Is your geotechnical engineer insured? (Vic)

HIA is receiving a high volume of enquiries about foundation problems, highlighting the need for builders to make sure their geotechnical engineer has professional indemnity insurance.

Because there is no legislative requirement in Victoria that requires practicing geotechnical engineers to carry insurance, many simply don’t have it.

Industry associations such as the Foundations and Footings Society have been lobbying Government for several years to introduce registration of geotechnical engineers, but this is yet to occur.

Important things to consider

When you engage or obtain a soil report from a geotechnical engineer do not assume they will be covered by the appropriate professional indemnity insurance.

Members need to be aware of the following when obtaining reports or adopting the recommendations from reports provided by a geotechnical engineer:

• Geotechnical practitioners do not have to meet any qualification or training standards to operate in the field of Site Classifications. They merely need the appropriate equipment to carry out the work.
•   They need not carry professional indemnity insurance. 
•   They are able to write their reports and set up their business so that they have no personal liability.
•   Without this liability they may be careless about their work and find it easy to comply with their client’s demands which do not benefit anyone and particularly not the “responsible builder” or the consumer.
•   They do not need to belong to any professional organisation which overviews the quality of their work or their conduct.
•   AS2870, the Australian Standard for footings and slabs, places no restrictions on the “Classifier” in non-E sites other than to state the site classification.

Builders and consumers can be at greater risk due to the above.  It is important to ask question when engaging a geotechnical engineer to carry out soil testing, to help you be aware of their qualifications and whether they hold appropriate insurance.

For further information HIA members can contact HIA’s Building Services staff on 1300 650 620 or hia_technical@hia.com.au.

If you would like to become a HIA member, contact 1300 650 620 or enquiry@hia.com.au

Ref No. VIC LEG 08-15

The above is intended to provide general information in summary form. The contents do not constitute specific advice and should not be relied upon as such. Formal specific advice should be sought by members with respect to particular matters before taking action.  ABN 99 004 631 752