7.2.9 TYPE OF FEE AGREEMENTS PERMITTED Region
Country
Percentage of Contract Value
Lump Sump
Hourly Charge
No Charge Agreed (‘At Risk’)
Africa
Botswana Ghana South Africa Uganda
Y Y -
Y Y -
Y Y -
Y -
Bangladesh Hong Kong
Y Y
Y Y
N Y
N N
Malaysia Pakistan Sri Lanka
Y Y
Y Y
N N
Y N
Floor Area Basis GMP, New Engineering Contract (NEC), similar forms with conditions to allow adjustment of fee Floor Area Basis
Caribbean and America Europe
Antigua and Barbuda Canada
Y
Y
Y
-
-
Y
Y
Y
N
Upset limit, combination
Cyprus Malta United Kingdom
Y Y Y
Y Y Y
Y Y Y
N N N
Fee Tender for Government Projects -
Pacific
Australia New Zealand
Y Y
Y Y
Y Y
N -
Asia
Other Methods
Negotiated price -
-
7.2.10 PROFESSIONAL INDEMNITY INSURANCE REQUIREMENTS Region
Country
Mandatory Professional Indemnity Insurance Period of Liability and Regulation
Africa
Botswana Ghana South Africa Uganda
Y N N -
Asia
Bangladesh Hong Kong Malaysia Pakistan Sri Lanka
N Required on project and client basis N N N
Caribbean and America Europe
Antigua and Barbuda Canada
N (but encouraged) Y
Cyprus Malta United Kingdom
N N Y
15 years, regulated in the Civil Codes of the Laws of Malta 6 years for ordinary contracts, 12 years for secured contracts
Pacific
Australia New Zealand
Y N
Regulated by State based legislation. The period of liability varies 7 - 10 years
ARC in process of generating standard requirements 5 years Determined by services agreement and civil law Varies by province
Professional indemnity insurance is intended to protect all parties in the event of failure yet is only required by 27% of respondents. It is understood that Ghana and Malta are in the process of implementation a programme of mandatory insurance. It should be noted that both the RIBA (UK) and RAIA (Australia) offer insurance products to their members thereby creating both a benefit for members and an income stream for the institute.
Survey of the Architectural Profession in the Commonwealth
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