Executive summary

Overview

1. This report examines compliance culture in the architecture sector – why it matters, what a strong compliance culture looks like in practice, and how compliance culture can be strengthened.
2. Architects operate in a highly regulated and complex environment. A strong compliance culture is essential not only for upholding professional standards, but also for reinforcing the integrity and reputation of the profession.
3. This report draws on the insights of architects, regulators, insurers, educators and industry leaders to deepen understanding of and enable enhancement of compliance culture across the architecture profession.
4. As context, the report defines compliance culture and describes what a strong compliance culture looks like in practice for sole practitioners and small architectural firms, as well as larger firms.

Why does compliance culture matter?

5. Architects are professionals and, as such, they are held to high standards by their clients, the public and professional peers.
6. In their capacity as professionals, architects are entrusted with responsibilities that affect a wide range of important societal values, including safety, environmental sustainability, cultural heritage, as well as economic efficiency and productivity.
7. Architects have a vested interest in upholding professional standards and complying with their legal and ethical duties and obligations. Doing so helps to build trust and protect their reputation among clients and the public and distinguish architects from other building designers. It also avoids disciplinary action or other regulatory sanction for non-compliance.
8. More generally, a shared commitment within the architecture profession to comply with professional obligations, adhere to ethical standards, and strive for best practice helps to reinforce the credibility, reputation and the legitimacy of the entire profession.
9. As regulator of the architecture profession in Victoria, compliance culture within the profession is also of critical importance to the ARBV.
10. Non-compliance with the regulatory framework applicable to architects and architectural firms may lead to harm, such as poor client-architect relationships, designs that do not meet clients’ needs, and building defects that create safety hazards.
11. The ARBV considers that a focus on compliance culture is essential because it enables the underlying attitudes, values, and behaviours that shape how architects and architectural firms approach compliance with their regulatory obligations to be addressed. This approach assists the ARBV to move beyond dealing with isolated breaches of the regulatory framework on a reactive basis to proactively addressing the underlying drivers of non-compliance. More specifically, it enables the root causes of non-compliance to be targeted so that compliance issues can be pre-empted and prevented.

What does a strong compliance culture look like in practice?

12. Underlying architects’ status as professionals is a set of overarching duties that are grounded in law and ethics. These overarching duties have evolved to protect clients, the public and the profession from harm.
13. The overarching duties rise above the detailed compliance obligations that must be discharged to avoid regulatory sanction and transcend firm sizes, types of projects and procurement arrangements. They apply universally to all architects and go to the very heart of what it means to be a professional.
14. Critically, the overarching duties also underpin a strong compliance culture. When architects understand and accept these overarching duties, they are more likely to embed compliance into their everyday actions and decisions.
15. This report includes guidance to assist architects to discharge these overarching duties. The guidance has been tailored for sole practitioners, small firms and larger firms.
16. By understanding and embracing the overarching duties, architects lay the foundation for a strong compliance culture that protects clients, users and communities they serve from harm.
17. Compliance with these overarching duties also reinforces confidence and trust in the profession and contributes to safe, high-quality built outcomes.

How can compliance culture be strengthened?

18. Evidence considered for this report indicates that architects generally demonstrate a strong commitment to compliance. However, this commitment may be undermined by project complexities, unclear roles and responsibilities, and commercial pressures, including but not solely in the context of D&C procurement.
19. In addition, regulatory complexity and change may make it difficult for architects to maintain compliance. Further, while CPD is valued by the profession, compliance with CPD requirements is inconsistent.
20. There is also evidence suggesting that some architects may be more vulnerable to non-compliance when providing partial or limited services, particularly if they are unaware of their contractual obligations and limitations, or lack a clear understanding of their professional duties in this context.
21. Despite these challenges, this report outlines practical ways architects can integrate compliance into their professional practice.
22. A strong compliance culture is built on understanding and valuing the contribution that regulatory compliance makes to important outcomes for clients, the public and the broader profession.
23. Practical compliance tools that are tailored to the nature and scale of architectural practice can be used to embed a compliance-minded approach. Ongoing education about compliance issues and transparency about non-compliance when it occurs are critical, alongside a commitment to continuous improvement.
24. In addition, it is important for architects to consistently turn their mind to compliance, even if they believe that the primary responsibility for doing so rests elsewhere or that their responsibility for compliance is confined (e.g. because they are providing partial services).
25. These mechanisms can help architects to internalise their overarching duties and, thereby, conduct their practices lawfully and with integrity.
26. As regulator, the ARBV also plays an important role to enhance compliance culture within the architecture sector by complementing efforts made by architects themselves.
27. The ARBV will use the key findings in this report to strategically identify the mix of regulatory tools to guide meaningful cultural change and secure positive compliance outcomes in the long-term.

A call to action

28. This report serves as a call to action – not just for architects and architectural firms, but for all participants in the broader construction sector.
29. The construction sector is fragmented, with many different players including clients, developers, designers, engineers, builders, certifiers and product suppliers. Positive cultural change will only take root if all participants in the construction sector collectively and collaboratively commit to compliance across the sector.
30. Even though improving compliance culture is not the responsibility of one profession alone, architects can lead by example. By doing so, they help raise standards across the construction sector and ensure that the buildings they design are not only beautiful and functional, but also safe, high-quality, lawful, and built on a foundation of ethical integrity.