A Project Establishment Flashcards
What are the four sections of the NZIA AAS?
A Contract
B Scope of Services
C Fees
D General Conditions
Name three fee-charging options
Lump Sum Fee Basis
Time Charge Fee Basis
Percentage Fee Basis
What is the CIC
Construction Industry Council
The Contract Works achieve Practical Completion when:
- They are able to be used for their intended purpose.
- They have been built in accordance with the contract documents.
- They are complete except for; minor, agreed and undiscovered omissions and defects.
- Any items listed in the specific conditions of the contract - warrantees etc.
How much insurance is required in AAS?
Standard in AAS is PI “not less than” $250,000
PL “not less than” $1M
If a greater amount is required by the client, the cost of the additional amount will be at the client’s expense.
Things to consider if setting up a project specific agreement with another architect?
- Normal project considerations on risk
- Compatibility with the other architect
- Scope of services and structure
- Fee split
- Formal agreement - legal and insurance advice.
What is a Novated Contract?
Novation means replacing one party to the agreement (the client) with another party (the builder).
The aim of these agreements is to provide less risk to the financier - banks. It is a form of design-build contract where the client has greater involvement in the early stages of design.
What is a Joint Venture, what are some advantages and disadvantages?
A formal business agreement entered into by two or more forms for one ore more specific projects.
Advantages; greater opportunities, client reassurance and convenience, extension of geographical area reached, combining resources.
Disadvantages; time and cost to establish, legal and insurance requirements, liability risk, who is entitled to the glory?
Why do Limited Services increase the architects exposure to litigation, and the clients risk?
- The client and contractor may change critical details and substitute materials without the architect’s knowledge.
- There may then be no certainty that the construction complies with the architect’s documentation or consents.
- The architect may be asked to certify works which have not been subject to adequate observation.
A saying to remember for selecting a client
It is as important for the architect to select a client as it is for the client to select an architect.
NZIA Practice note has some guidance on things to think about for this.
What must you do before starting work?
Obtain a written agreement.
Under the NZRAB Code of Minimum Standards of Ethical Conduct a registered architect must not undertake professional work unless the registered architect and the client have agreed to the terms of the appointment.
Name six reasons you may wish to resign from an architectural commission:
- Non payment of agreed fees
- Refusal to pay for increased services
- Refusal to finance site survey
- Refusal to finance specialist consultants
- Unrealistic requirements for budget or time
- Persistent bypassing the architect to deal directly with other consultants or contractors.
NZIA AAS contains provisions specific to ending the agreement, and separate provisions for dispute resolution.
Responsibilities to remember if you wish to resign from an architectural commission:
- Architect’s Act
- Planning and building regulations
- Consumer Legislation (CGA, FTA)
What is a Fast Track Project?
Design and Construction activities overlap rather than proceeding sequentially, which allows construction to commence before all design or documentation is completed.
What are some things to consider in tenancy works?
- Occupation of the building
- Ease of access for contractors
- When will the contract works be carried out (e.g. after main building works, during defects liability, after PC?)
- Who is paying
- Relationship and communication channels
- Lease conditions
Common causes of complaints against architects?
Failure to meet client expectations
Poor communication
Poor technical performance
What is required for effective communication with your client?
- A written agreement
- Discussion about the agreement
- Keep the client informed
- Be accessible to the client
- Act upon instructions from the client
- Take minutes or confirm in writing
How to meet client expectations?
- Establish realistic design expectations
- Explain the project clearly
- Successfully manage time, cost and quality
- Be realistic with contingencies and omissions
- Be clear with inclusions and exclusions
- Be clear with role definitions
- Provide continuous cost reporting
What to do if engaged for earthquake remediation works?
Read NZIA Practice Note and take lots of photos
What to do if asked to be an expert witness?
Consider if you are an expert?
Read the NZIA practice note
Define Observation
Visiting the site at times/dates entirely at the architect’s discretion to observe that the contract works are generally being built in accordance with the contract documents.
What to do if you notice the works are not being built in accordance with the contract documents?
Report in writing to the client and contractor and to the person that has the role of administering the contract.
What should you do if the client wants to negotiate a cheaper fee for site visits for observation - e.g. fortnightly or monthly?
Advise, in writing, that you will not carry out any observation nor will you issue a practical completion certificate.
When should you use the NZIA SMALL Projects AAS?
When fees are less than $5k
Can you contract out of the CGA?
Only if the other contracting party is in trade, and only if this is fair and reasonable.
What does ‘in trade’ mean?
Any trade, business, industry, profession, occupation or activity of commerce.
What defines fair and reasonable?
- Respective bargaining power of the parties
- The extent to which the parties were able to negotiate the terms of agreement
- Whether a party was required to accept or reject the agreement on the terms and conditions presented
- Whether the parties received legal advice
Why is it important to know the cost of doing work?
- What to charge for certain services
- Calculating fee bids
- Budgeting
What is the value of an individual’s time?
Cost + Overheads + Profit + Value added
Should percentage based Architect’s fees be on cost of construction including or excluding GST?
Excluding. Then add GST if the architect is GST registered.
What must you do if you’d like to issue your invoice as a payment claim under the Construction Contract’s Act 2002?
Attach the notice from the NZIA practice note.
What are the 9 items your invoice must contain in order to be a Payment Claim?
- Be in writing
- Identify the contract
- Identify the work done
- Identify the relevant period
- State the claimed amount
- State the due date
- Indicate how the claimed amount was calculated
- State that the claim is made under the CCCA
- Include the notice
What does the AAS set out?
The offer
Acceptance
Responsibilities
Procedures for when things go wrong.
Disputes Process? (Under AAS)
- Identify in Writing
- Agree on expert for determination (2 days)
- Refer to the Arbitrators and Mediators Institute of New Zealand - 15 days to make determination.
What would be good to include in an initial client meeting proforma?
- Cover - Logo and Name
- Practice Philosophy
- Architect’s Team
- Project Info
What information should be sought at the first meeting?
Brief Legal Description of the Site Budget Site Survey Information Geotechnical Information
What to tell the client in regard to preliminary fee indications?
- Can provide a range
- Be able to outline options
- Advise additional services from other consultants etc.
- GST
What happens if the client wishes to terminate the agreement?
Under D16 - 16.3 in the general conditions of AAS, either party may terminate the agreement. If the client’s reason is for anything other than the material default of the architect then the client agrees to pay the architect any loss of profits resulting for the architect’s non-completion.
