Contingent Contract - Industrial Design - Case No. 77-12

TitleContingent Contract - Industrial Design - Case No. 77-12
Publication TypeCase Study
Year of Publication1977
AuthorsNational Society of Professional Engineers, Board of Ethical Review,, National Academy of Engineering, OEC
Date Published06/2006
PublisherNational Academy of Engineering, Online Ethics Center
Publication LanguageEnglish
KeywordsEngineer/Client Relationships , ENGINEERING , INDUSTRIAL engineering , professional responsibility
AbstractMary Smith, P.E., a consulting engineer who practices primarily in the field of industrial product design for clients, is requested by the XYZ Manufacturing Company to review an amplifier design developed by the company which has not been successful in producing an acceptable product. The company is under pressure to deliver a final model to a customer within three months. Smith spends a few days reviewing the XYZ design and makes several recommendations to improve the product. She is paid her usual per diem fee, as earlier agreed upon. However, XYZ advises Smith that it will need her further assistance for the product to make it fully acceptable and proposes to retain her for the further services on a basis that she will be paid a fee for the additional service only if the amplifier, as a result of her assistance, will meet the company's requirements. During this period XYZ will pay Smith her out-of-pocket costs, e.g., travel, lodging, computer time, etc.
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