Legal question 1

[XR250]

So lets say, hypothetically, I design a house and miss a beam. The contractor installs (2)2x10 instead of the steel I-beam that should have been on my plans. I agree to pay for the labor to swap them out. Should I also be responsible for paying for the I-beam.? I believe I have read legal precedence about this and the answer is no as the homeowner would be getting something he never paid for. Does anyone know the name of this legal term? Probably something in Latin
Realistically, I probably would pay for the beam as it would be good business practice, but more for curiosity sake.

 

[EZBuilding]

If I'm not mistaken that is typically referenced as "betterment" in legal terms.

It is my understanding that most legal systems would agree with your assessment - the owner would always have been responsible for paying for the steel beam and so should still hold on to that responsibility. The cost difference between labor and cost of the 2x10's may be subtracted from such.

 

[XR250]

That's it - thanks. I suppose technically, I could charge for the design of that beam as well if the job was originally performed hourly?

 

[monkeydog]

It seems technically you could charge for the time to design the steel beam. But wouldn't you then have to "credit" the time spent for design of the steel beam and lost time to your customer for the error?

 

[EZBuilding]

I expect the cost of the design of the beam would have already been captured by the original fee.

There may be some other liabilities within this scenario, however, delay claims and consequential damages come to mind. Also getting into any kind of legal battle tends to become draining of both time and money. If you can satisfactorily resolve the issue by paying for the beam and labor while getting a release from any other claims associated with this - it might be your best bet.

 

[XR250]

But wouldn't you then have to "credit" the time spent for design of the steel beam and lost time to your customer for the error?

I would imagine yes.
Best business practice would be to pay for what they are asking - unless it seems unreasonable. At that point, call your insurance provider. Maybe better to call them from the get go just as a heads up.

 

[LOTE]

You should notify your insurance, even if you don't plan to file a claim. It is typically in your insurance contact to notify them of all potential suits as soon as you find out, and not doing so may be justification for them not paying the claim.

 

[dik]

I would not likely contact the insurance; this will result in a premium increase in most jurisdictions. I'd likely look after the cost of the steel beam and chalk it up to a learning experience.

-----*****-----
So strange to see the singularity approaching while the entire planet is rapidly turning into a hellscape. -John Coates

-Dik

 

[glass99]

It's called an "omission" and is not the same as an "error". As a designer you are typically not responsible for omissions if its something that would have been required from the beginning. You are responsible for the delta in cost from what it would have been to what it is when installed at a later date. So in your case you would be responsible for the cost of the timber structure which was incorrectly installed but not the cost of the steel as it should always have been there.

 

[tolchijb]

For what it is worth, notifying your insurance will not necessarily result in premium increases. Our insurance wants to be notified and it does not have an effect on our rates until there is a claim. Once we notify the insurance company of a possible claim, they will put the project into loss prevention. Loss prevention does not cost us a dime and gets us access to counsel who will advise us under the umbrella of attorney client privilege. We once had a significant claim sit in loss prevention for almost 2 years before it became a claim. We were not responsible for any costs until it became a claim at which point we had to pay our deductible. A lot of the claim background information was gathered and parsed during that loss prevention time, but it did not cost us anything out of pocket and did not deplete our available insurance up unit it became a claim. I would bet that kept well over $100,000 between lawyers' and experts' fees off our insurance and our books.

 

[XR250]

I believe mine is the same. I notified them once of a potential claim and nothing ever came of it financially or legally.