Guide letter 9: Recommendation to client - additional fees

1. Caution

1.1 If additional fees become necessary, the client's written approval should be obtained before the work requiring additional fees is commenced (refer Guide letter 16).

1.2 This letter should only be sent after the cost or estimate of additional fees has been established.

2. When and how?

2.1 Additional fees will be incurred when the scope or extent of services to be provided by you and/or your subconsultants exceed that which has been agreed in the client-architect agreement.

2.2 The Institute has published the 2019 Client Architect Agreement (CAA2019). Project-specific agreements should generally be based on the principles contained in this agreement.

2.3 Additional fees are chargeable not only when an additional type of service is provided, but also when there is a change of client's instruction. Clauses in the CAA2019 authorise a legitimate claim in this respect.

2.4 The agreement specifically authorises an adjustment in the fee when:

• services are protracted (A.5)
• services are suspended ( A.6)
• services are required beyond the agreed level of service D.8
• the project brief is amended.

Other reasons that may initiate the need for additional fees include:

• redocumentation is required because of tenders exceeding the estimate of a cost consultant who is responsible to the client (secondary consultant)
• overtime is required to meet special circumstances and is authorised by the client in advance
• contract administration services are protracted by late completion of the project and this has been outside your control
• there has been a break in the continuity of your architectural services due to instructions or lack of them from the client
• you have taken over the services of another architect and, after review, find additional work is required to make good deficiencies in the original services
• you are required by the client's instruction to document or administer a project governed by special contract conditions and as a result additional cost is incurred.

3. Content

Refer to:

• reason for additional fees related to a departure from your original (or current) client and architect agreement, scope of service and agreed fee
• estimate or quote
• when payment is expected
• the fact that you are waiting for written approval before proceeding with the work
• any urgency in relation to the receipt of instructions.

4. Action

4.1 Written approval for the additional fees is obtained from the client.

5. What happens next?

5.1 Do not proceed without instructions as you may not be paid unless agreement can be reached.

6. What can happen if you don't?

6.1 You may only be able to recover the cost of providing additional services without written agreement from your client if you can establish that there was an oral or implied agreement. For an implied agreement you would need to establish:

• the work is not inconsistent with the terms of the original agreement
• the client knew that the work was outside the scope of your original agreement
• the client knew that you were performing the work
• the client knew or ought to have known that you expected to be paid for it and accepted the benefit of the revised service.

7. Copies

7.1 Architect's file.

7.2 Any agreement for additional services and fees should be in duplicate so that both you and your client can retain a signed copy.