Inspections

Contract administration

Partial inspection services in the course of contract administration are risky and only justified in exceptional circumstances. Those circumstances do not include the client's desire to make a saving on the architect's fees. Where exceptional circumstances do justify a single inspection or series of inspections, they will also justify having special conditions of engagement written and checked by a solicitor experienced in building matters. Refer Acumen note Partial services.

The conditions of engagement should state that full inspection services are not being provided and specify the manner in which the architect's duty to inspect is limited. Consider, for example, the architect who has been asked to visit the site to inspect a wall that is to remain standing. Concrete is to be poured on the same day. In these circumstances, it must be made clear that the architect's duty is only to inspect the wall, not to view the concrete pour as well. It is also wise to follow up the visit with a letter reiterating what was inspected, report the findings and state that nothing else was inspected.

Site inspection during construction is highly skilled work that requires comprehensive knowledge of contract documentation and construction-industry standards. It also requires considerable experience, must be done rigorously and detailed records must be kept. An architect should order opening up of the works if they are unsure and proper rectification must be insisted upon. At all times maintain clear communication with both the owner and contractor.

Although standard client-architect agreements state expressly that architects do not provide supervision, but rather periodic inspections or observations, architects can be found liable where a building defect has resulted from defective work or materials. The law apparently sees no anomaly in expecting the architect to provide some sort of 'supervision', due in part to the duty to check the work before certifying progress claims.

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Risk management

• Make sure that you have a clear agreement in the form of a client-architect agreement that states that you are not providing supervision. See Australian Institute of Architect's Client Architect Agreement (CAA2019) Schedule A (Scope of services). 
• Stress to the contractor and the owner that it is the contractor's (not the architect's) responsibility to supervise the work. Refer Acumen note Contract administration versus supervision.
• Resist the temptation to make endless lists of defects, which may encourage the contractor to rely on the architect to pick up defective work. 
• Defective work in itself is evidence that the contractor is not providing appropriate supervision. As well as insisting the contractor rectifies work, insist that the contractor improves supervision too.

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Opening up the works

Most contracts give the architect power to order the contractor to 'open up' work for inspection to establish whether or not it is in compliance with the contract documents. These provisions also allow for the costs to be borne by the owner if the work is found to comply and as such this can be a challenging decision for an architect to make. Refer Acumen note Opening up and testing the works.

Defective work can sometimes only be detected by opening up, but this can be a difficult decision to make. Sometimes the act of opening up can cause further problems, eg if finishes can't be exactly matched or waterproof membranes etc reinstated. This can deter architects from directing that work be opened up, as does the possibility of finding that the work complied anyway. Opening up may also cause delays to the program, and there can be pressure from the contractor, and possibly the client, to accept substandard work or forego opening up so that the program is maintained.

As there are risks associated with instructing the contractor to open up the works for inspection, the contract documents may include the requirement for hold points hold points Usually defined as an opportunity to witness an activity or item for which the contractor is required to give notice. The contractor must not proceed further without the approval of the architect. View full glossary and inspections to be made of work considered to be critical to the project before it is covered up. Refer Acumen note Mandatory inspections.

Architects have a vested interest in ensuring that all materials and workmanship are in accordance with the contract documents and that any substandard work is rectified as soon as it is identified.

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Site-inspection guidelines

• Prepare for the inspection by familiarising yourself with the contract documents.
• Keep comprehensive records of inspections, including dated photographs.
• Take a copy of the contract documents on to the site, including the specification and any addenda, for reference.
• Decide in advance what you are going to check, rather than just 'run your eye over the whole thing'.
• Don't get distracted into spending most of your time in the foreperson's office or answering queries. An architect's primary function on a site visit is to observe.
• Queries can often best be answered after you have considered and discussed them with colleagues and after referral to the contract documents.
• Do your inspections alone, so that you don't get diverted or 'managed' by the contractor.
• Comply with the contractor's WHS/OHS requirements while on site.
• Insist that any scheduled test certificates are provided as they are another form of inspection, and cannot be undertaken visually.
• Don't delegate inspections to junior staff, though by all means take them along to gain experience.
• Most projects will include the need for mandatory inspections or tests. Refer Acumen note Mandatory inspections for details.
• Follow up from site visits with necessary reports, instructions and document agreed actions.

Refer to Acumen note Inspection checklists for guidance on items to consider and record during inspections.

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Keeping records

An inspection and test plan, site-inspection records and completed checklists for project hold points/inspections and handover inspections are the best legal defence to a charge that the architect did not adequately carry out their duties. Remember, however, that records could show up a trend of defective work that you should have taken action on earlier. It could also point to earlier work that may have similar defects that you should have realised was suspect and insisted on opening up.

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Rectification

An architect has the discretion to not accept substandard work. Even if the client agrees to it in writing you may be liable to any future owners, occupiers and third parties if a problem arises.

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Reports

Reports should always be in writing, eg a letter or an itemised memorandum of inspection. In cases of urgency, the architect may report orally in the first instance, but such a report should always be confirmed by a comprehensive written report.

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Dilapidation reports

Dilapidation reports are an essential tool where construction is in close proximity to existing or adjoining buildings. A comprehensive condition report can help avoid disputes. There are firms that undertake this reporting for a fee, however architects should for their own records also undertake a photographic dilapidation survey to record conditions of existing structures, fences, footpaths etc before commencing work.

The use of machinery and/or power tools often causes vibration of structures and causes materials or building elements unable to withstand vibration to crack as a consequence. If the construction process results in a change to the pre-existing condition prior to construction, the architect needs a record of the before-and-after situation. Despite the best endeavours of a contractor, damage may inadvertently occur and the responsibility for damage is clearly a contractual liability.

Construction activities such as the following, can all cause damage to adjacent properties and their materials, finishes and building elements, and such adverse effects can also extend to roads, pavements and landscaping:

• vibrations caused by mechanical plant
• site works
• underpinning
• excavations altering the water table.

Under such conditions it may be prudent to seek the neighbours' cooperation in allowing the dilapidation survey to extend to their premises, and to be witnessed and agreed to by a third party.

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Form of dilapidation survey

The best form of a dilapidation survey is a photographic survey carried out, and dated, prior to the start of adjacent construction activities, which should be accompanied by notes as to the condition of the building fabric and finishes, detailing good, average, poor condition etc.

While old structures rarely exhibit settlement to any great degree, it is common to find distress, settlement or cracking at skirting or cornices where horizontal and vertical finishes meet, or around steps, paths, verandas and patios, where internal structure meets on-grade elements. Service lines such as drains may be fractured or broken by landscape elements such as trees, tree roots and the like.

Roofs on old buildings often exhibit cracked or broken tiles, loose ridge, barge or hip coverings as a result of extremes of temperature or freeze-thaw cycles.

Survey requirements

The requirement for the contractor to complete such a survey should be specified.

Once a survey has been carried out the evidence needs to be verified and signed-off by the author, structural engineer or contract administrator as a true and accurate survey of the building condition. It is good practice to copy the agreed report to the principal or client for information, to adjacent owners and all relevant parties.

If an adjoining owner denies access to a site for the purposes of assessing condition, there should be an exchange of correspondence as to the possible consequences. The adjoining owner will have a harder case to prove in the event of damage if they have refused to cooperate. Refer Acumen note Protection of adjoining properties.

Once building work is complete, the architect needs to establish whether the new work has led to a change to the pre-existing condition prior to the new work. Without a survey this can often be subjective and the cause of dispute if such deterioration needs to be repaired by the contractor at their cost.

Some clients decide to include contingency costs to cover reinstating and/or upgrading finishes in such situations, recognising that even with the utmost care, the proximity of new and old construction nearly always has some deleterious effect on structure and finishes, if only in a minimal way.

The repair of damage caused by the contractor is clearly the contractor's own responsibility to rectify. The completion of a detailed dilapidation report before the damage occurs will be beneficial to all parties in establishing responsibility and in forming the basis of a rectification schedule.

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Pre-purchase inspections

Prudent domestic and commercial property buyers may commission an architect to provide project feasibility guidance in the form of a pre-purchase inspection report and to advise of any evident faults in the building, the grounds, boundary fencing or out-buildings.

However, property inspections can be a relatively high risk service for your professional indemnity (PI) insurance cover. Architects wishing to undertake a property inspection should contact their insurance provider to determine whether their Pl insurance policy excludes such work.

In the current market, it is very difficult to find cover for pre-purchase inspections and almost all insurers exclude these activities.

If not, care should be taken to qualify the service scope where necessary and to establish a risk-appropriate fee. Refer ‘Pre-purchase and other inspections’ in Acumen note Common risks for architects.

Generally, PI insurers don't provide a definition of 'design work', which would be considered covered by a standard PI policy for architectural services as being part of the core work for an architect. The meaning of 'design', however, is not constrained by such a definition either. Feasibility advice related to design is less likely to be a problem than statements about building conditions, particularly if the statements could be considered warranties or guarantees about the fabric of the building.

Some states and territories require a licence to conduct property inspections – consult the relevant state building regulator or consumer affairs department to establish these requirements. Holding a mandatory licence does not necessarily imply PI insurance cover.

AS 4349.1-2007 Part 1: Inspection of buildings Pre-purchase inspections - Residential buildings sets minimum standards for domestic property inspections. Architects wishing to provide property-inspection services (after establishing that they are covered by their PI) should acquaint themselves with the requirements of this standard.

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