CLIENT-ARCHITECT RELATIONSHIPS AND AGREEMENTS |
| Factors that can have an adverse impact on the client-architect relationship | - There is a broad range of factors that may have an adverse impact on the client-architect relationship throughout the process of procuring and providing architectural services, including:
- misalignment of design expectations between the architect and client about the brief and the design
- inadequate skills and expertise (including in relation to project delivery)
- ambiguity of roles and responsibilities
- engagement of an architect for partial services
- onerous and unfair contractual obligations
- fee arrangements and variations
- inefficient and ineffective communication and engagement
- lack of detail in design documentation
- regulatory non-compliance.
| - A number of the factors that can have an adverse impact on the client-architect relationship arise in the context of particular procurement processes and may be outside the control of architects.
- However, some factors are at least partly within architects’ control regardless of the procurement process.
| - Architects could benefit from more guidance about how to effectively address factors that can have an adverse impact on the client-architect relationship that are within their control.
- Raising awareness among sectoral stakeholders about factors that are outside architects’ control could enhance the client-architect relationship and outcomes for all parties.
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2. | Roles, responsibilities and obligations | - There isn’t a clear and common understanding of architects’ roles, responsibilities and main obligations to clients among sectoral participants.
- The mutuality of the relationship between clients and architects has not been thoroughly explored, particularly identification of clients’ responsibilities and obligations to architects.
- Better understanding of clients’ roles and responsibilities could facilitate architects’ delivery of services in accordance with their professional standards obligations.
| - The lack of a clear and common understanding of roles, responsibilities and obligations of architects and their clients may stem from the fact that these may change under some procurement processes.
- This lack of clarity could compromise the well-functioning of the client-architect relationship and undermine architects’ capacity to advocate for themselves and the design process.
| - More information is needed for sectoral participants about the roles, responsibilities and obligations of architects and clients in the context of different procurement processes.
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3. | Factors that affect communication between architects and clients | - Communication between clients and architects is multifaceted and bi-directional.
- It is unclear whether the scope, form and content of communication required to ensure successful outcomes from procurement through to delivery of architectural services is well-understood.
- The lines of communication between architects and clients may be unclear or limited in the context of certain procurement processes.
| - Architects are likely to have strong skills in communicating about design, but may find communicating clearly about some aspects of project delivery more complex, even though these aspects are likely to be important for the client.
- Architects’ ability to discharge their communication obligations to their clients may be compromised if lines of communication with clients are unclear or limited.
| - Given that communication issues are common in the provision of architectural services, more education and training about all aspects of communication between clients and architects could be beneficial, particularly in relation to project delivery and in the context of different procurement processes.
- Client-architect relationships could also be improved if clients are more aware of the impact of poor communication between architects and clients on project outcomes.
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4. | Use of a client-architect agreement to drive a positive client-architect relationship | - There is evidence to indicate that client-architect agreements are not being used effectively or constructively in the context of small construction projects as well as large projects; bespoke contracts are common in both contexts.
- For small-scale projects, architects may fail to adequately educate clients about the terms and conditions of client-architect agreements. For larger projects, where clients may provide the client-architect agreement rather than vice versa, bespoke contracts may focus predominantly on risk allocation and management.
- Some lending institutions may only provide credit for construction projects on condition that D&C procurement is used and the contract contains certain terms and conditions.
| - There appears to be a lack of appreciation of the value of adopting and implementing a standardised client-architect agreement that is consistent with the regulatory framework.
- Architects may be unduly deferent and may accept terms and conditions put forward by clients in the context of some procurement processes, notwithstanding their obligation to ensure the client-architect agreement complies with their regulatory obligations regardless of the procurement process.
- The use of standardised client-architect agreements can help ensure transparency and clarity about roles and responsibilities which, in turn, may reduce the risk of disputes.
| - A better understanding of the drivers for the preference of bespoke contracts for small and large projects could help identify how greater uptake of standardised contracts that are compliant with the regulatory framework could be achieved.
- Architects need to adopt a proactive approach in all procurement processes to ensure that the client-architect agreement complies with the regulatory framework.
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5. | Impact of fee structures on client-architect relationships | - The fee structure, which may affect the well-functioning of the client-architect relationship, will be dictated by a range of factors, including the type of project, client and design services that are required.
- In general, fixed fees are likely to be preferred by clients because they provide relative cost certainty whereas percentage fees are likely to be favoured by architects because they can enable cost-recovery for inflation and unforeseen developments that can occur during a project.
| - Percentage fees may destabilise client-architect relationships because of the cost uncertainty that they imply.
- Fixed fees are onerous for architects because they involve a detailed specification of services that need to be costed. Fixed fees also need to anticipate and provide for inclusions and exclusions, which may be difficult to predict at the commencement of a project.
| - There may be scope for architects to improve their capacity to demonstrate their value to clients through different fee structures.
- The use of standardised specifications of services for different types of building projects could help alleviate the burden on architects when setting fixed fees.
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6. | Education and training to enhance client-architect relationships | - Architects are looking for more guidance about what a good client-architect relationship looks like in practice.
- More education and training about communication between architects and their clients would be particularly helpful.
| - While architects may understand what their obligations to clients are under the regulatory framework, they could benefit from more education about how those obligations can be used to forge positive client-architect relationships.
- Clients could also benefit from education about their role in enhancing client-architect relationships.
| - Guidance and case studies for architects and clients to highlight factors that lead to positive client-architect relationships in different procurement and project contexts would be useful.
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D&C PROCUREMENT |
7. | Impact of D&C procurement on the design process | - The combination of the following features of D&C procurement can result in a shift in responsibility for, and control of, the design delivery process away from architects:
- cost and time imperatives
- complexity of relationships and lines of reporting
- siloing of functions
- unfair contractual arrangements.
| - Architects are likely to have reduced influence over the design process in the context of D&C procurement.
- The shift in responsibility for, and control of, the design delivery process away from architects under D&C procurement may have an impact on:
- the level of detail of design documentation that an architect is expected to prepare
- the quality of the design
- the translation of the design into the built outcome.
- NCC non-compliance and poor quality built outcomes may result from:
- design documentation that is not sufficiently detailed
- failure to ensure consistency with the design during the building process.
| - Mechanisms to ensure that architects retain adequate control over the design process and are able to manage design intent when the project is being built are critically important in the D&C context.
- More oversight is needed of the interpretation of the design during the construction process to mitigate the risks of NCC non-compliance and poor quality built outcomes.
- In order to minimise the risk of NCC non-compliance, documentation of critical aspects of a design should be required before a D&C contract is novated or a building designer takes over design services from an architect.
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8. | Factors that contribute to adverse outcomes for architects and the design process in the D&C context | - There are various factors that can contribute to adverse outcomes for architects and the design process when D&C procurement is used, such as limits on the project budget and the lack of a sufficiently collaborative approach among all key stakeholders in the project delivery process.
| - A number of the factors that can contribute to adverse design outcomes are outside architects’ control, such as the culture and approach among project participants.
| - Architects could benefit from training on:
- the pros and cons of different procurement models
- which models are best suited to particular contexts
- how professional standards obligations can be complied with in each of those contexts
- the possible impact on built outcomes in each case.
- Broader education among sectoral participants about the impact of cultural issues on built outcomes is essential if adverse outcomes are to be minimised in the D&C context.
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9. | Impact of D&C contracts on allocation of risk, liability and insurance | - Contractual mechanisms are being used in the D&C context to unfairly allocate risk and responsibility to architects beyond what is reasonable and, potentially, beyond the common law duty of care.
| - The allocation of risk and indemnities under D&C contracts may be designed to ensure finance is available for a project; developers suggest they have limited capacity to negotiate with the major lending bodies to deviate from standard contractual terms.
- Unfair contractual arrangements can also compromise insurance coverage which could lead to negative outcomes for clients if a claim is made.
- Architects could potentially face more claims if the following are not effectively addressed:
- cultural factors regarding approaches to D&C procurement among key sectoral participants
- the “mismatch” between the design and construction phases of a project.
| - Without support and advocacy on their behalf, architects are unlikely to have sufficient leverage to negotiate more favourable terms in the D&C procurement context, even though these terms could affect exposure to liability and insurance coverage.
- Engagement with key lending institutions to highlight the risks associated with unfair contract terms that can arise in the D&C context could be helpful.
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10. | Impact of D&C contracts on built outcomes | - D&C procurement can be used as a contractual tool to prioritise time and cost of a construction project, which can undermine the chance of achieving good quality built outcomes.
| - D&C procurement can lead to good quality built outcomes, but only where “buildability” is prioritised over time and cost.
- Alignment is needed in relation to a number of factors, including:
- a commitment to quality among key project participants
- an experienced builder that is realistic about costs
- a sound, collaborative consultant team.
| - While architects have limited control over many factors that can support good design and the delivery of good quality built outcomes in the D&C context, they could still benefit from stronger skills to robustly advocate for and protect their interests and design intent in this context.
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11. | Mechanisms that can mitigate adverse impacts of D&C contracts on design and delivery of architectural services | - Early collaboration between designers and those with trade intelligence is likely to deliver the best results from D&C procurement.
| - A legislative response has been employed in NSW to drive a more integrated approach to design and buildability, but there may be other less interventionist options.
| - Sector-wide cultural change that focuses on early engagement and collaboration coupled with appropriate regulatory support through practitioner regulation may help to drive better outcomes from D&C procurement.
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12. | Education and training to improve D&C outcomes | - Evidence from the focus groups indicates that there is a need for more education and training for architects about:
- procurement models
- negotiating and navigating contractual arrangements in a D&C context
- risk management.
| - The full scope of education and training that is currently available to architects about D&C procurement and associated risks is unclear.
| - A stocktake and analysis of current education and training about D&C procurement could be beneficial to ensure that future education and training is appropriately targeted.
- There may be benefit in providing sectoral participants with case studies to illustrate good practice in the context of D&C procurement.
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NCC COMPLIANCE |
13. | Link between NCC compliance and quality built outcomes | - There is disagreement among sectoral participants about whether NCC compliance can drive quality in the final built outcomes because the NCC only establishes minimum standards in relation to certain built outcomes.
| - There is an apparent ambiguity among some sectoral participants about the outcomes that the NCC is designed to achieve, particularly in relation to the quality of built outcomes.
| - There is work to be done to determine how NCC compliance can be used to ensure quality built outcomes, particularly in the context of different procurement processes.
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| | | - This ambiguity may affect architects’ understanding of the NCC. It could also affect the way the NCC is used in the context of design, particularly the compliance pathway that is followed.
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14. | Responsibility for NCC compliance | - There is general agreement that responsibility for NCC compliance is a shared role among building sector participants involved in a particular project, but there is less clarity about the specific roles and responsibilities of each participant.
| - There appears to be a perception among at least some sectoral participants that allocation of responsibility for NCC compliance to parties for aspects of a building project that are beyond their expertise and/or control is reasonable and lawful, particularly in the context of certain procurement models.
- The interface between the provision of architectural services and the construction of a building may give rise to ambiguity about who is responsible for NCC compliance in the final built outcomes.
| - There is a need for greater clarity about roles and responsibilities for NCC compliance in the context of particular procurement models and in other contexts where responsibility may change during a construction project.
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15. | Scope of architects’ obligations to ensure NCC compliance | - Architects must ensure that their designs and design documentation are compliant with the NCC, but it can be difficult to demonstrate compliance if the level of detailed design documentation required by the client is limited, such as in the context of novated D&C procurement.
| - Criticisms have been levelled at architects about inadequate design documentation and the impact on NCC compliance, but the level of detail of design documentation may be driven by the client and the procurement model, rather than by the architect.
| - The sector would benefit from greater clarity about the different levels of detail of design documentation, the possible consequences of each level of detail for project outcomes, and the process of interpreting and building in accordance with the design, in each case.
- More analysis is needed to determine whether limited design development requirements in D&C procurement is more likely to lead to NCC compliance issues in built outcomes and/or more defects.
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16. | Factors that can compromise architects’ ability to ensure NCC compliance | - Evidence from the focus groups indicates that it is more likely that design documentation does not clearly demonstrate NCC compliance than that the designs themselves are non-compliant with the NCC.
- There are various factors that can compromise architects’ ability to support NCC compliance of built outcomes but they are mostly outside architects’ control, particularly in the context of D&C procurement.
- The NCC has gaps and limitations (such as limitations on accessibility of Australian Standards) that could also affect architects’ ability to ensure NCC compliance.
| - The impact of the procurement approach on NCC compliance is likely to be largely linked to project priorities and compliance attitudes of the parties involved in a construction project, particularly the client and contractor.
- It is likely to be difficult for architects to help ensure NCC compliance of built outcomes if responsibility for, and control of, design delivery is shifted away from the architect and/or the architect has limited oversight of the interpretation of the design in practice during the construction process, which may occur in the context of D&C procurement.
| - There is a need for better communication about how architectural documentation should be interpreted and applied on site to ensure NCC compliance in built outcomes.
- More work could be undertaken to determine whether gaps and limitations associated with the NCC have any impact on NCC compliance and, if so, how these limitations could be overcome.
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17. | Mitigation of risks of NCC non-compliance | - There is a view among some participants that following the performance solution pathway under the NCC may deliver better built outcomes and may also mitigate the risks of NCC non-compliance, but demonstrating NCC compliance may be more challenging under this compliance pathway.
| - Architects may be deterred from reliance on the performance solution pathway under the NCC because of the challenges associated with demonstrating NCC compliance for this pathway and the risk of a design being found to be non-compliant.
| - Greater guidance may be needed to illustrate how NCC compliance can be achieved using the performance solution pathway, particularly for design aspects that could lead to defects (such as waterproofing).
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18. | Enhancing awareness of NCC obligations | - The NCC may be a challenging document for some architects to read, interpret and apply in practice.
| - Architects’ use of consultants to assess and ensure NCC compliance may help to reduce architects’ exposure to legal liability but may also lead architects to have limited awareness about NCC compliance issues and may mean that compliance issues are not detected by reviewing architects.
- Limited awareness of NCC compliance obligations and compliance issues may compromise architects’ ability to advocate and defend their designs from a compliance perspective.
| - Architects could use the provision of advice by consultants on NCC compliance as an opportunity to enhance their own understanding of compliance issues.
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DISRUPTIVE CHANGE |
19. | Architects’ awareness and preparedness for disruptive change | - While there is a spectrum in the level of awareness and preparedness among architects to respond to disruptive change caused by climate change and technological change, there are likely to be many architects who are ill-equipped to respond to this change, particularly those in smaller practices and sole practitioners.
| - Architects’ awareness and preparedness to respond to disruptive change is linked to a broad range of external factors, including society’s broader preparedness to respond to disruptive change as well as the attitude and approach of key stakeholders within the construction sector.
- The profession is potentially in the midst of a transformation that could affect what it means to be an architect in very practical terms as a result of disruptive change.
| - Building architects’ awareness of the sources and implications of disruptive change for the profession and for the delivery of architectural services must be a priority.
- Architects would greatly benefit from support as they adjust to disruptive change.
- Education and training should focus on enhancing architects’ understanding of disruptive change and building practical skills so that they can respond to disruptive change in a cost-effective way.
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20. | Challenges faced by architects in responding to disruptive change | - There are significant financial and practical imperatives within the construction sector that do not support a responsive approach to disruptive change.
| - Architects may be complacent about disruptive change because the sector as a whole is not responsive to this change.
| - It is important for architects to identify the opportunities that disruptive change can present to help progress a more responsive approach.
- Architects will need to build advocacy skills so that they can demonstrate the value of responding to disruptive change to key stakeholders in the context of the provision of design services.
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21. | Improving architects’ capacity to respond to disruptive change | - As the market for architectural services is highly competitive, the ongoing viability of practices that fail to build their capacity to respond to disruptive change may be compromised.
| - The speed and scale of disruptive change affecting architects is significant and may require a dramatic reinvention of the nature of and way that architectural services are provided.
| - A commitment to continuous learning may mean that architects keep abreast of disruptive change and become experts capable of solving problems as the market for architectural services changes.
- Specialisation of architectural services may be a cost-effective way for some practices to adapt to disruptive change.
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22. | Responding to climate change | - Architects could miss out on the opportunities that climate change presents for architects because they are not sufficiently prepared.
| - Architects who take the time to understand and are responsive to changing market needs in light of the impacts of climate change are more likely to thrive.
| - Architects will need to build expertise in a range of areas in order to capitalise on opportunities presented by climate change, including:
- whole-of-life-cycle building analysis
- integration of reuse into building design
- design development that is appropriately tailored to local conditions and needs.
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23. | Responding to technological change | - There is a lack of sectoral awareness and understanding of how technological developments will change the provision of architectural services, particularly emerging digital tools and AI.
| - AI and digital tools could have a significant impact on the market for architectural services but it is unclear how architectural practices need to change in order to keep pace with these developments.
| - More information is needed about the likely impact of AI and digital tools on the market for architectural services so that architects are better equipped to respond.
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24. | Education and training | - There is a need for more education and training to help architects respond to disruptive change, including availing of the opportunities that disruptive change presents and mitigating the risks that disruptive change could entail.
| - A dynamic approach to education and training that keeps pace with external change is necessary.
| - Advice and support on accessing and using tools to respond to disruptive change in a cost-effective way would be useful.
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