The Nevada Connection – January 2023

STIPULATED AGREEMENT with the Nevada Board of Professional Engineers and Land Surveyors

In June 2020, Sustainability Engineering Group, LLC (“SEG”), of which Mr Fakih is the principal engineer, began engaging in discussions with a client for SEG to provide professional services for actual and conceptual commercial property development projects in Arizona, California, Colorado, New Mexico and Nevada. On October 12, 2020, a contract was accepted and executed between the client and SEG.

In early 2021, issues arose between the parties. SEG claims the client was late on payments and failed to pay for some of the completed work, while the client alleges SEG failed to meet the contracted obligations by not performing services in a timely and diligent manner, plus billing for fifty percent (50%) completion on projects yet-to-be fifty percent (50%) completed. The client refused to pay SEG until they received an explanation as to why it was being billed for work that had not been completed. However, SEG did not provide explanation acceptable for the billing irregularities. In May of 2021, alter failed attempts at resolution, SEG terminated the contract due to the client’ s failure to pay invoices, and filed a mechanic’s lien on a Las Vegas project. In May 2021, P9 learned that, during the course of work, Mr Fakih was not licensed in Nevada and SEG was not registered with the State Board. As a result of the above assertions, the client filed the complaint initiating this matter with the State Board.

On February 27, 2020, prior to beginning work with the client, Mr Fakih submitted an online endorsement licensure application. At the time of application, Mr Fakih was actively licensed in Arizona, California, Colorado, and Oregon and was seeking licensure in Florida. On February 28, 2020, a record from the National Council of Examiners for Engineering and Surveying (“NCEES”) was received by the State Board. On March 6, 2020, an email was sent by the State Board to Mr Fakih with conditional approval pending him passing of a short-written exam per NAC 625.240.l(b) and payment of a pro-rated license fee per NAC 625.410(3). Between April 2020 and March 2021, the State Board sent several reminder emails to Mr Fakih of the additional steps needed to complete his application process.

Violations and Disciplinary Actions

Pursuant to NRS 625.520 (a), (I) and (2), it is unlawful for any professional engineer to practice or to offer to practice a discipline of professional engineering in which the State Board has not qualified him. Mr Fakih admits that he erred in not completing licensure in Nevada and not filing firm registration before contracting for and providing professional engineering services in Nevada, but he asserts that these errors were inadvertent and without intent. Nevertheless, even if inadvertent, the error is a violation of NRS 625.520 (a)(I) and (2). In addition, under NRS 625.520(3), it is unlawful to offer services as an engineer in a discipline licensed in Nevada without disclosing the lack of licensure. Mr Fakih did not disclose his lack of licensure as a professional civil engineer in Nevada to the client, so he violated NRS 625.520(3).

Further, it is a violation of NRS 625.407(3)(b) for a person to hold him or herself out as practicing a certain discipline of engineering services in Nevada, unless that person is licensed in that discipline or employs at least one full-time professional engineer or professional land surveyor licensed in that discipline. Mr Fakih was neither licensed in Nevada for any discipline of engineering, nor did he have any licensed Nevada engineer in his employ, civil or otherwise. Thus, Mr Fakih violated NRS 625.407(3)(b).
Additionally, Pursuant to NAC 625.530, in a professional engineer’s relations with his clients, the professional engineer shall act in professional matters as a faithful agent or trustee for his client. Mr Fakih failed to act as a faithful agent to the client by providing engineering services therefor in Nevada without appropriate licensing for himself or registering SEG with the State Board, and he did not disclose these facts to the client when contracting, and subsequently performing the work. The client only discovered the lack of licensure and registration when filing a complaint with the State Board. This lack of disclosure is not the act of a faithful agent, and, thus, Mr Fakih violated NAC 625.530.

Based on the foregoing, Mr Fakih stipulates that he violated NRS 625.520(1), (2) and (3); NRS 625.407(3)(b); and NAC 625.530.

Pursuant to NAC 625.640, a disciplinary matter may be resolved without a formal hearing by a Stipulated Agreement. To that end, to resolve the complaint, Mr Fakih and the State Board resolve this matter on the following basis:

1. Mr Fakih’s Nevada license shall be suspended for twelve (12) months but with the suspension stayed and probation imposed for the duration of that time period. The stay of Mr Fakih’s suspension may be lifted by the Stale Board upon notice and the opportunity to be heard should Mr Fakih fail to abide by the terms hereof. Mr Fakih’s successful completion of probation is expressly conditioned upon his full compliance with the following conditions of probation:
   
   1. Mr Fakih shall submit detailed bi-monthly probation reports to the Executive Director of the Nevada Board, which shall report any work completed in Nevada during the previous two (2) month period. A report shall be filed even if no work is performed in Nevada during the previous two (2) month period. The first report shall be due within two (2) months of the effective date of this Stipulated Agreement. Each report shall include client contact information and a copy of the contract executed for any work in Nevada, including the scope of work detail.
   2. Mr Fakih shall pay a fine of Three Thousand and No/100 Dollars ($3,000.00) within six (6) months of acceptance and execution of this Agreement by the State Board.
   3. Mr Fakih shall pay the Stale Board Two Thousand Seven Hundred Three and No/I 00 Dollars ($2,703.00) as reimbursement of legal and administrative expenses expanded by the State Board in this matter, within six (6) months of acceptance and execution of this Agreement by the Board.
   4. Mr Fakih shall provide notice to client(s) on Nevada projects whereupon work was perfom1ed prior to May I 0, 2021, that he was not licensed lo offer or perform engineering services in Nevada, and that SEG was not properly registered to operate in Nevada prior to May I 0, 2021. Mr Fakih shall provide proof of notice to the Board within thirty (30) days of acceptance and execution of this Agreement by the Board.