ANSWER: Not always. It has been our experience that the benefits dont always prove out.
Most clients believe that because an engineer has done work in the immediate area, that the engineering fees on their project will be less than if they were to hire an engineer that hasnt worked in the area.
This theory is nothing more than good marketing.
Generally speaking, most projects dont require an engineer to investigate much further than about 30m beyond a projects boundaries, so, unless you are right next door to a previous project, it is likely that the information the engineer has will be less than is needed to properly complete your project. The engineer will have to spend time "filling in the gaps" of information they need, so the benefit to the client is minimal.
It is our opinion that it is far more important that an engineer; 1) is familiar with the district/ agencies and their regulations, 2) provides fair and honest pricing, and 3) has a track record of client satisfaction and quality.
Even if a client is considering an engineer that has worked "next door" they should ALWAYS request fee proposals from other engineers, and get references from the engineers past clients as well.
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