NZIA Documents

Question 1

What are the GAP guidelines?

Answer 1

Good Architectural Practice guidelines - provides template documetns and checklists to ensure good practice through out the different stages of practice/project.

Useful for when starting as a Sole Trader

Question 2

What are the NZIA Design Guidelines?

Answer 2

Created by the Construction Liason Group

Checklists to define responsibilities of all parties involved in a project

Good for architects to check through to see what consultant responisbilties are

Good for quality assurancce

Question 3

What are the NZIA Guide Letters?

Answer 3

Guides to contnets of letters to write to your client and contractor and other parties in various situations.

From requewsting information from consultants, to thanking the contractor

Question 4

What are NZIA Pratice Alterts?

Answer 4

Advise to practices of various topics.
from topinc from CRCs to Claims against emplyoyees

Question 5

What are the key precautions architects should take to avoid extended liability in client-generated contracts?

Answer 5

• Common Law Period: Do not agree to extend the common law liability period beyond 6 years.
• Performance Standards: Refuse terms requiring performance beyond reasonable skill, care, and diligence.
• Indemnification: Avoid indemnifying the client or agreeing to liabilities beyond NZIA AAS wording.

Question 6

What does the Limitation Act 2010 dictate regarding civil proceedings related to breach of contract?

Answer 6

All civil proceedings alleging a breach of contract must commence within 6 years of the breach.

Question 7

What is the timeframe for commencing claims in tort, and what relevance does the Building Act (s91) have?

Answer 7

• Timeframe: Claims in tort must commence within 6 years of discovering or reasonably discovering the damage caused by the negligent act.
• Building Act: The Building Act (s91) provides a 10-year longstop from the date of the negligent act for all claims but is irrelevant to breach of contract.

Question 8

Why has the use of treated timber become a critical concern for architects?

Answer 8

The “Leaky Buildings” crisis has led to increased scrutiny and criticism of architects’ contribution to the problem, causing confusion among professionals, merchants, and buyers

Question 9

What advice does the New Zealand Institute of Architects (NZIA) provide regarding treated timber?

Answer 9

The NZIA advises architects to be cautious when specifying untreated framing, emphasizing the importance of treated framing, especially in cladding systems without proper drainage.

Question 10

Why is treated framing crucial in certain cladding systems?

Answer 10

Major cladding system manufacturers recommend treated framing (H1 Boric minimum, or equivalent, and H3 treatment for vulnerable areas) to prevent issues like water retention and rot.

Question 11

What caution does the NZIA express regarding H1 Boric treated framing?

Answer 11

Architects should be aware that unless kiln-dried H1 Boric treated framing is specially ordered, H1 treated framing on the market, sold as “dry,” is likely to be Light Organic Solvent Preservative (LOSP) treated.

Question 12

What challenges and considerations do architects face when dealing with treated timber?

Answer 12

Challenges include difficulties in visually identifying treatment, the need for spot testing or off-site testing, and the consideration of drying times and costs for kiln-dried framing.

Question 13

What are some common provisions found in non-standard Conditions of Engagement?

Answer 13

Non-standard conditions often include extensive indemnity and liability provisions that go beyond common law obligations, putting architects at risk.

Question 14

How do provisions found in non-standard Conditions of Engagement impact professional indemnity insurance?

Answer 14

Indemnity and liability clauses broader than common law obligations can void professional indemnity insurance, exposing architects and their practices to uninsured losses.

Question 15

How do the non-standard Conditions of Engagement differ from common law obligations?

Answer 15

The clauses impose extensive obligations without referencing reasonably foreseeable damage, allowing the client to recover for any damage, whether foreseeable or not.

Question 16

Which standard agreements reflect common law liabilities for architects?

Answer 16

NZIA AAS, ACENZ, and Conditions of Contract for Consultancy Services (CCCS) contain clauses reflecting common law liabilities for architects.

Question 17

What key phrases should architects look for in liability or indemnity clauses in non-standard agreements?

Answer 17

rchitects should be cautious of phrases such as “any claims,” “arising out of,” and “of whatsoever nature,” and insist on redrafting to reflect common law obligations.

Question 18

What advice is given regarding non-standard Conditions of Engagement?

Answer 18

Architects should weigh commercial issues with the risks involved and seek independent advice if unsure about the appropriateness of liability/indemnity clauses.

Question 19

What advice does the NZIA provide for architects in response to the challenges regarding BCAs?

Answer 19

1. Consult with the relevant BCA and understand their specific requirements for building consent applications.
2. Re-evaluate fee structures, considering a separate fee for the consent process without increasing the total fee.
3. If re-allocation is not possible, identify and communicate a separate fee for the entire consent process to the client.
4. Discuss the reasons for additional fees with clients early, emphasizing the current instability in the building industry.
5. Involve the client in every stage of the building consent process and keep them well-informed to manage expectations.

Question 20

Can employees be personally liable for work carried out for their employers?

Answer 20

Yes, claims can be brought against employees just like claims against Partners or Directors.

But PI insurance covers employees

Question 21

Who is responsible for signing Practical Completion Certificates according to the Practice Alert?

Answer 21

Partners or Directors of Architectural Practices.

Question 22

Why is it unwise for employees to sign off on drawings and specifications?

Answer 22

It exposes them to risks, and such responsibility should be with Partners and Directors.

Question 23

When are Cost Reimbursement Contracts (CRC) typically appropriate, and why?

Answer 23

CRC, often referred to as a Charge-Up Contract, is appropriate when it is difficult to be precise about a total contract price at the Tender Stage, especially in situations like remediation work after events such as the Christchurch Earthquake.

Question 24

Why is it important for the Contractor to provide an estimate of costs at the Tender Stage in a CRC?

Answer 24

It is crucial for establishing a notional Contract Price, especially for insurance purposes. This estimate can be revised as the project progresses.

Question 25

What increased duty does the CRC place on the Architect administering the Contract?

Answer 25

The CRC puts an increased duty on the Architect to monitor costs regularly and keep the Principal informed throughout the project.

Question 26

What is the The Resource Legislation
Amendment Act 2017

Answer 26

Amendments to achieve greater national consistency and direction,

This amendment Act contained close to 40 amendments. It amended five different Acts. the Resource Management Act 1991 (RMA), Conservation Act 1986, Reserves Act 1977, Public Works Act 1981, and Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2013. Consequential changes were also made to other Acts and the Resource Management (Forms, Fees and Procedure) Regulations 2003

Question 27

What is the NZIA Guide to Architects Services?

Answer 27

A doucment, primarily for clients, to understnad the architectural process and working with an architect

Question 28

What advice does NZIA provide regarding architects’ consideration of potential clients?

Answer 28

Architects should carefully evaluate potential clients, identifying those with whom there might be an unhappy relationship leading to financial losses, and assess whether the risks are manageable.

Question 29

Why does the NZIA suggest taking negative signals from clients into account when negotiating fees?

Answer 29

To cover the increased risks associated with potential problems in the client relationship, architects may need higher fees.

Question 30

Why is it crucial to ensure that the same entity negotiating the fee agreement is the one instructing the project and signing the building contract?

Answer 30

This ensures clarity about who is responsible for paying the fees and maintains consistency throughout the contractual process.

Question 31

What advice is given about changes in client identity during a project?

Answer 31

Architects should avoid agreeing to changes in client identity unless they are sure it won’t weaken their position in the project.

Question 32

Why is it essential to check the financial resources of clients before deep commitment?

Answer 32

It ensures that the client has the capability to carry out the project and fulfill financial obligations, preventing potential issues.

Question 33

What resources or methods does the content suggest for checking a company’s financial status?

Answer 33

The Companies Office, credit companies, ‘off the record views’ from business associates, and credit references from the client can provide insights.

Question 34

What potential risks are highlighted if a client goes into liquidation?

Answer 34

Bankruptcies can have a cascading effect, affecting others and creating a collapsing financial situation

Question 35

Why is overexposure to a single client’s unpaid fees cautioned against?

Answer 35

To prevent potential financial risks, it is recommended to maintain a balanced workload rather than relying too heavily on a single, enormous project.

Question 36

Why does the NZIA emphasize the importance of making written notes for orally agreed-upon decisions?

Answer 36

Oral instructions are challenging to prove, and having written notes helps in avoiding later misunderstandings or disputes.

Question 37

What precaution is suggested when clients wish to change instructions during a project?

Answer 37

Ensure clear understanding of the implications, get clients’ agreement in writing, and assess if changes justify asking for additional fees.

Question 38

Why is it advised not to wait until the end of the contract to request additional fees?

Answer 38

Requesting additional fees promptly, especially when changes occur, helps avoid delays and financial disputes.

Question 39

Why does the NZIA stress the importance of dealing with small client complaints promptly?

Answer 39

Small complaints, if not addressed quickly, can escalate into major issues and disputes, affecting fee payments and potentially leading to allegations of negligence.

Question 40

Why does the NZIA warn against encouraging over optimism regarding planning approvals?

Answer 40

Planning approvals often take longer than anticipated, and architects cannot guarantee approval, so clients should be informed of potential delays.

Question 41

What should architects advise clients if there is likely to be strong local opposition to planning approval?

Answer 41

Inform clients early about procedures and potential costs of appeals against refusal or imposition of unacceptable conditions.

Clients might go through the legal process but might not get the outcome they desire

Question 42

Why is it crucial for architects to explain the implications of planning approval conditions to clients?

Answer 42

Some conditions may need compliance by clients and successors in title, and clients should be aware of these implications.

Question 43

What potential issues may arise if planning conditions are not dealt with at the proper time?

Answer 43

Allowing work to start before addressing planning conditions may lead to a stop notice, contractor claims for delay, and subsequent claims by clients against the architect.

Question 44

What is a Section 92?

Answer 44

Further information for RC. Can only get one of these

Question 45

What is a section 37?

Answer 45

Building Act 2004

Section 37 of the Act allows local authorities to delay building work until a resource consent is gained.

Question 46

Why does the content recommend involving insurance brokers when dealing with building insurances?

Answer 46

Architects are not insurance experts, and involving brokers ensures compliance with contract requirements and helps mitigate liability risks.

Question 47

What is the suggested approach if clients do not have insurance brokers specializing in building insurance?

Answer 47

Ask clients to arrange for a specialist broker or, if they refuse, employ your own broker to check insurance documents.

Question 48

What potential risk is highlighted by NZIA building insurances?

Answer 48

Without the necessary insurance in place, there is a risk of disasters, such as fires caused by subcontractor negligence, leading to significant issues.

Question 49

What is a conflict of interest in the context of architectural practice?

Answer 49

conflict of interest arises when an architect’s activities, interests, or commitments outside the architectural practice may compromise their ability to provide impartial advice or act impartially for clients.

Question 50

Why is it crucial for architects to be impartial in their role between parties involved in a building contract?

Answer 50

The Code requires architects to act impartially between clients, contractors, and others involved in a building contract to ensure fair and unbiased advice.

Question 51

How does the NZRAB Code of Ethical Conduct address conflicts of interest for architects?

Answer 51

Architects should withdraw from a situation, remove the source of conflict, or obtain the agreement of all parties concerned when personal or professional interests conflict with those of a client.

Question 52

How does the NZIA advise architects when an agreement with clients is never finalized?

Answer 52

To avoid the ‘moving goalposts’ situation, architects should agree on a fee for preliminary work if the clients wish to start before the fee agreement is finalized. Ensuring an unqualified offer and acceptance is essential for an enforceable contract.

Question 53

How can architects protect themselves from catastrophic claims that may exceed their professional indemnity insurance cover?

Answer 53

Architects can negotiate a limit on their liability exposure to an agreed level. The level of professional indemnity insurance cover can be set as the limit of personal or company liability to the clients for a specific project.

Question 54

What is the recommended course of action for architects in case of termination of the contract by clients?

Answer 54

Refer to the contract

Architects should negotiate compensation for termination in the fee agreement, especially if the contract is terminated at an early stage. This is to cover start-up costs and increased overheads incurred for the project.

Question 55

How can architects make late payments less attractive for clients?

Answer 55

Architects can ensure they are entitled to charge interest on late payments and include this information in advance as part of the fee agreement. Offering a discount for prompt payments can also serve as an incentive for clients.

Question 56

Why is it important for architects to keep a separate fee file? (on your computer)

Answer 56

A separate fee file is crucial for easy reference to the fee agreement and relevant correspondence during the contract. Monitoring the fee agreement constantly ensures that changes leading to additional chargeable work are noted promptly.

Question 57

What is the challenging decision architects may need to make when facing acute problems with payment?

Answer 57

Architects may need to decide when to withdraw and stop working for clients if there are acute problems with payment. This decision should be made after considering legal advice on the strength of their case.

Question 58

Why does the content advise controlling the proportion of speculative work in an architectural office?

Answer 58

Controlling the proportion of speculative work is crucial to prevent it from getting out of proportion to fee-earning work and to avoid workloads and cash flow pressures. Architects should specify the amount of speculative work they will carry out before a project becomes fee-earning.

Question 59

What are some reasons for not getting paid for architectural services?

Answer 59

Architects may not get paid due to various reasons, including performance issues, not sending out payment requests, overdue payments, contract cost and time overruns, misunderstandings over agreements, extra work without written confirmation, clients’ delays or refusals, and clients lacking the means to pay.

Question 60

How does the NZIA suggest architects can avoid legal action to recover fees?

Answer 60

Architects can avoid legal action to recover fees by ensuring client satisfaction before sending out fee requests, sending out fee accounts on time, having a fee-chasing system for overdue payments, keeping clients informed about project issues, avoiding misunderstandings over agreements, and checking clients’ payment records and means before agreeing to work.

Question 61

What questionnaire items are suggested for architects to include when dealing with ‘one-off’ clients?

Answer 61

The suggested questionnaire for ‘one-off’ clients includes inquiries about the type of building required, the desired completion time, the budget, and the preferred procurement method. It covers aspects such as building use, life expectancy, size, special requirements, flexibility, future extensions, vehicular access, services, quality, and more.

Question 62

Why is it important to discuss the quality of the finished building early in the briefing process?

Answer 62

Discussing the quality of the finished building early is important to establish whether clients expect a higher standard than the generally accepted ‘normal.’ Quality standards should be reflected in budget cost estimates, contract documents, details, and specifications.

Question 63

How can architects handle clients’ nomination of specialists or materials in the brief?

Answer 63

If clients wish to nominate certain materials, products, or specialists, architects should establish these as part of the brief. It may affect the design, and these nominations need to be incorporated into production drawings, specifications, and the design process.

Question 64

What factors should architects consider when clients express the need for staged completion?

Answer 64

When clients express the need for staged completion, architects should define the nature and timing of phased or sequential completions. They should assess if these can be accommodated, potential problems with planning approval, and the cost and timing implications.

Question 65

How does the content suggest architects address clients’ budget costs and project funding in the briefing process?

Answer 65

Architects should inquire about clients’ contemplation of total costs, the elements making up the total cost, and whether the budget is realistic. If the clients’ cost budget is unlikely to be met, architects should address the problem by either persuading clients to increase their budget or reduce their building requirements. Additionally, architects should inquire about project funding, including who will provide the funding, any special requirements, and the extent of the funder’s involvement.

Question 66

What considerations should architects take into account regarding clients’ cash flow during the project?

Answer 66

Architects should assess whether the cash demands of the project match clients’ cash flow. Providing clients with a provisional cash flow estimate, including timing and approximate amounts of payments for planning and statutory approvals, consultants’ fees, and contractors’ certificates, helps align expectations and avoid financial issues.

Question 67

What is the significance of addressing third-party warranties in the clients’ brief?

Answer 67

Architects should inquire whether clients require professionals and contractors to provide third-party warranties. Understanding the terms and potential cost or liability problems is crucial. Failing to address this early may lead to problems if clients insist on warranties that were not part of the original agreement.

Question 68

Why does the NZIA suggest architects discuss procurement methods early in the briefing process?

Answer 68

Discussing procurement methods early is crucial because the chosen method significantly affects how the design programme is organized and the contract is placed. Identifying the most appropriate procurement route based on the clients’ requirements helps avoid potential problems later on.

Question 69

What factors should architects consider when determining the best procurement method for a project?

Answer 69

Architects should consider factors such as time constraints, cost sensitivity, the level of control clients want over detailed design development, and the desire for a guaranteed final cost without extras. Different procurement methods, such as traditional forms, design/build, or construction management, may be more suitable based on these considerations.

Question 70

Why does the content suggest architects build their own checklist for establishing clients’ briefs?

Answer 70

Building a checklist helps architects ask the necessary questions to establish clients’ briefs effectively. While the provided checklist in the content is not comprehensive, architects are encouraged to develop their own detailed checklist to cover various clients and building types.

Question 71

What challenges may arise in a design-build contract if the clients make changes to the project after the contract is signed?

Answer 71

In a design-build contract, changes requested by clients can lead to costly variations. If clients want to control design or haven’t settled design requirements before signing the contract, variations may occur, impacting the fixed price and causing complications.

Question 72

What should architects consider regarding insurance responsibilities in the tender documents?

Answer 72

Architects should agree with clients the contractors’ insurance responsibilities under the contract. If uncertain about appropriate insurance, clients should consult their brokers or experts in the field. Architects should not take on responsibilities for insurance without expertise.

Question 73

In the context of completion time, what does “time is of the essence” mean, and how should architects handle it?

Answer 73

Time is of the essence” means that completion time is crucial to the contract. Architects must specify a completion date if time is of the essence. The level of liquidated damages should be agreed upon, ensuring they are no more than the estimated financial loss to clients if completion is delayed.

Question 74

Why is it important to confirm site availability and the time specified between tender acceptance and the start of construction in tender documents?

Answer 74

Confirming site availability ensures that the whole site can be made available to the contractor on specified dates. The time between tender acceptance and the start of construction should be sufficient for architects to provide necessary information and avoid delays. Checking these aspects helps prevent complications during the construction phase.

Question 75

What caution does the content provide regarding recommending contractors to clients?

Answer 75

efore recommending contractors, architects should check the suitability and financial strength of all contractors, as well as key subcontractors and suppliers. It is essential not to outright recommend contractors but instead advise that there is reason to believe they may be suitable for the project. This cautious approach helps architects avoid potential issues related to contractor bankruptcy or termination of the contract.

Question 76

Why does the content emphasize checking the financial strength of contractors before recommending them?

Answer 76

Checking the financial strength of contractors is crucial to ensure that the clients are not at risk of financial loss if the contractors face bankruptcy during the contract or if issues arise related to the quality of their work or progress. Reasonable checks before recommending contractors provide architects with a strong defense against potential claims that it was their fault.

Question 77

What risks are associated with starting work on site before the contract documents are finalized and signed?

Answer 77

Starting work on site before finalizing and signing the contract documents can lead to legal disputes and arguments later. It is not recommended unless unavoidable. Architects should advise clients against issuing “letters of intent” and emphasize the importance of having signed contracts before commencing any construction work to avoid costly legal problems.

Question 78

Why is it important to provide an executive summary of important obligations to clients when asking them to sign contract documents?

Answer 78

Providing an executive summary of important obligations helps ensure that clients understand their responsibilities, especially regarding variation clauses and the need to avoid client changes during construction. This can help prevent misunderstandings and potential disputes.

Question 79

Why is it important to monitor how variations affect the final contract cost during construction?

Answer 79

Constant monitoring of variations helps control costs and keeps clients informed of the impact of significant “extras.” Architects should have procedures for advising Variation Price Requests and Variation Orders, obtaining clients’ agreement to avoid surprises later in the project.

Question 80

What is the primary responsibility of architects during site observation?

Answer 80

The primary responsibility of architects during site observation is to periodically observe the work in progress to ensure it aligns with the contract. This involves checking that important items of work or specific stages are in accordance with the contract, particularly before issuing certificates for payment.

Question 81

How does day-to-day observation of work differ from site supervision and inspection?

Answer 81

Day-to-day observation of work is not equivalent to site supervision or inspection. Architects are not supervising the work, which is the contractor’s responsibility, or inspecting the work, which is the role of the Consenting Authority. Day-to-day observation involves periodically checking work progress to ensure it complies with the contract.

Question 82

What is emphasized regarding site visits during construction projects?

Answer 82

During construction projects, site visits should not only focus on meetings to discuss progress and problem-solving but also prioritize the observation of work in progress. Architects should time their visits to coincide with crucial stages of work rather than adhering to regular intervals, ensuring effective monitoring and assessment of construction activities.

Question 83

Can clients and contractors contract out of the payment provisions of the Construction Contracts Act 2002?

Answer 83

No, clients and contractors cannot contract out of the payment provisions of the Construction Contracts Act 2002. The act establishes mandatory payment provisions that must be followed. Architects, when nominated in the contract, have specific administrative responsibilities regarding payments.

Question 84

What should architects do to ensure payments are accurate and that overpayment is avoided?

Answer 84

Architects should ensure that clients are informed about work that is not acceptable, allowing adjustments to the payment schedule before issuing it to the contractor. Architects must be cautious about overpayment, as it may result in a claim for negligence from clients in the event of contractor bankruptcy. Overpayment can be corrected in subsequent payment schedules.

Question 85

In the absence of a Quantity Surveyor, what responsibilities does the architect have regarding valuations for interim claims?

Answer 85

In the absence of a Quantity Surveyor, the architect is responsible for checking and agreeing to the contractors’ valuations for interim claims. The architect should have a priced specification or schedule of work to check completed work items and estimate the value of partially completed work, erring on the side of caution.

Question 86

Should you certify offsite fittings?

Answer 86

Be very careful with including the value of prefabricated items or fittings being manufactured off site. Ideally, do not include them until they are on site and fixed. With large items with
long manufacturing times this may not be realistic so visit where they are manufactured to ensure they
have reached the stage and value claimed.

Question 87

What are the challenges and considerations related to issuing practical completion certificates, and what is the architect’s role in this process?

Answer 87

Issuing practical completion certificates can be challenging, as contractors often want it issued early for retention release and to start the defects liability period. Clients may want to delay it for various reasons. The architect must act impartially and decide based on contract wording. If there are outstanding items or reasons preventing occupation, the certificate should not be issued. Attach a schedule of outstanding or defective items when issuing the certificate.

Question 88

What should architects do after completing their duties under a construction contract?

Answer 88

After completing duties under a construction contract, architects should pack up the files, title them clearly, and place them in dead file storage. These files should be kept for at least 15 years for record-keeping purposes

Question 89

How should architects handle claims and their defense under Professional Indemnity Insurance?

Answer 89

When facing a negligence claim, architects should not admit liability and must notify insurers immediately. Insurers handle claims, and architects should be honest and objective with their solicitors. Records should be kept in order, and architects should not attempt to negotiate settlements independently, as it may prejudice their cover. Architects should be cautious about the disclosure of documents, as these may need to be shared with the other party in legal proceedings.

Question 90

What is an insurance propsal form?

Answer 90

A proposal form is a formal application document that an individual fills out when applying for an insurance policy.

Question 91

What is the potential benefit of practicing through a limited liability company for architects?

Answer 91

Protects shareholders assets.

Practicing through a limited liability company can virtually remove the risk of a catastrophic claim making architects bankrupt.

Question 92

What authority does the NZ Registered Architects Board (NZRAB) have over architects?

Answer 92

The NZRAB has the authority to discipline architects found guilty of discreditable conduct, professional incompetence, or criminal convictions.

Question 93

What disciplinary actions can the NZRAB take against architects?

Answer 93

The NZRAB can take various disciplinary actions, including public censure, suspension, removal of the architect’s name from the Register, and imposing fines if found guilty.