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Jeffery N. Lucas Lucas & Company, LLC All Rights Reserved © 2002"2011 E"Mail: JNLucasPLS@bellsouth net E Mail: JNLucasPLS@bellsouth.net

Jeffery N. Lucas Company, LLC All Rights Reserved · 2018. 4. 4. · If !you don’tdoit, it getdone.! You !havetowearall of thehats.! Client !Developmentand Maintenance! Equipment

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Page 1: Jeffery N. Lucas Company, LLC All Rights Reserved · 2018. 4. 4. · If !you don’tdoit, it getdone.! You !havetowearall of thehats.! Client !Developmentand Maintenance! Equipment

Jeffery!N.!LucasLucas!&!Company,!LLC

All!Rights!Reserved!©!2002"2011E"Mail:!!JNLucasPLS@bellsouth netE Mail:[email protected]

Page 2: Jeffery N. Lucas Company, LLC All Rights Reserved · 2018. 4. 4. · If !you don’tdoit, it getdone.! You !havetowearall of thehats.! Client !Developmentand Maintenance! Equipment

Jeffery!N.!LucasLucas!&!Company,!LLC

All!Rights!Reserved!©!2002"2011E"Mail:[email protected]

Signup For

THE LUCAS LETTERThe only legal newsletter specifically for the Land

Surveying and Engineering community.

WEBSITEWEBSITE:

WWW.TheLucasLetter.com

E-MAIL:

[email protected]

INTRODUCTION!and!DISCLAIMERS

I!Am!Not!Your!Attorney.!This!seminar!is!not!intended!to!provide!you!with!legal!advice.!Seek!legal!advice!from!an!with!legal!advice.!Seek!legal!advice!from!an!attorney!who!is!familiar!with!your!particular!situation!and!the!facts!in!your!particular!case.!

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Page 3: Jeffery N. Lucas Company, LLC All Rights Reserved · 2018. 4. 4. · If !you don’tdoit, it getdone.! You !havetowearall of thehats.! Client !Developmentand Maintenance! Equipment

Going!Solo!10!Commandments1.!!Just!Showing!Up!Doesn’t!Cut!It

! If!you!don’t!do!it,!it!don’t!get!done.! You!have!to!wear!all!of!the!hats! You!have!to!wear!all!of!the!hats.! Client!Development!and!Maintenance! Equipment!Acquisition!and!Maintenance! Personnel/Helpers! Finances! Time!Management

Going!Solo!10!Commandments2.!!You!Need!a!Business!Plan

! Practice!Blueprint!(where!do!you!want!to!go!and!how!do!you!get!there)

! Finances! Marketing! Office!Location! Field!and!Office!Equipment! Personnel/Helpers! Insurance

Going!Solo!10!Commandments3.!!Operate!Behind!a!Corporate!

ShieldS l !P i t !!(D B A )! Sole!Proprietor!!(D.B.A.)

! Limited!Liability!Company!(L.L.C.)! Subchapter!“S”!Corporation!(Inc.)! Professional!Corporation!(Inc.)

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Going!Solo!10!Commandments4.!!Nobody’s!Watching!Your!Back

! Insurance!is!a!Must!(Life,!Health!and!Disability)

! Support!Systems!(Spouse,!Helpers,!Illegal!Aliens)

! Safety!Plans!(Communication!a!Key)! Liability!(Cost"Risk!Analysis)! Experts!on!Your!Side!(Attorney,!Accountant,!

other!Consultants)

Going!Solo!10!Commandments5.!!Decide!the!Type!of!Practice!You!

Want!to!HaveE l t !Y !St th ! d!W k! Evaluate!Your!Strengths!and!Weaknesses

! Specialty!or!Niche! Technical!Knowledge! Legal!Knowledge! Professional!Service!or!Commodity

Going!Solo!10!Commandments6.!!Time!is!Money

! Scheduling!and!Priorities! Time!Keeping! Time!Keeping! Invoicing! Avoid!Distractions! E"Mail!and!Social!Networks

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Going!Solo!10!Commandments7.!!Good!Ethics!Equals!Good!

BusinessD !Wh t! !S !Y ! !G i !t !d !Wh !! Do!What!you!Say!You!are!Going!to!do!When!You!Say!You’re!Going!to!do!it.

! Operate!Above!the!Standard! Operate!Within!Your!Areas!of!Expertise! Service!Before!Profit!– Honor!Before!Advantage! Public!Welfare!– Public!Detriment

Going!Solo!10!Commandments8.!!Be!Careful!That!You!Don’t!

Become!IsolatedTh !H !Offi! The!Home!Office

! Sharing!Office!Space! Professional!Communities! Social!Communities!

Going!Solo!10!Commandments9.!!Focus!on!Thriving

! Enjoyment!and!Meaning!in!Your!Work! Learning!and!Improving!Equals!Competence! Learning!and!Improving!Equals!Competence! Relating!to!Others!and!Community! Helping!and!Collaborating!with!Colleagues

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Going!Solo!10!Commandments10.!!Make!Time!for!Yourself!and!

FamilyIt’ !T !E !t !W k! 6 !S !D ! !! It’s!Too!Easy!to!Work!24"7"365!Seven!Days!a!Week

Is!The!Solo!Life!Right!For!You?Checklist:! Do!You!Have!a!Good!Attitude?! “Know!thyself!and!to!thine own!self!be!! Know!thyself!and!to!thine own!self!be!

true.”! Do!You!Have!Good!People!Skills!or!Are!You!

the!Loner!Type?! Are!You!Organized?

Is!The!Solo!Life!Right!For!You?Checklist:! Do!You!Have!Good!Telephone!Manners?! Are!You!Confident!in!Your!Professional!! Are!You!Confident!in!Your!Professional!

Abilities?! Do!You!Have!Good!Computer!Skills!(e.g.!

CADD,!Word!Processing,!Spread!Sheets,!E"Mail,!Internet,!etc.)?

! How!Well!can!You!Master!Technology?

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Is!The!Solo!Life!Right!For!You?Checklist:! Do!You!Have!Field!Skills!(e.g.!Total!

Stations,!GPS,!Data!Collection,!etc.)?! Can!You!Keep!Track!of!Your!Time!and!

Invoice!Frequently!and!Accurately?! Are!You!Comfortable!being!in!the!Field!By!

Yourself?!How!About!the!Office?! Will!Your!Family!Situation!Support!or!

Inhibit!Your!Ability!to!Solo?

Is!The!Solo!Life!Right!For!You?! If!you!are!looking!to!go!Solo!as!a!way!of!

avoiding!people!and!working!uninterrupted,!then!the!Solo!Life!is!not!for!pyou.

Is!The!Solo!Life!Right!For!You?! If!you!are!looking!to!be!in!complete!charge!

of!your!practice!and!ultimately!responsible!for!your!actions,!then!maybe!going!Solo!is!y y g gthe!thing!to!do.

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Is!The!Solo!Life!Right!For!You?! When!you!are!flying!Solo,!there!is!no!one!

else!to!blame.

The!Business!PlanPlans!Are!Not!One"Size!Fits!All

! A!Plan!for!Seeking!Financing! A!Plan!to!Guide!the!Business! A!Plan!to!Guide!the!Business! Personal!Style!and!Ability!of!the!Solo! Complexity!of!the!Business! Strength!of!Competition! Level!of!Uncertainty

The!Business!PlanPlanning!Pitfall

No!Real!Goals:! Goals!are!vague!and!general! Goals!are!vague!and!general! Goals!not!specific!or!measurable! Activity!oriented!not!goal"oriented

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The!Business!PlanPlanning!Cure

No!Real!Goals:! Set!specific!measurable!goals! Set!specific!measurable!goals! Set!actions!steps! Keep!overall!aim!in!mind

The!Business!PlanPlanning!Pitfall

Failure!to!Anticipate!Obstacles:! Excessive!optimism! Excessive!optimism! No!alternative!strategy! Underestimation!of!competition,!needed!

capital,!conflicts,!etc.

The!Business!PlanPlanning!Cure

Failure!to!Anticipate!Obstacles:! Brainstorming!with!others! Brainstorming!with!others! Maintain!flexibility! Anticipate!as!many!obstacles!as!possible!

and!how!to!overcome!them

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The!Business!PlanPlanning!Pitfall

Lack!of!Commitment:! Procrastination! Procrastination! Lack!of!Priorities! Focus!on!routines!and!daily!activities

The!Business!PlanPlanning!Cure

Lack!of!Commitment:! “Just!do!it!”! Just!do!it!! Prioritize!and!set!milestones! Ask!each!day:!“What!did!I!accomplish!

today!toward!my!goals?”!

The!Business!PlanPlanning!Pitfall

Failure!to!Learn!from!Experience:! Lost!sight!of!goals! Lost!sight!of!goals! Mistakes!repeated! Same!!s**t!!different!day

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The!Business!PlanPlanning!Cure

Failure!to!Learn!from!Experience:! Concentrate!on!producing!results! Concentrate!on!producing!results! Be!adaptive!and!flexible! Look!for!new!and!better!ways!of!

accomplishing!tasks

The!Business!PlanInitial!Considerations

! Newly!Licensed!or!Seasoned!Professional! No!Clients!or!Existing!Clientsg! Need!Financial!Assistance!or!Self"Funded! No!Equipment!or!Existing!Equipment! Completely!Solo!or!with!Help! Technology!and!Equipment!Needs!to!go!

Solo

The!Business!PlanBusiness!Form

! Sole!Proprietor!(D.B.A.)! Most!Common!and!Easiest!to!Form! Most!Common!and!Easiest!to!Form! No!Protection!of!Personal!Assets! Pass!Through!Taxation! Your!Social!Security!Number!Used

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The!Business!PlanBusiness!Form

! Limited!Liability!Company!(L.L.C.)! Easy!to!Form! Easy!to!Form! Some!Protection!of!Personal!Assets! Pass!Through!Taxation! Employer!Identification!Number!Used

The!Business!PlanBusiness!Form

! Subchapter!“S”!Corporation! Requires!Incorporation! Requires!Incorporation! More!Complex!to!Operate!and!Maintain! Separate!Entity!under!the!Law! Pass!Through!Taxation! Employer!Identification!Number!Used

The!Business!PlanBusiness!Form

! Professional!Corporation! Requires!Incorporation! Requires!Incorporation! More!Complex!to!Operate!and!Maintain! Separate!Entity!under!the!Law!&!IRS!Rules! Double!Taxation/Lower!Rates! Employer!Identification!Number!Used

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The!Business!PlanGoal!Setting

“It!is!through!effective!goal!planning!that!action!steps!are!derived.!Goals!are!not!dreams,!fantasies!por!the!product!of!wishful!thinking;!nor!are!they!mere!predictions!or!guesses!about!future!outcomes.!…!Goal!setting!is!not!a!task!but!a!process,!a!way!of!dealing!with!the!world!that!is!repeated!over!and!over!as!conditions!change.!Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

The!Business!PlanPlanning!Ingredients

Establishment!of!Goals!that!are:! Specific!and!Concrete! Specific!and!Concrete! Measurable!and!Related!to!Time! Realistic!and!Attainable! Capable!of!Being!Modified!and!Adapted

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

The!Business!PlanPlanning!Ingredients

! Establishment!of!priorities!and!identification!of!conflicts!and!how!to!identification!of!conflicts!and!how!to!resolve!them

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

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The!Business!PlanPlanning!Ingredients

! Identification!of!problems!and!obstacles

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

The!Business!PlanPlanning!Ingredients

! Specification!of!necessary!tasks!and!action!stepssteps

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

The!Business!PlanPlanning!Ingredients

! Indication!of!how!results!will!be!measured

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

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The!Business!PlanPlanning!Ingredients

! Establishment!of!progress!milestones,!especially!revenue,!expenses!and!cash!especially!revenue,!expenses!and!cash!targets,!deadlines!and!dates

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

The!Business!PlanPlanning!Ingredients

! Identification!of!risks!involved!and!alternatives!for!coping!with!possible!alternatives!for!coping!with!possible!contingencies

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

The!Business!PlanPlanning!Ingredients

! Identification!of!outside!help!and!resources!that!need!to!be!marshaled!and!controlledthat!need!to!be!marshaled!and!controlled

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

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The!Business!PlanPlanning!Ingredients

! Periodic!review!of!progress!and!revision!of!goals!as!factors!such!as!changing!goals!as!factors!such!as!changing!competitive!situation!require

Livingstone,!John!L.,!The!Portable!MBA!in!Finance!and!Accounting,!Wiley!&!Sons,!Inc.!1992.

The!Business!PlanThe!Plan!Itself

! For!most!solo’s,!the!Business!Plan!is!a!plan!of!action!and!a!guide!for!operating!the!of!action!and!a!guide!for!operating!the!business!as!a!solo.!

The!Business!PlanA!Written!Plan!Overview

“Without!a!strategy,!a!manager!has!no!thought"out!course!to!follow,!no!roadmap!to!thought out!course!to!follow,!no!roadmap!to!manage!by,!no!unified!action!program!to!produce!the!intended!result.”

Thompson,!Arthur!A.!and!A.J.!Strickland,!Strategic!Management,!8th

Edition,!Irwin,!Inc.!1995.

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The!Business!PlanA!Written!Plan!Overview

! Why!You!are!Doing!What!You!are!Doing! A!Big"Picture!Statement! A!Big"Picture!Statement! Baseline!for!Where!You!Started! One!Page!at!the!Most! Focus!on!the!Forest!not!the!Trees

The!Business!PlanThe!Budget

! There!are!many!parts!to!a!formal!business!plan!and!the!arrangement!of!those!parts!plan!and!the!arrangement!of!those!parts!does!not!usually!start!with!the!budget,!however,!for!the!land!surveyor!considering!going!solo,!this!is!perhaps!the!most!important!aspect!of!the!plan.!

The!Business!PlanThe!Budget

! Revenue!is!generally!considered!first!in!most!plans!followed!by!operating!expenses.!most!plans!followed!by!operating!expenses.!However,!for!the!practitioner!considering!going!solo,!how!much!it’s!going!to!cost!with!an!idea!of!how!much!revenue!you!can!generate!is!perhaps!a!better!approach.

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The!Business!PlanStart"Up!Costs

Field!Equipment!Costs:Vehicle $40 000Vehicle $40,000Robotic!Total!Station $20,000RTK!Rover!Unit $15,000Misc.!Equip.!&!Supplies $15,000

Total $90,000

The!Business!PlanStart"Up!Costs

Office!Equipment!Costs:Furniture $10 000Furniture $10,000Computers!,!Tele.,!etc. $10,000Software $!5,000Misc.!Equip.!&!Supplies $!3,000

Total $28,000

The!Business!PlanStart"Up!Costs

Total!Field!Equipment $90,000Total!Office!Equipment $28 000Total!Office!Equipment $28,000Total! $118,000Financed!@!5%!for!5!Years $2,226/Mo.

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The!Business!PlanMonthly!Operating!Costs

Overhead!and!Expenses:Office!Rental!w/Utilities $1,500,5Insurance!(Bus.!&!Health) $1,500!Vehicles!(Gas!&!Maint.) $!!400Licenses!and!Fees $!!200Loan!Payments $2,226

Total $4,326

The!Business!PlanMonthly!Operating!Costs

Overhead!and!Expenses $4,326Desired!Income!($100 000/yr ) $8 333Desired!Income!($100,000/yr.) $8,333Estimated!Tax!Payments $2,500Total $17,659Hourly!Rate!(40!hr./wk.) $102

The!Business!PlanOperating!Costs!Overview

Monthly!Costs $!!17,659Yearly!Costs $212 000Yearly!Costs $212,000Hourly!Rate!(40!hr./wk.) $!!!!!!!102Need!to!Bill!per!Week! $!!!4,080

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The!Business!PlanOperating!Costs!Overview

! So!far,!your!hourly!rate!also!assumes!hitting!the!ground!running!with!clients!ready!to!the!ground!running!with!clients!ready!to!provide!you!with!$4,000!per!week!in!revenue.!The!more!likely!scenario!is!that!you!may!need!six!months!to!a!year!to!get!up!to!this!level.!

The!Business!PlanYearly!Operating!Costs

Yearly!Costs $212,000No!Clients!(6!Months) $106 000No!Clients!(6!Months) $106,000Total $318,000Hourly!Rate!(40!hr./wk.) $152.88Say!Hourly!Rate!of!…! $160.00

The!Business!PlanMarketing!Plan

! Unless!you!already!have!existing!clients,!some!form!of!marketing!will!need!to!take!some!form!of!marketing!will!need!to!take!place!in!order!to!get!clients.!

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The!Business!PlanMarketing!Plan

! Potential!Market/Target!Clients! Advertising!(currently!not!in!budget)g ( y g )! Word!of!Mouth!(very!slow!but!good)! Internet!Presence!(also!not!in!budget)! Social!Networks!(outside!of!40"hour!week)! Referrals! Overflow!Work!from!Colleagues

The!Business!PlanHome!Office!or!Outside!Office

! Costs,!Often!a!Prime!Motivator! Isolation!vs !Inclusion!and!Synergy! Isolation!vs.!Inclusion!and!Synergy! Flexibility!vs.!Lease!and!Commitment! Who!Minds!the!Store!When!You!are!Away?! Will!Clients!be!Making!Office!Visits?! Home!Office!Now/Move!Out!Later

The!Limited!Liability!Company! The!easiest!form!of!business!to!work!with!

and!operate.!It’s!a!formal!step!above!the!Sole!Proprietor!(D.B.A.)!and!not!as!complex!p pas!a!Corporation.

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The!Limited!Liability!CompanySome!of!the!Advantages

! Protection!of!Personal!Assets! No!Employees! No!Employees! No!Matching!FICA!(Fed.Ins.Contrib.Act)! No!Unemployment!Taxes! Single!Taxation!on!Income!! Employer!Identification!Number!(EIN)

The!Limited!Liability!CompanySome!of!the!Disadvantages

! It’s!a!Fictitious!Name!and!May!Require!Additional!Professional!License(s)

! May!also!Require!Out"of"State!Filings! Mixing!and!Mingling!Personal!and!

Company!Assets! No!Matching!Contributions!to!FICA! No!Unemployment!Benefits

The!Limited!Liability!CompanyWhat’s!Generally!Required

! In!Many!Cases!You!can!Buy!a!Kit! Articles!of!Organization!Filed!with!State! Articles!of!Organization!Filed!with!State! Operating!Agreement!or!By"Laws! Annual!Report!with!the!State! Annual!Fee

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Support!SystemsWho’s!Watching!Your!Back

! Spouse!or!Significant!Other! Helpers!and!Assistants! Helpers!and!Assistants! Colleagues! The!Lone!Cowboy!(even!the!Lone!Ranger!

had!Tonto)

Support!SystemsHiring!Helpers

! No"Pay!Helpers!(Spouse!or!Significant!Other)

! Form!W"2!Employees! Form!1099"MISC!Employees! Temp.!Staff/Temp.!Agencies! Using!the!Employees!of!Others! Illegal!Aliens!

Support!SystemsThe!Form!W"2!is!used!by!employers!to:! Report!wages,!tips!and!other!compensation!paid!to!an!employee.

! To!report!the!employee's!income!tax!and!Social!! To!report!the!employee s!income!tax!and!Social!Security!taxes!withheld!and!any!advanced!earned!income!credit!payments.

! To!report!wage!information!to!the!employee, and!the!Social!Security!Administration.!The!Social!Security!Administration!shares!the!information!with!the!Internal!Revenue!Service.

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Support!SystemsA!Form!1099"MISC!is:! Generally,!used!to!report!payments!made!in!the!course!of!a!trade!or!business!to!a person!who!is!not!

l d ban!employee!or!to!an!unincorporated!business.! Required!among!other!things,!when!payments!of!$10!or!more!in!gross!royalties!or!$600!or!more!in!rents!or!compensation!are!paid.

! Provided!by!the!payer!to!the!IRS!and!the!person!or!business!that!received!the!payment.

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Support!SystemsIRS!Definition!of!Employee

“The!determination![of!employment!status]!is!complex,!but!is!based!on!whether!the!person!complex,!but!is!based!on!whether!the!person!for!whom!the!services!are!performed has!the!right!to!control!how!the!person!performs!the!services.!It!is!not!based!merely!on!how!the!person!is!paid,!how!often!the!person!is!paid,!or!whether!the!person!works!part"time!or!full"time.”![Emphasis!added.]!Source:!IRS!Website

Support!SystemsIRS!Definition!of!Employee

There!are!three!basic!categories!of!factors!that!are!relevant!to determining!worker!are!relevant!to determining!worker!classifications:! Behavioral!control! Financial!control!and! Relationship!of!the!parties

Source:!IRS!Website

Support!SystemsIndependent!Contractor

“The!general!rule!is!that!an!individual!is!an!independent!contractor!if!you,!the!person!for!whom!the!services!are!performed,!have!the!right!to!control!only!the!results!of!the!work!and!not!the!means!and!methods!of!accomplishing!the!results.”![Emphasis!provided.]!

Source:!IRS!Website

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Support!SystemsCommon"Law!Employee

“Under!common"law!rules,!anyone!who!performs!services!for!you!is!your!employee!if!you!can!

t l! h t! ill!b !d ! d!h !it! ill!b !control!what!will!be!done!and!how!it!will!be!done.!This!is!so!even!when!you!give!the!employee!freedom!of!action.!What!matters!is!that!you!have!the!right!to!control!the!details!of!how!the!services!are!performed.”![Emphasis!provided.]!

Source:!IRS!Website

Support!SystemsIRS!Determination!of!Status

“If!you!would!like!the!IRS!to!determine!whether!services!are!performed!as!an!whether!services!are!performed!as!an!employee!or!independent!contractor,!you!may!submit!Form!SS"8 (PDF),!Determination!of!Worker!Status!for!Purposes!of!Federal!Employment!Taxes!and!Income!Tax!Withholding.”!!Source:!IRS!Website

Support!SystemsIRS!Determination!of!Status

“Be!aware!that!it!can!take!at!least!six!months!to!get!a!determination,!but!a!business!that!to!get!a!determination,!but!a!business!that!continually!hires!the!same!type!of!workers!to!perform!particular!services!may!want!to!consider!filing!the!Form!SS"8.”!!

Source:!IRS!Website

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Support!SystemsConsequences!of!Treating!an!Employee!as!

an!Independent!Contractor“If!you!classify!an!employee!as!an!If!you!classify!an!employee!as!an!independent!contractor!and!your!have!no!reasonable!basis!for!doing!so,!you!may!be!held!liable!for!employment!taxes!for!that!worker.”!!

Source:!IRS!Website

Support!SystemsIRS!Small!Business!Workshops

“The!Virtual!Small!Business!Tax!Workshop!is!composed!of!nine!interactive!lessons!composed!of!nine!interactive!lessons!designed!to!help!small!business!owners!learn!their!tax!rights!and!responsibilities.”www.irsvideos.gov/virtualworkshop/

Source:!IRS!Website

Why!Do!You!Want!to!Be!a!Solo

Professor!Larry!Krieger,!Florida!State!University,!“Ethics,!Professionalism!and!Career!Satisfaction.”!Reprinted!with!permission.

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Supreme!Court!of!Iowa356!N.W.2d!181September!19,!1984

Contract!BasicsRequired!Elements

!Offer!and!Acceptance!(Identify!Parties)!Consideration!(Fee!for!Services)!Consideration!(Fee!for!Services)!Capacity!(Over!19!&!Not!Incapacitated)!Subject!Matter!(Scope!of!Services)!Legal!Purpose!(Surveying!Services)!Execution!(Signatures)

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Contract!BasicsOptional!Elements

! Project!Identification! Standard!of!Care! Schedule!Deliverables!Deliverables! Payment!Terms!Applicable!Law!Attorney’s!Fees!Contingencies!Additional!Services!Provision! Statement!of!Hourly!Rates! Limitations!on!Liability

The!One!Page!ContractOffer,!Acceptance,!Project!Identification,!and!Legal!Purpose:February!2,!2011

Mr.!Landowner1313!Mockingbird!LaneMunsterville,!Alabama!35555!

FAX!TRANSMISSION:!(205)!555"1313(And/or!E"Mail)

RE: Property!Identification!(The!Property)Land!Surveying!and!Consulting!Services

The!One!Page!ContractOffer,!Acceptance,!Project!Identification,!and!Legal!Purpose:

Dear!Mr.!Landowner:This!letter!shall!serve!as!a!Letter!of!Engagement,!

whereby!Mr.!Landowner,!hereinafter!referred!to!as!Client,!engages!Southland!Surveying!Company,!LLC,!hereinafter!referred!to!as!Surveyor,!to!perform!certain!land!surveying!and/or!consulting!services!with!reference!to!the!above!described!property!(the!Property),!as!outlined!below.!Execution!of!this!letter!will!confirm!acceptance!and!shall!constitute!an!agreement!between!Client!and!Surveyor.

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The!One!Page!ContractSubject!Matter,!Standard!of!Care,!Fee!Estimate,!Schedule,!Payment!Terms,!Applicable!Law!and!Attorney’s!Fees:

It!is!acknowledged!that!land!surveying!is!a!professional!service!and!not!an!exact!science,!therefore!our!fee!for!services!f f fis!estimated!at!$2,500.00,!subject!to!unforeseen!circumstances!or!unexpected!difficulties.!The!survey!will!be!completed!within!three!(3)!weeks!from!the!date!of!receipt!of!an!executed!copy!of!this!agreement.!Surveyor!will!make!every!reasonable!effort!to!meet!this!schedule;!however,!this!is!not!a!guarantee.!All!invoices!are!due!and!payable!within!15"days!of!receipt.!A!late!fee!of!1.50%!per!month!will!apply.!In!the!event!collection!proceeding!become!necessary,!Alabama!law!will!apply,!and!Attorney’s!fees!and!cost!of!collection!will!be!reimbursed!to!Surveyor.!

The!One!Page!ContractContingencies,!Additional!Services,!Hourly!Rate,!Termination,!Warranties!and!Legal!Capacity:

If!unforeseen!circumstances!or!unexpected!difficulties!are!encountered,!the!Client!will!be!consulted!before!Surveyor!proceeds!further.!In!the!event!that!additional!services!are!p fdeemed!necessary,!Surveyor!will!perform!those!services!at!an!hourly!rate!of!$125.00!per!hour.!Surveyor!will!only!perform!additional!services!with!Client’s!written!or!verbal!approval.!This!offer!will!expire!if!not!executed!within!15"days.!Either!party!may!terminate!this!agreement!with!or!without!cause.!Upon!termination,!Surveyor!will!be!reimbursed!for!service!provided.!This!agreement!contains!no!warranties!either!expressed!or!implied!and!does!not!inure!to!the!benefit!of!any!third!parties.!The!persons!signing!below!certify!that!they!have!legal!capacity!as!the!individuals,!representatives,!or!agents!for!the!parties!to!this!contract.!

The!One!Page!Contract!Execution:

FOR!SURVEYOR:

________________ Date:!________Thomas!JeffersonChief!Surveyor

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The!One!Page!Contract!Execution:

FOR!CLIENT:

__________________________ Date:!________

By:!______________________________Printed!Name!and!Title

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Supreme!Court!of!Illinois250!N.E.2d!656May!26,!1969

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Supreme!Court!of!Alabama2005!Ala.!LEXIS!180October!21,!2005

Superior!Court!of!Connecticut2008!Conn.Super.!LEXIS!2774November!5,!2008

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Alabama!Court!of!Civil!Appeals587!So.2d!387August!9,!1991

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