Client-Architect Agreement: Project Briefing

• Knowledge of the client-architect agreement and its components is critical for a successful project.
• The scope of services and fee structure must be understood for proper project servicing.
• The presenter is Ted Quinton, Partner (NSW ARB 6880) MASQ, a registered architect with 20 years of experience in residential architecture, teaching at UNSW.
• Learning outcomes include understanding why a client-architect agreement is required, its principles and components, how to develop a project brief, scope of services and budget, and how to set a fee.
• The module relates to competencies from the National Standard of Competency for Architects 2015, specifically Design: Project Briefing, involving preparation and endorsement of an agreement between client and Architect.
• The agreement communicates clearly the terms, services and appropriate fees for the scale and type of project.
• NSCA 2021 Performance Criteria: Practice Management and Professional Conduct, apply essential elements of a client architect agreement across procurement methods. Includes alternatives for partial services and the engagement of secondary and sub-consultants.

Core Architectural Services

• The client-architect agreement (CAA) provides a clear outline and template between client and architect.
• It highlights core and additional services, direction on insurances, liability and stipulates fees for each service stage and payment terms.
• Core architectural services are the main services for projects, but the extent of services needs agreement between architect and client.

Concept Design

• Concept design is the first project stage.
• Understanding the brief, site conditions, parameters and constraints is important before drawing.
• Developing the brief with the client is a foundation for the sketch design process. Evaluation of planning codes gives an indication of the building's form and bulk, which can be related back to the brief and space requirements.
• Cost estimates assist with relating brief to budget to planning constraints.

Design Development

• After concept approval, the design is developed further with more information and accuracy. This includes CAD plans and detailed building elements, facades, internal layouts, sections etc.
• Project costs can be reviewed and updated, consultants engaged, and their information coordinated.
• Design development drawings can be used for preliminary discussions with planning authorities.

Authority Approval Stage

• Upon client approval, the drawings progress to the authority approval stage, which could be local council, complying development approval, or state government approval.
• Scope of project and work determine fees.
• Scope involves:
  • Finalising architectural drawings.
  • Integrating consultant information.
  • Finalising materials and finishes.
  • Updating cost estimates.
  • Coordinating documents for lodging the application on the client's behalf.

Construction Documentation

• Upon approval from the authority, construction documentation starts.
• Preparation of the construction certificate (CC) is a sub-area, involving a set of drawings addressing conditions of consent and requirements under codes or standards.
• This is assessed against parameters by a private certifier or the local consent authority.
• Developed drawings include:
  • Larger scale plans.
  • Sections.
  • Elevations.
  • Schedules.
• Compliance drawings.
• Drawings, documents and specifications describe the works in detail.

Tender Stage

• Selecting the right contractor can be involved, with good construction documents assisting in accurate cost estimation.
• Two tender processes:
  • Asking for tenders from several contractors.
  • Negotiating directly with one contractor.
• The architect's involvement is more when calling for tenders, less when negotiating with one tenderer.
• Tendering involves preparing tender documents, responding, assessing tenders, recommending and assisting with negotiations and final contractor selection.

Contract Administration

• Covers the contract administrations services stage.
• Prior to construction, the contract needs preparation and signing; the architect can offer this.
• Contract administration is a comprehensive service during construction and post-construction stages.
• This stage involves managing the project during construction, attending site, keeping records, providing clarifications, assessing claims, adjusting time and cost, coordinating consultants, reviewing drawings, assessing completion and advising of defects.
• Post-construction includes involvement in the defects liability period, advising on rectifications, determining completion and issuing the final certificate.
• The architect's role is extensive and complex. Comprehensive information allows for a smoother construction stage and associated contract administration services.

Additional Architectural Services

• Can also include:
  • Feasibility studies
  • Attending or negotiating with the approval body
  • Recording of the site/building(s)
  • 2D/3D visualisation/marketing drawings
  • Trade breakdown packages
• Specific requested services can be added schedule section of the agreement.

Cost

• Determining cost is a crucial aspect of the CAA. The budget should reflect the scope of works.
• Project cost and construction cost should be understood and clarified.

Total project cost

• The total available funds for the project.
• It includes building, provisional sums, escalation, contingency sums, consultant's fees, GST, furniture and equipment, approval costs and any other cost defined by the client.

Cost of works

• Is the net cost excluding GST which is work designed, specified or scheduled by the architect, including work designed, specified and/or scheduled by specialist consultants and coordinated by the architect.

Time

• A realistic timeframe is important for client understanding.
• Be careful not to set timeframes that are not possible and be wary of expectations set by the client that cannot be met. Stages like approvals can be hard to anticipate. Keeping the client informed is part of the scope of services.

Fees

• Establishing fees is a aspect of the CAA.
• Fees are based on a combination of scope of services and a budget. Agreements are set at the outset. Negotiations should be on scope not on price.
• Ensure clarity around what will and won't be done, reflected in the scope of services and itemized clearly in the schedules, ticked or struck out.

Fee structures

• The CAA provides three fee structures: percentage, lump sum or hourly rates.
• The fee type depends on the project type, client, office policy and other factors.
• Percentage fees are calculated on the cost of works and are adjusted throughout the project.
• Lump sum fees are set against an agreed scope/brief. If that changes then the fee is recalculated/hourly rates apply.
• Timesheets should be kept to substantiate hours when issuing invoices.
• Project cashflow is important for practice and office.
• The CAA allows for monthly invoices with 10-day payment terms.
• Architectural work is prior to invoicing to ensure good cashflow.
• If hourly rates are charged, maintain good records and timesheets along with disbursements and reimbursements for non-fixed amounts ensures trust and confidence.

Specialist consultants

• Projects need specialist consultants.
• Typically, the client engages them directly with the architect coordinating, advising, and assessing invoices and work .
• In some cases, the architect wants to engage a consultant directly. In this situation the payment and performance of is the architect's responsibility and their fee needs to be covered in the architect's fee agreement with the client.
• The CAA looks at core services that an architect provides. This forms a segment of the agreement and ensuring the client understands the services is important. The fees charged are linked to the services offered and the method should be determined as part of the agreement.