12. Appointment

Question 1

How can you limit your liability when agreeing terms of appointment with a client?

Answer 1

• Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous.
• If the client’s requirements are performance based, this may imply fitness for purpose. It is advisable to request a clause limiting the appointment to reasonable skill and care only.
• Run off cover must be in place.
• Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 12.

Question 2

What are the main elements included within a fee proposal?

Answer 2

• Terms and conditions.
• Scope of services.
• Exclusions.
• Assumptions.

Question 3

If you put together a fee proposal, but a couple of months into the job you realise that you have under forecasted your resources, would you go back to the client and ask for more money?

Answer 3

• If project requirements such as the services, scope or value of the project has increased then I would go back to client and request a fee increase.
• If the scope of works had remained the same, this highlights a mistake within our fee bid and the additional work would need to be carried out without reducing the level of service being offered and without requesting additional fees from the client.

Question 4

Once you and your client agreed the services that are to be provided verbally what would you do next?

Answer 4

• Follow up with a formal letter which includes the terms and conditions, fees and scope of services that are to be provided.