Top issues for New York engineering firms in 2018 - by Jay Simson

ACEC New York has confirmed legislative priorities for the upcoming 2018 legislative session. 

ACEC New York continues to advocate for legislation that will protect engineering firms from unreasonable, uninsurable indemnification demands. The indemnity clauses in many public agency contracts for professional engineering services in New York expose consulting firms to liabilities which are outside the control of the consultant and cannot be covered by insurance. Unfortunately, many indemnity clauses require firms to assume risks that go beyond the consultant’s negligent errors and omissions and shift liability to the consultant for all acts regardless of whether there was any negligence by the consultant. Unreasonable and uninsurable indemnity clauses in contracts are harmful to every party involved. This practice not only puts businesses at risk of failing but it will, at the end of the day, prevent individuals who are harmed from just compensation. ACEC New York urges New York to reform the way these clauses are worded. 

Other ACEC New York legislative priorities for 2018 include:

• Emergency Responder Legislation: Unlike Good Samaritan Laws, which protect only unpaid volunteers from liability for work performed during state or national disasters, emergency responder legislation would provide design professionals immunity from lawsuits that attempt to make engineers responsible for work outside their scope. Unfortunately, events such as the World Trade Center attack and Hurricanes Katrina and Sandy have shown that many design professional firms face devastating lawsuits as a result of providing emergency response services. As we’ve seen in 2017, adverse weather events can be sudden and devastating. It is in the interest of the wellbeing of New York to pass legislation that will allow engineering firms to offer their services in recovery efforts without fear of baseless legal reprisal.

• Qualifications-Based Selection (QBS): The expansion of Qualifications-Based Selection to more public entities – the most effective way to procure professional design services – will again be a priority in 2018. The governor’s veto of (S.5600/A.5750) was a setback, and ACEC New York will continue to work with the design community to get this legislation passed. QBS brings procurers the best quality and the best overall value, and it avoids the pitfalls associated with low-bid professional engineering service contracts. It fosters the development of innovative designs with lower lifecycle costs. We look forward to working with the governor’s office to finalize the best legislation for our industry and for New York State.

• Support DPC ESOP Expansion: ESOP expansion legislation would allow an Employee Stock Ownership Plan to own a greater amount of a design professional firm. Licensed design professionals would control and manage the firm, but a larger number of employees can share in the benefits of ownership.

• Increase Use of New York Private Design Firms: Expertise, efficiencies and capacity brought by private engineering design firms provide greater value for the taxpayer. A 2011 NYU Polytechnic Report documents a 20%+ savings when private engineering firms are utilized.

ACEC New York also supports a number of funding priorities, including the support of sensible and sustainable infrastructure funding. Under this priority, ACEC New York recommends exemption of capital funding from the local property tax cap; provision of mandate relief for municipalities; and investment in capital projects in addition to maintenance of existing infrastructure. We believe it is important to ensure that funding is evenly distributed in NYS. ACEC New York also supports the MOVE-NY Fair Tolling Plan to provide a sustainable funding source for transit, roads and bridges, while improving traffic flow and safety for commerce and people.

ACEC New York is a proactive coalition of 270 firms representing every discipline of engineering related to the built environment—civil, structural, mechanical, electrical, environmental, geotechnical—and affiliated companies. Our shared goals are to further the business interests of our membership, enhance the quality and safety of the environment we live and work in, and help ensure the vitality of our communities. 

Jay Simson, CAE, is the president of ACEC New York, Albany, N.Y.