Ethics

Professional ethics

Architects and other professionals working in the built environment gain integrity and respectability through demonstrated sound work ethics and by acting in accordance with the Australian Institute of Architects Code of Professional Conduct which identifies the expected behaviour of its members.

Architects are also bound by common ethical behaviours which bind society – such as obligations, duties and responsibilities. Professional codes usually comprise a set of principles, attitudes or types of character dispositions that control the way the profession is practiced. In this way, professionals such as architects have an expectation of a standard of behaviour in the industry generally, but also more specifically to their clients, their suppliers and other colleagues in the industry. This demonstrates the agreed approach of the organisation and the expectations of standards of behaviour for its workforce.

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Client relationship

The relationship you will have with your clients will form a large part of your ability to have a successful architectural practice. Refer Acumen note Client and architect relationship.

Ensuring good client relationships is a valuable risk-management strategy. A successful practice is one which engages with its clients, meets their expectations (usually aims to exceed their expectations) and has client and architect agreements in place which clearly identify each party's roles and responsibilities.

It is also a practice which is able to work collaboratively with other professionals as required.

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Client expectations

Failure to meet client expectations is one of the most common causes of complaint against architects. This advice addresses a number of issues of particular concern and suggests ways they may be avoided or overcome.

Complaints against architects are generally a result of the following:

Poor communication

• the absence of a written client-architect agreement, resulting in confusion over the scope and extent of the services and the roles and responsibilities of the parties
• failure to clearly inform the client about what will be provided in return for the fees
• failure of the architect to determine the client's understanding of what is involved in undertaking a project
• failure of the architect to keep the client informed about what is happening, or not happening, and why
• failure to explain reasons for delays and variations
• failure to respond to client instructions and enquiries.

Not meeting expectations

• clients claim they have been placed in financial difficulty when tenders have significantly exceeded estimates and/or there has been a lack of cost control during construction
• design, documentation and construction timetables have been unrealistic and, as a result, projects have taken much longer than the client expected.

Poor technical performance

• inadequate documentation, leading to confusion during tenders and/or problems and variations on site
• failure to identify inaccurate and faulty construction work and have it corrected.

Effective communication

To effectively communicate with a client, particularly a client unfamiliar with how an architect works and the processes in the building and construction industry the following are essential:

• a written client-architect agreement, no matter how small the project – it must set out the roles and responsibilities of both client and architect
• discussion about the client and architect agreement and the roles, responsibilities and procedures of both parties
• special care is required in owner-builder projects, in clearly defining respective roles and responsibilities, as well as the implications of this type of building procurement
• the architect must keep the client fully informed of everything that is happening with the project, and in particular, the architect should promptly report any problems or delays and inform the client frankly of reasons and corrective actions that are necessary – it is far better to address such issues immediately, than to wait for them to become grounds for grievance or dispute
• the architect must be accessible to the client and respond promptly to all messages and correspondence
• the architect must act upon instructions from the client – this may appear self-evident, but the client's requirements are sometimes overlooked or ignored or the client believes that they have been
• the architect should minute or confirm in writing all meetings, decisions and discussions held with the client during the project.

Meeting expectations

Meeting client expectations is at the heart of a successful relationship between the client and the architect. In this regard an architect must:

• successfully manage time, quality and the cost of the project, through all stages – failure to exercise this control is at the centre of many client concerns, and in particular, failure to keep a project within stipulated budget limits can have serious financial implications for the client
• make realistic allowances for contingencies/omissions
• make it clear what estimates include, or do not include
• clearly define the roles of client, architect and builder
• provide continuous cost reporting to the client, together with explanations for over-runs and proposals to adjust/recover costs
• explain the project clearly using sketches, drawings, models, computer graphics, etc. to ensure the client understands what is being provided
• establish realistic design expectations – the client must be advised honestly and promptly if their expectations cannot be met because of cost or other limitations.

Appropriate technical performance

Matters to be considered include:

• Documents must be adequate and clear both for tendering and for construction. Inadequate or ambiguous documents can lead to uncertainty regarding the parity of tenders and contribute to the likelihood of variation claims.
• The architect must take care to regularly inspect the works in progress, to identify and have the contractor correct faulty work. An inspection schedule should be established early on and costed in your fee proposal.

Fees and agreements

Disputes between architects and clients often arise from a difference in understanding of the basis of the fees and the service being provided.

There are a few simple rules that should be followed by all projects. These include:

• Always have a client-architect agreement. A letter of engagement alone is rarely sufficient. The relationship between a client and an architect is a business relationship and must be treated as one.
• Invoice clients progressively and do not proceed with further work unless paid promptly. Monthly invoicing is reasonable and probably expected, however it’s worth noting some clients would prefer invoicing at the completion of a stage). If this occurs a client may assume that their approval and payment of the invoice are connected if you invoice at the completion of stages. 
• Charge an adequate fee to enable a proper service to be provided. In a climate of strong competition there is a tendency for fees to be reduced below levels at which proper service to clients can be provided. Inadequate fees inevitably result in poor service. Poor, incomplete or ambiguous documentation will result in higher tenders. This premium is usually far more than any fee reduction.
• Understand contractual procedures and the processes of litigation, including the rights of parties, legal tactics, etc.
• Retain all relevant project records for a period of not less than ten years and longer if possible, after completion of a project, in case a dispute arises. Refer Acumen note Document retention.

The relationship between a client and an architect is a highly personal one and it is based on clear communication and high levels of confidence of each in the other. The evidence is overwhelming that, as with most interpersonal relationships, one party's confidence in the other diminishes rapidly as communication declines.

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Resigning a commission

Good business practice includes retaining an existing client base in addition to gaining new commissions. Resigning a commission should, therefore, be considered as a last resort: only to be used where the situation has become untenable.

Minimising areas of disagreement

Most commonly disputes between an architect and client arise as a result of differing expectations regarding the extent of service, remuneration, liability and rights or obligations in relation to a building project. It is important to ensure from the outset that the conditions of engagement for a project are properly established and that both parties to the agreement are fully aware of their obligations regarding:

• the services to be provided
• fees and frequency of payment
• responsibilities of the parties
• the mechanism for termination of the commission.

Well recognised possible areas of dispute between the client and architect have been analysed in terms of contractual principles and provided for in the Institute's 2019 Client Architect Agreement (CAA2019). The scope of services listed in the CAA2019 can be edited, replaced or added to as required depending on the type or complexity of the project. It is recommended that, in every instance, the client and architect enter into a written agreement which contains all the terms and conditions of their contract. In some states it is a legal requirement for an architect to enter into a written agreement with the client, refer Acumen note Codes of conduct. Familiarity with these requirements can avoid potential misconduct allegations.

Reasons for resigning

Despite having established a written agreement that clearly spells out the respective rights and obligations of the client and the architect, there may still be areas of disagreement that justify an architect resigning the commission.

These may arise from the client's non-performance under the agreement or the client's persistent instructions that are in conflict with the architect's statutory or professional obligations.

Possible areas of non-performance under the agreement may include:

• non-payment of fees
• refusal to pay for increased or protracted services
• refusal to finance site surveys
• refusal to finance the engagement of specialist consultants
• persistent and/or unrealistic requirements regarding budget or time
• persistently bypassing the architect to deal directly with subconsultants, contractor and/or subcontractors.

An architect's statutory obligations may include:

• Architect's Acts
• planning and building regulations
• architect's responsibilities under other Commonwealth, state and territory legislation.

Other reasons for clashes with professional obligations may include:

• design conflict
• personality conflict
• ill health
• Architect's quality control procedures
• Code of Professional Conduct (Refer Acumen note Codes of conduct).

Process

Always remember that often there are other avenues of action that could be invoked, before resignation. If your fees are unpaid, for instance, it may be better to stop work and inform your client. Refer Acumen note Fee disputes.

The first step should be to talk to your client about the problem; preferably face to face and quite informally. Only then, if there appears to be an irretrievable breakdown in trust and the personal relationship, should a resignation be put into effect.

Sequence of events

An appropriate sequence of events would be:

• ensure that you are not in breach of your agreement, or any statutory preconditions to resignation under the relevant Architects Act
• ensure that you have acted in accordance with the termination clauses in the conditions of engagement, for example:

  a) the timing of your resignation should not prejudice the client

  b) any urgent work that is in hand should be completed before the resignation becomes effective

• ensure that you have carried out the services, up to the time of resignation, to the full and proper extent
• provide a scrupulous and fully detailed claim for your fees, to the date of resignation
• after payment put your resignation in writing, using careful, unemotional, temperate language
• if payment is refused seek legal advice about how best to terminate your engagement and obtain payment.

If there is any suggestion, no matter how unreasonable, that you have failed in your obligation to your client, inform your professional-indemnity insurers immediately.

Consider your position concerning possible use by your client of your intellectual property, particularly if your fees remain unpaid. If necessary, obtain legal advice on your rights and possible course of action.

Be aware that you may have residual liability and commitments even after you have resigned. Be cautious if resigning during the construction stage as it will potentially delay the program and you could be liable for any increased costs to the client.

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Competition and Consumer Act

The Australian Consumer Law which forms a part of the Competition and Consumer Act 2010 (CCA), governs the relationships between businesses and between businesses and consumers, in particular, to combat unfair business practices such as unconscionable conduct. Refer ‘Competition and Consumer Act’ section in Acumen note Professional indemnity insurance for architects. The Australian Consumer Law also contains a number of implied guarantees benefiting the consumer, and in particular, a guarantee that goods or services provided are reasonably fit for the intended purpose. However, the guarantee that services will be fit for a purpose does not apply to professional services provided by a qualified architect or engineer. Refer ‘Australian Consumer Law’ section in Acumen note Fitness for purpose.

The Australian Competition and Consumer Commission (ACCC) is the government body that administers and enforces the CCA, jointly with the state and territory consumer-protection agencies.

Unconscionable conduct

Suppliers of goods or services must recognise the risk of claims for unconscionable conduct in the way that they enter into contracts or agreements. They must carefully manage the ongoing relationship with the other party, and they should be able to manage the way in which they deal with disputes that may arise from those contracts or agreements.

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Resources

International Ethics Standards (2021) International Ethics Standards: An ethical framework for the global property market, International Ethics Standards website.

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