PRM SEM 02 - 05. NZIA Agreement for Architect's Services Flashcards
NZIA AAS Guidebooks:
The NZIA (NZ Institute of Architects) publishes a Guide to Architects Services available free
at www.nzia.co.nz/e-shop.aspx
It’s aimed at clients and is fairly general, explaining the architectural process (eg terms such
as concept design). It says:
- “You should expect to sign an Agreement for Architect’s Services which will outline the
scope of work, the scope of services, how fees and costs will be charged and any
special conditions of service.”
The NZACS (NZ Architects Co-operative Society) publishes a Guide to Better Agreements for
Services to Architects Dec 2008.
The NZCAS guide is aimed at architects and is more useful.
It is located at:
http://www.nzacs.eo.nz/assets/downloads/nzcas guide to better aqreements for services.pdf
Its points include:
- If a client develops a contract, an architect should get legal advice as these can affect your liability and professional indemnity insurance for instance (eg by holding you to a higher standard than common law’s duty of care which is “reasonable skill, care and ability”.)
- A client generated contract may also indemnify the client and again affect your Pl insurance cover and liability.
- A list of words to beware of in contracts eg “highest”, “best”, “all” which again hold you to a higher standard than common law’s “reasonable skill, care and ability”.)
” An analysis of the NZIA Agreements for Architects Services. It’s worth reading this guide when studying for registration.
Issues to Cover in a Services Agreement:
Remember the RAB (Registered Architects Board) Code of Ethics for Registered Architects requires architects to have agreed terms of appointment which include:
“(a) Scope of Work
(b) Allocation of Responsibilities
(c) Any Limitation of Responsibilities
(d) Fee or method of calculating it, and Terms of trade
(e) Any provision for Termination
(f) Provision for Indemnity Insurance”
Source: NZ Registered Architects Board http://www.nzrab.org.nz/default.aspx?Page=161
As discussed in the previous lecture issues to cover in an agreement are:
- Services, scope of work, based on client’s brief.
- Timeline (estimated but may be subject to change)
- Consultants, their responsibilities, their scope of work.
- Client’s responsibilities.
- Services not included
- Fees due, payment programme.
- How the agreement will be administered or ended.
- What happens if the scope of work or timeline change
- Limitation of liability
What are the two The NZIA Agreements for Architects Services?
There are two: NZIA AAS 2018 and NZIA AAS SF2018.
SF stands for short form and is for smaller jobs.
You can buy reference copies for about $40 at: http://www.nzia.co.nz/e-shop.aspx
What are sections of the NZIA AAS 2018
Section A: Confirmation of Agreement
Section B: Scope of Work
Section C: Scope of Services
Sections D: Scope of Fees & Costs
Section E: Mutual Responsibilities
Section F: Administration of this Agreement
Attachment 1 : Separate Agreement to Arbitration
What are sections of the NZIA AAS SF 2018
Section A: Confirmation of Agreement
Section B: Scope of Work
Section C: Scope of Services & Mutual Responsibilities
Sections D: Scope of Fees & Payment of Fees
Section E: Liability and Insurance
Section F: Administration of this Agreement
Attachment 1 : Separate Agreement to Arbitration
NZIA AAS SF 2011 Short Form in detail | Section A: Confirmation of Agreement:
Contact details, contents and list of any other documents attached.
NZIA AAS SF 2011 Short Form in detail | Section B: Scope of Work:
Description of the scope of work, as precise and clear as possible.
A table of stages of the project (eg preliminary design, developed design etc) with estimated dates or weeks required.
Note the NZIA’s preferred project stages:
Stage 1 Pre-design Services (meeting, getting brief, site visit : often free)
Stage 2 Concept (first design response)
Stage 3 Preliminary Design
Stage 4 Developed Design (similar to what you do for final crit, often suitable for Resource
Consent)
Stage 5 Detailed Design and Documentation (for Building Consent and construction: the bulk
of your work)
Stage 6 Procurement (obtaining quotes)
Stage 7A Contract Administration (running the construction contract, payments etc)
Stage 7B Observation (not running the contract but observing work, answering questions)
NZIA AAS SF 2011 Short Form in detail | Section C: Scope of Services and Mutual Responsibilities
Tick boxes on a checklist describing core architect services at each stage (eg “obtain rough order of cost at preliminary design stage”).
Tick boxes on a checklist of services normally outside the architect’s cores services (eg building inspection, interior design). This helps clarify what you don’t do.
Tick boxes of consultants to be used. This confirms which are sub-consultants (engaged by the architect, paid by the architect, the architects responsibility) and which are separate consultants (engaged by the client, paid by the client, the client’s responsibility, but the architect will coordinate with them).
This section also lists the architects and clients responsibilities.
C4) & CS) Architects Responsibilities:
“ establishes the architect as the client’s agent: Not only will the architect “Provide the Agreed Services” they will “Act for or on behalf of the Client as set out in this Agreement.” Remember all contracts can have both expressed and implied terms.
This authority has been expressly given by the Agreement. It is also implied so as to enable the architect to carry out their duties. The architect has the ability to bind the client to pay for work or undertake obligations (eg in instructing a builder to do something) so we must be very careful to run everything past the client.
- Note that the architect only has to “Exercise reasonable skill, care and diligence in the performance of the Agreed Services.” Not to a high standard.
- Note that the architect must advise the client of any changes of circumstances, necessary variations etc as soon as possible.
- Note that the architect must not make any changes or move on to the next design stage without getting the clients approval.
C6) Client’s Responsibilities:
* are to pay the architect and consultants, give an adequate brief, help establish a
budget and timeline, keep the architect informed and obtain and pay for consents etc
(that means to sign the application - we still do the work)
NZIA AAS SF 2011 Short Form in detail | Section D: Scope of Fees and Payment of Fees:
A table of fees broken down into stages, a list of hourly rates and a table of expenses, all to be filled out as applicable.
Terms of payment (10 days) and the architects right to stop work if not paid.
Changes to services and implications to fees.
NZIA AAS SF 2011 Short Form in detail | Section E: Liability and Insurance
6 year limitation on loss or damage.
Maximum liability of $250,000.
Architect will obtain Pl (professional indemnity) insurance.
NZIA AAS SF 2011 Short Form in detail | Section F: Administration of this Agreement:
Confidentiality if necessary.
Architect has copyright and intellectual property.
Resolution of disputes by negotiation, then by mediation, then by arbitration.
Architects right to debt collection.
A dispute does not suspend the contract.
Client or architect can end the contract by giving notice. Fees to date still payable.
NZIA AAS SF 2011 Short Form in detail | Attachment 1: Separate Agreement to Arbitration
The Arbitration Act 1996 requires this separate signed page but it doesn’t change section F’s
dispute procedure.
