Fees and Contracts
f.a.q.s
Q: What is a reasonable fee for consulting work?
A: Although APEGGA supports the notion of fair compensation
commensurate with the level of professional services provided, the consultant
and client are free to reach their own agreements on what ‘reasonable’ means. The
APEGGA document Development
of Consulting Rate Structures and Contracts presents
several alternative methods for establishing consulting fees for professional
services without recommending minimums or maximums.
Q: Are consulting
engineers, geologists, or geophysicists required to carry insurance?
A: No, however many do. It is a good idea to discuss project
risks with your consultant and the applicability of general liability, property,
and/or professional errors and omissions insurance.
Q: Should we
sign a contract for the consulting work?
A: Yes. Sound contracts between the client and the consultant
reduce misunderstandings. There is no strict requirement as to the "form" of
a contract. Some verbal contracts are enforceable. However to reduce
risk and uncertainty, most contracts should be reduced to a single written form
and signed by all of the parties to it. The duration and complexity of
the project often govern the complexity of the contract. The
APEGGA document Development
of Consulting Rate Structures and Contracts presents
a simple standard contract in the appendix.
Note that the contract must be fair to all of the parties. Overly onerous contractual clauses may actually void a consultant’s general liability, professional errors and omissions, property, or third party liability insurance.
