Division 2 addresses the client-architect relationship. It includes obligations about client agreements, fees and costs, diligence, communication, contract administration, confidentiality, conflicts of interest and disclosure of referral, recommendation and endorsement arrangements.
(1) For the purposes of this clause, an architect administers a building contract for a client if—
(a) the contract concerns the construction of a building and is entered into by the client with a building practitioner; and
(b) the architect has been engaged by the client to inspect or administer the provision of services under the contract.
(2) If an architect is administering a building contract for a client, the architect must—
(a) act with fairness and impartiality in administering the building contract; and
(b) discharge the architect's obligations in connection with the administration of the building contract diligently and promptly; and
(c) provide the client and the building practitioner with relevant information about the administration of the building contract in a timely manner.
A client may engage their architect to oversee the construction phase of a building project after the design is complete, including to monitor the building works, issue architect instructions to the builder, assess variations and payment claims by the builder, and manage the building contract. This means that the architect can use their knowledge and expertise when dealing with the builder, including managing design changes during construction.
When administering a building contract, an architect is obliged under the Code to act impartially between the client and the builder. The integrity of the contract administration process could be undermined if the architect favoured either the client or the builder when carrying out the architect’s duties under the building contract. It could also expose the architect and the client to challenges and legal liability. In addition, a slow or inattentive contract administrator can delay a construction project, which could have financial consequences for the client. Further, failing to keep the client and builder properly informed may result in disputes.
- When administering a building contract, apply the contract terms consistently, objectively and fairly, particularly where there are financial implications associated with action or inaction.
- Issue all certificates, instructions and determinations strictly within the timeframes specified in the contract.
- Keep records of all key communications with the client and builder with sufficient detail of items discussed, any instructions given, and decisions made.
- Communicate all formal decisions (certificates, instructions, assessment of claims) to both the client and the builder in writing.
Updated