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Perhaps the most common cause of dispute between architects and specialist consultants results from a lack of understanding between the parties of the fees to be charged and/or the services to be provided. Using appropriate, understandable and clear agreements is one of the most effective ways of avoiding disagreement. Refer Acumen note Architect’s liability for specialist consultants for more information.
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Terms of engagement and payment of fees
Good business practice and the interests of both architect and specialist consultant are best served by a written agreement defining the scope of work to be undertaken, terms of engagement, fees and terms of payment. Refer to the Institute's Architect–Specialist Consultant Agreement 2017 (ASCA2017).
The agreement, which confirms the appointment of the specialist consultant following the client's approval should be a written agreement and as detailed as possible. Refer ASCA2017 guide letters and Acumen Guide letter 6, Guide letter 7.
Where the architect has been engaged under a project specific agreement or other non-standard agreement the subconsultants A consultant whose work is subject to the direction and coordination of the primary consultant. The subconsultant is in contract with the primary consultant. View full glossary should be engaged using conditions which mirror those applying to the architect's engagement. Refer ‘Back-to-back contracting arrangements’ in Acumen note Architect’s liability for specialist consultants. In this situation it may be prudent to seek legal advice on the preparation of the subconsultant’s conditions of engagement.
The agreement should be completed in the earliest stages of the project, usually prior to the preliminary design stage when the design, documentation and construction program has been generally established and an estimate of the payment schedule for design and documentation fees can be made. All parties will then be aware of not only the total fees payable, but also the financial arrangements agreed upon for the progressive payment of fees. The design may include significant input from a specialist consultant and, if so, this specialist should be involved from the start.
Although a basic total fee may be agreed there should also be a schedule showing a detailed break down by stages. Each stage and element should show a percentage of the basic fee with a monetary sum allocated to it. By constantly monitoring the amount of work carried out in relation to fees, both the architect and subconsultant are aware of the true value of the work done at any stage, and the schedule will assist them both in their assessments.
Default by consultants
Bankruptcy or default of a consultant is a rare occurrence, but one which can cause major problems for an architect. Risk can be managed by carefully selecting consultants and ensuring that they are only paid when there is clear evidence that their work is completed to the level defined.
The engagement should provide for prompt termination in the event of default or non-performance.
By constantly monitoring the amount of work carried out in relation to fees, both the architect and the subconsultant are aware of the true value of the work done at any stage, and the schedule will assist them both in their assessments.
Disclaimer
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