As participants in the construction industry, architects are exposed to a highly litigious environment. They are exposed to the risk of claims and litigation from an ever-increasing array of sources and, as a result, risk management is becoming an increasingly complicated but critical part of any successful practice. In today's legal environment professionals must, when giving advice or providing services be mindful not only of their contractual obligations to their clients but also have in mind the growing number of people who may suffer loss or damage as a result of errors or omissions in that advice and who will be entitled to seek compensation as a result.
Note that the two most recent versions of the Australian Standard Consultancy Agreement AS 4122-2010 and AS 4122-2000 both contain clauses that may take the architect’s professional obligations outside the cover of professional indemnity insurance. Refer AS 4122