A valid contract needs offer, acceptance, and consideration. Engineers must disclose conflicts of interest and avoid competing against a client with information gained in confidence. Typical civil contracts: lump sum, unit price, cost-plus.
LS
Lump sum — risk on contractor
UP
Unit price — quantity risk shared
Step-by-step solved example
A PE designs a site for Client A, then is asked by Client B to design a competing development next door using A's unreleased geotech data. Allowed?
1. Confidentiality
Geotech data belongs to Client A until released.
2. Conflict
Cannot use A's data for B. Decline, or proceed only with A's written consent and full disclosure.
Answer: No, unless A consents in writing after full disclosure.
10 practice questions
0/10 correct
1.Three elements of a contract are
2.In a lump-sum contract, quantity overruns are typically paid by
3.A unit-price contract is most appropriate when
4.Cost-plus contracts shift most cost risk to
5.A conflict of interest must be
6.Liquidated damages in a construction contract are
7.Retainage is typically
8.A bid bond protects the owner if the bidder
9.An engineer serving as both designer and construction inspector should