Transfer of unfinished engineering project contract from one firm to another

[Engr1888]

Hi, I appreciate any advice and opinions you may have concerning the following .....

The company now I am working for will be shut down by owner. Recently I formed my own engineering business entity. The company would like to transfer some unfinished projects (design completed but support services for construction not performed yet, fee mostly collected) to my business entity. If I take over these contracts then the professional liability for the projects will also fall on my business entity.

I don't think it's worth taking over the projects unless my business entity is fairly compensated for the transferred professional liability.

Thanks

 

[IRstuff]

Seems to me that the company ought to buy some sort of tail insurance policy to cover the risk. Any money you get should go into buying the insurance.

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[JAE]

Yes - what IRstuff said. Agree

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[GregLocock]

I would be charging a great deal for that service.

Cheers

Greg Locock


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[oldestguy]

I'd want a new contract with any owners of those facilities. Seems like the old owner should have has some sort of buy-out which would have avoided this problem. Doesn't speak well of that older outfit.