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Threat of Litigation Causes Consultants to Decline Work

Nov 1, 1998 12:00 PM, By EC&M Staff

The threat of litigation and frivolous lawsuits continue to be a primary concern for consulting engineering firms, according to the 1997-1998 Professional Liability Survey, recently released by the American Consulting Engineers Council (ACEC).

“Consulting engineers and the rest of the business community must continue to fight for tort reform. Frivolous lawsuits and threat of outrageous awards hurt America’s ingenuity, productivity, and competitiveness,” says ACEC President James R. Thomas, Jr.

The survey reveals consulting firms spend much time and money on fighting runaway lawsuits. As a result, ACEC firms spend $24,000 a year on premiums and legal defense against claims and $22,000 for settlements and awards.

The ACEC Professional Liability Survey, nationally recognized as a benchmark on liability issues, profiles each firm’s litigation experiences and includes questions on a firm’s insurance policies and resolution claims. It also questions how the possibility of claims cause firms to reject potential clients. To receive a copy of the survey, speak to a survey spokesperson, or interview a firm that participated in the survey, contact Andrea Keeney at ACEC at (202) 347-7474.

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