Built Environment
ARCH7182
Architectural Professional Practice
The Client Architect Agreement – Part 3
Vanessa Dudman
Reg. Architect 6039
Last week we learnt about….
Client Architect Agreements in overview,
The different stages of a project,
Cover letters (Introductory Letters / Fee Letters) and the key aspects
behind architectural scope and fee proposals,
Return Briefs and how to determine a scope of service,
How to determine fees, and
Some common mistakes in writing cover letters and how to discuss fees
with the Client.
This week we are going to….
Review the basics of the AIA Client Architect Agreement 2009 & 2019,
Review the key components of an Introductory Letter (Fee Letter),
Understand how to calculate professional fees.
Why use a formal Client Architect Agreement?
• To establish clear parameters for the project brief including:
o client goals and requirements,
o stages of architectural service offered,
o architectural fee for the service,
o outline program for the provision of service, and
o how to handle variations to the project brief and scope of
service provided.
Why use a formal Client Architect Agreement?
• Because a written agreement is highly recommended to avoid
misunderstandings or resolve disputes during and after you have
delivered your services.
• Because most Australian Architects Acts require you to, and
• Because the NSW Architect’s Code of Conduct requires you to.
Additional benefits to having a formal Client Architect
Agreement?
• Having a document that can be used to form the basis for project
planning and planning of resources.
• Having a document that can be used to schedule income.
• Having a document that you can use to support your quality
assurance procedures.
• Having a document that can be used to brief project team
members.
Additional benefits to having a formal Client Architect
Agreement?
• Having a document to help support claims for services variations.
• Having a document that can help identify
brief creep.
Brief Creep is a term used to identify incremental
changes in the project brief which effects the amount of work you
need to do, and is scope that should be dealt with as a services
variation.
Steps to signing a Client Architect Agreement (CAA)
Step 1 • Take notes at your initial client
Client meeting to extract as much
Meeting information as possible.
Step 2 • Prepare your introductory letter
Introductory (Fee Letter) containing the brief,
Letter scope of service, fee, exclusions,
disbursements, variations.
Step 3 • Prepare the formal Client
CAA Architect Agreement and ensure
you and the client sign it.
AIA Client Architect Agreement 2009 & 2019
AIA Client and Architect Agreement 2009 Basics
The Contract starts with identifying:
1. The Parties to the contract
• Client
• Architect
2. The Project
• The project scope, location and
• Extent of work (The Brief)
3. Project Budget
• Cost of Works excluding GST
AIA Client and Architect Agreement 2009 Basics
A. Core Architectural Services
B. Additional Architectural Services
AIA Client and Architect Agreement 2009 Basics
C. Cost
Estimates of the Cost of Works are not a guarantee of the actual
cost, a quotation or a tender.
There are 2 types of costs identified:
C.1 Total Project Costs Includes all costs including consultants fees and GST.
C.2 Cost of Works Represents the costs of construction excluding GST.
AIA Client and Architect Agreement 2009 Basics
D. Time
The client must inform the architect of the initial program for the project.
Based on that program, the client and architect must agree on an initial program
for the architect’s services.
E. Fees
Architectural fees are to be provided on at least one of the following basis for
calculation:
A percentage of the Cost of the Works This section also includes
Fee Invoices,
A lump sum fee Disbursements and
An hourly rate Payment of Invoices.
Or a combination of these.
AIA Client and Architect Agreement 2009 Basics
F. Other Specialist Consultants
Most projects require the services of Other Consultants. This clause deals with
engagement of these consultants, noting it is better to have the Client engage
consultants directly rather than the architect engaging them.
This Photo by Unknown Author is licensed under CC BY-NC
AIA Client and Architect Agreement 2009 Basics
G. Intellectual Property
This clause covers Copyright in The Design and Moral Rights.
Under this contract, the architect grants an express but
revocable licence to the client to use The Design for the
project on the site for which it is intended.
H. Insurances and Liabilities
This clause stipulates that the architect must carry:
• Professional Indemnity
• Public Liability Insurance
• Workers Compensation Insurance
AIA Client and Architect Agreement 2009 Basics
I. Client Obligations J. Architect Obligations
Refer to the relevant clauses for a full list of obligations.
AIA Client and Architect Agreement 2009 Basics
K. General Conditions
General conditions covers items such as who is responsible for ensuring the constructed
project complies with Building Contract Documents (not the Architect), and the
jurisdiction of applicable law under which the contract operate.
L. Dispute Resolution
This covers the steps for dispute resolution which includes required correspondence and
mediation. If a dispute arises, the architect must continue to perform their obligations
under the agreement.
M. Termination
The contract may be terminated by either party giving 30 days notice.
AIA Client and Architect Agreement 2009 Basics
N. Special Conditions
Special conditions are nominated in Schedule N of the schedules and take precedence
over any other conditions in the agreement.
O. Schedules
The AIA Client Architect Agreement 2009 (CAA2009)
And 2019 Version (CAA2019)
Both CAA2009 and CAA2019 can be used for projects of all sizes and
complexity. CAA2019 supersedes CAA2009.
CAA2019 adopts user-friendly plain English language and includes
new provisions and clarifications for:
Cost of Works, Fees, Changes to Services,
Protracted Services, Use of intellectual property in The Design,
Digital files, Terminating the agreement, and
Advance payment (Mobilisation Fee).
The AIA Client Architect Agreement 2009 (CAA2009)
And 2019 Version (CAA2019)
Also available is a new Client Architect Agreement for Limited Services
(CAAL2019). This is for less complex projects or partial services but will
not be dealt with in this lecture.
The digital versions are available to all Institute of Architects members
and Students, with access to Acumen. Hardcopy versions of the CAA2019
and CAALS2019 can be purchased at http://architecturecontracts.com.au
Other Client Architect Agreements
Prospective clients may wish to use a Standards Australia agreement, such as AS4122,
or a bespoke contract specifically adapted for a large project.
All of these contracts set out the following obligations:
The architect is obliged to perform the scheduled services and do all the other
things described in the contract.
The client is obliged to pay you the amounts scheduled for the services you
provide.
It is important to make sure that any thing or service you are unwilling or don’t
agree to do is removed from the schedules of the contract.
Introductory Letters
(Fee Letters / Fee Proposals / Cover Letters)
These letters are a simpler version of a Client
Architect Agreement (CAA) but include
all of the important ingredients.
They set out who the parties are, the
parameters for the project, scope of
architectural service and fee.
Introductory Letters : Parts of the Letter
Your details including address and contact details
Date of letter
Clients name and address with postcode
Salutation
Property Details
Project Brief
Scope of Service
Programme and Fees including Variations
Other Consultants
Exclusions
Form of Agreement and Architects Code of Conduct
Introductory Letters : Parts of the Letter
[ADD COMPANY LOGO]
Your Details [Company address]
[Nominated Architect Name and Registration number]
Date [Enter Date]
[Company]
Client [Address 1]
Contact [Address 2]
Details [City]
Attention: [Full Name]
Dear [Name],
RE: [SUBJECT]
Salutation We refer to our recent discussions, and are pleased to submit this proposal for the provision
of [XXXXXXX ] for the above project.
Introductory Letters : Parts of the Letter
Project details Project Brief
and Brief: The brief is the [the development of, etc, etc] at [enter address/location of project].
include LGA
information Scope of Services
and any Based on [our discussion, XXXX, etc] our understanding is that the scope includes the
special client following, broken down as per our standard design phases.
requirements
Phase 01 - Initial Sketch/ Concept Design Insert dot points to describe
the activities that will be
Phase 02 – Design Development undertaken in each phase of
Detailed Scope service.
of Services Phase 03 –Development Application Documents
tailored to the
client and Phase 04 - Authority Approvals
project
requirements Phase 05 – Construction Certificate/Tender/Construction Documentation
Phase 06 - Construction Phase
Introductory Letters : Parts of the Letter
List Assumptions
assumptions The above scope is based on our understanding that:
to provide • A full-time Project Manager will be appointed, and will act as Contract Administrator
clarity to the during construction phase
client • Construction procurement will be via a traditional one stage tender method
• Relevant members of the project team will be engaged to provide timely input
• The Cost Consultant will attend regular design meetings, and maintain a cost plan to
assist the design team in achieving the Client’s budget.
Programme Programme & Fees
& Fees: List in Based on receiving timely input from all consultants and allowing for the process of co-
table form ordination, review and response, our anticipated programme and fee is as follows:
Phase Programme Fee excluding GST
[INSERT TABLE]
Variations Any material design change instigated by the Client or their consultants will be a Scope of
Services Variation provided at hourly rates or as otherwise agreed.
Introductory Letters : Parts of the Letter
List Other Other Consultants
Consultants Cost Consultant
that may be Planning
required for Geotechnical
the project Civil
Structural
Building Services
Accessibility
Acoustic
Certification (PCA)
Exclusions
List The following services are excluded from this scope:
Exclusions to [List any project specific exclusions, if required, otherwise delete section].
the Scope of External soft and hard landscaping
Services so Signage and graphics design
that there is Specialist Lighting
no ambiguity Acoustics
Artworks
Introductory Letters : Parts of the Letter
Insurance
Provide We carry the following insurances:
insurance • Public Liability
details • Workers Compensation
• Professional Indemnity
Provide Form of Agreement
information Please find attached a draft copy of our Client Architect Agreement including terms and
about the conditions for your perusal.
type of CAA
you intend to NSW Architects Code of Professional Conduct
enter into We provide a copy of the NSW Architects Code of Professional Conduct which provides
with the information on the standards required of architects when engaged to provide architectural
Client services.
This proposal will remain valid for three months from the date of this letter. Please do not
Sign-off hesitate to contact us to discuss any part of this letter, and we look forward to working with
you on this exciting project.
Yours faithfully, [include your signature, printed name and title]
Introductory Letters : Parts of the Letter
Your details including address and contact details
Date of letter
Clients name and address with postcode
Salutation
Property Details
Project Brief
Scope of Service
Programme and Fees including Variations
Other Consultants
Exclusions
Form of Agreement and Architects Code of Conduct
Calculating Project Fees
Architectural fees are to be provided on at least one of the following
basis for calculation:
A percentage of the Cost of the Works
A lump sum fee
An hourly rate
Or a combination of these.
Calculating Project Fees - % on Cost of the Works
Calculating fees based on a percentage of the Cost of the Works requires a
knowledge of current market forces.
Speaking with a friendly Quantity Surveyor may help with ascertaining the
most appropriate % fee.
The Institute of Architects used to issue a sliding scale as a guide, but no
longer does so.
Calculating Project Fees - % on Cost of the Works
Percentage based fees are formulated on a sliding scale. This is a NZ version from 2007.
It illustrates how the complexity and overall cost of the project will influence the % amount
for the fee.
Calculating Project Fees - % on Cost of the Works
In order to break-up the percentage based fee into the architectural phases of service, you
need to allocate a % of the fee against each phase.
Calculating Project Fees – Fixed Lump Sum
There are 2 main ways to calculate a Fixed Lump Sum fee.
1. Analyse the staff you will need to undertake the task and multiply by the time period.
Calculating Project Fees – Fixed Lump Sum
There are 2 main ways to calculate a Fixed Lump Sum fee.
2. Work out your list of deliverables and devise a cost to produce each deliverable.
Some rows are hidden
Calculating Project Fees – Hourly Rates
Using hourly rates to calculate fees is best used for scopes of work like
feasibilities, authority attendance and variations, where the scope cannot
always be properly ascertained.
Hourly rates are based on salaries plus overheads plus a reasonable profit.
List the activities that need to be undertaken and apply a time and rate.
From last week……
So, do we design to a brief or to a budget?
So, do we design to a brief or to a budget?
We ultimately design to both a brief and a
budget.
THANK YOU
