Client and architect relationship

Background

In the experience of the Architects Registration Board of Victoria (ARBV), the modest number of complaints regarding an architect's service, (mainly concerning residential projects), could have mostly been avoided with better communication and if the client had a more detailed understanding of what to expect from an architect providing architectural services.

As evidenced by calls to the Australian Institute of Architects' Victorian Senior Counsellor Service, the same issues arise, but primarily from the architect. Many of these calls relate to the potential termination of services by the architect or client. The reasons vary but, in many cases, it is due to the client wanting too much involvement in the day-to-day management of the project, unrealistic expectations of the architect by the client in administering the contract and excessive coercion by the client. These issues are considered to be typically encountered in other states and territories, not just Victoria.

Ideally the architect should be honest with the client from day one regarding the need to develop a cohesive relationship and hence the early stages of a project should be viewed with an open mind and a preparedness to ‘walk away’ if either architect or client believes that the project journey together will be too difficult. Over the duration of a project an architect or client may wish to terminate a commission for various reasons. Refer ‘Resigning a commission’ in Acumen note Ethics.

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Part 1 Getting the project (and the relationship) started

To the architect:

• Ideally start with a feasibility study for a fixed fee over a set period – four weeks or so. Make sure the fee is enough to cover your costs and will allow you to properly investigate the project. It is preferable not to sign a full client and architect agreement until there is a realistic understanding of the likely project cost, including all consultant fees, program, payment terms, etc. It is preferable to start with a simple fee letter with adequate terms and conditions including those required under the applicable Code of Practice/Professional Conduct relevant to the location of the project. Refer Acumen note Guide letter 1: Advice to client - conditions of engagement
• Using the Client Architect Agreement is a very useful mechanism to assist and can help ease the client into the agreement as it can be a checklist for both parties. However, the document is often signed with insufficient knowledge of the project and results in multiple changes being made to the contract during the project. Before parties can sign a client and architect agreement, discuss each point so that potential unforeseen issues can be cited.
• Clearly outline the stages of the project and what will be produced.
• Provide a detailed outline of the program with the hours that you have allowed in order for the client to obtain an appreciation of the time required to complete the project. Make your lump sum fee and applicable hourly rate clear. This will enable the client to compare it to their own hourly rate and appreciate your value.
• Clarify the most suitable and regular meeting time. If it is to be out of hours, ensure that the implications are understood and will not interfere with family etc.
• Meetings need to be constructive and efficient. If the client is a couple, clarify who will be the project representative for all communication.
• Upon completion of the feasibility study you should review your position. If the feasibility study has been a difficult exercise, then think twice about continuing to work together and avoid starting the project on a ‘see how it goes basis’. Typically, the client brief only grows during the course of a project so if the anticipated cost or budget is tight at the start of the project it will only become more difficult to achieve as the project progresses.
• Clients will often only be interested in retaining you for partial services and this arrangement frequently leads to a compromised architectural solution and disputes.

To the client:

• Provide as much of the specific site issues up front (site survey, existing drawings, services, hazardous materials register, any previous approvals or conditions set by authorities, etc) as this will not only assist the architect but will save time and money for all parties.
• Make sure that you are in no doubt about the services that are to be provided. If you are not clear on something, ask for a better explanation. It may be samples, drawings, photographs or some other format that helps you to understand the service and approach.
• Acknowledge that the architect will naturally strive to produce the best outcome possible within the budget, time constraints and other factors.
• There are three key aspects to a project: quality, cost and time. It is essential that you are clear as to what is most important for you. Generally, all aspects will be critical to you but when it comes to the crunch it is often one aspect that is more important to you than the others.
• Appreciate the value of the architect’s time. Put this into context with your own working conditions and the hourly rate that you may charge to provide a particular service.
• Clarify approximately how much time your architect will devote to the project. Typically, there will be more than one person involved in delivering your project and your key point of contact will not necessarily be the person spending most time on the project.
• Appreciate that typically an architectural practice will be undertaking several projects at any one time and that they will not always be working on your project. When you call or email the office don’t expect an immediate response, but within a reasonable period of time.
• Ensure that you are provided with a program for the project services as it requires commitment from both client and architect to ensure that the critical dates for completion of stages of the work are achieved. While there will inevitably be changes to the program, having a guide at the start is much better than an open-ended arrangement.
• Be aware that your architect, in providing the best outcome for you, will want to be involved from start to finish. Committing to only partial services will increase your risk, reduce the responsibility of the architect and can lead to a compromised or less satisfactory outcome.
• Be clear about your total budget. Often architects will refer to budget as the cost of construction, not including the costs of professional fees and council charges. It is important to clarify if this is included in your budget or not.

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Part 2 Maintaining the relationship through the design, documentation, construction and post-completion stages

To the architect:

• Ensure that the design brief and full scope of the project is resolved as early as possible.
• Be up front about the likely total costs of the project and if you have any doubt recommend to the client that a quantity surveyor be involved to more accurately estimate project costs. If circumstances require, don’t be afraid to suggest engaging specialist consultants early on to ensure unidentified issues can be managed within the budget and brief (eg geotechnical details, power upgrades, sewer connections, heritage requirements and hazardous materials disposal).
• Recommend to the client that design and construction contingencies are included in cost estimates. Refer Acumen note Client note: Contingency sums.
• Should there be any issues relating to the design, cost estimates or program, don’t put off finding resolution to the problems.
• Communicate regularly with the client. Ensure that there is regular (and recorded) communication. For a residential client it is preferable to have some sort of contact weekly or at least every fortnight. No matter how brief the exchange, ensure the client has a general understanding of what you are doing in relation to their project.
• Invoice the client regularly and as agreed at the outset of your engagement. Immediately advise the client if there is any need to vary your fees and obtain agreement. Refer ‘Fee disputes’ in Acumen note Fees.

To the client:

• Ensure that you sign-off on the project brief and scope of the services of the consultant team as soon as practically possible.
• Pay the architect promptly. Typically, you will be paying for the percentage of work already completed. Delaying a payment only creates unease and cash-flow difficulties for the architect.
• While the architect should regularly present you with a range of work relating to your project, don’t expect to see everything that the architect produces. The files maintained by the architect are the property of the architect.
• Ensure that you are requested to formally sign off on stages of work as they are completed. If there are issues unresolved in relation to a stage of work, ensure that these have been appropriately recorded before the next stage is commenced.
• Notify the architect if you have any changes to your brief or program as soon as possible.
• Notify the architect of any products, materials, fittings etc that you are interested in including in the design. It is much better to be upfront with these wishes so that they can be properly integrated into the design.

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Selection of the builder

To the architect:

• Ensure that you discuss the potential ways of selecting a suitable builder as early as possible in the process.
• While it is desirable to obtain a builder through a more traditional tender process this is often easier said than done. Builders put in a considerable amount of effort to price a project and many are reluctant to compete and prefer to negotiate directly.
• Clients often have a builder who they know or have been referred. Check them out thoroughly and make sure the client understands the criteria you use in determining the suitability of a builder for a particular project.
• Beware of the client introducing a builder to the project who will effectively take over from you once the design or documentation has been completed.
• Ensure that the client understands the proposed contractual arrangements, and ideally the benefits that an ABIC contract will have over other forms of contract.

To the client:

• Ensure that your architect explains the options in selecting a suitable builder and the appropriate qualities required for your project.
• A builder will generally have a typical size of project that they are comfortable in managing. Many will not work on anything too small and there are many other factors which will determine whether they are interested or not including: location, site accessibility, complexity, if it is an existing dwelling and whether it will be occupied or vacant during construction.
• Builder availability is a regular problem and you may have to wait in order to proceed with the most suitable builder.

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The construction stage

To the architect:

• Fully clarify the contract administration role of the architect. Outline the requirements of the client and how communication/instruction is to occur with the builder.
• It is imperative to ensure that the fee for contract administration will comfortably cover your involvement for the full duration of the works and that there is an acceptable agreement for additional fees.
• Avoid commencing the construction stage with incomplete documentation and decisions on materials and finishes still to be made. This is likely to prove inefficient and can cause delay to the builder.
• If variation works are requested ensure that you receive a satisfactorily costed variation from the builder and approval from the client to proceed. Ensure that the client understands the full cost of the variation including any extensions of time, professional fees and any adjustments to planning or building permits. Refer Acumen note Client note: Variations to scope of work. Remember that building contracts are between the builder and the owner, and that the owner is ultimately required to make the decisions.
• Refer to the relevant guide notes for the particular building contract to be used and ensure that the client is provided with the same information.

To the client:

• Be respectful of the architect’s role and the need for their impartiality in the administration of the contract. Do not try and become involved in every last detail, do not expect to be involved in every meeting the architect has with the builder and avoid discussions with the builder without the architect present. If you have an issue with any aspect of the work speak with your architect first.
• Remember that you appoint the Architect to act on your behalf in dealings on site and with the builder.
• Ensure that the architect provides you with the relevant guide notes for the particular building contract to be used for your project and acquaint yourself with the details.
• The architect is obliged to advise you of any issues that arise which will affect the quality, cost or duration of the construction however there are many small items that the architect will not bother you with.
• Avoid requesting changes to the work, especially drastic changes to the scope of the work. If you do wish to make a change, discuss this with the architect first to understand the time and cost implications.
• Be very careful when asked to consider the substitution of materials, fittings and appliances. Ensure that your architect believes that the substitutions are equivalent or better than those originally specified.
• Ensure that you are regularly informed of the progress of the works in relation to the program and that any adjustments to the project completion are notified promptly and in accordance with the building contract.
• Ensure that you receive monthly updates of variations and contract sum adjustments.
• Ensure that the architect is providing you with regular information on consultant fees and any necessary adjustments.
• Ensure you understand you rights and responsibilities in terms of making payments, retaining securities and imposing penalties for late completion.

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Project completion

To the architect:

• Ensure that the builder is as up to date as possible with all claims prior to practical completion. The timing of lodgement of all variations and adjustments to the contract are clarified within the contract. Make it clear to the builder that you will not consider any late claims.
• Advise the builder that you will not be doing a final inspection until everything is considered to be complete by the builder and a certificate of occupancy has been issued.
• While many contracts do not require all defects to be rectified prior to practical completion make every effort with the builder to minimise the number outstanding. Too often these items remain incomplete for far too long and become the subject of additional time, costs, consternation and litigation.
• Clarify to the client the difference between practical and final completion.
• Ensure you act impartially in issuing practical and final completion certificates. The builder and the client must not coerce you into issuing these.
• Clarify to the client what happens during the defects liability period and the time allowed under the construction contract for the rectification of defects.

To the client:

• Unless agreed at the signing of the contract with the builder, avoid asking for an early completion of the works or to use or occupy some parts of the project before completion of the total project.
• Your architect will issue practical completion once the building is at a level of completion whereby it can be occupied. There may be defects obvious at this stage, and you may wish to wait until these are complete before occupying the building.
• Ensure you have your insurances in place for when you take occupation of the building.
• Ensure you understand your rights and responsibilities regarding any security held by you under the construction contract. Ask your architect for advice on when these will need to be paid. If you are unhappy with any work, ask your architect about the correct course of action to have the works repaired.
• Ensure that you receive all warranty documents, instructions and information relating to the operation of your project. Ensure that you retain a set of up-to-date documents and in particular be aware of the location of service lines.

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Defects liability period to final certificate

To the architect:

• Communicate periodically with your client to check whether defects have occurred and that all systems are operating satisfactorily.
• Ideally, undertake detailed inspections of the works with the builder on at least two or three occasions during the defects liability period. Plan to allow enough time for the builder to rectify any items by the end date of this period.
• At the end of the defects liability period, undertake a final inspection with the client and builder to ensure that everything is in order.
• Promptly complete the final certificate and authorise the release of the security.
• Should the builder fail to rectify items (or refuse to rectify) within a reasonable period of time, it may be necessary to have another contractor to rectify the works. If this is the case, you must follow the contract to authorise the owner to claim against the security.
• Depending on the extent of defects and rectification costs a claim may be made against the builder’s domestic building insurance.

To the client:

• Contact your architect promptly if you become aware of a defect or have problems with the operation of any item. Do not contact the builder directly.
• In reporting any defect be clear whether the item is as a result of normal ‘wear and tear’ or due to defective workmanship.
• Allow the builder reasonable time to repair any defective work and ensure that the builder has given a date to the architect as to when the rectification work will occur.
• If you are not satisfied with the rectification work, contact the architect and have them determine whether the work is satisfactory.
• In cases where the costs of rectification of defects is extensive, application may need to be made against warranties or the builder’s domestic building insurance.

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Related courses - Available via Online CPD

• Writing a brief