A/E
Stamping,
Sealing,
&
Signing:
Sa2sfying
Statutes
&
Standards
of
Care
David
Ericksen
Severson
&
Werson
April
2014
Real
World
Reali2es…
• Project
located
in
State
A
• Principal
Engineer
with
client
rela2onship
located
in
State
B.
Licensed
only
in
State
B.
• Subordinate
Engineer
based
in
State
C,
but
licensed
in
State’s
A
and
C,
but
not
B.
• Engineering
Firm
has
offices
in
States
B
and
C,
but
not
A.
Real
World
Reali2es…
• All
client
communica2ons
and
site
visits
solely
by
Principal
Engineer.
• Design
development
and
prepara2on
principally
by
Principal
Engineer
or
those
under
his
direc2on.
• Subordinate
Engineer
stamps
and
signs
all
documents.
Says
that
he
periodically
reviewed
and
commented
during
design,
but
has
no
2me
recorded
or
documents
reflec2ng
review.
Real
World
Reali2es…
• Project
valued
at
$3M+
fails
to
operate
as
desired
by
Client.
“Remedia2on”
in
excess
of
$2.5M.
Claim
that
proper
project
should
have
cost
approximately
$10M.
• Total
claim
$14M
+
return
of
fee
for
unauthorized
prac2ce
of
engineering.
• Claimed
to
be
per
se
negligent
due
to
licensing
viola2on.
Real
World
Exposures…
• Claim
far
in
excess
of
policy
limits
&
capacity
of
firm
• Claim
poten2ally
uninsured
due
to
licensing
issues
and
claimed
liability
independent
of
the
standard
of
care
• Poten2al
for
professional
disciplinary
ac2on,
including,
but
not
limited
to
loss
of
license
Agenda
• The
Unique
Significance
of
the
A/E
Stamp/Seal
• Three
Levels
of
Concern
• Statutory
&
Regulatory
Standards
• Common
Law
Exposures
• Best
Prac2ces
for
Process
&
Documenta2on
• Acronym
Ambiguity
of
Titles
• The
Cer2fica2on
Corollary
Stamping/Sealing
Separates
Design
Professionals
from
Others
Stamping/Sealing
is
an
Act
of
Professional
&
Public
Significance
“For
the
public,
the
seal
cons3tutes
the
dis3nc3ve
mark
of
the
professional
engineer.
It
must
be
used
to
iden3fy
all
work
prepared
by,
or
under
the
direct
supervision
of,
a
professional
engineer
as
part
of
professional
engineering
services
rendered
to
the
public.
It
assures
the
document’s
recipient
that
the
work
meets
the
standards
of
professionalism
expected
of
competent,
experienced
individuals
who
take
personal
responsibility
for
their
judgments
and
decisions.
The
seal
is
important
because
it
is
a
visible
commitment
to
the
standards
of
the
profession
and
signifies
to
the
public
that
a
par3cular
P.Eng.
accepted
professional
responsibility
for
the
document.”
–
Professional
Engineers
of
Ontario
Stamp
&
Seal
Reali2es
• Stamping
&
Sealing
Allega2ons
among
the
most
frequent
license
inves2ga2ons
&
charges
• Three
Causes
&
Effects:
– Some
take
the
stamp/seal
process
too
lightly
– Some
hold
the
stamp/seal
too
2ghtly
– Few
appreciate
the
licensing
and
liability
impacts
of
the
act
and
process
The
Ethical
S2gma
of
Abdica2on
“Plan-‐stampers
are
marginal
prac33oners.
Architects
who
are
unable
to
obtain
their
own
commissions
are
the
architects
willing
to
sell
their
seals
to
stamp
the
work
of
others.
.
.
Plan-‐
stamping
does
not
afford
the
public
the
protec3on
it
needs.”
-‐
Na2onal
Council
of
Architectural
Review
Boards
(NCARB)
The
Tight
Hold
of
Principals
Many
“principals”
insist
on
handling
all
stamping/sealing
themselves
or
a
limited
few:
-‐
Ogen
Ego/Business
Control
Driven
-‐
May
Be
Driven
by
Client
Expecta2on
-‐
Some2mes
Altruis2c
Protec2on
of
Others
from
Liability
&
Risk
Stamping
&
Sealing
Buzz
Terms
for
Appropriate
Control
Responsible
Control
Responsible
Charge
Direct
Supervision
Assume
Responsibility
What
Actually
Drives
Stamping
&
Sealing
Policy?
• Ego
• Business
Control
• Client
Expecta2on
• QA/QC
• Risk
Alloca2on
Why?
What
should
it
be?
Stamping
&
Signing
Process
&
Valida2on
is
a
HUGE
Issue
• Statutory
Viola2ons
Leading
to
Poten2al
“Strict”
Liability
&
Loss
of
License
• Negligence
Liability
for
Failure
to
Meet
Standard
of
Care
• Misrepresenta2on
&
Fraud
Allega2ons
and
Liabili2es
The
Stamping
&
Signing
Process
An
Even
BIGGER
Challenge
to
Solve
• Varying
Statutory
Standards
• Elevated
(&
Even
Exaggerated)
Public
Statements
and
Policies
Out
of
Step
With
Reality
• Varied,
Elevated,
and
Unrealis2c
Client
and
Public
Percep2ons
and
Expecta2ons
The
“Standards”
• NCARB
Rules
of
Conduct
and
Model
Act
– Guidance
Only
• State
Statutes
&
Regula2ons
– Widely
varied
from
abbreviated
to
exercise
“responsible
control”
to
detailed
procedures
as
to
the
process
and
record
reten2on
• “Responsible
Control”
more
ogen
defined
for
engineers
than
architects
The
NCARB
Standard
Defines
“Responsible
Control”
That
amount
of
control
over
and
detailed
professional
knowledge
of
the
content
of
technical
submissions
during
their
prepara3on
as
is
ordinarily
exercised
by
a
registered
architect
applying
the
required
professional
standard
of
care,
including
but
not
limited
to
an
architect’s
integra3on
of
informa3on
from
manufacturers,
suppliers,
installers,
the
architect’s
consultants,
owners,
contractors,
or
other
sources
the
architect
reasonably
trusts
that
is
incidental
to
and
intended
to
be
incorporated
into
the
architect’s
technical
submissions
if
the
architect
has
coordinated
and
reviewed
such
informa3on.
Other
review,
or
review
and
correc3on,
of
technical
submissions
aKer
they
have
been
prepared
by
others
does
not
cons3tute
the
exercise
of
responsible
control
because
the
reviewer
has
neither
control
over
nor
detailed
professional
knowledge
of
the
content
of
such
submissions
throughout
their
prepara3on.
-‐
NCARB
Model
Regula2on
Sec2on
1
The
NCARB
Records
Standards
for
“Responsible
Control”
Any
registered
architect
signing
or
sealing
technical
submissions
not
prepared
by
that
architect
but
prepared
under
the
architect’s
responsible
control
by
persons
not
regularly
employed
in
the
office
where
the
architect
is
resident,
shall
maintain
and
make
available
to
the
board
upon
request
for
at
least
five
years
following
such
signing
and
sealing,
adequate
and
complete
records
demonstra3ng
the
nature
and
extent
of
the
architect’s
control
over
and
detailed
knowledge
of
such
technical
submissions
throughout
their
prepara3on.
-‐
NCARB
Model
Regula2on
Sec2on
6
Actual
Statutes/Regula2ons
Vary
Widely
• Simple
impera2ve
without
defini2on.
• Some
expressly
validate
“proofing
and
stamping”
ager
comple2on
by
others.
• Some
require
ac2ve
involvement
during
design
process
• Some
adopt
a
“nega2ve”
defini2on
by
saying
what
is
not
adequate
or
acceptable.
The
Unrefined
Impera2ve
Approach
Simple
assignment
of
personal
responsibility/
accountability:
“reviewed
the
document
in
sufficient
depth
to
fully
coordinate
and
assume
responsibility
for
the
plans
prepared
by
another
licensed
professional
or
land
surveyor.”
Alabama
Admin
Code
330-‐X-‐11-‐.03(1)
Some
Implicitly
or
Expressly
Approve
Proofing
&
Stamping
Some
impose
strict
requirements
for
what
is
to
be
done
and
documented:
A
licensee
may
seal,
or
sign
and
seal,
documents
not
prepared
by
the
licensee
or
by
an
employee
under
the
licensee's
supervisory
control,
provided
the
licensee
shall
prepare,
and
retain
for
a
period
of
not
less
than
six
years,
a
thorough
wriNen
evalua3on
of
the
professional
services
represented
by
the
documents,
including
but
not
limited
to,
drawings,
specifica3ons,
reports,
design
calcula3ons
and
references
to
applicable
codes
and
standards.
Such
wriNen
evalua3on
shall
clearly
iden3fy
the
project
and
the
documents
to
which
it
relates,
the
sources
of
the
documents
and
the
name
of
the
person
or
organiza3on
for
which
the
wriNen
evalua3on
was
conducted
and
the
date
of
the
evalua3on;
and
the
seal
and
signature
of
the
licensee
shall
also
be
affixed
thereto.
Connec2cut
Regula2ons
20-‐300-‐12(a)(4)
(New
York
nearly
iden2cal.)
Some
Require
Ac2ve
Involvement
During
Design
• “A
con2nuous
process
of
examina2on,
evalua2on,
and
direc2on
throughout
the
development
of
the
documents
which
includes
the
ability
to
control
the
final
product.”
• Washington
Administra2ve
Code
308-‐12-‐150(8)
Some
Simply
Define
What
is
Not
Adequate
or
Acceptable
– Regular
or
con3nuous
absence
from
office
premises
where
the
services
are
rendered;
or
– Failure
to
personally
inspect
or
review
the
work
of
subordinates
where
necessary
and
appropriate;
or
– Rendering
limited,
cursory,
or
prefunctory
review
in
lieu
of
an
appropriate
detailed
review;
or
– failure
to
personally
be
available
on
a
reasonable
basis
or
with
adequate
advance
no3ce
for
consulta3on
and
inspec3on
where
circumstances
require
personal
availability.
• New
Jersey
Statute
45:8-‐28(g)
Statutory
Standards
as
to
Recordkeeping
Vary
as
Well
• Most
are
silent.
• Some
require:
“a
thorough
wriNen
evalua3on
of
the
professional
services
represented
by
the
documents,
including
but
not
limited
to,
drawings,
specifica3ons,
reports,
design
calcula3ons
and
references
to
applicable
codes
and
standards”
• Maintained
and
producible
on
demand
for
as
much
as
six
years.
Final
Observa2ons
on
the
Statutory
Systems
• All
essen2ally
establish
“personal”
and
“professional”
responsibility
and
accountability
for
the
person
stamping/sealing
• Under
many
systems,
a
major
dis2nc2on
is
drawn
between
employees
under
“direct
supervision”
and
outside
preparers
• Many,
but
not
all,
require
actual,
direct
involvement
and
control
during
process
• Only
a
few
have
express
requirements
as
to
documenta2on
Texas
Administra2ve
Code
131.81
“Direct
supervision-‐-‐The
control
over
and
detailed
professional
knowledge
of
the
work
prepared
under
the
engineer's
supervision.
The
degree
of
control
should
be
such
that
the
engineer
personally
makes
engineering
decisions
or
personally
reviews
and
approves
proposed
decisions
prior
to
their
implementa2on.
The
engineer
must
have
control
over
the
decisions
either
through
physical
presence
or
the
use
of
communica2ons
devices.”
Texas
Two-‐plus
Step
Admin
Code
137.33
“Work
performed
by
more
than
one
license
holder
shall
be
sealed
in
a
manner
such
that
all
engineering
can
be
clearly
atributed
to
the
responsible
license
holder
or
license
holders.
When
sealing
plans
or
documents
on
which
two
or
more
license
holders
have
worked,
the
seal
and
signature
of
each
license
holder
shall
be
placed
on
the
plan
or
document
with
a
nota2on
describing
the
work
done
under
each
license
holder's
responsible
charge.”
Statutes
Are
Only
the
Minimum
There
is
Also
the
Standard
of
Care
It
is
his
further
duty
to
use
the
care
and
skill
ordinarily
used
in
like
cases
by
reputable
members
of
his
profession
prac2cing
in
the
same
or
similar
locality
under
similar
circumstances,
and
to
use
reasonable
diligence
and
his
best
judgment
in
the
exercise
of
his
professional
skill
and
in
the
applica2on
of
his
learning,
in
an
effort
to
accomplish
the
purpose
for
which
he
was
employed.
Clark
v.
City
of
Seward,
659
P.2d
1227
(Alaska
1983)
What
Sa2sfies
the
Internal
Firm
“Standard
of
Care”
• Final
Proofing
• Periodic
QA/QC
Review
• Direct
&
Con2nuous
Involvement,
Direc2on,
&
Control
– Does
it
mater
whether
the
prepara2on
is
by
a
licensed
or
unlicensed
employee?
Why?
What
Sa2sfies
the
External
Prepara2on
“Standard
of
Care”
• Final
Proofing
• Periodic
QA/QC
Review
• Direct
&
Con2nuous
Involvement,
Direc2on,
&
Control
– Does
it
mater
whether
the
prepara2on
is
by
licensed
professional,
an
independent
contractor,
another
firm,
or
“outsourced”?
Why?
The
Third
Level
of
Exposure
Negligent/Inten2onal
Misrepresenta2on
Negligent
Misrepresenta2on
–
Five
Elements:
-‐
False
statement
-‐
Made
without
reasonable
basis
-‐
Intent
that
it
be
relied
upon
-‐
Relied
on
by
third
party
-‐
Causes
damages
Inten2onal
Misrepresenta2on/Fraud
simply
adds
an
actual
knowledge
of
falsity
The
Third
Level
of
Exposure
Negligent/Inten2onal
Misrepresenta2on
Stamping,
sealing,
and
stamping
design
documents
prepared
by
others
becomes
an
easy
claim
for
misrepresenta2on
and
fraud
based
on
the
expecta2ons
associated
with
the
stamp/seal:
It
assures
the
document’s
recipient
that
the
work
meets
the
standards
of
professionalism
expected
of
competent,
experienced
individuals
who
take
personal
responsibility
for
their
judgments
and
decisions.
–
Ontario
Professional
Engineers
Building
a
“Best
Prac2ces”
Model
Review,
Stamp,
&
Sign
Not
Enough
Although
arguably
permissible
under
some
statutes
and
regula2ons,
simply
reviewing/
proofing
a
completed
product
followed
by
stamping
and
signing
should
not
be
recommended
or
prac2ced.
-‐ Diverges
from
client/public
expecta2ons
-‐ Creates
personally
&
professional
liability
-‐ Risks
license
even
if
technically
allowed
Best
Prac2ces/Best
Records
Ideally
establish
and
document
an
internal
standard
&
procedure
template.
Four
Core
Issues
-‐
Preparer
of
Documents
-‐
Timing
&
Depth
of
Review/Input
-‐
Documenta2on
-‐
Disclaimers
Classes
of
Preparers
• Internal
staff/team:
“Direct
Supervision”
is
the
key
– Resident
Office
– Another
Office
– Internal
Hierarchy
• Outside
Preparers:
Professional
Status
Maters
– Licensed
vs.
Unlicensed
– Licensed
in
Project
State
v.
Licensed
Only
Elsewhere
– The
more
remote
from
an
in-‐state
license,
the
more
con2nuous,
ac2ve
engagement
recommended
Timing
&
Quality
of
Review/Input
• Timing:
Although
allowed
under
some
statutes,
stamping
ager
only
a
“proofing”
of
a
final
work
product
is
precarious.
Consider
establishing
at
least
significant
milestones
for
review.
• Quality:
Should
be
varied
dependent
on
status
of
reviewer.
Should
go
beyond
a
QA/QC
valida2on
and
should
include
professional
judgment,
evalua2on,
direc2on,
and
ul2mately
“control”.
Documenta2on/Recordkeeping
• Record
2me
even
if
not
“billable”
• Avoid
records
of
the
review/markups
of
drags
themselves.
• Establish
alternate
record
of
milestone
and
final
review
through
a
consistent
template
Template
for
Review
Records
• Iden2fy
as
Alternate
Milestones
or
Final
– Phase/Milestone:____________
or
Final
• Iden2fy
Preparer(s)
w/
licensing
&
loca2on
• Iden2fy
Documents
Reviewed
• Summary
Iden2fica2on
of
Outcome
of
Review
with
Incorpora2on
of
Informa2on
Reflec2ng
Professional
Judgment
and
Evalua2on
• Dated
and
Ini2aled
Disclaimers
• Where
por2ons
of
the
plans
have
been
prepared
by
others,
clearly
iden2fy
and
Disclaim.
• This
has
become
increasingly
important
and
recognized
as
a
valid
approach
in
light
of
increased
use
of:
• IPD
• BIM
• Design/Build
Disclaimer
Text
Atached
or
Overstamped:
Engineer’s
Professional
Stamp
and
Seal
shall
apply
only
to
the
por3ons
of
plans,
specifica3ons,
surveys,
reports,
or
other
documents
specifically
iden3fied
or
described
below.
Engineer
shall
not
be
responsible
for
any
other
associated
documents.
-‐
Based
on
Missouri
Rev.
Statutes
327.411
Acronym
Ambiguity
Although
not
directly
related
to
stamping
&
signing,
even
reference
as
“architect”
or
“professional
engineer”
can
create
licensing
and
liability
issues:
Topaz
v.
Oregon
Board
of
Examiners
for
Engineering
(2012)–
-‐
Engineer
licensed
in
another
state
used
“P.E.”
on
leters
-‐
Found
to
be
unauthorized
prac2ce
-‐
Suspended
and
fined.
Solu2ons
for
Title
Blocks
&
Signatures
• When
using
the
2tle
architect,
engineer,
or
land
surveying
in
leterhead,
signature
lines,
or
even
e-‐mail,
if
there
is
the
poten2al
for
any
relevance
to
any
state
other
than
“home”
state,
iden2fy
the
specific
states
of
licensing
by
serial
lis2ng
or
footnote.
– Avoids
false
representa2on
– May
actually
validate
or
expand
credibility/value
The
Cer2fica2on
Corollary
In
addi2on
to
plans
and
specifica2ons
at
the
outset
of
a
project,
architects,
engineers,
and
land
surveyors
are
ogen
asked
to
“cer2fy”
final
construc2on.
Such
cer2fica2ons
are
ogen
based
on
limited
or
incomplete
informa2on,
but
are
issued,
requested,
or
expected
to
be
comprehensive.
Creates
frequent
issues
of
liability
and
licensing.