Creating a culture of professional liability issues awareness After the contract has been signed and Notice to Proceed (NTP) received, most Consultants give little thought to professional liability issues until there is a claim. Then they think about those issues a...
Notice to Proceed (NTP) is the Client’s official notification to the Consultant that the design may begin. NTP is frequently given with the transmittal of the contract when executed by the Client. The NTP should include the specific date on which it is issued, thus...
Contract Signatory Requirements addresses the person signing the contract having authority to sign and thereby bind the entity entering the contract. Some Clients require a letter from the Corporate Secretary, bearing the corporate seal, stating that the person...
Contingent Fee Contracts for professional design services are ones in which payment to the Consultant for his or her service is dependent on the actions of an entity other than the Client. A Client may attempt to tie payment of a Consultant’s fee to receipt of a...
Basis of Payment describes the method to be used to calculate the amount of money or fee owed to the Consultant. The following is a partial list of payment types in common use: Lump Sum – This method of payment stipulates that for a specific SOW, the Client will pay...
Budget is the term applied in reference to the amount of money available for payment to the Consultant. The term “cost” when used in connection with a budget usually refers to the amount of money available to pay for labor (salaries, wages, and overhead related...
