Read time: 3 minutes
A variation is generally defined as any change to the extent, quality and/or type of a service leading to a change in the cost of the service and/or the program for delivery of that service. It is good practice to discuss this with your client prior to engagement that it is not possible to know exactly how the project will develop and that unforeseen circumstances may result in a change to the services to be provided which may result in variations to architectural services. The variation may result in an increase or reduction in fees.
Page contents:
Paradoxically, a reduction in time may lead to an increase in fees if an acceleration and consequent increase in resources is required to meet a client-imposed deadline (refer to Program acceleration below).
Ensure that you always follow the defined procedure to vary fees where outlined in your client architect agreement and also consider the Architects Regulations and Code of Conduct as applicable to your jurisdiction which may require any variations to agreements to be made in writing. Refer Acumen note Architects Acts.
Architectural variations
Architectural design is an iterative process, so changes will occur during the development of the design. These can be considered architect-controlled changes and should generally not be confused with variations.
To avoid variations being considered as part of this process it is helpful to establish a system for dealing with changes outside the control of the architect which are legitimate variations to an agreed scope of service such as:
- client-instructed changes to the brief
- authority changes (eg unforeseeable local-authority approval conditions)
- third-party engendered changes (such as specialist consultant, contractor or particular person An individual or company selected by the owner and specifically identified in the building contract as the subcontractor whom the owner wants to perform work or services or to supply and/or install an item forming part of the works under the building contract. View full glossary input after design sign-offs).
When fees are fixed in advance for the service, most variations lead to adjustments in fees or program. While the Institute's 2019 Client Architect Agreement (CAA2019) and Client Architect Agreement for Limited Services (CAALS2019) have procedures to deal with a ‘Change to the Services’, there is no pro forma currently available to assist with the administration of scope of services variations.
Template form for scope of services variation
A template form can be designed to provide a simple way of documenting each variation. The form allows the variation to be recorded in a systematic manner to:
- identify the variation by project name, number and date
- summarise the reasons for the variation
- provide a fee costing or a basis for a future fee costing
- advise of any programming implications
- advise on potential project budget implications
- record the client's approval.
As well as these fundamental requirements, each particular project's scope of services variation procedure should follow the requirements of the client-architect agreement being used. This approach allows both the architect and the client to maintain control over the changing project brief, budget, fees and program. Some state architect’s registration boards have specific requirements listed within the code of conduct related to keeping clients informed on changes to services and fees thus these requirements must be considered and implemented as part of the process of managing variations.
Disputes over architect fees often arise over claims for fee adjustments for variations that have not been properly recorded. It is therefore in the best interests of both parties to document each variation as it occurs, deal with the consequences at the time of the occurrence and retain a record of the agreement by both parties to vary the services. This should facilitate subsequent invoicing and payment.
Program acceleration
Clients might seek for work to be completed more quickly than previously agreed, resulting in the need to accelerate the design delivery program. It can be confusing for clients to understand why this might result in a fee variation when the same works are proposed, just to be delivered more quickly. An accelerated program can result in increased costs for architects including:
- payment of overtime
- securing additional labour
- altering and possibly delaying other projects
- increased costs for procurable items such as models or photo-realistic visualisations.
Defining the extent of an acceleration is easier if an agreed time program is in place. If not agreed to previously, it would be appropriate for a program to be developed and agreed to as part of the request for acceleration to ensure any future dispute can be more promptly resolved.
Further resource:
- For information on the NSW Design and Building Practitioners (DBP) Act and Regulations, please refer to our dedicated Institute page.
Disclaimer
This content is provided by the Australian Institute of Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. The Institute endeavours to publish content that is accurate at the time it is published, but does not accept responsibility for content that may or has become inaccurate over time. Using this website and content is subject to the Acumen User Licence.