
carrier to cover all of your exposure.

Robert

This may work in the short term,  But if he sells the project,
> and then a problem shows up (i.e., handrails, or whatever the cause
> d'jour the lawyers are looking at) you may have to sue the previous
> owner to collect.
> 
> Depending on the municipality, they may need a permit set for each
> building, eventhough they are "identical" buildings.  Odds are also that
> modifications for site, updated codes etc. will have to be made on later
> buildings, as the owner is not going to build 100 buildings in the next
> two years.  You can "hide" your reuse fee in the fee for changes and
> repermitting.
> 
> You could also toe the line, and tell your architect that he is a fool
> to accept responsibility for so much work for so little fee.  Then
> again, maybe together you can come up with a strategy to get the reuse
> fee by using some of the above suggestions.
> 
> 
> Charles F. Espenlaub, III, P.E.
> Martin-Espenlaub Engineering
>