STARTING A PRACTICE Flashcards
Important Employee Contract Terms for Private Commissions
1). Prohibit Use of Company Assets:
Employees must not use company resources, including equipment, time, or proprietary information, for private work.
2). Clarify Insurance Coverage:
State that the company’s public indemnity insurance does not cover any private work undertaken by the employee.
3). Client Liability Agreement:
Ensure that private clients acknowledge and agree that the company will not assume any liability for the private work performed by the employee.
Contractor vs Staff
Contractor:
- Specific tasks & timeframe
- Independent business entity
- Assumes liability
- Owns copyrights unless specified
Staff:
- Ongoing employment
- Controlled work methods & schedule
- Receives benefits & has taxes withheld
Three Key Things to Include in a Contractor Engagement Contract:
1). Insurance Requirements: Specify conditions for required insurance coverage.
2). “Make Good” Clause: Define the contractor’s obligation to fix defects or issues.
3). Copyright Assignment: Detail the transfer of copyright ownership to the client.
Employment.
Key Legal Considerations & Governing Bodies:
1). Wages, Hours, Leave & Termination Procedures / Fair Work Commission
2). Taxes & Deductions / Australian Taxation Office (ATO)
3). Workers Compensation Coverage & Safe Working Environment / Governing Body: WorkSafe (varies by state/territory)
Note: Contracts are not a legal requirement.
Fair Work Commission vs Ombudsman
FWC: Resolves workplace issues
FWO: Independent office overseeing administrative actions of government agencies
Common Complaints to Fair Work Commission
- Unfair dismissal
- Discrimination
- Bullying
- Unfair refusal of casual conversion
- Wage below award rates
Compulsory Insurances for Architecture Practices
1). Professional Indemnity
2). Workers Compensation
3). Public Liability (not legally required but often required by clients or contracts)
Typical Coverage for Professional Indemnity Insurance
Errors, Omissions or Negligence in Professional Services
Typical Coverage for Workers Compensations Insurance
Claims made by employees for Illness or Injury while “on duty”
Typical Coverage for Public Liability Insurance
Claims made by a third party for damages & injuries
WHS Breach Penalties vs. Workplace Injury Claims
- Injury Claim: A civil matter covered by workers’ compensation insurance.
- WHS Breach: May result in statutory penalties and fines imposed by the relevant state body. These penalties are not covered by workers’ compensation or professional indemnity insurance.
What are the four main business structures in order from high liability to low liability?
1). Sole Trader
2). Partnership
3). Company
4). Trust
What are the four main business structures ordered in terms of ease of setup?
1). Sole Trader
2). Partnership
3). Company
4). Trust
Liability and Management of a Company
Liability: Limited shareholders’ investment
Management: Conducted by directors; shareholders vote on major decisions.
Three engagement structures used when architects work together and associated method of defining scope/liability
1). Joint Venture / Complex Agreements with input of a Lawyer
2). Architects in Association / MOU
3). Sub-contracted Architect / subcontractor agreement
