As engineers, we are responsible for protecting the public health safety and welfare. Just read your code of ethics for your professional organization memberships such as ASCE. A response that you are not a member is not justified; the requirements are a requirement of law. Just read your state Professional Engineers Act. How many engineers have actually read the Professional Engineer's Act for the state in which they are registered? Few appear to be familiar with the laws in their state with respect to engineering. I say this because few U.S. engineers raise their hands at meetings when this question is asked.

Reviewing and understanding the Professional Engineer's Act is not enough. As a practicing engineer you should know about those areas of practice that can come back and bite you if you do not understand what "practice" encompasses. As I have written previously, few engineers closely review or read the contracts they have signed. Engineers fail to understand that they can be held responsible for failures, delays or cost overruns.

When engineers prepare contracts for construction, often there are specifications incorporated by reference. This phrase alone is not fully understood. As an example, if you have a highway project, you may incorporate ASTM or AASHTO standards. But what if the design you have prepared is in conflict with the general standards that you have incorporated by reference? The engineer must be aware of the specifications in their entirety. What if the standards are updated? How often do engineers review the standard general specifications to determine what changes are made? Probably not often enough. Assumptions can be dangerous.

Few engineers know what a standard of care is or what happens if you fail to perform to a standard of care. Few understand what it means to be convicted of negligence. It has more far-reaching consequences than just losing your license. Further, the assumption that you will be protected by your professional errors and omissions policy may not be accurate. Many policies do not protect against negligence and failure to meet a standard of care. That raises another issue--how many engineers actually know what their professional liability insurance covers and does not cover?

So what do we do? How do we educate engineers about the importance of these areas? How do we inform engineers that what they don't know may hurt them more than what they do know? It has to start in our engineering schools. We need courses in ethics combined with engineering management. These should include contract law affecting engineers. This is essential in today's environment. It is a "must take" course if we are to prepare our future engineers for the reality of today. Insurance companies would also be a good option. Many insurance companies do have programs in place relative to required training of a company's engineers in order to maintain the policy. Yet, it is amazing how few engineers have knowledge of the above topic areas. This is proven by the number of standard of care cases arising and by the responses to my questions during various speeches I give. While it seems to be additional time taken away from billable work, the invested time may save not only money, but licenses and lives. It's what we don't know that ends up hurting us the most.

May 31, 2007

Good points, Pat. ASFE has been educating Member Firm personnel for years, with outstanding success. (We have the data to prove that audacious statement.)

Consider this: One mild claim costs at least $100,000, considering the time spent to research the problem, time spent to educate counsel, time spent discussing issues, etc., plus out-of-pocket costs until the deductible is met, additional time in discovery, value of lost productivity, value of the lost client, and opportunity cost.

Would one hour a week for 40 years help prevent at least one claim? You bet! In 40 years, that would be 2000 hours.

The amaount of fee required to net $100,000? About $1 million.

In other words, spending one hour a week in the educational arena would save a firm $500 per hour.

Not bad!

John Bachner, Executive Vice President
ASFE

June 19, 2007

"Standard of Care" caught my eye and held my attention. Do we really care? Do we care enough? Are we keeping abreast of changes emerging science is forcing on the standards and regulations we are duty bound to apply? Are we truly cognizant of the consequences due care can have on individuals, society and the environment that sustains us? Only a resounding YES serves society.

John C. Mulholland