35 Questions
What term does the AIA traditionally use in the titles of its professional services contracts?
Agreement
Who directed the AIA Contract Documents program during the 1970s?
Alan Stover
What is reviewed in Chapter 16 of the handbook?
Risk Management
What is the principal author of The American Institute of Architects Official Guide to the 2007 AIA Contract Documents?
Alan Stover
What is one reason why architects should consult an attorney about using, completing, or modifying a standard form?
To address variation in statutory and case law among jurisdictions
What is a key advantage of using AIA standard forms for both parties?
Describing services and client responsibilities in detail
What do AIA standard forms cover?
Situations, conditions, and contingencies most frequently encountered
What is the importance of clearly defining architectural deliverables?
To ensure a successful project
What may happen if there is no agreement on compensation for architectural services?
Contract failures may occur
What is the duty of an architect under the professional standard of care?
To comply with building codes and produce adequate construction documents
What do implied terms in a contract refer to?
Terms not specifically mentioned but inferred based on obligations and professional standard of care
Why have clients increasingly demanded more specificity in architectural contracts?
To impose a higher standard of care
What do Risk Management Strategies (16.1) and Agreements with Owners (17.1) provide further information on?
Managing risks and creating contracts in architecture practice
In what ways can courts determine reasonable compensation if an agreement is silent on it?
Based on previous payments, architect's normal charges, or community standards
What do express terms in a contract refer to?
Specifically agreed upon terms, either verbally or in writing
What do architectural agreements encompass?
Design-Bid-Build, Design-Build, Construction Management at Risk, Integrated Project Delivery
Why is it important for architects to consider delays caused by external factors?
To manage client expectations and avoid disputes
How do architectural contracts vary depending on specific project requirements?
In the architect's role, responsibilities, and liabilities
Which type of agreement should be avoided except for the simplest, shortest, and least costly undertakings on behalf of a known and trusted client?
Oral agreements
What did movie mogul Samuel Goldwyn say about verbal agreements?
They aren't worth the paper they are written on
What is the biggest problem with verbal agreements?
Difficulty in proving agreed upon terms
What should architects do when working under a verbal contract?
Confirm the terms of any verbal agreement in writing as soon as possible
What does the text recommend to remedy omissions in proposal letters?
Incorporate by reference or attach an AIA form or other terms and conditions document
What is considered when a client responds to an architect's proposal with any change in the terms?
A rejection of the architect's proposal and a counteroffer
What should be noted in the contract if a letter agreement is subsequently replaced with a formal written contract?
The integration clause should note that it specifically supersedes the prior letter agreement
What happens if a client responds to a proposal by asking the architect to proceed with services as outlined, but without making a firm commitment to the price or other terms or returning a countersigned copy?
The oral authorization to proceed may be the only contract there is, subject to difficulties encountered with oral agreements.
What is the term used to describe the legal ability of the parties to enter into a contract?
Capacity
What is the underlying purpose of a contract in terms of legality?
Must be legal and not require the performance of an illegal act
What is required for a business relationship to be recognized as a contract enforceable by law?
Mutual agreement or meeting of the minds
What is necessary for consideration in a contract?
Exchange of values between the parties
What can affect the intent of entering into a binding legal agreement?
Mistakes, misrepresentations, fraud, or undue influence
What type of contracts are required by law to be in writing under the Statute of Frauds?
Those involving real estate, financial guarantees, or contracts for the transfer of a copyright.
What must be defined to create a legally enforceable agreement?
The services to be provided, time for performance, and the price for those services.
What affects contracting capacity?
Felony convictions or debarment/suspension by government agencies.
What is recognized as legal consideration in a contract?
Exchange of values between the parties
Study Notes
- A contract for architectural services is an enforceable agreement between a client and an architect, signed under the title of "Professional Services Agreement."
- For a business relationship to be recognized as a contract enforceable by law, it must meet certain tests and have clear terms. This is known as the "mutual agreement" or "meeting of the minds."
- A contract requires consideration, meaning there must be an exchange of values between the parties. Mutual promises are recognized as legal consideration.
- Capacity is the legal ability of the parties to enter into a contract. Felony convictions or debarment/suspension by government agencies can affect contracting capacity.
- The underlying purpose of the contract must be legal and not require the performance of an illegal act. An architect must ensure they are licensed to practice in the state or jurisdiction in question.
- The parties must have the mutual intent of entering into a binding legal agreement. Mistakes, misrepresentations, fraud, or undue influence can affect the intent.
- Some contracts are required by law to be in writing under the Statute of Frauds, such as those involving real estate, financial guarantees, or contracts for the transfer of a copyright.
- Essential terms of a contract must be defined to create a legally enforceable agreement. These terms include the services to be provided, time for performance, and the price for those services.
- The complexity of modern design and construction may necessitate a more detailed contract beyond just agreeing to design a client's house.
Test your knowledge of architectural project descriptions by examining the important details such as location, building type, size, quality, cost, and deliverables. This quiz will assess your understanding of how to provide specificity in describing architectural projects.
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