Extending Credit Is Focus of Newest GBA Best Practices

“Initiating a lawsuit to collect a fee may be the most common trigger to professional-negligence claims filed against geoprofessionals. The slow- and no-pay clients involved all too often use a portion of the amount they owe to fund a counter-claim” accusing the geoprofessional of negligence. The high cost of defending such claims, and the uncertainty of the outcome, explain

“why so many geoprofessionals choose to simply write off the money owed.”

Extending Credit Is Focus of Newest GBA Best PracticesSo begins the newest of the Geoprofessional Business Association’s (GBA’s) Best Practices series of “how-to” business monographs. Developed by GBA’s Business Practices Committee and titled Giving Credit When Credit Is Due, it counsels that the best way of avoiding counterclaims filed by slow- and no-pay clients is to avoid such clients to begin with. It provides guidance about performing a basic credit check and otherwise qualifying prospective new clients. It addresses the topic of “risk credit,” which usually is far more substantial than the fee credit also given. And it also counsels about the dangers associated with small projects. In this respect, according to GBA Executive Director Joel G. Carson,

“Almost counterintuitively, GBA research points out that project risk is inversely proportional to project size and complexity. The smaller and simpler a project, the more likely it is to create problems.”

The new Best Practices provides a variety of “how-to” guidance, including the potential for offering credit-card acceptance when the firm deals with many small-fee projects.

GBA Best Practices monographs are available only to GBA members, without charge. Members can order Giving Credit When Credit Is Due from the GBA website.

Established in 1969, the Geoprofessional Business Association is widely regarded as the best source of comprehensive business guidance for geoprofessionals: geotechnical engineers, geologists, environmental scientists, civil engineers engaged in a variety of specialties, and construction-materials engineering and testing professionals, among others. GBA is well known for its innovation. It was the force behind the limitation-of-liability contract provision, alternative dispute resolution, and organizational peer review, among other concepts it developed to help its member firms thrive by confronting risk and optimizing performance.

All GBA Member Firms’ technical activities are under the full-time control of an individual who is legally and/or ethically bound to hold paramount public health, safety, and welfare. GBA’s associate membership comprises geoprofessional constructors; geoprofessional educators; geoprofessionals employed by government agencies, not-for-profit organizations, and industry; and attorneys and other consultants to GBA Member Firms.

Obtain more information about GBA at its website (www.geoprofessional.org) or by contacting the organization at info@gbageoprofessionalorg.kinsta.cloud or 301-565-2733.