Practice/Legal Flashcards
What form of Practice there are?
- Public - central, local, QUANGOS
- Private - sole trader, partnership, limited liability partnership, company, trust/consortium;
- Not for profit-but not for public - NGOs, Charities, Co-operatives
Private Practice - Sole Traders
- Runs and owns the business, the business has no separate identity.
- Receives all profits and takes all the risks, wholly liable for any debts.
- Simple business structure and set up.
- Self-employed for tax purposes.
- Code of Conduct Standard 2 - Sole principal must have arrangements in case of death/incapacity.
Private Practice - Partnership
- “A collection” of sole traders carrying on business in common with a view to profit;
ACT - Partnership Act 1890 ;
SET UP - Partnership Agreement
SIZE - minimum 2 people - max unlimited
OWNED - by the partners/members
LEGAL STATUS - not a separate legal entity (when a third party enters a legal agreement, they enter it with the partners themselves)
FINANCE - Partnership Agreement defines profit share (or equal share if left to ACT)
TAX - Income tax on all profit whether profits are drawn or left in the practice
AUDIT - None
LIABILITIES - Individually liable, the partnership can be sued jointed or individually. Liable as a member of a partnership in both Contract & Tort. In contract jointly liable - will have to contribute if another partner/member owes money (even may come from privately money or property)
Private Practice - Limited Liability Partnership
- Allows collective limited liability alongside the mutual, cooperative characteristics of a partnership
ACT - Limited Liability Act 2000;
SET UP - Register at Companies House, suggested separate agreement (contract) to stipulate details
SIZE - minimum 2 people, max unlimited
OWNED - by the partners/members
LEGAL STATUS - LLP is a legal “person” in its own right - ie a separate legal body from its members
ADMIN - Governed by its members. A flexible internal structure which can be changed at any time if needed.
FINANCE - Agreement defines profit share (or equal share if left to ACT)
TAX - Taxed similar to Partnership (ie Do not pay corporation tax - each member is taxed through self-assessment as a self-employed individual
AUDIT - Accounts audited and recorded (filed) at Companies House
LIABILITIES - Every member is an agent of the LLP. A member is not liable in tort for any obligations incurred by the LLP (member is individually liable in tort for their own negligence) Can only sue an LLP in contract.
Private Practice - Limited Company
ACT - Companies Act 2006
SET UP - Register at Companies House
SIZE - Needs 1 shareholder and one director. One person can carry out both roles
OWNED - By members or shareholders, and managed by its directors
LEGAL STATUS - Company is a legal “person” in its own right - distinct and separate legal body from its members
ADMIN - Internal management/structure will be set out in shareholders agreement
FINANCE - Shareholders receive shares of company profits in the form of dividends/payments. Directors and employees - salaries
TAX - Pays Corporation Tax on all profits
AUDIT - Accounts audited and recorded (filed) at Companies House
LIABILITIES - Shareholders rights/responsibilities determined by role. Shareholders liabilities limited to the value of their shares. Directors are only liable if they are shareholders.
What are the rules governing a landscape architects work and copyright?
Copyright Designs and Patents Act 1988 Applies: works of architecture, artistic works, photos, Designer (author) owns Copyright. Employers own Rights, because they "direct" Employees. Infringement = copy a design Copyright Term = life + 75 years LC Appointment: Documents and Drawings property of LA. Applies to Design and Management
Client entitled to:
Use drawings, document to Execute Works
If all fees due paid, Only to one particular site
What liabilities are involved with an LLP? How does this differ from a partnership?
LLP - members(agent of partnership) are not liable for LLP’s torts but liable for LLP’s debts. LLP can be sued in contract, not the member, the member can be sued in tort. LLP is a separated legal entity. Partner in partnership has an unlimited liability
What other kinds of liabilities does LA have to consider?
Statutory liability (defective premises act, goods and service act, CDM), liability as employer or employee, occupier’s liability, vicarious liability, professional liability, liability in tort (negligence, libel, nuisance, trespass, strict liability), liabilities in contract.
What types of insurance do you need to take into account?
Employers liability insurance, professional indemnity insurance, public liability insurance, motor insurance, building and office contents insurance.
What is Defective Premises Act 1972?
Person who works in connection with a dwelling owes a duty to make it fit for habitation when completed.
What is The Supply of Goods and Services Act 1982?
The architect will carry out the service with reasonable skill and care.
What would you consider if you wanted to start your own practice?
VIABILITY - Market Sector Research - Competitor Research - Develop a Business Strategy - Obtain Professional advice (accounts and legal) - Professional and Government Organisations MANAGEMENT AND ORGANISATION - Decide on a form of practice - Comply with Statues and regulations - Take Out appropriate Insurances FINANCE - Raising Money - Establish a Bankbook System - Cash Flow Forecast for Long Term Financial Planning - Annual Statement of Accounts and Balance Sheet STAFF APPOINTMENT - Legal requirements - Employers Duties - Written Statement of Terms and Conditions of Employment - Others Employer Requirements - Health and Safety - Employees Duties - Staff Recruitment (agency staff, business consultants) PREMISES AND EQUIPMENT - The Office -Equipment / IT / Transport/ Marketing OFFICE SYSTEMS AND DESIGN / MANAGEMENT PROCEDURES - Office Procedures Manual - Set up Office Quality Management Systems/ ISO 9000 - Quality Manual - Auditing - Become Quality Assured? - Set up Other Systems: eg Environmental Management System ISO 14001 DIGITAL PROCEDURES - The internet - CAD Standards - BIM MARKETING / PRACTICE PROMOTION PERSONAL ISSUES
What moral obligations do landscape architects have in their professional lives?
To behave as a reasonable person in the profession would = prof. Duty of Care. (st.9)
In accordance with the LI Code of Conduct and Practice
And the Charter, Constitution and Bylaws of LI. Charter:
1. conserve + enhance natural + built environment;
2. for benefit of public;
3. disseminate knowledge of LA generally, through education.
Code:
- Regard to those who might use our design;
- Uphold the reputation of LA and LI;
- Promote the Code;
- Promote the LI
- Act with integrity
- Professional technical competence and resources
- Maintain competence (CPD)
- Manage your work with responsibility and client’s interest
- Work with due care and to relevant standards
- Should promote in a truthful and respectful manner
- Organise finances
- Have PII
- Deal with complaints courteously and promptly.
What is the difference between a co-operative and a consortium?
Cooperative is a method of working, consortium is an association of individual firms.
Consortium:
Group of different firms that work together but retain their legal identity. Can act as one for a particular project.
Cooperative:
Method of working rather than form of practice collective decision making.
Registered eg.
Companies Act, Register of Friendly Societies
Cooperative Union Industrial Common Ownership Movement
What is the difference between a director of a company and a partner of a practice?
Director is employed by the company and has no liability in the company’s tort and debt. Director cannot make contracts binding a company. (Managing director can). Company’s shareholdr are liable for the torts and obligations but limited.
Partner has unlimited liability. Any partner can bind the whole business to a contract or other business deal and other partners are liable.
How do you work out fees on a time basis?
Charge on services at hourly or daily rate of members of staff required for the project, including travel time.
