This report is the culmination of focused work that has been undertaken by the ARBV and NSW ARB over the past two years to better understand systemic risks facing the Australian architecture sector. The primary objective has been to identify risks that could compromise architects’ ability to comply with their professional standards obligations so that the ARBs can assists architects to effectively manage those risks. This work will consequently help protect the interests of clients and end-users, as well as the public interest more generally, and help avoid negative outcomes arising within the sector.
The work has led to the following main insights about systemic risks facing architects:
- Client-architect relationships and agreements: A better understanding of roles and responsibilities of architects and clients is needed as this could improve outcomes. Effective communication between architects and clients is crucial for a strong relationship, with room for improvement on both sides. The sector would benefit from a deeper understanding of the facets of communication and their impact on outcomes. Bespoke client-architect agreements appear to be widespread, but not utilised appropriately for managing relationships and associated risks in projects at various scales.
- D&C procurement: D&C procurement can result in the transfer of design responsibility away from architects, potentially compromising the quality of built outcomes and compliance with professional standards. D&C procurement often prioritises high-level design documentation, which, coupled with limited on-site presence, hinders architects' ability to oversee design intent during construction.
- NCC compliance: There is debate among industry participants about whether NCC compliance guarantees quality built outcomes due to its focus on minimum standards. Roles and responsibilities for NCC compliance, especially in the context of D&C procurement, are not well understood. Limited design scope may hinder architects from achieving NCC compliance, potentially leading to non-compliance in built outcomes due to design documentation that has limited detail. In addition, these limitations on the scope of design services affects architects' understanding of the NCC.
- Disruptive change: The architecture profession's overall awareness and readiness for disruptive change, especially regarding climate and technology, are likely to be limited. Practical challenges to adapt, including lack of resources, may mean some practices are better equipped to respond to change than others. Adjustments to service delivery may be necessary to maintain professional standards and seize opportunities arising from disruptive change.
Without effective action, these risks could lead to widespread negative outcomes. This report lays the foundation for a well-informed and coherent collaboration among sectoral participants to ensure that the systemic dimensions of the risks identified in the report are effectively addressed. Apart from the ARBs, there is also a role to play by industry bodies, education providers, research institutions, and other government agencies. In addition, various interventions are necessary to tackle different aspects of these risks, including CPD, guidance for architects and clients, stakeholder engagement, education, research, and legislative reform.
The ARBV and NSW ARB, as regulators of architects, will assist them in managing systemic risks and meeting professional standards. This will be done through a CPD program that is tailored to address the systemic risks outlined in this report, along with targeted guidance. The ARBs gratefully acknowledge action that has already been taken by stakeholders to respond to the recommendations in the Systemic Risks Report but stress that there is more work to be done, as highlighted in this report. Industry bodies are urged to further support architects through activities such as CPD, guidance, engagement, and research. Education providers should enhance programs to address identified educational gaps. Research bodies can contribute by analysing key issues, while government bodies should advance legislative reforms to mitigate systemic risks in the architecture sector. The ARBV and NSW ARB remain committed to collaborating with all stakeholders to enhance outcomes for architects, clients and end-users as well as other participants in the construction sector.
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