Certifications issued by engineers are vital in ensuring that construction works meet design specifications, safety standards, and legal requirements. These certifications are often relied upon by clients to make critical decisions, such as approving payments to contractors or assessing compliance with building codes. However, issuing inspection certificates comes with significant legal responsibilities.
This article is written by our consultancy agreement lawyers. We explore:
- the legal obligations of engineers in Australia when conducting on-site inspections and issuing certifications
- provides practical advice on managing risks, ensuring compliance, and avoiding liability
Key Takeaways
- Engineers play a critical role in ensuring compliance and safety through on-site inspections and certifications
- Legal obligations include exercising a duty of care, acting independently, and providing accurate certifications
- Misleading or negligent certifications can lead to liability under contract law, tort law, or the Competition and Consumer Act 2010
- Engineers must clearly define the scope of their certifications and avoid stepping outside their professional expertise
- Practical steps include thorough preparation, effective communication, and precise documentation during inspections
Why Are On-Site Inspections Important?
Identifying Deviations from Design
A design is only as effective as its implementation. Engineers must ensure that construction aligns with design documents, including measurements, boundaries, and construction steps. During on-site inspections, engineers should identify any deviations from the design and address them promptly.
Timely responses to Requests for Information (RFIs) and clear communication with contractors are essential to prevent errors that could lead to liability.
Detecting Construction Defects
On-site inspections are critical for identifying construction defects. Engineers should categorise defects by severity and assess their impact on the project. These findings should be documented in a report, supported by visual evidence and references to relevant codes or standards.
Defects must be communicated clearly and urgently to ensure timely rectification. Engineers should also follow up to confirm that corrective actions have been taken.
Legal Obligations of Engineers
Duty of Care
Under Australian law, engineers owe a duty of care to their clients. This duty requires engineers to exercise reasonable skill, care, and diligence in their work. Failure to meet this standard can result in liability for damages if the client suffers a loss due to negligence.
For example, an engineer who negligently certifies defective work may be held liable for the resulting financial losses incurred by the client.
Obligation to Warn
Engineers have a legal obligation to warn clients or contractors of foreseeable risks that could lead to harm. This duty requires proactive communication of potential issues during inspections or certifications. Failing to provide adequate warnings can result in liability if harm occurs.
Acting Independently
Engineers must act independently and impartially when issuing inspection certificates. While engineers are often contracted and paid by clients, they must resist external pressures and ensure their decisions are fair and unbiased.
Negligent or fraudulent certifications can expose engineers to legal claims from both clients and contractors. For instance:
- if an engineer negligently certifies incomplete work, the client may overpay the contractor and suffer financial losses
- if an engineer provides misleading information about site conditions, they may be liable for damages incurred by the contractor
Misleading and Deceptive Conduct
Liability Under the Competition and Consumer Act 2010 (Cth)
Engineers may face claims of misleading or deceptive conduct under section 18 of the Competition and Consumer Act 2010 (Cth) if their certifications are inaccurate or misleading.
Mistrina Pty Ltd v Australian Consulting Engineers Pty Ltd [2020] NSWCA 223
In this case, a design engineer was held liable for certifying a structurally defective raft slab as compliant with the Building Code of Australia. The certification led to significant financial losses for the property developer, even though the engineer was not directly contracted by the developer.
This case highlights the importance of accuracy and due diligence in issuing certifications.
Practical Considerations for Engineers
Defining the Scope of Certification
Certifications must clearly define their scope to avoid misunderstandings. Engineers should limit their certifications to areas within their expertise and avoid making speculative statements.
Preparing for On-Site Inspections
- Thoroughly review project plans, specifications, and relevant codes before attending the site
- Adhere to safety protocols and use appropriate personal protective equipment during inspections
Effective Communication
Transparent communication with stakeholders is essential. Engineers should promptly notify clients or contractors of any non-compliance or defects identified during inspections. Delayed communication can exacerbate issues and increase liability risks.
Precise Documentation
Accurate documentation is crucial for legal defence. Engineers should maintain contemporaneous notes, photographs, and detailed reports of their findings during inspections.
Avoiding Scope Creep
Engineers must avoid stepping outside their professional expertise during inspections or certifications. For example:
- do not comment on architectural works unless they interface with engineering work
- avoid advising contractors on product selection or application methods
Checklist for On-Site Inspections
Step |
Action |
Review project documentation |
Familiarise yourself with plans, specifications, and relevant standards. |
Inspect site conditions |
Ensure compliance with design documents and identify any deviations. |
Document findings |
Take photographs, measurements, and detailed notes during inspections. |
Communicate issues |
Notify stakeholders of defects or non-compliance promptly. |
Follow up |
Confirm that corrective actions have been implemented effectively. |
Frequently Asked Questions (FAQs)
What is an engineer’s duty of care in Australia?
An engineer’s duty of care requires them to exercise reasonable skill, care, and diligence in their work. Failure to meet this standard can result in liability for damages if the client suffers a loss due to negligence.
Can an engineer delegate on-site inspections?
Yes, engineers can delegate inspections to competent individuals, but the registered engineer remains responsible for the certification and must ensure the delegate is qualified to perform the task.
What are the consequences of issuing a negligent certification?
Negligent certifications can expose engineers to legal claims for damages under contract law, tort law, or the Competition and Consumer Act 2010 (Cth).
The claim may be covered under a policy of professional indemnity insurance. This will depend on the policy wording and coverage.
How can engineers avoid liability when issuing certifications?
Engineers can minimise liability by clearly defining the scope of their certifications, maintaining accurate documentation, and acting independently and impartially.
Engineering firms should also ensure their design consultancy agreements are reviewed by a qualified lawyer.
What happens if a client pressures an engineer to certify non-compliant work?
Engineers must act independently and refuse to certify non-compliant work, as doing so could expose them to legal liability for negligence or misleading conduct.
Can an engineer be held liable for defects they did not detect during an inspection?
Yes, if it is determined that the engineer failed to exercise reasonable care in conducting the inspection, they may be held liable for undetected defects that cause harm or financial loss.