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         R.J. Hill Consulting

November
                                                                         2007
                 Beware of Engineers Paying
                            Fees for Work

For anyone familiar with the engineers' code of ethics, no engineer or engineering firm can pay a fee in return for work. Similarly, no professional engineering society should broker work for engineers. Professional engineering societies promote the practice of engineering by encouraging the exchange of science and technology, mentoring their members, and facilitating meetings at the local level.  So, what does ethics have to do with professional engineering societies? Professional engineering societies are made up of engineers that are supposed to be bound to ethical conduct. However, there are those organizations that are not willing to adhere to the rules.

Earlier this year, we were contacted by a so-called engineers association and offered a chance to represent their organization. Specifically, we were told (in writing) that for a fee we could become a part of a network that would increase our workload. For $28,500 "initiation" fee, we would be trained in the art and practices desired by insurance clients. After training and for a fee of $400.00 per month thereafter, assignments would be referred to us. Upon further investigation, it was learned from their website and through conversation with their representative that they market their member firms services to their insurance clients and refers assignments to their member firms when the need arises from the insurance clients. The website also lists member firms, their territories, and their insurance clients.  (For those interested in knowing who the association is, please email us and we will provide all the details.) 

The main problem with such an arrangement is that any report produced by a member engineering firm would be "tainted", subject to question. The unwritten question is whether the report was produced in favor of the insurance client for the fee that was paid by the engineering firm. So, if the case goes to court, the preparer of the report stands a good chance of disqualification. Any report produced by an engineering firm has to be above and beyond reproach. If the report isn't "clean", the expert won't be either and the case will likely suffer.  Please note that in addition to being unethical, Tennessee has made it illegal for engineers to pay a fee for services.  Tennesse Code Annotated 0120-2-.06 titled "Acceptance of Work" specifically forbids the payment of any type of consideration in order to secure work.

Comments or questions? Send email to rjhill@rjhill.com