Inside the Proposed Wade Trim Contract
THE PROPOSED CONTRACT CONTAINS NUMEROUS TERMS UNFAVORABLE TO TAXPAYERS
On February 23, 2023, the TLCSA released a proposed contract with Wade Trim for engineering services on the project.[i] The proposed contract contains numerous terms and conditions unfavorable to the TLCSA and member municipalities.[ii]
Disclaiming prior estimates. In the proposed contract, Wade Trim disclaims any responsibility for the accuracy of its prior estimates.[iii]
High hourly rates. Under the proposed contract, Wade Trim would be compensated not on an agreed lump sum, but on an hourly basis according to rate sheets in the contract.[iv] Those rate sheets require payment between $55/hour and $260/hour per worker, depending on his or her classification.[v] The average hourly wage in Michigan is $16.77/hour, meaning that even the lowest paid workers on the TLCSA project will make three and a half times an average Michigan hourly worker.[vi]
Disclaiming responsibility for the work. Wade Trim also disclaims any responsibility for the means and methods subcontractors use on the project.[vii] The contract provides, “Engineer shall not . . . be responsible for the means, methods, techniques, sequences, or procedures of construction selected or used by any Constructor. . . .”
Limiting Liability. The proposed contract also limits Wade Trim’s liability to the amount of its compensation. Thus, even though the project will cost at least $58,968,000 to build, the TLCSA will be limited to recovering less than 10% of that amount from Wade Trim if legal action is necessary.
[i] “Agreement between Owners and Engineer for Professional Services,” undated (posted February 23, 2023)
[ii] “Agreement between Owners and Engineer for Professional Services,” undated (posted February 23, 2023)
[iii] “Agreement between Owners and Engineer for Professional Services,” undated (posted February 23, 2023)
[iv] “Agreement between Owners and Engineer for Professional Services,” undated (posted February 23, 2023)
[v] “Agreement between Owners and Engineer for Professional Services,” undated (posted February 23, 2023)
[vi] “Agreement between Owners and Engineer for Professional Services,” undated (posted February 23, 2023)
[vii] “Agreement between Owners and Engineer for Professional Services,” undated (posted February 23, 2023)