The following POSITION STATEMENT on backcharges has been accepted by the NISD Board of Directors:

Policy Regarding Backcharges

In order to aid the steel industry to better serve the public, the National Institute of Steel Detailing, Inc. recommends to its members and to the structural steel industry that the following procedure be adopted by the parties unless otherwise agreed by them in writing at the commencement of any detailing project:

Upon written explanation to the detailer by the customer of any alleged inaccuracy in the detailer’s drawings, the parties shall at the earliest possible date meet and assess the fault and costs of such inaccuracies.
The detailer shall be allowed a tolerance of 5% above the total detailing price (the original bid plus any revisions or additions). Should the cost exceed such tolerance, the detailer shall be liable for such additional costs up to a maximum of 5% above the tolerance; the cost of direct labor, taxes, insurance and necessary transportation needed to correct the deficiency. All material costs shall be paid for by the customer. The customer shall notify the detailer of any discrepancy when discovered, so that the detailer shall have the opportunity to correct the same. In the event such notice is not promptly given, the detailer shall have no responsibility for any costs incurred.
The Institute excludes from consideration as an error or omission any item which is the direct result of any incorrect, missing or ambiguous portion of the contract documents issued to the detailer for preparation of his or her details.
Any dispute between the independent detailing firm and its customer with regard to the justification or amount of back charges shall be resolved by arbitration before the American Arbitration Association according to its rules then obtaining.