Client Architect Agreement (Melany)

Question 1

The ‘Budget’ is based on which of the following?

• the Total Project Cost
• the Cost of Works
• the Contract Price
• the Cost of Building Work

Answer 1

The Cost of Works

Question 2

Define the Cost of Works.

Answer 2

• Excludes GST
• The final cost of all work designed, specified or scheduled by the architect & special consultants (when coordinated by the architect), including:

_ the final adjusted Contract Price (or in the case of ABIC, the Cost of Works).
_ the equivalent final cost (excl GST) of any works supplied by the client to the builder for incorporation into the works.
_ the final cost (excl GST) of any part of the project provided under a contract other than the building contract.

Question 3

Is the Cost of Works inclusive or exclusive of GST?

Answer 3

The Cost of Works is excluding GST.

Question 4

Is the Total Project Cost including or excluding GST?

Answer 4

The Total Project Cost includes GST.

Question 5

Is the Contract Price including or excluding GST?

Answer 5

The Contract Price includes GST.

Question 6

Is the Cost of Building Work including or excluding GST?

Answer 6

The Cost of Building Work excludes GST.

Question 7

Which of the 4 is the Architect not responsible for?

• the Total Project Cost
• the Cost of Works
• the Contract Price
• the Cost of Building Work

Answer 7

The Total Project Cost.

Question 8

What is the Project Cost inclusive of?

Answer 8

• GST
• removal and relocation costs
• design and construction contingencies, incl escalation
• architectural and consultants fees
• authority fees and charges
• legal fees
• landscaping
• loose furniture, fittings and equipment
• finance delays, marketing and promotional costs

Question 9

Could you argue that the Cost of Works set out in the CAA is effectively equivalent to the Cost of Building Work in the ABIC contract?

Answer 9

(I have to check this with Andrew)…

No.
Both are excluding GST, but:

The difference is that that Cost of Building Works includes the cost of installation for client supplied items, but not the cost of the items themselves. In comparison:

The Cost of Works also includes the cost of client supplied items to be included in the building works.

Question 10

What does the Liability Cap cover?

Answer 10

Claims from building defects ONLY (not injury).

Note from week 3 state that the amount of the Liability Cap nominated in the CAA is equivalent to the amount of the architect’s fees (but then lawyers apparently define it as equal to the cost of the project).

Question 11

How long is the liability cap for building defects in Victoria?

Answer 11

10 years, from the date of practical completion (or when the occupancy certificate was used).