The message sent out by Richard Steer is very apt in relation to what is happening in the marketplace. I question, though, whether his points only apply to QS consultants

One major point overlooked by Richard is that all partners and directors in consultancies under their professional indemnity insurance (PI) policy have a duty to take all reasonable precautions to prevent losses or liabilities arising in connection with the insured risks. Practices that regularly bid at fee values that are not commensurate with adequate resource levels and which, according to PI insurers, have created their own claims situations as a result, may find that they and their clients are without cover.

Reckless fee bidding does seem to be prevailing. In previous recessions a significant proportion of practices had unlimited financial liability. With the advent of limited liability companies and LLP status 鈥渃omfort鈥� added to the recklessness?

What will happen to firms that have priced at such a ludicrously low level in a recession when the market picks up and salary levels increase? Will they survive? What will be the price of the disruption to projects?

Consultants with clients who 鈥渒now the price of everything and the value of nothing鈥� need to educate them in respect of the risks those clients are taking, on behalf of the organisation their clients represent, when choosing the lowest price without researching how that price has been computed.

Stephen Roberts, Rider Hunt, Newcastle upon Tyne

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