CASE Agreement #4

An Agreement between Client and

Structural Engineer for Special
Inspection Services©

Copyright © 2019 by the American Council of Engineering Companies (ACEC). All rights reserved. No part of this document may be
resold, reproduced, stored in any form of retrieval system, or transmitted in any form or by any electronic, mechanical, photographic,
recording, or other means without the prior written permission of ACEC.
CASE Agreement #4: An Agreement between Client and Structural Engineer for Special
Inspection Services©

Revised and Updated: 2019

THIS DOCUMENT WAS REVIEWED BY OUTSIDE LEGAL COUNSEL AND REVISED ACCORDINGLY IN 2019.

Prepared by the CASE Contracts Committee

J. Brent Wright, Chairman
Andrew Rauch
Alan G. Steinle
Bruce Burt
Jeff Stratton

Council of American Structural Engineers

1015 Fifteenth Street NW, 8th Floor, Washington, DC 20005
PHONE: 202-347-7474 FAX: 202-898-0068
www.acec.org/case
Copyright © 2019 by the American Council of Engineering Companies (ACEC). All rights reserved. No part of this document may
be resold, reproduced, stored in any form of retrieval system, or transmitted in any form or by any electronic, mechanical,
photographic, recording, or other means without the prior written permission of ACEC.
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Please note that the enforceability and requirements for various clauses, such as indemnity,
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 CASE Agreement 4-2019

An Agreement between Client and Structural Engineer for Special Inspection

Services

Introduction

The purpose of this Document is to provide an agreement for providing Special Inspection Services. This
Agreement features:

• A Letter Agreement
• An Exhibit for attaching a Schedule of Special Inspection Services
• An Exhibit defining the Terms and Conditions of the Agreement

Typically, Building Codes require special inspections potentially involving structural, civil/site, mechanical,
electrical, plumbing and architectural design disciplines. A Special Inspection Program can be prepared
and implemented in various ways and comply with the intent of the Code. Common approaches include:

1. Assigning a separate special inspector coordinator for each design discipline to manage the
inspection and testing efforts within the given discipline.
2. Assigning one overall special inspector/coordinator to manage the project’s entire special
inspection program, involving all design disciplines.
3. Within a given design discipline (e.g. Structural), assigning separate special inspectors or testing
agencies to inspect different construction materials or processes without a coordinator managing
the program within that given design discipline. Each inspector or agency is retained individually
by the Client (or Client’s agent) and is independently responsible for their specific portions of the
program.

Most jurisdictions allow agencies other than the Structural Engineer of Record (SE) to provide Special
Inspection Services. CASE recommends that the SE provide special inspection services for the structural
systems, because they are the best qualified party to provide the service.

The section titled "Description of Project" should describe the project as completely as possible, including:
the number of stories; type of building; floor area; structural system; etc. It should also include the date
and description of drawings describing the project.

Exhibit A should contain a Schedule of Special Inspections Services to be provided under this Agreement.
Refer to CASE Document Guide to Special Inspections and Quality Assurance for an example of these
services.

As with all documents that are intended to formalize contractual relationships, the guidance and advice of an attorney is necessary for
specific applications and jurisdictions. We strongly recommend that you have your legal advisor, professional liability carrier, and your
accountant review this document. No warranty of any kind is made with respect to this document or other contractual or consequential
damages in connection with, or arising out of, the furnishing, performance, or use of this document.

Introduction Page 1 Revised 2019

 CASE Agreement 4-2019
An Agreement between Client and Structural Engineer for Special Inspection
Services
Prepared by the Council of American Structural Engineers

Date (Click to edit)

Name of Client (Click to edit)
Address (Click to edit)
City, ST Zip (Click to edit)
Attention: (Click to edit)

Reference: Name of Project (Click to edit)

Address of Project (Click to edit)
Company Project Number (Click to edit)

Dear: Click to edit

We are pleased to propose the following Agreement for providing Professional Services on the above
referenced project (s). This proposal will remain open for acceptance for Click to edit days(s) from the
date above.

DESCRIPTION OF PROJECT

The Project consists of Project Description (Click to edit)

SCOPE OF SERVICES

The services to be provided are described in the Schedule of Special Inspection Services (Exhibit A) and
Terms and Conditions (Exhibit B).

Special Inspections for other disciplines not itemized in Exhibit A may be required but are not included in
this Agreement.

COMPENSATION FOR PROFESSIONAL SERVICES

Compensation for our services will be a fee calculated on an hourly rate basis per our current rate
schedule. Fees for outside consultants will be billed at a multiple of XX times the cost incurred. At this
time we estimate the total fee to be Click to edit dollars ($XXX.XX). This total fee shall be understood to
be an estimate and is based on a construction time of XX months. If Basic Services have not been
completed within this time, through no fault of the Structural Engineer for Special Inspection Services (SE),
the amounts of compensation set forth in this Agreement shall be equitably adjusted.

Our current hourly rate schedule is:

Principal $ XXX.XX /Hr. Senior CAD Operator $ XXX.XX /Hr.
Associate $ XXX.XX /Hr. CAD Operator $ XXX.XX /Hr.
Project Mgr./Sr. Eng./Architect $ XXX.XX /Hr. Clerical $ XXX.XX /Hr.
Engineer/Designer/Architect $ XXX.XX /Hr.

This rate schedule is effective through Click to edit

Agreement Page 1 Revised 2019

Reimbursable expenses as defined in the Terms and Conditions shall be billed at a multiple of XX times
the cost incurred.

Additional Services will be charged at our standard hourly rates or billed at a mutually agreed upon fee.

A retainer in the amount of [Click to edit % of the total fee] [$XXX.XX] shall be paid upon execution of this
Agreement. The retainer shall be applied against the final invoice.

This Letter of Agreement, and Exhibits A and B hereto, constitute the entire Agreement between the
parties. Please examine these documents and sign and return one copy along with the applicable retainer.
An additional copy has been provided for your records.

We are looking forward to working with you on this Project.

Sincerely: Agreed to and Accepted by:

________________________________ ______________________________________
(Signature) (Signature)

________________________________ ______________________________________
(Date) (Date)

________________________________ ______________________________________
(Printed Name/ Title) (Printed Name/ Title)

______________________________________ ______________________________________
(For) Structural Engineer (SE) (For) Client

Agreement Page 2 Revised 2019

 CASE Agreement 4-2019
An Agreement between Client and Structural Engineer for Special Inspection
Services
Prepared by the Council of American Structural Engineers

EXHIBIT A – Schedule of Special Inspection Services

This is an exhibit attached to and made part of the Letter Agreement dated Click to edit, between

and .
Structural Engineer (SE) Client

[Exhibit A should include a list of inspections services to be provided under this Agreement. Refer to CASE
Document Guide to Special Inspections and Quality Assurance.]

Exhibit A Page 1 Revised 2019

 CASE Agreement 4-2019
An Agreement between Client and Structural Engineer for Special Inspection
Services
Prepared by the Council of American Structural Engineers

EXHIBIT B - Terms and Conditions

This is an exhibit attached to and made part of the Letter Agreement dated Click to edit, between

and .
Structural Engineer for Special Inspection Client
Services (SE)

Section 1 - General

1.1 This Agreement

1.1.1 These Terms and Conditions along with the Letter Agreement and Exhibit A form the
Agreement as if they were part of one and the same document.
1.1.2 The Letter Agreement and Exhibit A may modify the applicability of these Terms and
Conditions. Such limitation shall take precedence over provisions of this Exhibit.

1.2 General Obligations of the Structural Engineer and Client

1.2.1 Services performed under this agreement will be performed in a manner consistent with that
degree of skill and care ordinarily exercised by members of the same profession currently
practicing under similar circumstances.
1.2.2 No warranties, express or implied, are made in connection with services performed under this
Agreement.
1.2.3 Nothing in this Agreement shall be construed to establish a fiduciary relationship between
the parties
1.2.4 The Client shall provide to the SE a complete set of Documents, signed and sealed by the
Licensed Design Professional and approved by the Building Official, and applicable approved
shop drawings and related documents, including the construction schedule.
1.2.5 The Client shall direct the Contractor to notify the SE of the Contractor's progress so the SE
will have at least 24 hours notice prior to performance of work that will require inspection or
testing.
1.2.6 The Client and SE shall each designate a person to act with authority on their behalf with
respect to all aspects of the project.
1.2.7 The SE shall notify the Contractor of their presence and responsibilities at the job site.
1.2.8 The SE shall submit to the Building Official all required reports.

Exhibit B Page 1 Revised 2019

1.3 Definitions

1.3.1 Structural Engineer for Special Inspections (SE) is the licensed individual or firm that
implements the special inspection program for the project.
1.3.2 Testing Laboratory is an agency or firm qualified to perform field and laboratory tests to
determine the characteristics and quality of building materials and workmanship.
1.3.3 Contract Documents are the Engineering and Architectural Drawings and Specifications
issued for construction, plus clarification drawings, addenda, approved change orders and
contractor designed elements.
1.3.4 Inspection is visual observations and materials testing to determine that the work is in
substantial conformance with the requirements of the Contract Documents.
1.3.5 Reimbursable Expenses are expenses incurred directly or indirectly in connection with the
project such as, but not limited to, transportation, meals or lodging for travel, long distance
telephone calls and facsimile transmissions, overnight deliveries, courier services,
professional service sales taxes, the cost of reproductions beyond those normally required for
coordination and information purposes, and the cost of outside professional services.
1.3.6 Shop Drawings are those drawings prepared by or on behalf of the Contractor as required by
the Contract Documents that have been reviewed by and bear the review stamp of the
appropriate design professionals.

Section 2 - Services

2.1 General

2.1.1 Services include those designated in the Schedule of Special Inspection Services (Attached as
Exhibit A or as defined in the Construction Documents) and other services applicable to the
project as further detailed below. Some inspection and testing duties may be performed by
Testing Laboratories or other professionals.

2.2 Administrative Services

2.2.1 The SE shall keep records of all inspections related to Exhibit A.

2.2.2 The SE shall review inspection and materials testing reports as required by the scope of
services and bring identified discrepancies to the attention of the Building Official, the Prime
Design Professional, Structural Engineer of Record, Client and Contractor.
2.2.3 The SE shall distribute reports to the Building Official, the Prime Design Professional,
Structural Engineer of Record, Client and Contractor. Reports will be submitted as required
by the Building Official and the Prime Design Professional.

2.3 Certificates of Compliance Review

2.3.1 Certificates of Compliance shall be reviewed for conformance with the standards specified in
the Contract Documents. Identified discrepancies shall be brought to the attention of the
Building Official, the Prime Design Professional, Structural Engineer of Record, Client and
Contractor.

2.4 Field Inspection

2.4.1 The SE shall make site visits to inspect work designated in the Schedule of Special Inspection
Services (Exhibit A).
2.4.2 The SE shall prepare a report following each site visit.

Exhibit B Page 2 Revised 2019

 2.4.3 The SE shall not be responsible for the means, methods, techniques, sequences, or
procedures of construction selected by the Contractor or safety precautions and programs
incident to the work of the Contractor.
2.4.4 The SE shall not be responsible for the failure of the Contractor to perform the construction
work in accordance with the Contract Documents.
2.4.5 The SE shall not have the authority to stop work on the project.

2.5 Materials Testing

2.5.1 The SE shall review reports to determine if the Testing Laboratory(s) has verified conformance
of the reported item of work with the Contract Documents.
2.5.2 The SE shall bring identified discrepancies to the attention of the Building Official, Prime
Design Professional, Structural Engineer of Record, Client and Contractor.

Section 3 - Billings and Payments

3.1 Billing

3.1.1 Fees for Basic Services, Additional Services, and compensation for Reimbursable Expenses are
set forth in the Agreement.

3.2 Payments on Account

3.2.1 Invoices will be submitted monthly for services and reimbursable expenses and are due when
rendered.
3.2.2 Retainers shall be credited on the final invoice.

3.3 Late Payments

3.3.1 Invoices shall be considered past due if not paid within 30 days after the invoice date and the
SE may, without waiving any claim or right against Client, and without liability whatsoever to
the Client, terminate the performance of the service.
3.3.2 A service charge will be charged at 1.5% (or the legal rate) per month on the unpaid balance.
In the event any portion of an account remains unpaid 90 days after billing, the Client shall
pay cost of collection, including reasonable attorneys' fees.

Section 4 - Insurance, Indemnification & Risk Allocation

4.1 Insurance (Choose One of 4.1.1 OR 4.1.2)

4.1.1 The client shall secure commercial general liability insurance, and automobile liability
insurance to protect the client from claims for negligence, bodily injury, death or property
damage which may arise out of the client's negligent performance under this Agreement.
The client shall also carry worker’s compensation insurance. The client shall provide
certificates of insurance to the SE. (Use when Client is an Owner)

4.1.2 The client shall maintain professional liability insurance, commercial general liability
insurance, and automobile liability insurance to protect the client from claims for
negligence, bodily injury, death or property damage which may arise out of the
performance of the client's Services under this Agreement. The client shall maintain
professional liability insurance for a minimum of three years after substantial completion
of the project provided such insurance is commercially available and reasonably
affordable. The client shall also carry worker’s compensation insurance. The client shall
provide certificates of insurance to the SE. (Use when Client is a Design Professional)

Exhibit B Page 3 Revised 2019

 4.1.3 The SE shall secure professional liability insurance, commercial general liability insurance,
and automobile liability insurance to protect the SE from claims for negligence, bodily
injury, death or property damage which may arise out of the performance of the SE’s
Services under this Agreement. The SE shall maintain professional liability insurance for
a minimum of three years after substantial completion of the project provided such
insurance is commercially available and reasonably affordable. The SE shall also carry
worker’s compensation insurance. The SE shall, if requested in writing, provide
certificates of insurance to the client.

4.1.4 The Consultant shall secure professional liability insurance, commercial general liability
insurance, and automobile liability insurance to protect the Consultant from claims for
negligence, bodily injury, death or property damage which may arise out of the negligent
performance of the Consultant’s Services under this Agreement. The Consultant shall
maintain professional liability insurance for a minimum of three years after substantial
completion of the project provided such insurance is commercially available and
reasonably affordable. The Consultant shall also carry worker’s compensation insurance.
The Consultant shall provide certificates of insurance to the SE.

4.2 Indemnifications
4.2.1 The SE shall indemnify and hold harmless the Client and its officers, members, directors,
partners, employees, and subconsultants against any and all claims, damages, losses and
expenses to the extent they are caused by the negligent; acts, errors, or omissions of the
SE or its employees in the performance of its services under this Agreement, subject to
the Risk Allocation provisions in Art. 4.3 below.

4.2.2 The Client shall indemnify and hold harmless the SE and its officers, members, directors,
partners, , employees, and subconsultants from and against any and all claims, damages,
losses and expenses arising out of or resulting from the Client’s performance of its
obligations under this Agreement, provided that any such claims, damage, loss or expense
is caused in whole or in part by the negligent act or omission and/or strict liability of the
Client, anyone directly or indirectly employed by the Client (except the SE) or anyone for
whose acts any of them may be liable and provided that they are not caused by the
negligent performance by the SE of services under the agreement. This indemnification
shall include any claim, damage or loss due to the presence of hazardous materials.

4.2.3 Neither party shall have any obligation to defend or pay for the defense costs of the other
party unless such costs are recoverable under applicable law.

4.2.4 For third party claims, to the fullest extent permitted by law, the Client hereby agrees to
indemnify, hold harmless and defend the SE, including its officers, members, directors,
partners, agents, employees, and subconsultants from and against all third party claims,
including bodily injury, property damage, products liability, demands, damages and
losses, causes of actions, judgments, fines, penalties and claims expense including
attorney fees, litigation costs, expert witness fees and any other expenses caused or
alleged to have been caused by anything other than negligent performance by the SE of
services under the agreement related to this project. Said indemnification shall also apply
to any deductible that the SE may be obligated to pay under its Professional Liability Policy
resulting therefrom.

4.2.5 The Client shall require that is construction contractor(s) endorse commercial general
liability coverage to include the Client, SE and the SE’s consultants as additional insureds
for claims caused in whole or in part by the contractor’s negligent acts or omissions during
the contractor’s operations. All such additional insured coverage shall be primary and
non-contributory, with provision for separation of insureds.

4.3 Risk Allocation

4.3.1 In recognition of the relative risks, rewards and benefits of the Project to both the Client
and the SE, the risks have been allocated such that the Client agrees that, to the fullest

Exhibit B Page 4 Revised 2019

 extent permitted by law, the SE's total liability to the Client and any third parties for any
and all injuries, claims, losses, expenses, damages, expert fees, court costs or claim
expenses arising out of this Agreement, from any cause or causes, inclusive of all costs
and attorney and expert fees, shall not exceed the amount of $50,000 or the SE's fee,
whichever is greater. Such causes include, but are not limited to, the SE's negligent act,
errors, omissions, strict liability, breach of contract, breach of express or implied
warranty, or any other theory of legal liability. This limitation of liability shall apply to the
SE and its officers, members, directors, partners, agents, employees, and subconsultants.
Client understands that SE's fee is based, in part, on Client's agreement to limit SE's
liability in accordance with this paragraph and that greater limits of liability are available
for increased SE fees, but that Client has agreed to forego those greater limits of liability
in exchange for the SE fee herein.

Section 5 - Miscellaneous Provisions

5.1 Ownership and Reuse of Documents

5.1.1 All documents, drawings, specifications, electronic files, building computer models,
design calculations and survey notes ("documents") are instruments of service intended
for the one-time use in connection with this Project. They belong to and remain the
property of SE, regardless of whether the instruments were copyrighted or whether the
Project for which they were prepared is executed. The SE retains all copyright interests
and rights in all such documents. The Client may, at its expense, obtain reproducible
copies of drawings and copies of other documents, in consideration of which there will
be mutual agreement that the Client will use them solely in connection with the specific
Project for which they were prepared. Any reuse or modification without written approval
or adaptation by the SE is prohibited.

5.1 Termination, Successors and Assigns

5.2.1 This Agreement may be terminated upon 14 days written notice by either party should
the other fail to perform its obligations hereunder. In the event of termination, the client
shall pay the SE for all services rendered to the date of termination, all reimbursable
expenses, and reasonable termination expenses.

5.2 Review of Contractor’s Work

5.3.1 The SE will not supervise, direct, or have control over the Contractor’s work. The SE shall
not be responsible for the Contractor’s means, methods, procedures, techniques, or
sequences of construction, nor for safety programs or procedures employed by the
Contractor on the job site. The SE shall not be responsible for the Contractor’s failure to
carry out work in accordance with the Contract Documents.

5.3.2 The SE and Client agree that the services performed by the SE to this Agreement are solely
for the benefit of the Client and are not intended by either the SE or the Client to benefit
any other person or entity. To the extent that any other person or entity is benefited by
the services performed by the SE pursuant to this Agreement, such benefit is purely
incidental and such other person or entity shall not be deemed a third-party beneficiary
to this Agreement.

5.3 Dispute Resolution

Exhibit B Page 5 Revised 2019

 5.4.1 The parties agree to negotiate any claim or dispute arising out of or related to the
agreement between them in good faith prior to exercising any other provision of this
Agreement. If a claim or dispute between the parties cannot be settled within 30 days by
good faith negotiations the parties agree to submit it to mediation in accordance with the
Construction Rules of the American Arbitration Association. If the claim or dispute cannot
be settled by good faith negotiations or mediation, then either party may exercise their
rights under law. In no event shall a claim or dispute be made or sustained if it would be
barred by the applicable statute of limitations.

5.5 Governing Laws

5.5.1 This Agreement shall be governed by the laws of the principal place of business of the SE.

5.6 Third Party Beneficiaries

5.6.1 The parties agree that the services performed pursuant to this Agreement are solely for
the benefit of the client and are not intended by either party to benefit any other person
or entity. To the extent that any other person or entity, is benefited by the services
performed pursuant to this Agreement, such benefit is purely incidental and such other
person or entity shall not be deemed a third-party beneficiary to this Agreement.

5.7 Parties to this Agreement

5.7.1 This Agreement for professional services has been entered into on the date of the letter
between the Structural Engineer for Special Inspection Services (SE) and the Client, to
whom the letter is addressed.

5.8 Jobsite Safety

5.8.1 The Client acknowledges that the SE does not have any authority or responsibility for
general jobsite safety and for the safety of persons who are not the employees of the SE
or SE’s subconsultant(s). It is understood and agreed that the SE will not be responsible
for the job safety or site safety of the project and shall not be responsible for compliance
with safety programs and related OSHA regulations required to be followed by the
Contractor or its employees, Subcontractors, and agents. Jobsite safety shall be the sole
responsibility of the Contractor or Client.

5.9 Waiver of Certifications

5.9.1 No party to this Agreement shall be required to execute certificates or consents that
would require knowledge, services or responsibilities beyond the scope of this
Agreement. No party to this Agreement shall be required to sign any documents which
would result in that party having to certify, guarantee, or warrant the existence of
conditions which they cannot ascertain.

5.10 Severability

5.10.1 Any term or provision of this agreement found to be invalid under any applicable statute
or rule of law shall be deemed omitted and the remainder of this agreement shall remain
in full force and effect.

5.11 Claim Validation

Exhibit B Page 6 Revised 2019

 5.11.1 The Client shall make no claim for professional negligence, either directly or by way of a
cross complaint against the SE unless the Client has first provided the SE with a written
certification executed by an independent consultant currently practicing in the same
discipline as the SE and licensed in the state where the project is located. This certification
shall: a) contain the name and license number of the certifier; b) specify the acts or
omissions that the certifier contends are not in conformance with the standard of care
for an SE performing professional services under similar circumstances; and c) state in
detail the basis for the certifier's opinion that such acts or omissions do not conform to
the standard of care. This certificate shall an express condition precedent to initiation of
any claim mediation, arbitration or litigation and shall be provided to the SE not less than
thirty (30) calendar days prior to the presentation of any claim or the institution of any
arbitration or judicial proceeding. Failure to comply with this Art. 5.11.1 shall constitute
a waiver of any such claims.

Section 6 - Supplemental Conditions

[Insert any modifications to the Terms and Conditions included in this Agreement.]

Exhibit B Page 7 Revised 2019