I never heard this term before until today. This is basically the performance guarantee version but for Consultancys carrying out Engineering (or other technical) services.
In the same way you would request your supplier or contractor for a performance guarantee you would ask the same of an engineer that you have hired for a job. The indeminity is 100% of the consultants contract amount and is submitted before the said consultant signs the contract.
The Professional Indemnity is actually an insurance that the engineer will perform, failure to which you can cash in the indemnity amount. So you really don’t lose out should the person fail to perform. It is most common in works where you are hiring an engineer to carry out a design or supervision work for say a construction project, roads, and other such like technical jobs that require expertise of a consultant in that field.
What’s your experience with Professional Indemnity?
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