Staking liability fee

[MikeTurnrose]

I was wondering if other firms here attach an extra fee to their fee proposals for construction staking projects to account for the liability incurred on such projects? Thanks in advance for any input.

[land butcher]

Sounds like the airlines. How do you prorate E&O over the years jobs when you pay E&O in advance?
I think most include it in their hourly rate. That's what makes it hard during these "recessions" not enough work to cover the non decreasing cost of insurance and supplies.

[land butcher]

Sounds like the airlines. How do you prorate E&O over the years jobs when you pay E&O in advance?
I think most include it in their hourly rate. That's what makes it hard during these "recessions" not enough work to cover the non decreasing cost of insurance and supplies.

[goodgps]

Would this be for a staking screw up and you dont want to accept full liability ? OR is this for when kids or outside sources pay musical chairs with marked lath and the contractor uses them at face value ?

For the latter, there is usually a clause to alert contractors to notify the staking firm if grades or line does not line up or match the plans. This one save me a bunch when my crew accidentally put (5x5) on a stake instead of (5) the contractor placed a very odd angle point in a parking lot, totally ignoring the plans. He was responsible for removing and replacing. And my Crew received a good education in the process.

Hope this helps a wee bit ?

[MikeTurnrose]

Yeah, I put that clause about notification of discrepancies in proposals now. This would be for the liability of any errors that could be made by the surveying firm. I'm just wondering if other firms have higher rates for construction staking versus boundary/topo. My thinking is that it makes sense.

[land butcher]

I haven't looked at my cut sheets in years but IIRC there is a clause about 3 hubs aligning for line and grade.
It doesn't work for a single hub square planter, one of about a dozen, where we marked it fill instead of cut, should have but we only had to give the contractor a hour of free staking on something that was not in the contract.
I have found that most contractors, the ones doing the actual work, have never seen the plans or they have a bid plan buried under 25 coffee cups behind the seat of their truck.
One job the contractor complained that our x gutter stakes were wrong, didn't match the curb he previously built. A check of the FL grades revealed that the curb FL was 1/2 inch too high. With the Super standing there the contractor stated "I'm not buying 2x8s and cutting them down to 6in - curb faces should be 5-1/2in. LOL I walked away and the curb guy got a grinding bill.

[E_Page]

I've seen where the premium for additional insured amount required by a client was added as direct cost. More often if one is going after work with particular insurance requirements, the cost of the premium is foreseen and built into the rates or the fee for the project if lump sum.

I don't think that adding a fee specifically for perceived additional liability is advisable unless you are using that fee to purchase extra insurance for your own comfort level. If it's a fee that is essentially enough to make you feel comfortable putting that concern out of your head but not used to actually invest to cover the liability you are supposedly worried about, then charging the fee may imply that you are contractually committing yourself to either purchasing whatever additional insurance the fee would provide, or that you are maintaining a fund for self-insurance reasons - some manner of additional liability ocverage over and above your standard E&O coverage.

If you charge an extra fee and tie it expressly or implicitly to perceived higher liability, you may be opening yourself up to additional liability, and may even jeopardize your existing coverage if the fee isn't used for extra coverage through your insurer. Check with your carrier.

If you are just looking for more to do construction just because you find it to be a PITA and it just takes a little extra to convince you to take on that work as opposed to other work, there is nothing preventing you from bumping up your rates for that type of work. You don't have to tie it to liability or any other reason. If anyone asks, you just tell them that's just the way you structured your rates, take it or leave it.

[NickL]

I agree with Evan. As long as it's a genuine way to add value for the customer, charge the fee in direct relation to the additional liability coverage. If you want to get paid more for construction staking -- raise your rates.