Architectural Ethics, Risk, and Agreements
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Which of the following represents the MOST critical, overarching principle that should guide an architect's actions when initially approached by a prospective client, ensuring ethical and professional conduct?

  • Focusing on showcasing the architect's design philosophy and aesthetic preferences to align with the client's vision, even before fully understanding all project requirements.
  • Establishing a clear and transparent understanding of the client's needs, project objectives, and constraints, while outlining the architect's services, terms, and associated fees in a well-defined agreement. (correct)
  • Prioritizing the immediate negotiation of a detailed fee proposal to establish financial expectations upfront.
  • Immediately presenting a comprehensive portfolio of past projects to impress the client and secure the engagement.

An architect should always accept a project if the client is willing to pay a premium fee, regardless of whether the project aligns with the architect's expertise, values, or ethical standards.

False (B)

From a risk management perspective, briefly describe considerations when engaging a client who insists on a fixed fee arrangement, despite the project's scope being vaguely defined at the outset. How can architects mitigate potential financial and professional risks in this scenario?

To mitigate potential financial and professional risks when engaging a client who insists on a fixed fee arrangement, architects should conduct a thorough risk assessment, clearly define the scope of services, and build contingency allowances into the proposal.

According to NSCA 2021, competency PC 5 emphasizes the architect's ability to apply essential elements of a __________ __________ agreement across various procurement methods. These should be appropriate to project scale and type, covering options for partial services, secondary engagements, and sub-consultants.

<p>client architect</p> Signup and view all the answers

Match each scenario with the MOST appropriate action an architect should take upon initial contact with a prospective client:

<p>Client has a clear vision but an unrealistic budget. = Initiate an open discussion about the project scope versus budget, proposing value engineering solutions or a phased approach. Client is unsure of their spatial needs. = Conduct a detailed programming phase to define spatial requirements and functional adjacencies. Client wants to use unconventional materials. = Research material properties, compliance requirements, and long-term performance implications. Client seeks LEED Platinum certification. = Confirm your proficiency with LEED standards and engage a sustainability consultant.</p> Signup and view all the answers

In drafting a client-architect agreement, what specific clause is MOST crucial to include in order to address potential disputes arising from unforeseen site conditions that significantly impact project costs?

<p>A clause allowing for renegotiation of the fee based on a pre-defined formula tied to quantifiable changes in site conditions, coupled with a dispute resolution mechanism. (C)</p> Signup and view all the answers

Explain, from a legal and ethical standpoint, the implications of an architect deliberately omitting potential conflicts of interest related to consultant selection in the client agreement. What specific legal doctrines might be invoked in such a scenario, and what are the potential ramifications for the architect's professional standing and liability?

<p>Deliberately omitting potential conflicts of interest related to consultant selection in the client agreement can have serious legal and ethical implications for the architect. Legal doctrines such as breach of fiduciary duty, misrepresentation, and negligence may be invoked. This can result in professional sanctions from regulatory bodies, legal action, and damage to the architect's reputation and license.</p> Signup and view all the answers

Which of the following best encapsulates the strategic imperative for an architect to meticulously tailor fee proposals to each unique client engagement?

<p>To cultivate client perception of value by demonstrating a profound understanding of the project’s specific nuances and complexities, thereby justifying the proposed fee. (C)</p> Signup and view all the answers

An architect's inability to lucidly articulate and rigorously defend their fee proposal is inconsequential, provided the proposal aligns with prevailing market rates for comparable services.

<p>False (B)</p> Signup and view all the answers

Beyond the explicit fee structure, what critical strategic purpose does the fee proposal serve in solidifying the client-architect relationship?

<p>Confirms the client's prior decision to appoint the architect.</p> Signup and view all the answers

Unforeseen project impediments outside the architect's direct control, such as protracted delays arising from ______ approvals or dramatic shifts in prevailing ______ , necessitate meticulous risk anticipation and incorporation into the initial fee proposal to avert potential financial inadequacies.

<p>authorities, legislation</p> Signup and view all the answers

Match the following external factors with their potential impact on project fees:

<p>Inconsistent client brief = Leads to scope creep Client inexperience = Ongoing changes Slow decision-making = Prolonged project duration Changing legislation = Design modifications</p> Signup and view all the answers

Within the context of architectural practice management, what is the most detrimental consequence of persistently underestimating project fees beyond immediate financial losses?

<p>Diminution of the architect's professional reputation and client relationships due to compromised quality and service. (B)</p> Signup and view all the answers

The concept of 'generosity' within architectural practice management suggests that architects should routinely offer pro bono services to underserved communities, irrespective of the firm's prevailing financial circumstances.

<p>False (B)</p> Signup and view all the answers

From a practice management perspective, why is an architect essentially considered to be selling time?

<p>Architects are engaged as problem solvers, with their time being the core resource.</p> Signup and view all the answers

Consistent undercharging leads to the temptation to ______ corners, thus increasing professional ______.

<p>cut, liability</p> Signup and view all the answers

Which of the following best describes how the proactive management of time directly affects an architectural practice?

<p>It enables better staff allocation and maximization of billable hours, directly affecting profitability. (D)</p> Signup and view all the answers

An architect is contacted by a prospective client interested in building a factory. What is the MOST critical piece of information the architect should obtain initially, beyond the basic project scope, to appropriately assess the project's feasibility and align with client expectations?

<p>The site address and any relevant planning controls (including differences between various sources of planning control). (A)</p> Signup and view all the answers

Charging a prospective client for the initial consultation is always a strategically sound practice, as it immediately aligns expectations and mitigates the risk of future disputes.

<p>False (B)</p> Signup and view all the answers

Explain, from a strategic relationship-building perspective, why an architect might choose not to charge for an initial consultation with a prospective client, despite the potential for uncompensated time investment. Consider the principles of reciprocity and perceived value.

<p>An architect might choose not to charge for an initial consultation to establish a sense of moral obligation on the part of the client. This early contact is a valuable investment in the relationship with a client and possibly the reason why an architect might end up being awarded the project. Free initial consultation establishes a sense of moral obligation on the part of the prospective client, which may be pivotal in the architect securing the commission.</p> Signup and view all the answers

In the context of initial client engagement, an architect's decision not to charge for the preliminary meeting can be viewed as a strategic ______ in the client relationship, potentially yielding a greater return in the long term through securing the commission and fostering goodwill.

<p>investment</p> Signup and view all the answers

Match each item with the corresponding rationale for its importance during the initial project approach stage:

<p>Site Address = Fundamental for understanding zoning regulations and development constraints. Client Brief = The architect may develop this as the client may not know what the architect needs to know. Planning Certificate = Essential for determining allowable building parameters and restrictions. Reasons Behind the Project = Facilitates a deeper understanding of client motivations and project objectives and tailoring architectural solutions to the client’s needs.</p> Signup and view all the answers

An architect is asked 'How much do you charge?' during an initial call from a prospective client; after determining that they don't have enough information, which of the following strategies represents the MOST appropriate and ethically sound response?

<p>Politely defer providing a fee estimate until after an initial meeting, explaining the need to gather more information about the project scope, site conditions, and client objectives. (C)</p> Signup and view all the answers

The primary benefit of obtaining a planning certificate is to immediately identify potential 'deal-breaker' constraints that would render the proposed project infeasible from a regulatory perspective.

<p>True (A)</p> Signup and view all the answers

Describe a scenario where declining to charge for an initial consultation could strategically position an architectural firm for long-term success, even if the firm has a reputation for premium services and high fees.

<p>Declining to charge for an initial consultation with a not-for-profit organization planning a community center could align the firm with a cause that resonates with its values, enhance its public image, and potentially lead to future referrals from community stakeholders, showcasing a commitment to social responsibility beyond profit-driven motives.</p> Signup and view all the answers

When a prospective client states, 'We understand that you are very good at this kind of work,' the architect should interpret this both as a validation of their firm's reputation and an opportunity to further ______ the client's specific needs and expectations, ensuring a tailored approach.

<p>explore</p> Signup and view all the answers

An architect's fee proposal is submitted and subsequently accepted. However, the client then presents a significantly different agreement post-acceptance. Which of the following represents the MOST critical, initial step the architect should undertake, considering potential implications for liability and project scope?

<p>Forward the new contract immediately to the architect's insurance broker for a comprehensive contract review, emphasizing a detailed examination of liability clauses and potential deviations from standard practice. (D)</p> Signup and view all the answers

An architect is ethically obligated to accept a client's demand for a fee reduction, provided that the client commits to personally overseeing all aspects of project management, thereby relieving the architect of supervisory duties.

<p>False (B)</p> Signup and view all the answers

Within the context of client responsibilities preceding architectural design phases, what pivotal document, outlining project objectives, functional prerequisites, spatial necessities, and qualitative benchmarks, should the client furnish to ensure alignment of vision and feasibility assessment?

<p>project brief</p> Signup and view all the answers

When facing a client-imposed contract containing clauses that expand liability beyond common law, such as 'unlimited liability', architects should seek expert counsel to fully understand and negotiate the potential for increased __________ exposure.

<p>financial</p> Signup and view all the answers

Match the following contractual clauses or terms with their potential implications for an architect's professional practice:

<p>Fitness for purpose clause = Implies a guarantee that the design will not only meet specified requirements but also function without failure for its intended use, significantly increasing the architect's liability. Right to novate = Allows the client to transfer the architect's contractual obligations to another party, potentially altering the architect's role and interaction with the project. Continuing work while in dispute = Obliges the architect to maintain project progress even during disagreements, which could intensify existing conflicts and financial strain. Handover of all documents if requested = May require relinquishing control over intellectual property, potentially enabling unauthorized use or modification of design documents and proprietary information.</p> Signup and view all the answers

An architect encounters a prospective client expressing views sharply divergent from the architect's professional ethics and design philosophy. Assuming the architect is financially stable, what is the MOST ethically sound course of action, considering the long-term implications for both parties?

<p>Decline the project, providing a detailed written explanation of the ethical and philosophical differences, and suggesting alternative architects whose views might be more aligned. (C)</p> Signup and view all the answers

Given the described emphasis on calculated risk in preparing a fee proposal, an architect should prioritize maximizing potential profit margins above all other considerations to offset potential project risks.

<p>False (B)</p> Signup and view all the answers

Elaborate on the nuanced psychological factors that may influence a prospective client's perception of an architect during the initial interview, and how these factors relate to the architect's perceived need for the commission.

<p>A client may detect desperation through subtle cues like excessive eagerness, over-promising, or a lack of assertive questioning. This perception can diminish the client's confidence in the architect's competence and objectivity, suggesting a vulnerability that could lead to exploitation. Conversely, a confident, composed demeanor, signaling financial stability and professional independence, can project an image of expertise and trustworthiness.</p> Signup and view all the answers

In the context of preparing a fee proposal, the period between the initial client contact and the proposal submission serves as a critical phase for ______ and risk assessment.

<p>due diligence</p> Signup and view all the answers

Match the following architect behaviors during the initial client contact with their probable impact on the prospective client, assuming a risk-averse and highly discerning client:

<p>Excessive self-promotion and boasting about past projects = Creates skepticism and concern over potential over-promising and lack of client focus Detailed inquiry into the client's budget limitations early in the meeting = Raises questions about prioritization of cost over quality and design excellence Openly expressing concerns about potential design challenges associated with the project site = Undermines client confidence and generates anxiety regarding project feasibility Actively listening and demonstrating a genuine interest in understanding the client's needs and aspirations = Fosters trust and establishes a foundation for a collaborative partnership</p> Signup and view all the answers

An architect, after investing considerable time in initial consultations, decides not to pursue a project due to significant ethical concerns. How should the architect ethically manage the prior consultations and information obtained?

<p>Provide the client with a summary of key findings and insights, waiving any fees, while clearly stating the limitations of the information due to the project's incompletion. (C)</p> Signup and view all the answers

According to the principles outlined, an architect should always disclose potential conflicts of interest proactively during the initial client meeting, even if it risks losing the commission.

<p>True (A)</p> Signup and view all the answers

How does the concept of 'calculated risk' in fee proposal preparation relate to the ethical responsibilities of an architect towards both the client and the profession?

<p>Calculated risk requires balancing the architect's need for fair compensation with the client's interest in affordable services. Ethically, it demands transparency in cost estimation, clear communication of potential risks, and a commitment to providing value. Overly aggressive proposals risk exploiting the client, while underbidding can devalue the profession.</p> Signup and view all the answers

The architect's ability to convey a sense of ______ during the initial consultation can significantly influence the client's trust and willingness to proceed with the project.

<p>confidence</p> Signup and view all the answers

Match the following elements of a fee proposal with their corresponding impact on client perception:

<p>Unclear or ambiguous language regarding scope of services = Generates distrust and concern about potential hidden costs Detailed breakdown of costs with transparent assumptions = Builds confidence and demonstrates professionalism. Rigid adherence to fixed fees without flexibility for unforeseen issues = Creates apprehension and potential dissatisfaction if project scope changes. Inclusion of contingency plans for potential risks and challenges = Demonstrates foresight and commitment to addressing project complexities.</p> Signup and view all the answers

Flashcards

Client Architect Agreement

A formal document outlining the scope, terms, and conditions of the architectural services to be provided. It protects both architect and client.

Project Briefing

The process of defining the client's needs, goals, and constraints for a project. It is important for a successful design.

Agreement Clarity

Clearly communicate the project's terms, architect's services, and corresponding fees.

Client Requirement Analysis

Detailed examination of the client's requirements and objectives to inform the design process.

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Procurement Methods

Considering various approaches to project delivery and selecting the most suitable one.

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Partial Services

Offering specific parts of the overall architectural service to suit the client's needs and budget.

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Sub-consultant Engagement

Engaging specialized experts to provide additional services or expertise to architecture projects.

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Project Requirements Analysis

Understanding and evaluating what the client wants and needs for their project, using both numbers and descriptions.

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Client and Architect Agreements

A document outlining the expectations and responsibilities of both the architect and the client. It is essential for a smooth project.

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Initial Client Approach

The very first conversation between a potential client and an architect.

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Site Address

The location of the project.

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Planning Certificate

A document that shows what you can build on the site of the project.

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Planning Controls

The rules and regulations that control construction and land use.

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Project Brief

A detailed list of the client's needs and desires for the project.

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Reasons Behind the Project

Helps ensure that the architect and client are aligned and working towards the same goals.

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Charging for Initial Consultation

Architects usually don't charge for the initial meeting to secure a project.

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Initial Architect-Client Period

The period where the architect understands the brief, interviews the client, and decides if they want to work with them.

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Architect's Conduct in Initial Meetings

Act constructively, offer solutions, and be prepared.

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Architect's Demeanor

An architect approaching the client with confidence, showing they don't desperately need the commission.

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Key Considerations

Approach to initial contact, charging for time, and seeking specialist input.

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Fee Proposal

An exercise in carefully weighing potential gains against potential losses.

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Fee Proposal Control

Until it's sent, you can still change it. Once sent, it could lead to a contract.

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Fairness in Proposals

The proposal should reflect the trust and rapport established.

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Proposal Timeframe

This could range from days to weeks or months, depending on the project complexity.

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Fitness for Purpose

Ensuring the design is suitable and effective for its intended purpose.

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Principal Supplied Information

The client gives info to the architect. The contract should state the architect isn't liable for errors if that info is wrong.

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Right to Novate

The right to transfer the architect's agreement to another party, such as a contractor.

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Work During Dispute

Continuing project work even when there's disagreement, guided by the contract terms.

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Liability Beyond Common Law

Architects should avoid agreeing to responsibilities that are beyond the requirements of common law.

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Tailored Fee Proposals

A fee proposal should be customized to each client and project, avoiding generic approaches.

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Defensible Fee Proposals

Architects must thoroughly understand and be able to explain and justify their fee proposals to clients.

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Fee Proposal Confirmation

The initial fee proposal, once accepted, confirms the client's decision to hire the architect.

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Uncontrollable Project Risks

External factors that can impact project costs, such as client changes, authority delays, and weather.

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Proactive Risk Management

Address potential risks in the initial proposal to avoid project losses and maintain client relationships.

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Scope Creep

Clients expanding the original project scope, affecting the architect's allocated time and profit.

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Time as a Commodity

Architects sell their time and problem-solving skills; accurate fee proposals are crucial for practice health.

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Dangers of Undercharging

Undercharging leads to cutting corners and increased liability for the architecture practice.

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Profitability & Client Satisfaction

Happy clients stem from projects that are profitable and well-managed due to proper fees.

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Architect as Problem Solver

The architect is engaged as a problem solver selling time.

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Study Notes

  • This module provides an understanding of considerations when approached by a client, formulating a fee proposal, and what to look out for in a client architect agreement.
  • Presented by Mark Boffa, Principal (NSW ARB 5506) Boffa Robertson Group.
  • Upon completing this module, the student should be able to:
  • Know what to do when approached by a prospective client
  • Know how to handle the upfront association with a prospective client
  • Know what to consider in your fee proposal
  • Know what to look out for in a client

NSCA 2015 Performance Criteria

  • This module relates to competencies from the National Standard of Competency for Architects 2015.
  • Design: Project Briefing
  • Preparation & endorsement of an agreement between client and Architect.
  • The agreement communicates terms, services, and fees for the project's scale and type.
  • Establishment, analysis, and evaluation of client project requirements and objectives.

NSCA 2021 Performance Criteria

  • This module relates to competencies from the National Standard of Competency for Architects 2021.
  • Practice Management and Professional Conduct
  • Ability to apply elements of a client architect agreement across procurement methods.
  • Including alternatives for partial services and the engagement of secondary and sub-consultants.
  • Project Initiation and Conceptual Design
  • The ability to identify, analyse and evaluate client project requirements and objectives using qualitative and quantitative methods.
  • This may include assisting cost estimators in determining project feasibility/viability.
  • Client and architect agreements can be found at https://acumen.architecture.com.au/project/agreements/client-and-architect-agreements/

The initial client approach

  • An architect may receive a call from a prospective client seeking an architect for a project and asking about fees.
  • This initial contact often brings up elements that appear in discussions with clients.
  • This is a question often asked in the Architectural Practice Examination interview.
  • Often the architect lacks enough information to answer immediately.
  • More information needed includes:
  • Site address
  • Planning certificate
  • Relevant planning controls
  • The brief
  • Reasons behind the project
  • The architect should set up an initial meeting with the prospective client.
  • Charging for this initial time establishes a contract but may expose the architect to risk before the project begins.
  • Not charging may establish a sense of moral obligation and help secure the commission.
  • Early contact is a valuable investment and reason for being awarded the project.
  • During this period, the architect should:
  • Understand the brief
  • Understand the future client
  • Form a view on whether they want to work with the client
  • This period can be valuable with a five- or six-year working relationship.
  • The language used when first meeting a prospective client is important.
  • The architect is advised to behave constructively, offering solutions and ideas.
  • Architects may be advised to go to the initial interview without needing the commission.
  • The architect's desperation may cause concern and lead to irrational decisions.
  • Questions that should be asked are:
  • How does the architect approach that initial client contact and information gathering?
  • Does the architect charge for this time or not?
  • Does the architect need to seek specialist consultant input?

The fee proposal

  • A fee proposal is an exercise in calculated risk. The key is the level of calculation.
  • Until the send button is hit, the proposal is in one's control.
  • Once sent, a contract may be seconds away if formulated thoughtfully.
  • The proposal should be fair and demonstrate trust already established with the client.
  • The period between first contact and the fee proposal can be significant (e.g., six months).
  • It should be tailored to the client, as one size does not fit all.
  • The architect should explain and defend it, keeping it simple and understanding it.
  • It should confirm the client's decision to appoint the architect.
  • The architect's control wanes after the fee proposal is issued.
  • Areas outside the architect's control, where fees could prove inadequate:
  • Initial client commitment and brief
  • Client inexperience and ongoing changes
  • Progression of project and timely decision making
  • Authorities
  • Accuracy of site information
  • Consultants not previously known to the architect
  • Changing legislation
  • The weather
  • Anticipate potential issues and incorporate them into the initial proposal.
  • These risks can be addressed to change the project into a profitable and happy one.
  • Visualize how each example can result in a dispute and affect time allocation and profit.
  • The importance of time is mentioned in practice management and keeping the team busy.
  • The architect is a problem solver and sells time, so incorrect fee proposals can stall the practice.
  • Generosity is easier when charging the right fees.

The client's responsibility

  • The fee proposal is a chance to tell the client their responsibilities.
  • There is no harm in setting these out:
  • Appoint a client representative team with authority to decide
  • Provide accurate site information
  • Determine project requirements
  • Prepare project brief
  • Establish realistic program
  • Establish realistic budget
  • Allocate time to meet regularly
  • Be prepared to formally commit to progress stages
  • Pay accounts in a timely manner

Negotiating the proposal

  • The journey to being appointed does not end when the fee proposal is submitted.
  • Request for fee reduction is common.
  • The architect needs to be prepared to respond to these requests.
  • Architects are advised not to reduce the fee without corresponding service changes.

The client-architect agreement

  • A fee proposal has been accepted, and there may be standard engagement terms.
  • Clients may ask the architect to sign a different agreement, leading to a second round of negotiations.
  • Architects need to be aware of commonly found engagement terms:
  • Fitness for purpose clause
  • Principal supplied information
  • Right to novate
  • Continuing with work while in dispute
  • Use of words like 'best,' 'highest,' 'warrant'
  • Use of 'etc.'
  • Handover of all documents if requested
  • Seeking approval before any changes are made
  • Budgetary controls and management
  • Professional indemnity insurance after services completed
  • Accuracy of prepared documents including consultants'
  • Appointment and coordination of consultants
  • Intellectual property and moral rights
  • Liability beyond common law (e.g., unlimited)
  • Altered role under construction contract
  • Fixed fees versus % or hourly charges
  • Imposition of extra responsibilities, e.g., WHS
  • Forward new contracts to an insurance broker for review, but this only covers insurance risk.
  • Commercial aspects should be reviewed internally or via external legal advice.
  • If a contract is given at the time of invitation, include a statement reserving the right to negotiate engagement terms.
  • This ensures the focus remains on services and fees.

Maintaining the client-architect agreement

  • Managing engagement does not end when the client architect agreement is signed.
  • The architect can influence how the project proceeds, especially during construction (a key risk area).
  • The contract needs to incorporate appropriate clauses as possible:
  • Administrative work and minutes
  • Compliance with authority requirements
  • Assessment of alternatives
  • Design and document responsibility
  • Shop drawing preparation and trades coordination
  • Issuing of CAD information
  • Definition of practical completion
  • Principal contractor clauses
  • Quantity surveyor's role on team
  • Defects handling and defects liability periods
  • Building maintenance
  • Height safety and other WHS requirements
  • Commissioning furniture, signage, wall hangings, window treatments

Concluding summary

  • The fee proposal and client-architect agreement are not simply documents to sign the client up to.
  • They are opportunities to establish conduct between the architect and client during different project stages.
  • They are the opportunity to to establish the responsibilities of both parties.
  • Architects should be wary of client-provided contracts with unusual terms and unmanageable risks.

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Description

Exploration of ethical principles guiding architects when engaging with clients. Covers risk management in fixed-fee projects with vaguely defined scopes. Includes essential elements of agreements according to NSCA 2021.

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