Area A - Project Initiation Flashcards
How would you go about winning work if you had your own company?
Open tender sites, networking, online portfolio listings, word of mouth, competitions
What happens during initial client contact meetings? What information are you looking for?
Brief, budget, time, client and architect ‘fit’.
Enough info to set the parameters for the agreement for services.
What are joint ventures? And what insurances are required?
A joint venture is a formal business agreement of two or more firms for the purpose of teaming up to deliver a specific project. Need: formal written agreement covering The parties to the agreement The purpose Scope of work Definition of roles and authority Disputes res Fee split Liability and insurances - same levels of insurance held, share common insurer to avoid disputes. Check apportionment of excess Copyright and acknowledgements
What makes up a proposal for services?
Under rule 58A of code of ethics: The scope of work Allocation of responsibilities Limitation of responsibilities Fees and methods of calculating How billing will occur
What are the four parts of the AAS and other standard agreements and the risks behind them?
Part A - contract agreement (Includes Special Conditions)
Part B - scope of services
Part C - fees
Part D - general conditions
CCCS - conditions of contract for consultancy services (client driven)
Form of agreement
General conditions
Appendix A-G covering scope, fee, personnel, insurances (specific conditions)
Special conditions part A - specific conditions of contract
Special conditions part B - other conditions of contract
Differences in copyright and default insurance provisions.
Copyright provisions under different agreements?
AAS - architect retains copyright and grants client a conditional and non-exclusive right to use for scope of that project only.
CCCS - client and architect share new copyright (not pre-existing IP)
Risks of engaging sub-consultants?
Cash flow - Construction contracts act - removes old pay when paid approach. If client defaults on their payment to you, cashflow is compromised as you still pay consultant.
Management load increased - under performance your problem
Insurance - you are liable for their work.
What are the standard methods for setting fees? How does your company do it and why?
Lump sum - in relation to a fixed scope, deliverables and budget.
Time charge - risk management if scope is fluid or something else complex on the project
Percentage - relates back to the construction cost ex GST.
Usually a multi-pronged manner, I.e lump sum will be calculated based on expected time required to deliver, checked against an overall percentage…
Risk allocation strategy and project dependent.
How do you ask for additional fee? What is the process?
Set up a meeting or write a letter that outlines the reasons for additional fee - relate it back to the limitations of scope or the programme in the fee agreement.
Fact based - possibly outline goodwill shown to date (if any)…
Limited services agreement - how would you approach this?
Explain risks to the client - they take on increased responsibility for project delivery.
Our fee is higher than usual to complete up to building consent as the documentation has to be completed to an increased level - no opportunity to monitor and resolve on site.
Time - longer as per above.
Suggest being involved in procurement to make sure a reputable contractor is involved - maybe someone you have worked with before.
What four aspects are required for a contract to be valid? Under contract law?
Offer
Acceptance
Consideration
Intention
What do you need to consider when hiring sub-consultants?
Check your PI cover allows for sub-consultants as it will need to cover their work too.
Know the risks of supervising someone’s whose work and expertise is outside your own knowledge.
Back to back terms that reflect your terms with the client
They need to remain in business for at least 6 years after PC and maintain PI cover
Use nzia pro forma (SPA one)
Ask to enclose your agreement with client
How is the fair trading act applicable?
The FTA protects you from being misled about products or services. It prohibits false or misleading product advertising.
Insurance provisions under NZIA AAS and CCCS?
Professional Indemnity: AAS = $250,000 and CCCS = 5 x fee (min $500,000 - max $2mill)
Public Liability: AAS = $1mill and CCCS = $2mill or $10mill
