Architects and engineers play critical roles in shaping the built environment, designing infrastructure, teaching future professionals, and even engaging in product development and sales. Their contributions, while essential, come with varying degrees of professional liability, depending on the nature of their work and the relationship with their employer—be it as consultants, contractors, educators, or sellers. The scope of their liability is legally framed by concepts such as the duty of care and fit-for-purpose obligations, as well as managed through professional indemnity insurance (PII), which provides a safety net for claims arising from professional negligence.
The standard duty of care requires architects and engineers to act with the skill, care, and diligence expected of reasonably competent professionals in their field. This level of liability focuses on behavior—whether the professional followed accepted practices and took reasonable steps to avoid foreseeable harm. In contrast, fit-for-purpose liability is a higher and stricter standard, often encountered when professionals undertake design obligations under design-build (DB) contracts or in product sales. In such contexts, the liability shifts toward guaranteeing a result—meaning the design or product must achieve a specified performance standard, regardless of whether the professional followed best practices.
Professional indemnity insurance generally covers breaches of the duty of care but may exclude liabilities arising from fit-for-purpose obligations, particularly if those obligations are absolute or warranty-based. Policies often contain exclusions for contractual liabilities assumed beyond what would otherwise arise under common law standards. This means professionals who engage in DB projects or product warranties must negotiate policy extensions or be aware that their PII may not fully protect them against fit-for-purpose risks. For this reason, clarity in the contract and transparency with insurers is critical.
The source of liability also varies depending on employment context. When architects and engineers work for consultants, their liability is typically filtered through the consulting firm’s obligations to the client. The firm, as the contracting party, bears the primary legal exposure, though internal professional accountability still applies. Conversely, when professionals are employed by contractors in DB projects, their exposure may be more direct, especially if the contractor’s obligations are fit-for-purpose and the professional’s design fails to meet performance expectations.
Moreover, architects and engineers are not immune from direct liability to third parties, including building users or the public, under tort law. A defect in design that causes injury or economic loss can result in litigation even if the employer-contractor or consultant is not sued directly. Professional liability is personal and can extend beyond the corporate veil, particularly where negligence or misrepresentation is alleged.
These principles are also relevant outside construction. In academic settings, educators may face liability for gross negligence in the supervision of research or unsafe experimentation. In product development and sales, engineers who design and market products may be held liable if the product fails and causes damage, particularly where representations about its performance are made. Again, the fit-for-purpose concept looms large—customers expect the product to work, and if it does not, liability may follow.
Indemnity insurance plays a central role in managing this risk, but its protection depends on accurate disclosure, clear understanding of exclusions, and alignment between the professional’s scope of services and the coverage terms. Policies often exclude punitive damages, deliberate misconduct, or liabilities arising from fitness-for-purpose clauses unless explicitly included. Thus, professionals must not only understand their legal duties but also proactively manage their insurance coverage.
In the Ethiopian legal context, Article 2030 of the Civil Code establishes the general obligations of a contractor to perform in accordance with the contract and with due care. Article 2028 specifies liability for delay or defective performance. When design professionals are involved, Article 2270 outlines the liability of service providers and professionals for lack of skill or diligence. Additionally, under Article 3039 of the Ethiopian Civil Code, architects and contractors are strictly liable for ten years from the completion of the works for the collapse of a building or serious structural defect due to a defect in design, construction, or materials. This decennial liability applies even if the defect becomes apparent long after construction and regardless of fault, emphasizing the professional’s long-term responsibility for the integrity of the work.
In conclusion, the liability of architects and engineers is shaped by the dual standards of duty of care and fit-for-purpose, with significant implications depending on their role, employer type, and contractual obligations. Whether working under consultants, contractors, or independently, professionals must recognize the boundaries of their liability, the limits of their indemnity insurance, and the need for clear contracts. When engaging in DB contracts or selling products, extra caution is needed to ensure that risk allocation is matched by adequate insurance and sound risk management practices. Professionalism in design, clarity in communication, and foresight in insurance strategy are essential pillars of responsible practice in today’s complex and litigious environment.
Mekonnen Tsegaw holds a BSc in Civil Engineering, MSc in Geotechnical (Civil) Engineering, and an LLB in Law, combining technical expertise with legal acumen to address complex challenges in engineering and construction law—Associate Member of Nemad Consulting Architects and Engineers Plc.
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald
BY MEKONNEN TSEGAW
THE ETHIOPIAN HERALD SUNDAY EDITION 8 JUNE 2025
