NZIA Documents Flashcards
1
Q
What are the GAP guidelines?
A
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
2
Q
What are the NZIA Design Guidelines?
A
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
3
Q
What are the NZIA Guide Letters?
A
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
4
Q
What are NZIA Pratice Alterts?
A
Advise to practices of various topics.
from topinc from CRCs to Claims against emplyoyees
5
Q
What are the key precautions architects should take to avoid extended liability in client-generated contracts?
A
- 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.
6
Q
What does the Limitation Act 2010 dictate regarding civil proceedings related to breach of contract?
A
All civil proceedings alleging a breach of contract must commence within 6 years of the breach.
7
Q
What is the timeframe for commencing claims in tort, and what relevance does the Building Act (s91) have?
A
- 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.
8
Q
Why has the use of treated timber become a critical concern for architects?
A
The “Leaky Buildings” crisis has led to increased scrutiny and criticism of architects’ contribution to the problem, causing confusion among professionals, merchants, and buyers
9
Q
What advice does the New Zealand Institute of Architects (NZIA) provide regarding treated timber?
A
The NZIA advises architects to be cautious when specifying untreated framing, emphasizing the importance of treated framing, especially in cladding systems without proper drainage.
10
Q
Why is treated framing crucial in certain cladding systems?
A
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.
11
Q
What caution does the NZIA express regarding H1 Boric treated framing?
A
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.
12
Q
What challenges and considerations do architects face when dealing with treated timber?
A
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.
13
Q
What are some common provisions found in non-standard Conditions of Engagement?
A
Non-standard conditions often include extensive indemnity and liability provisions that go beyond common law obligations, putting architects at risk.
14
Q
How do provisions found in non-standard Conditions of Engagement impact professional indemnity insurance?
A
Indemnity and liability clauses broader than common law obligations can void professional indemnity insurance, exposing architects and their practices to uninsured losses.
15
Q
How do the non-standard Conditions of Engagement differ from common law obligations?
A
The clauses impose extensive obligations without referencing reasonably foreseeable damage, allowing the client to recover for any damage, whether foreseeable or not.
16
Q
Which standard agreements reflect common law liabilities for architects?
A
NZIA AAS, ACENZ, and Conditions of Contract for Consultancy Services (CCCS) contain clauses reflecting common law liabilities for architects.
17
Q
What key phrases should architects look for in liability or indemnity clauses in non-standard agreements?
A
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.
18
Q
What advice is given regarding non-standard Conditions of Engagement?
A
Architects should weigh commercial issues with the risks involved and seek independent advice if unsure about the appropriateness of liability/indemnity clauses.
19
Q
What advice does the NZIA provide for architects in response to the challenges regarding BCAs?
A
- Consult with the relevant BCA and understand their specific requirements for building consent applications.
- Re-evaluate fee structures, considering a separate fee for the consent process without increasing the total fee.
- If re-allocation is not possible, identify and communicate a separate fee for the entire consent process to the client.
- Discuss the reasons for additional fees with clients early, emphasizing the current instability in the building industry.
- Involve the client in every stage of the building consent process and keep them well-informed to manage expectations.
20
Q
Can employees be personally liable for work carried out for their employers?
A
Yes, claims can be brought against employees just like claims against Partners or Directors.
But PI insurance covers employees
21
Q
Who is responsible for signing Practical Completion Certificates according to the Practice Alert?
A
Partners or Directors of Architectural Practices.
22
Q
Why is it unwise for employees to sign off on drawings and specifications?
A
It exposes them to risks, and such responsibility should be with Partners and Directors.
23
Q
When are Cost Reimbursement Contracts (CRC) typically appropriate, and why?
A
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.
24
Q
Why is it important for the Contractor to provide an estimate of costs at the Tender Stage in a CRC?
A
It is crucial for establishing a notional Contract Price, especially for insurance purposes. This estimate can be revised as the project progresses.
25
What increased duty does the CRC place on the Architect administering the Contract?
The CRC puts an increased duty on the Architect to monitor costs regularly and keep the Principal informed throughout the project.
26
What is the The Resource Legislation
Amendment Act 2017
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
27
What is the NZIA Guide to Architects Services?
A doucment, primarily for clients, to understnad the architectural process and working with an architect
28
What advice does NZIA provide regarding architects' consideration of potential clients?
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.
29
Why does the NZIA suggest taking negative signals from clients into account when negotiating fees?
To cover the increased risks associated with potential problems in the client relationship, architects may need higher fees.
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?
This ensures clarity about who is responsible for paying the fees and maintains consistency throughout the contractual process.
31
What advice is given about changes in client identity during a project?
Architects should avoid agreeing to changes in client identity unless they are sure it won't weaken their position in the project.
32
Why is it essential to check the financial resources of clients before deep commitment?
It ensures that the client has the capability to carry out the project and fulfill financial obligations, preventing potential issues.
33
What resources or methods does the content suggest for checking a company's financial status?
The Companies Office, credit companies, 'off the record views' from business associates, and credit references from the client can provide insights.
34
What potential risks are highlighted if a client goes into liquidation?
Bankruptcies can have a cascading effect, affecting others and creating a collapsing financial situation
35
Why is overexposure to a single client's unpaid fees cautioned against?
To prevent potential financial risks, it is recommended to maintain a balanced workload rather than relying too heavily on a single, enormous project.
36
Why does the NZIA emphasize the importance of making written notes for orally agreed-upon decisions?
Oral instructions are challenging to prove, and having written notes helps in avoiding later misunderstandings or disputes.
37
What precaution is suggested when clients wish to change instructions during a project?
Ensure clear understanding of the implications, get clients' agreement in writing, and assess if changes justify asking for additional fees.
38
Why is it advised not to wait until the end of the contract to request additional fees?
Requesting additional fees promptly, especially when changes occur, helps avoid delays and financial disputes.
39
Why does the NZIA stress the importance of dealing with small client complaints promptly?
Small complaints, if not addressed quickly, can escalate into major issues and disputes, affecting fee payments and potentially leading to allegations of negligence.
40
Why does the NZIA warn against encouraging over optimism regarding planning approvals?
Planning approvals often take longer than anticipated, and architects cannot guarantee approval, so clients should be informed of potential delays.
41
What should architects advise clients if there is likely to be strong local opposition to planning approval?
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
42
Why is it crucial for architects to explain the implications of planning approval conditions to clients?
Some conditions may need compliance by clients and successors in title, and clients should be aware of these implications.
43
What potential issues may arise if planning conditions are not dealt with at the proper time?
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.
44
What is a Section 92?
Further information for RC. Can only get one of these
45
What is a section 37?
Building Act 2004
Section 37 of the Act allows local authorities to delay building work until a resource consent is gained.
46
Why does the content recommend involving insurance brokers when dealing with building insurances?
Architects are not insurance experts, and involving brokers ensures compliance with contract requirements and helps mitigate liability risks.
47
What is the suggested approach if clients do not have insurance brokers specializing in building insurance?
Ask clients to arrange for a specialist broker or, if they refuse, employ your own broker to check insurance documents.
48
What potential risk is highlighted by NZIA building insurances?
Without the necessary insurance in place, there is a risk of disasters, such as fires caused by subcontractor negligence, leading to significant issues.
49
What is a conflict of interest in the context of architectural practice?
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.
50
Why is it crucial for architects to be impartial in their role between parties involved in a building contract?
The Code requires architects to act impartially between clients, contractors, and others involved in a building contract to ensure fair and unbiased advice.
51
How does the NZRAB Code of Ethical Conduct address conflicts of interest for architects?
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.
52
How does the NZIA advise architects when an agreement with clients is never finalized?
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.
53
How can architects protect themselves from catastrophic claims that may exceed their professional indemnity insurance cover?
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.
54
What is the recommended course of action for architects in case of termination of the contract by clients?
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.
55
How can architects make late payments less attractive for clients?
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.
56
Why is it important for architects to keep a separate fee file? (on your computer)
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.
57
What is the challenging decision architects may need to make when facing acute problems with payment?
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.
58
Why does the content advise controlling the proportion of speculative work in an architectural office?
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.
59
What are some reasons for not getting paid for architectural services?
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.
60
How does the NZIA suggest architects can avoid legal action to recover fees?
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.
61
What questionnaire items are suggested for architects to include when dealing with 'one-off' clients?
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.
62
Why is it important to discuss the quality of the finished building early in the briefing process?
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.
63
How can architects handle clients' nomination of specialists or materials in the brief?
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.
64
What factors should architects consider when clients express the need for staged completion?
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.
65
How does the content suggest architects address clients' budget costs and project funding in the briefing process?
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.
66
What considerations should architects take into account regarding clients' cash flow during the project?
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.
67
What is the significance of addressing third-party warranties in the clients' brief?
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.
68
Why does the NZIA suggest architects discuss procurement methods early in the briefing process?
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.
69
What factors should architects consider when determining the best procurement method for a project?
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.
70
Why does the content suggest architects build their own checklist for establishing clients' briefs?
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.
71
What challenges may arise in a design-build contract if the clients make changes to the project after the contract is signed?
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.
72
What should architects consider regarding insurance responsibilities in the tender documents?
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.
73
In the context of completion time, what does "time is of the essence" mean, and how should architects handle it?
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.
74
Why is it important to confirm site availability and the time specified between tender acceptance and the start of construction in tender documents?
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.
75
What caution does the content provide regarding recommending contractors to clients?
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.
76
Why does the content emphasize checking the financial strength of contractors before recommending them?
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.
77
What risks are associated with starting work on site before the contract documents are finalized and signed?
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.
78
Why is it important to provide an executive summary of important obligations to clients when asking them to sign contract documents?
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.
79
Why is it important to monitor how variations affect the final contract cost during construction?
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.
80
What is the primary responsibility of architects during site observation?
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.
81
How does day-to-day observation of work differ from site supervision and inspection?
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.
82
What is emphasized regarding site visits during construction projects?
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.
83
Can clients and contractors contract out of the payment provisions of the Construction Contracts Act 2002?
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.
84
What should architects do to ensure payments are accurate and that overpayment is avoided?
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.
85
In the absence of a Quantity Surveyor, what responsibilities does the architect have regarding valuations for interim claims?
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.
86
Should you certify offsite fittings?
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.
87
What are the challenges and considerations related to issuing practical completion certificates, and what is the architect's role in this process?
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.
88
What should architects do after completing their duties under a construction contract?
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
89
How should architects handle claims and their defense under Professional Indemnity Insurance?
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.
90
What is an insurance propsal form?
A proposal form is a formal application document that an individual fills out when applying for an insurance policy.
91
What is the potential benefit of practicing through a limited liability company for architects?
Protects shareholders assets.
Practicing through a limited liability company can virtually remove the risk of a catastrophic claim making architects bankrupt.
92
What authority does the NZ Registered Architects Board (NZRAB) have over architects?
The NZRAB has the authority to discipline architects found guilty of discreditable conduct, professional incompetence, or criminal convictions.
93
What disciplinary actions can the NZRAB take against architects?
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.
94
