PN 6.100-7.100 - CHATGPT

Question 1

Flashcard Questions and Answers:

1. Question: What is the purpose of Practice Note PN 6.101?
   
   • Answer: The purpose is to clarify the effect of current copyright legislation in relation to the intellectual property produced by architects for clients through engagement or commission.
2. Question: According to PN 6.101, who typically owns the copyright in designs or materials produced by an employee of an architectural practice (1.1)?
   
   • Answer: The copyright in designs or materials produced by an employee of an architectural practice is generally vested in the practice.
3. Question: How can copyright ownership be inferred in employment agreements, according to PN 6.101 (1.2)?
   
   • Answer: Copyright ownership can be inferred from clauses pertaining to confidentiality and credit for design, and it may be written directly into employment agreements.
4. Question: According to the Copyright Act 1994, who holds the copyright for original designs by architects when commissioned by a client (2.3)?
   
   • Answer: The client as a commissioning party holds the copyright for original designs by architects when commissioned, as stated in Sections 21(3) and 26(1) of the Copyright Act.
5. Question: How can architects and clients contract out of the commissioning rules in the Copyright Act (2.5)?
   
   • Answer: They can include written confirmation in the agreement that copyright is vested in the architect, and this must be brought to the client’s attention during negotiation of agreement terms.
6. Question: According to the NZIA’s submissions, what are some issues compromised by the commissioning rule (3.3)?
   
   • Answer: Issues compromised include surety of payment, clarity of license to use architect’s documents, rights to consideration, liability for design competence, and duty of care to give credit to architects.
7. Question: What is the NZIA’s position on the commissioning rules, and what alternatives does it suggest (3.4)?
   
   • Answer: The NZIA recommends considering either amending the commissioning rules to exclude the deliverables of architects or repealing the commissioning rules entirely.
8. Question: What advice does PN 6.101 provide for effective copyright protection (4.1)?
   
   • Answer: The most effective copyright protection is to ensure the signing of an Agreement for Architects Services containing standard clauses referenced in item 2.6.
9. Question: When the client has a legitimate reason to retain copyright, what negotiation option is suggested by PN 6.101 (4.3)?
   
   • Answer: It may be possible to negotiate copyright sharing equally, with each party giving the other a license in perpetuity for agreed purposes.
10. Question: What does PN 6.101 recommend if a significant breach of copyright is suspected (4.4)?
    
    • Answer: Preliminary legal advice should be taken on the interpretation of the Copyright Act, especially before initiating proceedings on the issue of design originality.

Question 2

Flashcard Questions and Answers:

1. Question: What is the purpose of Practice Note PN 6.102?
   
   • Answer: The purpose is to provide guidance on appropriate forms of information and document control, especially in the context of technology like encoded floppy disks or email.
2. Question: In the context of document control, what specific information should be included in a record when sending a drawing?
   
   • Answer: For a drawing, the record should include a specific description such as A1 sheet (one off), Drawing number, Drawing title, Date of drawing, and Date of revision.
3. Question: How should computerized information be described in the record for document control?
   
   • Answer: For computerized information, the record should include details like disk type (e.g., 3.5” disc), format, operating system, information included on the disk, and protocols for using the information.
4. Question: What important question does the practice note suggest asking in terms of document control?
   
   • Answer: The question to ask is, “In a court of law, could I unequivocally differentiate this item from any similar information sent out of the office?”
5. Question: In the context of sharing computerized information, what potential risks are mentioned for architects?
   
   • Answer: Architects may face risks related to harming their practice’s reputation, and there’s a discussion about the potential risks involved when sharing information with competitors.
6. Question: What is the suggested approach for architects when sharing information with others, and what factors should be considered?
   
   • Answer: There’s no one “right” answer; a commercial decision must be made based on circumstances. Architects may consider not making a charge but include a disclaimer declining responsibility when others use the information for a purpose not originally prepared.
7. Question: What items are attached to Practice Note PN 6.102?
   
   • Answer: Two items are attached:
     
     • a) A pro forma covering letter to be included with computer discs sent out of the office (Appendix A).
     • b) A data exchange record including essential production information related to the disks and files being transferred (Appendix B).
8. Question: What recommendation is provided for e-mailed or faxed information in the practice note?
   
   • Answer: It is recommended that e-mailed or faxed information includes an intercept disclaimer stating that the information may be confidential and must not be used other than by the sender and intended recipient.

Question 3

Flashcard Questions and Answers:

1. Question: What is the purpose of Practice Note PN 6.104?
   
   • Answer: The purpose is to advise NZIA members on what documents should be retained, and for how long.
2. Question: Why are architects’ documents primarily kept as an “in-house” record of the history of each project?
   
   • Answer: These records are essential for documenting the history of each project, especially in the event of a dispute. Relevant documents include agreements, design decisions, plans and specifications, tender documentation, contract documents, construction documentation, as-built documents, warranties, and more.
3. Question: What are the additional project-based records that an architect should retain, apart from project-specific documents?
   
   • Answer: In addition to project-based records, an architect should retain correspondence, administration records (including office accounts), and a record of phone calls, file notes, and minutes of meetings.
4. Question: What caution is provided regarding documents that may be the property of a client?
   
   • Answer: Documents that are the property of a client should not be destroyed without the client’s consent. For example, reports prepared for the client by other consultants should not be destroyed without proper consideration.
5. Question: What is the recommended period of retention for significant documents, considering professional liability and legal aspects?
   
   • Answer: It is recommended that architects retain all significant documents for a period of at least 10 years, preferably 12 years. This recommendation takes into account the professional liability determined by statute and common law judicial precedent.
6. Question: How does the Limitation Act 1950 and the Building Act 1991 affect the recommended period of retention?
   
   • Answer: While the Limitation Act provides a six-year limit for professional negligence under contract, the Building Act introduces a “long stop” of 10 years for civil liability related to “building work.” Architects are advised to retain documents for at least 10 years, considering both aspects.

Question 4

Flashcard Questions and Answers:

1. Question: What is the purpose of Practice Note PN 7.102?
   
   • Answer: The purpose is to provide guidance on the engagement of sub-consultants, focusing on legal risk issues and risk minimization measures.
2. Question: Why does the NZIA recommend against practices engaging sub-consultants in different disciplines?
   
   • Answer: There are greater legal risks involved when engaging sub-consultants in different disciplines. The note emphasizes the NZIA’s policy against this practice.
3. Question: What legal risks are associated with engaging a sub-consultant, particularly if their specialty is different from the NZIA practice?
   
   • Answer: The NZIA practice faces greater liability risks, especially when the sub-consultant’s specialty differs. Limited insurance cover exists for a sub-consultant’s default unless a special extension is agreed upon.
4. Question: How can legal risks be minimized when engaging a sub-consultant according to the NZIA?
   
   • Answer: The NZIA practice should ensure the sub-consultancy agreement mirrors the terms of the practice’s consultancy agreement with the client. A “back to back” agreement is recommended.
5. Question: What factors should be considered if an NZIA practice decides to engage sub-consultants from different disciplines?
   
   • Answer: The process should include an informed and careful selection of sub-consultants. An assessment of the sub-consultant’s business continuity and professional indemnity cover for the duration of the practice’s liability is crucial.
6. Question: What does the pro-forma agreement for sub-consultant services aim to achieve?
   
   • Answer: It is designed to create a “back to back” sub-consultancy agreement, mirroring the terms of the NZIA practice’s consultancy agreement with the client. It includes specific terms related to the practice’s relationship with the sub-consultant.
7. Question: How does the note address the position when an NZIA practice is the sub-consultant?
   
   • Answer: It mentions that if the sub-consultancy agreement is standalone, the legal risk issues are similar to a normal client-practice engagement. If it’s a “back to back” agreement, careful review is needed to ensure no uninsured obligations or inappropriate terms are accepted.

Question 5

Flashcard Questions and Answers:

1. Question: What is the purpose of Practice Note PN 7.103?
   
   • Answer: The purpose is to provide a recommended procedure for NZIA practices when arranging and coordinating separate consultants on a project, as opposed to providing a pro-forma agreement.
2. Question: Why was the Agreement for Separate Consultant Services withdrawn by NZIA?
   
   • Answer: The withdrawal was due to the potential conflict it could create for NZIA practices concerning limitations on the consultant’s liability to the client. The note emphasizes the need for the client’s informed consent regarding liability limitations.
3. Question: What legal course does the practice note recommend for engaging separate consultants?
   
   • Answer: The safer legal course is for the consultant to be engaged directly by the client, with any limitations on liability being matters agreed upon between the client and the consultant.
4. Question: What is the recommended procedure when an NZIA practice is arranging for a separate consultant to be engaged for a project?
   
   • Answer: The procedure involves inviting firms to submit proposals, reviewing the information, and then sending a letter of offer for the consultant’s engagement by the client. If the consultant signs and returns the letter, common law principles will apply. If the consultant prefers their standard contract, those terms are forwarded to the client.
5. Question: Why is the section on required minimum insurance in the NZIA practice’s letter of offer to the consultant important?
   
   • Answer: This section is crucial because the consultant’s insurance provides the most protection for the client against losses due to the consultant’s default. The note suggests default minimum amounts for professional indemnity and public liability cover but advises careful consideration of project-specific needs.
6. Question: What are the default minimum amounts for professional indemnity and public liability cover mentioned in the pro-forma letter?
   
   • Answer: The default positions are below $250,000 for professional indemnity cover and below $1 million for public liability cover. The note advises the NZIA practice to consider higher amounts based on project needs and obtain the client’s approval.

Question 6

Flashcard Questions and Answers:

1. Question: What is the purpose of Practice Note PN 7.104U?
   
   • Answer: The purpose is to advise about the requirements of the Historic Places Act 1993 concerning ‘Archaeological Sites’ in New Zealand.
2. Question: How is an ‘archaeological site’ defined in the Historic Places Act 1993?
   
   • Answer: An ‘archaeological site’ is any place in New Zealand associated with human activity before 1900 or the wreck of any vessel before 1900, and that may provide evidence relating to the history of New Zealand through archaeological investigation.
3. Question: What does the archaeological authority process apply to, according to the note?
   
   • Answer: The process applies to all sites that fit the HPA definition, regardless of their recording status, recognition through development work, or any permissions granted under district or regional plans.
4. Question: What legal implications are mentioned in the note for unauthorized damage or destruction of archaeological sites?
   
   • Answer: Section 99 of the HPA includes penalties such as fines not exceeding $100,000 for destruction and $40,000 for damage or modification. Obstructing an archaeological investigation or failing to comply with authority conditions is also an offense.
5. Question: What is the likely process if an archaeological site is identified during a project?
   
   • Answer: The process involves engaging a consultant archaeologist, assessing the site, making an application to the NZHPT, and, if necessary, conducting archaeological investigations, with a report submitted to the Trust for approval.
6. Question: Under the Section 11 of the Antiquities Act 1975, who is deemed to be the owner of any archaeological material found?
   
   • Answer: Any archaeological material found is deemed to be prima facie the property of the Crown.
7. Question: What are the recommendations given in the conclusions section of the note?
   
   • Answer: Recommendations include having the client obtain a LIM to identify archaeological sites, identifying the likelihood of pre-1900 occupation, planning ahead and consulting with NZHPT early, and being aware of potential fines for breaches of the Act.
8. Question: Where can further information be found about archaeological sites and the Historic Places Trust?
   
   • Answer: Brochures and information can be found on the Historic Places Trust website (www.historic.org.nz), and the NZ Archaeological Association’s website (www.nzarchaeology.org) is also recommended.