Architectural practices and the construction industry, part 3 overview

1. ARCHITECTURAL PRACTICES AND THE CONSTRUCTION

1.1.1 - How to Improve the Construction Industry.

1.1.2 - Current Construction Industry Issues and Changes – List.

1.1.3 - The Latham Report 1.1.4 – Rethinking Construction - Egan Report. st

1.1.5 - Proposition that as the UK construction industry adopts 21 Century Practices, the changing role of the profession as design team leaders.

1.2.1 - The respective roles of the ARB and the RIBA. 1.2.2 - RIBA codes of conduct helpful.

1.2.3 - How RIBA codes differ from ARB. 1.2.3 - Limitations on Marketing imposed by the RIBA/ARB codes.

1.3.1 - Setting up a Practice.

1.3.2 - Differences in Various Practice Structures? Risks.

1.3.3 - Partnership Vs Limited Liability Company.

1.3.4 - Employee Structure.

1.3.5 - Main Points for Consideration in deciding legal status of New Practice.

1.4.1 - Marketing and Business plan for the office.

1.4.2 - Monitoring the use of office resources for the project.

1.4.3 - Cashflow forecast.

1.4.4 - Strategy for Marketing the Practice.

1.5.1 - Topics for Interview.

1.5.2 - Terms of Employment Contract.

1.6.1 - Different Quality Management Systems.

1.6.2 - What is ISO 9001 and in what way is it appropriate to Architectural Practice.

1.7.1 - At what stage are you legally required to register for VAT and to whom.

1.7.2 - List the types of Taxation that are likely to be applicable to an Architectural Practice.

1.8.1 - Issues with Structural and Service Engineer as Lead Consultants 1.8.2 - Architects contribution in debates over local development.

1.8.3 - Advantages / Disadvantages of universal Mutual Recognition of Architects?

1.9.1 - What is BIM 1.9.2 - Advantages and Disadvantages of BIM 1.9.3 - A Impact of BIM on the profession

Answer in CRIB SHEET

1) Key Issues in Partnering 2) Partnership Vs Limited Liability Company 3) Partnership Vs Company 4) Partner, Director, Associates, Employee

2. ARCHITECTS APPOINTMENT, FEES, WORK STAGES

2.1.1 - Which Form of Appointment and When.

2.1.2 - Client demands Architect to Provide additional Services within the same appointment.

2.1.3 - Client demands architect to warrant the performance of materials and products specified.

2.2.1 - Initial Client meeting and Programming Agenda.

2.3.1 - Feasibility Study Scope - Relevant information.

2.3.2 - Matters that should be addressed in the feasibility study and which bodies to be consulted.

2.4.1 - Outline fee proposal for all stages of the project.

2.4.2 - What would you take into account in establishing a suitable level of fee.

2.5.1 - Various consultants.

2.6.1 - Discuss the role of the RIBA Guidance on Appointing an Architect.

2.7.1 - What issues should be considered when providing Partial Professional Services.

2.8.1 - Take over a Commission from Another Firm of Architects.

2.9.1 - Practice could offer Additional Services.

2.10.1 - Aspect of Fee bid to consider in order ensure profitability and assessing it.

2.11.1 - Friend ask you to provide Architectural Services outside your Practice.

2.12.1 – Risk Management

Answer in CRIB SHEET 1) Feasibility Study Requirement 2) Feasibility Scope

3. LEGISLATION AND PROCEDURES

3.1.1 - Which bodies governs the different statuary obligations.

3.1.2 - Statutory Obligations – Times and Obstacles.

3.1.3 - Types of Planning Appeal.

3.1.4 - What is Permitted Development.

3.1.5 - Describe the options available to you to submit/obtain Building Regulation Approval and when each would be most appropriate.

3.1.6 – Difference between S106 and CIL. 3.1.7 – Planning and Building Regulation Differences.

3.1.8 - Approach to ensuring a successful planning application without undue delay.

3.1.9 - Carrying out works WITHOUT Planning and Building Regulation Approval.

3.1.10 - Information that may be required to submit Full Planning Application.

3.1.11 - Consultation carried out by local authorities during Planning stage.

3.2.1 - Role of CDM 3.2.2 - Health and Safety obligations as designer 3.2.3 - Reducing the Risk of Accidents in construction projects.

3.2.4 - The effect of the DDA on the design of public buildings.

3.2.5 - Information required by Health and Safety Co-ordinator about the site.

3.2.6 - Implications of not having appointed CDM

3.3.1 - Briefly describe the role of CABE. 3.3.2 - Briefly describe the role of Design Review Panel.

3.3.3 - How are the following defined under the Party wall etc Act 1996.

3.4.1 - Describe briefly the role of English Heritage 3.4.2 - Listed Building – When Why and What 3.4.3 - Conservation Area Consent 3.4.4 - Options available to Client and Local Authorities in order to preserve listed buildings.

3.4.5 - Issues arising from removing items from Listed buildings and then applying for consent retrospectively.

3.4.6 - What advice would you give client when he wants to sell adornments, fittings and fixtures from a Listed Building?

3.5.1 - What is the purpose of the Code for Sustainable Homes.

3.6.1 - What is the OJEU and what is its purpose.

3.7.1 - What are easements and rights.

3.7.2 - What are restrictive covenants.

3.7.3 - Architects responsibility regarding site boundaries, easements and restrictive covenants.

3.8.1 - Key ‘Acts’ 3.8.2 - Architects Act 1997 3.8.3 - Copyright and the Architect.

3.8.4 - Under the EC Working time Directive 93/104 what are the rules on working hours.

3.9.1 - New Planning Rules

Answer in CRIB SHEET 1) Works that affect the character of a listed building.

2) Demolition of an unlisted building in a conservation area 3) A new building of more than local significance on a particularly sensitive or prominent site.

4) Planning Application Submission 5) Planning Issues 6) Health and Safety 7) Action When Planning application refused

4. PROCUREMENT

4.1.1 - Initial Construction Meeting – Programme, Timescales and key dates

4.2.1 - Different Procurement Options – Advantages and Disadvantages.

4.2.2 - Alternative Contractual Arrangements.

4.2.3 - When giving advice towards a Building Contract.

4.3.1 - Different contract and key features.

4.3.2 - Contract Choice – Key differences.

4.4.1 - Partnering in Construction Projects.

4.5.1 - Tender Process 4.5.2 - Advantages and Disadvantages of Selective Tendering 4.5.3 - Informing Client of error in the Tender Return by X contractor.

4.6.1 - Phased Work issues.

4.7.1 - Discuss the role of the architect and the relationship with the other members of the professional team.

4.8.1 - Describe under what circumstances you may be asked to enter into a collateral warranty.

4.9.1 - What is PFI?

4.10.1 - Issues to Consider when Selecting a Contractor.

4.11.1 - Advantages/Disadvantages of QS preparing Contract Preliminaries and Specification.

4.12.1 - Why chose a standard Form of Contract 4.12.2 - Why is it risky to amend Standard Forms of Contract

Answer in CRIB SHEET 1) Describe the categories of risk that require assessing when deciding on a procurement method.

2) What aspects of Health and Safety would you consider and at what stages would you carry out risk assessment as a designer?

3) Architects role under Design and Build Contract 4) Traditional Vs Design and Build Vs Management 5) Alternative Contractual Arrangments 6) Design and Build VS Partnering Vs Management Vs Construction Managment 7) Risks with various procurement methods 8) Process of Phased Works 9) Phased works Or Section Completion 10) Two Stage Tender Method 11) Tender Information 12) Tender List for Contractors 13) Tender Action Meeting 14) Bonds and Guarantees

5. CONTRACT ADMINISTRATION

5.1.1 - Key features within SBC11

5.2.1 - Prepare a generic agenda for site meetings. List the items 5.2.2 - Chair a site meeting

5.3.1 - Damages During Construction

5.4.1 - Processes for Managing project information

5.5.1 - Describe briefly the difference between novation and consultant switch.

5.6.1 - Contractor Gone in Liquidation. Options Available?

5.7.1 - Briefly explain the differences between section completion and partial possession.

5.8.1 - What is Defective Work?

5.9.1 - When are certification and Payments used

5.10.1 - What is Variations.

5.11.1 - When are Bonds and Guarantees Used

5.12.1 - Guaranteed Maximum Price?

5.13.1 - Contractors Duties in regards to Statutory undertakings.

5.13.2 - Site Insurance and Security during Statutory Undertakings.

5.14.1 - Injury and Accident on Site.

5.15.1 - Guidance procedure to be taken when assessing Extension of Time / Loss and Expense.

5.16.1 - You ask Contractor for quote for additional work, but it is too high – What Action can you take?

Answer in CRIB SHEET 1) Are minutes of site meetings regarded as an adequate delay notice? Explain your answer.

2) Employers Requirements, Contractors Proposal, Contract Sum Analysis 3) Domestic Subcontractors Damages 4) Contractual Situation due to damages 5) Practical Completion Certificate / Making Good to defects Certificate 6) Completion Date 7) Partial Possession prior to Completion Date 8) Extension of Time / Loss and Expense 9) Issuing Interim Certificates 10) Inspect and Certify Works / Final Certificate 11) Role of Quantity Surveyor , Clerk of Works, Site Foreman 12) Time at Large

6. LAW/LIABILITY/DISPUTE RESOLUTION

6.1.1 - Dispute Resolution Procedures 6.1.2 - Client Refusing to Pay. 6.1.3 - Action to be taken when potential Claim may arise

6.2.1 - Different Insurances.

6.2.2 - What are the minimum requirements for Professional Indemnity Insurance and when might these apply?

6.2.3 - There is a requirement for architects to have P.I .Insurance – which authority requires this and what level of insurance is required?

6.3.1 - Two years after completion of a project a serious roof leak has occurred due to defective workmanship. What liability is there on the part of the contractor to correct this and under what legislation.?

6.4.1 - Employing Consultants directly issues?

6.5.1 - What are various ways in which Architect can be held Liable for damages/ negligent/ incompetence.

6.6.1 - Contract Law 6.6.2 - Law of Tort 6.6.3 – Land Law

Answer in CRIB SHEET

1) Describe the process of appointment of an adjudicator under JCT provision. Use diagrams if appropriate 2) Briefly describe the various methods of resolving disputes available to the construction industry, noting their main differences. Under what circumstances might each be appropriate?

3) Damages during Construction (Insurance) 4) Professional Indemnity Insurance 5) Dispute Resolution

1. ARCHITECTURAL PRACTICES AND THE CONSTRUCTION

1.1.1 - How to Improve the Construction Industry.

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Small scale works make up a significant proportion of the construction industry workload.

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More UK firms need to compete for international projects

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Small practices need to partner in order to compete for larger jobs

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Greater communication between the design team at the initial stages

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Planning system needs to be revised as projects are held up in planning and delaying projects hence impact the finance of small practices

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Efficiency of scale

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Profession needs to be more efficient through standardized systems

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Architects need to be stop under cutting each and agree a set minimum fee

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RIBA and government needs to protect the role e.g 50K plus jobs require an Architects approval.

1.1.2 - Current Construction Industry Issues and Changes – List.

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Appeal process speeded up – the profession to be more efficient.

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New RIBA presidents elected Hodder – Introduced a study to review the benefits of architecture on daily life in order to present to the government when proven.

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B1 office use to Residential C3 use under permitted development – increase in construction as it as development opportunity for developers.

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New homes consents jump by 20 per cent in year after NPPF

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Capita run council planning services – Positive and change?

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Larger rear extensions under permitted development

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Design and Access statement scrapped – more efficient system

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Introduction of CIL as a replacement to S106

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August was best month for construction in six years – industry on a rise

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Architects salaries slip – 40K in practice, sole practitioner 18K average

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Council review the requirement and efficiency of Code for sustainable homes consultant

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Essentially the government needs to introduce legislation to reboot the construction industry in order kick back the economy through increase in jobs and new homes

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Affordable housing schemes introduced – Shared ownership

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Planning systems need to be reviewed

1.1.3 - The Latham Report

- Issues related to contract procurement and contractual arrangements in the construction industry.

- Latham in his report has identified that the construction industry in UK was 30% more expensive than the majority of European and North American industries.

The target areas for the reduction should be:§ reduction in waste and more effective use of resources § risk management can make significant improvements in the final cost of projects as well as giving greater value for money. Furthermore it removes uncertainty. § The effects of change is recognised as having a major effect on costs although there is little information on the effect § Standardisation should be increased - in components, processes and systems § Benchmarking provides the catalyst for change and improvement. § Performance of construction companies and their products need to be measured and will give real cost improvements by allowing comparison of companies Improvements in construction productivity:§ Change in the culture of the industry. § Ensure design and construction process act as one. § Foster teamwork and partnership. § Develop standard p[products, components and processes § Increase prefabrication and pre-assembly § Benchmarking Change in culture:- Clients should join forces and drive through changes - Improved communication because of fragmented structure -50% self employed, 95% of companies employ less than 10 people - Registration of companies, restructuring of the self employed - Fewer groups - rationalisation of the industry - too many groups - fewer groups, larger groups gives greater power.

- Increased education, better understanding of structure if industry and interaction of disciplines - Benchmarking top establish best practice

1.1.4 – Rethinking Construction - Egan Report.

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Produced by the Construction Task Force, who were appointed by the Deputy Leader of the government.

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To identify the scope for improving the quality and efficiency of UK construction (its products and processes).

The report considered that the UK construction industry:§

At its best is excellent.

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Has the capability to deliver the most difficult and innovative projects

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Is under achieving in terms of meeting its own needs and the needs of clients.

Five key drivers of change were identified as: §

committed leadership

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a focus on the customer

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integrated processes

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quality driven agenda

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commitment to people

Changes: To achieve full potential, the industry :§ needs change in culture and structure. § must provide decent and safe working conditions § must improve management and supervisory skills at all levels. § change approaches to design for ease of construction making maximum use of standard components and processes. § must replace competitive tendering with long term relationships based on clear measurement of performance and sustained improvements in quality and efficiency. § improve and change relationships between organisations § must maximise the use of technology

1.1.5 - Proposition that as the UK construction industry adopts 21st Century Practices, the changing role of the profession as design team leaders. §

BIM

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Design Team Integrated as one

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New role emerging (BIM specialist, who acts as the lead consultant)

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Architects are naturally forming part of the Design Team as oppose to Lead consultants

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Architects still need to maintain as Lead consultant on small projects

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Sustainable development within the industry (CSH, BREEAM n LEED). As new roles introduced to that form part of Design Team.

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Contractors and suppliers shifting to forming part of the Design Team in order for projects to more productive and achieve lower defects within new developments.

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CDM being adopted within the industry.

1.2.1 - The respective roles of the ARB and the RIBA. ARB: The ARB consists of seven elected members (elected by ballot from among registered persons but not necessarily RIBA Members) and eight appointed members (appointed by the Privy Council but not registered persons). The members elect their own chairman. Duties of the ARB include the following: • To appoint the Registrar of Architects; • To establish a Professional Conduct Committee and other committees as may be necessary; • To discipline architects who are found guilty of unacceptable professional conduct; • to issue a Code of Practice; • to publish an annual Register of Architects; • to prosecute people using the title 'architect' who are not on the Register; • To rule on various matters concerning registration; • To set the educational and professional practice standards to qualify for admission to the Register.

RIBA:

The RIBA Supplemental Charter 1971, in paragraph 2.1, states that 'the objects of the Royal Institute are the advancement of Architecture and the promotion of the acquirement of the knowledge of the Arts and Sciences connected therewith'. Ever since the original Charter, primacy has been given to the advancement of architecture, not to the advancement of architects.

Currently RIBA efforts to advance the cause of architecture are expressed in many ways:

• By raising environmental and ecological concerns and seeking to influence government and public opinion;• by facing the challenges to architectural quality in times of changing building procurement and technology; • By providing support services for practitioners; • By striving to improve the status and competence of architects through continuing professional education CPD and research; • By engaging in consultation on legal, technical and financial controls and constraints within which architecture is now practised; • By maintaining the architect's professed concept of providing a unique design service.

1.2.2 - RIBA codes of conduct helpful.

§ Limitation to type and size of work to be undertaken (Standard 2). § Marketing (Standard 3). § Cost of and need for CPD (Standard 6). § Possible need for ‘Client Account’ (Standard 7). § Professional Indemnity Assurance (Standard 8). § Need for dispute complaints handling policy and procedure (Standard 12). § GN3 - Advertising (Principle 1) § GN4 - Appointments (principle 2) § GN5 – Insurance § GN7 – Relationships § GN8 - Employment Equal Opportunities § RIBA registration helps Protecting your reputation as an architect and provides Public recognition of your skills

1.2.3 - How RIBA codes differ from ARB. (Conduct of Architect)

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RIBA codes are not mandatory upon an ‘architect’ but are more of a guidance

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Failure to comply with the ARB code could result in the removal of the person's name from the register, terminating the person's right to use the title

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ARB Codes: Consists of an Introduction, twelve Standards, and Guidance notes

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RIBA: Consists of: a Preface, three Principles, Standard of Professional Performance, and Member's Rules for Clients' Accounts

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RIBA - The Royal Institute of British Architects is the UK body for architecture and the architectural profession. We provide support for our 40,500 members worldwide in the form oftraining, technical services, publications and events, and set standards for the education of architects, both in the UK and overseas. It works with government to improve the design quality of public buildings, new homes and new communities.

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ARB – ‘protects the consumer and safeguards the reputation of architects’ §

to keep an up to date register of all architects

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promote good standards both in the education of architects and in professional practice

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provide consumers with an efficient, accessible service in cases of complaint

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investigate and prosecute any unregistered individuals in business or practice who unlawfully call themselves an architect.

1.2.3 - Limitations on Marketing imposed by the RIBA/ARB codes.

ARB Code: § Standard 3: Architects should only promote their professional services in a truthful and responsible manner. § 3.1 In advertising his services or otherwise drawing them to the attention of a potential client, Architects should not make untruthful or misleading statements. § 3.2 Advertisements should conform, as appropriate, to the British Code of Advertising Practice and the ITC and Radio Code of Advertising Standards and Practice. § 3.3 The business style of a practice should not be misleading. §

3.4 Architects should ensure that the work of their office or any branch office insofar as it relates to architecture is under the control and management of an architect and that the identity of that architect is apparent to clients and potential clients.

RIBA Code: RIBA Code of Professional Conduct, members undertake: §

not to offer discounts, commissions, gifts or other inducements in order to secure an introduction (undertaking 3.1);

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not to quote a fee without receiving an invitation (undertaking 3.2); • not to revise a fee quotation in order to undercut another architect (undertaking 3.3); • not to attempt to oust another architect (undertaking 3.4).

1.3.1 - Setting up a Practice.

- Issues/Consultations - Family, Partner, Dependants.

- Bank Manager: o

Business plan

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Aims/targets.

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business account/overdraft/interest rate.

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cash flow.

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bank charges.

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capital input from partners.

- Accountant: §

book keeping.

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Accounts.

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VAT?

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taxation.

- Solicitor: §

Form of Practice, Limited Company, LLP, Partnership.

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Partnership Agreement.

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Liability

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Control

- RIBA: §

available support.

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registration of practice.

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Marketing.

§ Business premises – location. § Equipment/facilities required. § Practice name. § Insurances – P11, Public Liability, Employers’ Liability. § Health and Safety Issue § Employment Legislation

§ Quality Assurance § Marketing Strategy § Form of Appointment § CPD programme § Payment Method

1.3.2 - Differences in Various Practice Structures? Risks.

- Successful management of an architect’s business is an essential part of architectural projects and as such, is part of an architect’s duty of care.

- The Architect’s Act 1997 permits registered persons to practise as partnerships or companies, limited or unlimited provided that their work, insofar as it relates to architecture. Is under control and management of a registered person

Sole Trader

- Person who alone makes all decisions affecting the business and owns all the assets of the business - Because a practice is run by a sole principal, does not mean it is a one person practice may work alone, may employ a number of people - According to Chappell, approx. 50% practices are set up this way (Chappell; 2000, 51)

- Liability:-

o

Sole Trader is liable for all debts and obligations

o

Unlimited

- Taxation:o

Income tax on profits Pros/Cons

o

If successful:

o

Personally rewarding

o

Financially rewarding

o

Most Difficult form of practice

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Considerable reserve of self reliance required ·

o

A successful sole practitioner cannot remain alone for long. As workload increases, some form of partnership becomes necessary

Partnership

- A Partnership is a form of contract - Agreement between two or more persons that they will run a business together - The law of partnership is governed by the Partnership Act 1890 Section 1 Partnership Act 1890 A partnership is the relation which subsists between persons carrying on a business in common with a view of profit - A partnership has no legal personality - Partners not paid a salary

Liability

- Jointly or jointly and severally liable - Jointly liable for all debts and obligations - Not liable for criminal actions of other partners - A new partner does not normally become liable for debts, obligations and wrong doings before they enter the partnership - Partners are accountable to the partnership for any private profits they receive by using the name, property or connections of the partnership - Termination of partnership does not remove liability. It is usual for partnerships to carry PI Insurance in respect of retired partners

Taxation - No income tax assessment on the partnership as a whole - Each partners tax calculated separately - Each partner liable to HMRC for his share of the tax

Dissolution - End of fixed term if set up - End of specific commission if set up - Death of a partner unless provisions for continuity exist - If any partner gives notice - Mutual consent

Pros/Cons - Accounts are private - Share risk and burden - Advantages of self employed tax concessions - A partner will have a real interest in the success of the business and an incentive to contribute to the utmost · - Economy in expenditure; pooling resources · - Generate more ideas and attract more work; sum of ideas greater than parts · - More capital for expansion · - A partner establishes a goodwill value to a business (ie. If a partner dies, client continuity can still remain through other partner/partners) - Not Internationally recognised · - Share risk - Actions against architects seem to be on the increase - A party seeking damages can pursue all the partners or individual partners in turn or any combination of partners until the damages are recovered in full - A partner is responsible to the full extent of his or her personal wealth for the acts of the partnership

Limited Liability Company

- Key difference between company and partnership is that share holders creating a company are creating a separate legal entity - Governed by the Companies Act 2006 - Company where liability of the members is limited to the normal value of their share Holding - If the company is faced with a debt greater than their assets, the company can be wound up with no further liability for the shareholders - Shares may be held by person not employed by the company - Directors paid a salary as employee of company - If the year end shows a profit, a dividend may be declared. Shareholders share in the dividend according to the amount of their share holding - A private company cannot offer shares to the public - The name must have 'Limited' as the last word

Liability - The company is liable for all debts and obligations and do not pass to the individuals involved - Liability to members/shareholders: Limited to agreed price of member’s shares.

- Exceptions are in the case of : o

Personal guarantees

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Acting when ‘disqualified’

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‘wrongful trading’ (i.e. trading when likely to go into insolvent liquidation and then does)

Taxation - ‘Fraudulent trading’ (trading when in process of liquidation) - ‘Ultra Vires’ (when company exceeds powers expressed in Memorandum of Association)

Taxation - Company is not charged income tax it is charged corporation tax on profits - Directors charged incomes tax on salaries (40%) - Director pays tax on the PAYE system and no opportunity to take advantage of ‘selfemployed’ tax concessions - Shareholders charged incomes tax on dividends (32.5%)

Pros/Cons - Protection from liability - Except in exceptional circumstances, the directors are not personally liable for the debts of the company - More flexible than the partnership, because trusted members of staff can be promoted to director status on a salary without giving them a part of the company.

- Directors can be removed with far less difficulty than is the case with a partner. ·

The

company does not dissolve when a director leaves or when shares change hands.

- No complex legalities involved - The company simply continues as normal - Companies attract capital more easily than partnerships:

- Important if expansion is planned - Other firms are used to doing business with companies.

- Companies are internationally recognized so in a better position than partnerships to develop business overseas - Labour intensive, filing, procedures, regulations etc.

- Enshrined in legislation - Governed by the Companies Acts 1985 and 1989 - Companies come into existence only after registration by the Registrar of Companies - Company must file accounts with the Registrar that are open to public inspection - A very important restriction is that a company may only act in accordance with the 'objects clause' which is to be found in the Memorandum of Association - Sets out the purpose of the company and what its powers are - A company which attempts to do something which is not included in the clause is said to be acting ultravires (i.e. beyond its powers) - Such actions can lead to many problems, for the company itself and for those who trade with it – For this reason, the objects clause should always be drafted with great care by anexperienced company lawyer.

- Formalities associated with the running of a company - The Companies Acts require that at least one general meeting of shareholders must be held every year - Dissolution of a company in winding up can take a long time - Dividends apportioned strictly with respect to shareholding, no discretion - Director pays tax through PAYE, no opportunity for self employment tax concessions - A client may dislike doing business with architects practising as a limited company (even though the client may also be a limited liability company) because it is considered by some to be unprofessional.

Limited Liability Partnership

- Introduced by the Limited Liability Partnership Act 2000 - A hybrid between partnerships and limited liability companies ¡ - The benefits of limited liability whilst retaining characteristics of traditional partnerships - Taxed like partnership

- Internal structure like partnership - No memorandum or articles of association - Relies upon an agreement similar to partnership agreement - An LLP is a separate legal entity - Like companies, actions may be taken against individuals proven to be negligent or fraudulent - LLPs are available to any ‘two or more persons associated for carrying on a lawful business with a view to profit’ by registration with Companies House - LLP has members but no directors or shareholders.

- LLP has no share capital and is not subject to company law regarding capital maintenance.

- No requirements for board or general meetings or decision-making by resolution - Required to maintain accounting records, to prepare and deliver audited annual accounts and an annual return to Companies House - No statutory requirement for management structure - Require two or more designated members who will carry out tasks similar to those of acompany secretary, for example, signing the annual return

Liability - An LLP is responsible for its assets and liabilities and the liabilities of its members are limited - Members of LLPs will not be jointly and severally liable in the normal course of business - In the event of liquidation, members are liable simply to make such contributions as they have agreed with the other members. Such arrangements should be included in the LLP agreement.

- Members are liable for fraudulent or wrongful trading in the same way as are company directors and others under the Insolvency Acts.

Taxation - Treated as partnerships for the purposes of UK income tax and capital gains tax: - No assessment to income tax on the partnership as a whole Each partners tax is separately calculated Each partner liable to HMRC for his share of the tax

Pros/Cons 路 - Flexibility and tax status of partnerships without the burden of joint and several liability - Annual accounts are public

ADDITIONAL TYPES OF COMPANIES:

- UNLIMITED LIABILITY COMPANY - PUBLIC COMPANY - CO-OPERATIVE - GROUP PRACTICE

(PLEASE REFER TO CRIB SHEET FOR THE ABOVE ANSWERS)

1.3.3 - Partnership Vs Limited Liability Company.

Partnership - Advantages:§

Can be formed informally

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Seen by some clients as the 'professional' set up as partners willing to take responsibility for their judgements

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Accounts and partnership details do not have to be filed, giving privacy

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No audits are required

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Partners manage and control their own business

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Many ways to dissolve a partnership

- Disadvantages:§

Partners are jointly and severely liable for their actions and omissions, including debt, negligence, obligations, etc

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Death or departure of a partner may cause dissolution of the partnership

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May be difficult to transfer partnership interests

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May be difficult to young a partnership if it involves buying in

§

Limited promotional opportunities, unless set up within partnership

Limited Liability Company - Advantages:§

The company is a separate legal entity - it is the company who is sued, rather than the individuals and the liability is limited to the share value

§

Death or departure of a director will not cause dissolution of the company

§

Shares are easily transferable

§

Do not need to buy in to become a director

§

Promotional opportunities usually more apparent

- Disadvantages:§

Can only be form by registering with the Registrar of Companies

§

Seen by some clients as the 'unprofessional' set up as directors/shareholders limit their liability to the value of their shares

§

Accounts have to be filed yearly with the Registrar of Companies causing extra admin, and company matters are published

§

The company has to be audited yearly

§

Directors are ultimately responsible to the supervision of the shareholders

§

Companies can only be dissolved according to the Insolvency Act and Companies Act, or by 'winding-up'

1.3.4 – Employee Structure

Partner •Based on partnership agreement •Partnership interest •Share of profits •Policy regarding new partners, retirement/death of old partners, dissolution of partnership •Hours/holiday etc. probably unspecified

Director • Based on Conditions of Engagement •Salary •Share interest •Specific duties •Hours/holiday etc. probably unspecified

Associate • Pension • Company car • Telephone • Salary • Contracted hours • Policy regarding overtime • Holiday entitlement • Sickness benefit • Maternity benefit • Policy regarding training • Possible extras

Employee • Salary • Contracted hours

• Policy regarding overtime • Holiday entitlement • Sickness benefit • Maternity benefit • Policy regarding training

1.3.5 - Main Points for Consideration in deciding legal status of New Practice.

§

Members involved

§

Profit sharing

§

Tax

§

Liability

§

Company Name

§

Internal Strucuture

§

Risk

§

Management Control

1.4.1 - Marketing and Business plan for the office.

- Marketing affects: · Practice philosophy · Practice aspirations · Type of work · Recruitment · Financial situation · Practice structure

Set the Practice Direction §

· Understand why the practice is in business and what it can offer its client

§

· Create a long term business plan

§

· Sell the practice’s skills and promote professional service delivery. USP

§

· Understand the target audience and research them

§

· Listen to our clients. Develop good relationships

§

· Devote sufficient time to non fee-earning work to promote and grow your business

§

The practice must interact with their market. Branding within architecture is similar to that for any type and size of business. However there are certain attributes that apply solely to architects.

§

GN3 - Advertising (Principle 1)

§

All marketing and promotional material should be...legal, decent...etc...

a. Practice’ s Mission Statement b. Practice structure c. C.V .s of key personnel d. Approach – management quality assurance e. Equal opportunity policy f. Health and safety policy g. Office environmental policy h. Approach – design i. Consultation j. Key experience k. Other experience

1.4.2 - Monitoring the use of office resources for the project.

- Monthly timesheets - Weekly office meetings - Finance of the office

Monitoring methods § If using a computerised programming tool, electronic time sheets can be feed back into the programme § Therefore able to compare estimated programming and resourcing with actual programming and resourcing § At the outset I would establish with the in-house team, the design team, and later with the contractor, a strategy for monitoring progress

- At the agreed times with the various team, I would have meetings to discuss: § What has been achieved § What was supposed to have been achieved § What we plan to achieve before the next meeting or deadline § How we can maximise on benefits from tasks being achieved ahead of programme § How we can make up for tasks that are behind programme § This information can be used to update the programme and resourcing needs on a regular basis

- Salaries of the employee resourced to the project (usually x2 to cover overheads)

1.4.3 - Cashflow forecast. a. Salaries b.Consultancy costs c. Subscriptions d. Insurances e.Travel and subsistence f.Motor expenses g.Repairs and renewals h. Telephones i. Postage and stationery j. Heating and Lighting k. Rent and rates l. Bank charges m. Pensions

1.4.4 - Strategy for Marketing the Practice.

Marketing is the overall term that includes publicity, advertising and branding. It is integral to a practice. Without Marketing you have no work & therefore no Architecture.

Marketing effects: §

Practice Philosophy

§

Practice Aspiration

§

Type of work

§

Recruitment

§

Financial Situation

§

Practice Structure

Marketing Strategies: §

RIBA Register of Practices

§

Direct approach to clients

§

Direct approach to third parties

§

Advertisement

§

Press coverage

§

Competitions

§

Review Past experience (Repeat Work)

§

Marketing Budget and Method

1.5.1 - Topics for Interview.

Job Description § Must be accurate but not too detailed § Contents of job advertisements can automatically become terms and conditions of employment – must be careful not to promise too much!

Interview § Must not ask questions about marital status, parental status or pregnancy § Questions about medical conditions and disabilities can be asked § Must keep records of interviews to prove that all candidates have been §

Treated equally and to keep a paper trail of decisions made.

1.5.2 - Terms of Employment Contract. §

names of the employer and employee

§

date the employment began

§

scale, rate and intervals of remuneration

§

terms and conditions on hours of work

§

details of holiday and holiday pay

§

details of sickness and injury pay

§

pension and pension scheme provisions

1.6.1 - Different Quality Management Systems. § Small Practice - RIBA Project Quality Plan for Small Projects (PQPSP) § Medium Practice - RIBA Quality Management Toolkit § Large Practices - are to have an externally certified BS EN ISO 9001:2008

1.6.2 - What is ISO 9001 and in what way is it appropriate to Architectural Practice.

A Quality Management System monitored by the International Organisation for Standardisation. Primary benefits to practice are: § to ensure the quality management of architectural services §

to give the practice access to a wider client base

1.7.1 - At what stage are you legally required to register for VAT and to whom.

- £68,000 and HM Revenue and Customs

1.7.2 - List the types of Taxation that are likely to be applicable to an Architectural Practice.

§

VAT

§

PAYE and NI and depending upon the type of practice

§

Corporation Tax

§

Partnership Tax

1.8.1 - Issues with Structural and Service Engineer as Lead Consultants

§

Architect should maintain control as lead consultant to ensure Quality

§

Quality of building compromised

§

Copyright Issues

§

Architects training consist of have an understanding of all elements that form the design of the building and to collaborate and integrate that into design

§

All specialist design project that require careful consideration of design should lead to architect as lead consultant.

1.8.2 - Architects contribution in debates over local development. §

Architects role in Society

§

Should architect taking leading role on matters

§

Will the local community look towards architect to contribute towards debate

§

Would it be mistake, both morally and commercially for architects to stand outside of debate

§

The role of a responsible profession

§

Avoid being a perceived as a commercial led

1.8.3 - Advantages / Disadvantages of universal Mutual Recognition of Architects?

Advantages: §

Wider array of skills available to clients

§

Partnering Opportunity

§

Collaborative work for Practices

§

One set Standard

§

Universal recognition of Architects

§

Ease of entry to other countries

Disadvantages: §

Rigorous training on some countries

§

Same recognition for lower training

§

Standard hard to maintain

§

RIBA/ARB has limited Control

1.9.1 – What is BIM? ‘...digital representation of physical and functional characteristics of a facility creating a shared knowledge resource for information about it forming a reliable basis for decisions during its life cycle, from earliest conception to demolition.’

1.9.2 – Advantages and Disadvantages of BIM Advantages §

Better outcomes through collaboration

§

Enhanced performance

§

Optimised solutions

§

Greater predictability

§

Faster project delivery

§

Reduced safety risk

§

Reduced waste

§

Whole life asset management

Disadvantages §

Requires more effort at the front end of a project

§

Allows changes to happen easily, so clients may continue to make changes

§

Requires higher performing computer hardware

§

Diminishing the style and image of each architectural practice

§

Refurbishment projects viability

1.9.2 – Impact of BIM on the Profession §

New Role developed within the industry (Information Manager / Model Manager)

§

Architects role as Lead Consultant being further diminished if Architects take a back step on it

§

Requires new training within current practices

§

QA off the model in small practices

§

Educational systems needs to amended

§

Small practices can not afford to switch to BIM due to heavy equipment cost and hence will be limit the possibility of winning Public project from 2016

§

Collaborative working is a great step in the right direction

§

Eliminate Waste during the process

§

In order to be fully successful all consultants and suppliers need to switch in order to avoid dominant organisations lead the market area

2. ARCHITECTS APPOINTMENT, FEES, WORK STAGES

2.1.1 - Which Form of Appointment and When. § The Standard Agreement 2010 (S-10-A) For use on a wide range of projects using most procurement methods, for business or commercial purposes or a large scale or large value residence where detailed terms are required. § The Concise Agreement 2010 (C-10-A) For use on business or commercial projects using intermediate or minor building contracts and concise terms are appropriate. § The Domestic Project Agreement 2010 (D-10-A) For use on domestic projects using intermediate or minor building contracts and concise terms are appropriate. § The Sub-Consultant Agreement 2010 (SC-10) For use where one consultant appoints another to perform part of the services. § Bespoke Letter Contract: Most informal appointment. § Employer’s Requirements Amendment (DB1/99) For use with SFA/99 or CE/99 if architect is acting for client under Design and Build contract. § Contractor’s Proposals Amendment (DB2/99) For use with SFA/99 or CE/99 if architect is acting for a contractor who is the client under Design and Build contract.

2.1.2 - Client demands Architect to Provide additional Services within the same appointment. §

Does the Practice have in house expertise

§

If not then others will have to employed

§

Practice will have to increase its fees for additional work

§

PI Insurance – In order to protect itself from negligence from others

§

Seek to engage consultants firm using RIBA Sub-Consultant’s Form

2.1.3 - Client demands architect to warrant the performance of materials and products specified. §

Architects Liability is ‘reasonable skill and care. Client are asking for more onerous liability of ‘fit for purpose’

§

Clients requirement go well beyond normal collateral warranty

§

Contact PII and consultant

§

If PII do not agree then architect to withdraw his commission

§

Explain the same situation will exist amongst other architects

2.2.1 - Initial Client meeting and Programming Agenda.

Appointment (if not already agreed) § Scope of services Fee/expenses Conditions of engagement Nature of project § Typology § Location § Size § Client's/architect's previous experience Nature of Site § Topography/geology Restrictions - rights/restrictive covenants Accessibility – connections § Boundary/Ownership Consents § Have any statutory approvals already been sought/granted? § CDM Regulation Timescale § Start date § Completion date Budget § Outline budget already established? § Can any grants be obtained?

Quality § Client's aesthetic aspirations § Client's technical requirements Clients obligations under CDM Regs § Appointment Planning Supervisor Other consultants § Architects - has previous design works been done? § Site Surveys § Quantity Surveyor § Structural Engineer § M&E Engineer § Who will be required? Are any already appointed? § Will they be employed by client or architect? § Specialists input Procurement § Most appropriate method for requirements of project Client's/architect's

previous experience Any strategic partnering arrangements already in place?

Project Strategy §

Management of communications client/design team Resourcing availability of staff Programming - critical path analysis

2.3.1 - Feasibility Study Scope - Relevant information.

Planning:§ Consultations with development control § NPPF § Local Development Plan, Structure Plan § Is the area a conservation area? If so need conservation area consent need for demolition § Are there any previous planning consents? § Outline planning permission? § Consultations with English Heritage, SPAB Site:§ Ground conditions - consult engineer § Building survey - consult surveyor § Topographical survey - consult surveyor § Hazardous substances survey and contamination - consult surveyor § Archaeological survey - consult county Council dept of archaeology § Easements/Restrictive covenants - consult land register and solicitor § Services - consultations with statutory undertakers re relocation and upgrading § of services Design:§ Access § Demolition or conversion? § Specification § Massing and arrangement on site § Cost § Outline budget - consult QS § Are any grants available? - consult local authority

Time-scale Procurement options

2.3.2 - Matters that should be addressed in the feasibility study and which bodies to be consulted.

Matters to be addressed: §

Surveys: Existing building, Structures, Site, Vegetation, Services etc

§

Development Potential

§

Site Constraints

§

Initial Proposal/Brief

§

Programme

§

Consultants – roles and responsibilities

§

Statutory Requirements – Consents

§

Surrounding Area – Impact on development

§

Previous Planning Application

§

Timescale

Consultees: §

Local Planning Authority

§

English Heritage

§

Local Parish Council

§

Highways

§

Environmental

§

Utilities

§

Secure by Design

2.4.1 – Outline fee proposal for all stages of the project.

§

Stage 0-2: 20%

§

Stage 3: 20%

§

Stage 4: 20%

§

Stage 5-7: 40%

2.4.2 - Establishing Level of ‘Fee’.

§

The brief

§

Residential, commercial etc

§

Site/Planning issues

§

Reference to fee information on previous similar projects

§

Resourcing

§

Distance to site/client

§

Published fee data

§

Expenses

§

Office circumstances

§

Risk

2.5.1 - Various consultants’ appointment.

Planning: §

Highways

§

Sustainable Consultant

§

Daylight and Sunlight Consultant

§

Arboricultural consultant

§

Structural – Basement impact assessment

§

Flood Risk Assessment

§

Contamination Report

§

Archeological Report

§

SBD Assessment

§

Planning Consultant

2.6.1 - Discuss the role of the RIBA Guidance on Appointing an Architect.

§ Terms of appointment, clear scope of works, recorded in writing, § Outline of exactly what is included in the appointment, statement of requirements, definition of services etc... See 4.2 - Variations in appointment § Members should provide the client with their terms and conditions of appointment , inc fees. Where charges will be made, specifics...See GN4.5 Covering absence(4.6), Transfer of Responsibilities(4.7), suspension and determination of appointment (4.8) § PI Insurance and Appointments (4.9) Obliged under the ARB to hold Professional Indemnity Insurance. ‘Appropriate’. Consult the insurer if there are doubts about cover on a specific project. Confirm to the client that the ‘amount of cover available under the contract’ § Taking over previous appointments (4.10) –doubts, licenses to previous information (drawings specs etc), outstanding contractual matters Fee Quotations – (4.11) § Sufficient information about calculation of fees, type and extent of services

2.7.1 - What issues should be considered when providing Partial Professional Services.

§ Taking over jobs from another architect – where does there liability end and yours commence § Inform insurance – higher premium due to added risk § explicitly state the scope of services you will provide, as you my be asked to do extra work for free! § Provide a method statement of how you propose to process/answer the brief.

2.8.1 - Take over a Commission from Another Firm of Architects.

Before accepting an appointment to continue a project started by someone else, members should ascertain from the potential client: § That the previous appointment has been properly determined; and § The client holds a license to use any information, including drawings, specifications, calculations and the like, prepared by the preceding appointee; and that there are no outstanding contractual or other matters, which wuld prevent the member from accepting the appointment. I f there are any doubts, a suitable indemnity should be obtained from the client.

§ When members are approached by clients to undertake work on an existing project, reasonable enquires should be made to establish whether or not any other architects are already involved. If there are, members must clarify with the client whether their role will be replace an appointed architect or take on separate work within the same project. Members should, unless there is a justifiable reason not to, inform the appointed architect(s) that the client has approached them. However, if the client denies or fails to mention that another architect is already engaged for this work, the Royal Institute is unlikely to regard an omission to notify the original architect as professional misconduct. § In whatever circumstances a member takes over a project started by someone else, the Royal Institute regards it as good practice to contact the consultants previously engaged in order to establish that their appointment was properly determined and the client holds a licence to use any information (such as drawings, specifications, calculations etc.) they prepared during their commission. (See Guidance Note 4 on

Appointments) §

The contribution of others to a member’ s work should be appropriately acknowledged. Members should not seek to pass off someone else’ s work as their own.

2.9.1 - Practice could offer Additional Services.

§ Project Management, § Site Surveys § CDM Co-ordinator, § DDA Consultant, § BREAM § Consultant Design Services eg websites, graphic design, interior design

2.10.1 Aspect of Fee bid to consider in order ensure profitability and assessing it.

Aspects of a Fee Bid to consider: §

Resourcing of the project

§

The Brief

§

Complexity of the project

§

Type of Project

§

Distance to site/client

§

Expense’s (Printing etc)

§

Payment Methods (Staged or monthly)

§

Scope of services

§

Type of Fee (Fixed, percentage or hourly)

§

Insurance

§

Project Timescales

§

Additional Surveys (site survey etc)

Assessing Fee in order to establish Profit: §

Review of Cash flow forecast

§

Review monthly timesheets of all individual working on the project

§

Weekly reviews to monitor progress

§

Calculate profit on basis of = Employee Wages + Overheads and any remaining figure would indicate profit.

§

Direct costs

§

Administrative expenses

§

Premises expenses

§

Financial expenses

§

Productivity rate upon the projects

2.11.1 - Friend ask you to provide Architectural Services outside your Practice. §

Professional Issues

§

ARB/RIBA Codes of Conduct

§

Risks, Practical Matters

§

Conflict of interest

§

Terms of employment

§

Professional Indemnity Insurance

§

Terms of Appointment

§

Scope of services

§

Dispute Resolution

§

Resources and Skills

§

Time Management

§

Discuss matters with your employer

2.12.1 –Risk Management Identification §

Identify the risks and determine the strategy to address them

Quantification / Probability / Impact §

One popular way of recording risk is to use a traffic light matrix system

§

Risk classification

Mitigation §

Once the risks have been identified and coded it is possible to see which need to be tackled with the greatest urgency and to discuss and adopt strategies to mitigate them

3. LEGISLATION AND PROCEDURES

3.1.1 - Which bodies governs the different statuary obligations.

Planning: §

Local planning authorities (LPA) – usually the district or borough council – is responsible for deciding whether a proposed development should be allowed to go ahead.

Listed Building: §

Compiled by Department for Culture Media and Sports (DCMS)

§

Listed status determined majority of the time by English Heritage Survey

Conservation Area: §

Local authorities have the power (under Section 69 of the Planning (Listed Buildings and Conservation Areas) Act 1990) to designate as conservation areas, any area of special architectural or historic interest.

§

“The role of English Heritage is to help local authorities use their powers and resources to preserve or enhance the character and appearance of their conservation areas. In Greater London only, English Heritage must be notified of applications for the demolition of a building in a conservation area.

Building Regulations: §

Local Authority Building Control (LABC)

§

Or Private sector Approved Inspector Building Control (AIBC)

Health and Safety (CDM): §

Construction (Design and Management) Regulations 2007 (CDM Regulations)

3.1.2 - Statutory Obligations – Times and Obstacles.

Planning Approval Authorities: § Borough council: internal departments, such as housing, environmental health transport, archaeology § Parish council (if they claim the right) § Town council § Police and Fire Brigade § Statutory Undertakers: water, gas, electricity § Public and local interest groups § Highways Agency § Environment Agency

Listed Building Consent: – § English Heritage involvement Conservation Area Consent – additional planning control, eg materials, trees, demolition.

Conservation Area Consent: Is it Required?

Timescales: Planning: § statutory 8 weeks for registration of application. § 13 weeks for major applications (16 weeks with environmental statement) § Will always over run due to inefficient planning system Listed Building Consent § could take longer than 8 weeks § Requires extensive information Building Regulations: § statutory 5 weeks extendable to 8 weeks. − often partial/conditional approval sought.

Potential difficulties: § Planning Listed Building Approval Building Regulations § local objections

§ English Heritage. § problems of bringing fabric of existing buildings up to standard, eg Parts B, M and L. § Conflict between English Heritage/Listed Building requirements and current Building Regulations. § Planning Officer delay in making decision § Appeal dates can take extensive time

CDM regulations, Partywall Agreement (Legal agreement), S106 / CIL

3.1.3 - Types of Planning Appeal

§ Written – local and small scale projects § Hearing – appropriate where it is considered beneficial to present the case in person to the Planning Inspector and where the appellant wishes to apportion Costs §

Public enquiry – large scale projects of public interest

3.1.4 - What is Permitted Development

The General Permitted Development Order 1995 carries 84 classes of development by which planning permission is automatically given, and hence there is not need to make an application §

Not applicable in conservation areas, AONB, National Park etc

§

House extensions where less than 15% or 70m3

§

Skylights, solar panels, urgently required repairs, internal alterations

§

Garden buildings up to a certain size and distance from the highway

3.1.5 - Describe the options available to you to submit/obtain Building Regulation Approval

§ Full Plans: where drawings, details and other supporting information is submitted for checking and a formal decision notice (approval, conditional approval or rejection) is given. Scheme fully resolved § Building Notice: a less detailed form of application where minimal information is initially required (although the Local Authority may request further detail) and no formal decision is given. The approval process is much more heavily weighted towards the work in progress. There are also specific exclusions in the regulations as are: to when building notices cannot be used. Scheme not fully resolved and developing

3.1.6 – Difference between S106 and CIL.

S106: § Developer offers some planning benefit in return for permission . § E.g. upgrades a road junction in order to erect a new building §

Planning agreements and unilateral undertakings.

§

A ‘deed’ legally binding on subsequent owners.

CIL Levy: §

A new form of tax to be paid by a developer dependent on the size and nature of the proposed development and to support local infrastructure provision

§

In regards to extensions it only applies to projects that exceed 100m2,

§

Hospitals, Schools and some other public buildings are exempt.

§

In brief the Levy is a charge on new build based on the floor area of the scheme and rated against its location in London. Central boroughs, including Islington are subject to a higher charge than others as you radiate out from the centre.

3.1.7 – Planning and Building Regulation Differences.

Building Regulations: Contain the procedural and technical rules for almost all new building work and alteration of existing buildings, and set standards for the design and construction of buildings to ensure health, safety, welfare and convenience and safety of people inside amend outside buildings.

The purpose of the Building Regulations is to secure reasonable standards of: § Health and safety for persons in and about buildings (and any others who may be affected by buildings or matters connected with buildings); Energy conservation; Access and facilities for people with disabilities Planning: §

Control of development through the granting or refusal of planning permission

3.1.8 - Approach to ensuring a successful planning application without undue delay. §

Pre-application Process in detail

§

Neighboring Consultation

§

Public Consultation

§

Outline Planning (Subject to Project)

§

Ensure all necessary reports have been prepared by consultants prioir to the planning application submission.

§

Monitor the application during the 8/13 week process.

§

Establish a healthy relationship with the planning officer

3.1.9 - Carrying out works WITHOUT Planning and Building Regulation Approval.

Planning Approval The Town and Country Planning Act 1990 - is the land use planning system governments use to balance economic development and environmental quality.

The council can take legal action if building work is carried out without permission. This is known as the council's powers of enforcement. The council also has the same powers if the use of a building is changed without permission.

Without a formal planning approval the client would be to taking a risk and the application can be refused and the client can be forced to take down anything he has built to date.

Building Regulation If building work is carried out without a building notice or without full plans being deposited, or following rejection of plans, or in a way which contravenes any requirements which the local authority imposed when passing the plans, the local authority may require the owner to: •

Pull down or remove the work; or

•

Pull down or remove the work, or if the owner so elects, to make such alterations as

would be necessary to make it comply.

Should the owner not co-operate, the local authority has powers to pull down or remove work, or make alterations and recover expenses from the owner. The owner may also be liable to legal sanctions.

Can however appoint an Approved Inspector and submit a Building Notice and begin works within two days.

Under a building notice the local authority must be informed that work will begin, with at least two clear working days’ notice of commencement.

Under full plans, work may not begin until the local authority has granted notice of approval; the local authority must then be notified of commencement, with at least two working days’ notice.

3.1.10 - Information that may be required to submit Full Planning Application. §

Completed Planning Application Form

§

Signed Certificates

§

Cheque for the correct amount

§

Drawings

§

Covering Letter

§

Design and Access Statement

§

Consultants Report: §

Transport Assessment

§

Ecological Assessment

§

Landscape Assessment

§

Heritage Statement

§

Archaeological Survey

§

Sustainability Appraisal

§

Contamination Survey

§

Arboricultural Survey

§

Basement Impact Assessment

§

Daylight and Sunlight Assessment

§

Acoustic Assessment

§

Flood Risk Assessment

§

Topographical Survey

§

Secure by Design

3.1.11 - Consultation carried out by local authorities during Planning stage. §

Highways

§

Parish Council

§

Environment Agency

§

Environmental Services

§

Public and local interest group

§

Police and fire brigade

§

Statuary Undertakers

§

English Heritage

§

Conservation and Design Officers

§

County Council

3.2.1 - Role of CDM

Anyone can be a CDMC provided they have the appropriate level of competence for the duties they have to perform. The CDMC could be a designer, contractor or a stand alone CDMC.

Roles and responsibilities: §

Advise and assist the client with their duties;

§

Notify details of the project to HSE (using the F10 Notification form);

§

Co-ordinate H&S aspects of design work and co-operate with others involved with the project;

§

Facilitate good communication between the client, designer and contractors;

§

Liaise with the principal contractor regarding ongoing design work;

§

Identify, collect and pass on preconstruction information; and

§

Prepare the H&S file.

3.2.2 - Health and Safety obligations as designer.

§ Make sure that they are competent and adequately resourced to address the Health and Safety issues likely to be involved in the design § Check that the client is aware of his/her duties § When carrying out design work, avoid unforeseeable risks to those involved in the construction and future use of the structure and in doing so, they should eliminate hazards (so far as reasonably practicable taking account of other considerations) and reduce risk associated with those hazards which remain. § Provide adequate information about any significant risks associated with the design §

Coordinate their work with others in order to improve the way in which risks are managed and controlled

3.2.3 - Reducing the Risk of Accidents in construction projects.

The Construction (Design and Management) Regulations 2007 (CDM Regulations) require persons involved with all construction projects to take into account health and safety matters and requires co- operation between parties involved throughout the design, planning and construction of a project, including the client, designer, architect, planning supervisor, and principal contactor.

The regulations are divided into 5 parts: § Part 1 deals with the application of the Regulations and definitions. § Part 2 covers general duties that apply to all construction projects. § Part 3 contains additional duties that only apply to notifiable construction projects, i.e. those lasting longer than 30 days or involving more than 500 person days of construction. §

Part 4 contains practical requirements that apply to all construction sites.

§

Part 5 contains the transitional arrangements and revocations

‘Eliminate’ hazards ‘Reduce’ risks during design ‘Inform’ others of risks ‘Control’ risks.

3.2.4 - The effect of the DDA on the design of public buildings.

§

DDA was created to grant disabled people equal opportunity and legal rights in areas such as employment, provision of goods and services, and education.

§

Part M is document of dimensions and layouts to guide the designer.

§

If can’t be complied architecturally, do it by management

3.2.5 - Information required by Health and Safety Co-ordinator about the site. §

Site boundary

§

Pre-construction information

§

Contract drawings highlighting risk elements within the site

§

Access

§

Land & Premises information

§

Right to enter neighbor land for development

3.2.6 - Implications of not having appointed CDM §

Statutory Obligations

§

May Lead to Civil Liability in Courts

§

Client in breach of Contract

§

Architect can be held liable in contract / tort for notify his client of his duties

§

Construction work can be stopped by HSE

3.3.1 - Briefly describe the role of CABE. The Government’ s Advisor of Architecture, Urban Design and Public Space

3.3.2 - Briefly describe the role of Design Review Panel.

It is a forum for locally contentious schemes to be peer reviewed or assessed. They aim to help improve the quality of the built environment by positively encouraging good design and criticising poor design.

3.3.3 - How are the following defined under the Party wall etc Act 1996.

Party wall: § a wall which forms part of a building and stands on lands of different ownersto a greater extent than the projection of any artificially formed support on which the wall rests and § so much of a wall not being a wall referred to in paragraph I above as separates buildings belonging to different owners.

Party fence wall § a wall (not being part of a building) which stands on lands of different owners and is used or constructed to be used for separating such adjoining lands, but does not include a wall coon the land of one owner the artificially formed support of which extendes into the land of another owner.

Party structure §

a party wall and also a floor, partition or other structure separating parts of the buildings or part of buildings approached solely by separate staircases or separate entrances.

3.4.1 - Describe briefly the role of English Heritage

§ English Heritage works in partnership with the central government departments, local authorities, voluntary bodies and the private sector to: § Conserve and enhance the historic environment § Broaden public access to the heritage

Increase people's understanding of the past

§

They meet those responsibilities by :

§

acting as a national and international champion for the heritage

§

giving grants for the conservation of historic buildings, monuments and landscapes

§

maintaining registers of England's most significant historic buildings, monuments and landscapes advising on the preservation of the historic environment

§

encouraging broader public involvement with the heritage promoting education and research

§

caring for Stonehenge and over 400 other historic properties on behalf of the nation maintaining the National Monuments Record as the public archive of the heritage

§

generating income for the benefit of the historic environment

3.4.2 - Listed Building – When Why and What

When: §

architectural interest: buildings of importance because of their design, decoration and craftsmanship

§

historic interest: buildings which illustrate an aspect of the nation's social, economic, cultural or military history

§

historic association: buildings that demonstrate close historical association with nationally important people or events

§

group value: buildings that form part of an architectural ensemble, such as squares, terraces or model villages

Why: §

To help protect the physical evidence of our past, including buildings, which are valued and protected as a central part of our cultural heritage and our sense of identity

§

Historic buildings also add to the quality of our lives, being an important aspect of the character and appearance of our towns, villages and countryside.

What: §

When listed, listed in entirety. Inside and Out

§

Any object or structure fixed to the building (Pre 1 July 1948)

§

Any object or structure within the curtilage of building that forms part of the land

3.4.3 - Conservation Area Consent

§

“Demolish a building with a volume of more than 115 cubic metres. There are a few exceptions - you can get further information from your council.“

§ “To demolish a gate, fence, wall or railing over 1 metre high next to a highway (including a public footpath or bridleway) or public open space; or over 2 metres high elsewhere.”

3.4.4 - Options available to Client and Local Authorities in order to preserve listed buildings.

Clients: §

Seek grant from English Heritage

§

Apply for Heritage Lottery Funding

§

The extent of the repair should normally be limited to what is reasonably necessary to make failing elements sound and capable of continuing to fulfill their intended functions.

Local Authorities: §

Listed building may be compulsorily acquired by a local authority or the Secretary of State if it appears that reasonable steps are not being taken for properly preserving the building and it is expedient to make provision for the preservation of the building by authorising its compulsory purchase.

§

Apply for funding

§

May want to offset some of the S106/CIL money from other developments towards the refurbishment of listed building

§

Place conditions upon the developing site in order to insure the client preserves the Listed building

3.4.5 - What advice would you give client when he wants to sell adornments, fittings and fixtures from a Listed Building? § §

Seek Listed Building Consent It is a criminal offence to demolish, alter, or extend a listed building so as to affect its character as a building of special architectural or historic interest, without first getting listed building consent.

3.4.6 - Issues arising from removing items from Listed buildings and then applying for consent retrospectively. §

Can still be prosecuted

§

Fines of up to £20,000

§

Criminal offence

§

Planning (Listed Buildings and Conservation) Act 1990 Section 7: §

No person shall execute or cause to be executed any works for the demolition of a listed building or for its alteration or extension in any manner which would affect its character as a building of special architectural or historic interest, unless the works are authorized

3.5.1 - What is the purpose of the Code for Sustainable Homes.

§ The Code measures the sustainability of a new home against nine categories of sustainable design, rating the 'whole home' as a complete package. § The Code uses a 1 to 6 star rating system to communicate the overall sustainability performance of a new home. The Code sets minimum standards for energy and water use at each level and, within England, replaces the EcoHomes scheme, developed by the Building Research Establishment (BRE). § The Code will provide valuable information to home buyers, and offer builders a tool with which to differentiate themselves in sustainable terms

3.6.1 - What is the OJEU and what is its purpose.

OJEC stands for the Official Journal of the European Community (OJEC is now recognised as OJEU - the Official Journal of the European Union ). This is the publication in which all contracts from the public sector which are valued above a certain financial threshold according to EU legislation, must be published.

3.7.1 - What are easements and rights.

A basic knowledge of easements is essential, particularly in relation to site investigation. The list of easements and rights is extensive but those most likely to effect development are:

Easements: § Rights of light (easements of light and air) § Rights of way (easements of way) § Party wall rights

All are common law rights and enforceable by law. Governed by Case Law.

3.7.2 - What are restrictive covenants.

§

A restrictive covenant is a binding obligation that restricts an owner of servient land (burdened land) in their use and enjoyment of that land; essentially they are NEGATIVE as they enforce a restriction.

§

Restrictive covenants are agreements entered into by owners of land that limit the use of land or activity upon it.

3.7.3 - Architects responsibility regarding site boundaries, easements and restrictive covenants. §

SFA Agreement – Schedule should highlight site information ( List boundaries, easements and restrictive covenants)

§

Ask client to ask his solicitor to carry out necessary checks at initial stages

§

Architects duty to act with those rights

§

Architect could advice client to have covenants removed

§

Consultant Land Registrar for deeds if unsure

§

To design within the perimeters of the constraints, architect could be held for negligence if he design beyond the restrictions.

3.8.1 - Key ‘Acts’

§

The Sales of Goods Act 1979

§

The Supply of Goods Act 1982

§

The Defective Premises Act 1972

§

Unfair Contract Terms Act 1977

§

The Housing Grants, Construction and Regeneration Act 1996

§

The Equality Act (Replaces DDA)

3.8.2 - Architects Act 1997 It is a requirement of Section 13 of the Architects Act 1997 (“the Act”) As an architect you are expected to: §

Be honest and act with integrity

§

Be competent

§

Promote your services honestly and responsibly

§

Manage your business competently

§

Consider the wider impact of your work

§

Carry out your work faithfully and conscientiously

§

Be trustworthy and look after your clients’ money properly

§

Have appropriate insurance arrangements

§

Maintain the reputation of architects

§

Deal with disputes or complaints appropriately

§

Co‐operate with regulatory requirements and investigations

§

Have respect for others

3.8.3 - Copyright and the Architect.

§

Copyright is governed by the Copyright, Design + Patents Act 1988

§

Copyright comes under Intellectual Property Law

§

Architecture comes under artistic work

§

The most likely penalty for infringement of copyright is the payment of

§

Damages, architecturally wise.

§

The idea/expression dichotomy: Ideas cannot be protected. Expressions of ideas can.

3.8.4 - Under the EC Working time Directive 93/104 what are the rules on working hours.

§ An absolute limit of 48 hours per week, averaged over a four month period § Member States can opt out by ensuring that workers only work extra hours on a genuinely voluntary basis

3.8.4 – New Planning Rules §

Office to Residential

§

High Street Changes

§

Agricultural buildings to a range of new business uses

§

Opening of New state-funded schools

§

Flexibility for Business Use

4. PROCUREMENT 4.2.1 - Different Procurement Options – Advantages and Disadvantages.

(REFER TO CRIB SHEET AND APPLICABLE TO EACH PROJECT SCENERIO)

4.2.2 - Alternative Contractual Arrangements.

Parenting: § Strategic partnering involves client working with the same design team and contractor for a series of projects § Based on principles of having mutual objectives and rewards, strategies for producing procedures to improve the project and the way in which the partners work together, and continuous feedback § Strategic partnering has been proved to achieve substantial cost and time savings § Design can be constantly refined, improved and made more efficient as lessons are learnt from previous projects and fed into the next § Cost certainty cannot be guaranteed for the first project, but after repeating similar projects, cost is far more predictable § Competitiveness and value for money can be encouraged by having two preferred contractors § This also enables more superstores to be built which might otherwise be beyond the resources of one contractor § Risk is shared by all the partners and so are the profits - this is established in the partnering agreement § Design liability would depend upon the conditions of the agreement, although partnering is designed to encourage teamworking, rather than allocated blame to one particular party §

For a series of superstores this could be a better option

4.2.3 - When giving advice towards a Building Contract.

§

Architects duty to advice client regarding procurement route and form of contract

§

Failure to give adequate advice could result in architect being found negligent and liable for damages

§

If the wrong form of building contract is used then difficulties could arose for the architect during the contract period potentially increasing the amount of time spent by the architect in managing the contract and resulting in loss of profit on the job.

4.3.1 - Contract Choice – Key differences.

Traditional:

JCT Standard Building Contract (SBC) §

It is intended for substantial lump sum contracts and is available for use with or without quantities.

§

Work needs to be fully documented at tender stage, and is for completion within a stated period.

§

The contractor may be required to design an identified part of the Works, in which case it must be provided with detailed Employer’s Requirements at tender stage.

Otherwise, the contractor is to be provided with fully detailed design information, ideally at tender stage, as any information provided later may give rise to claims.

§

An architect (or a ‘contract administrator’) must be appointed with wide but strictly defined powers, including issuing instructions, certifying payments, certifying the quality of work etc.

§

A quantity surveyor must be appointed for the valuation of the work and the valuation of variations

§

JCT 98 makes provision for the nomination of sub-contractors

JCT Intermediate Building Contract (IC) §

Its aim was to bridge the gap between the JCT 98 and the Minor Works form

§

There is no provision for nominating sub-contractors, but a different mechanism for achieving a similar result is the ‘naming’ of a sub-contractor

§

These refer to building works of simple content and without complex services installations. Most important, there is a reminder that this is a lump sum contract, to be priced entirely by the Contractor, and therefore the job must be fully designed and billed or specified at tender stage.

§

JCT Practice Note 5 (Series 2) suggested that suitability is indicated by a contract value of up to £375,000

§

a contract period not exceeding 12 months, but accepted that contracts may well be larger or longer than the limits suggested.

JCT Minor Works Building Contract §

This contract is designed for use on only very small and simple works.

§

The JCT suggested that MW98 was appropriate for contracts up to £100,000

§

The form is perhaps more suited to commercial rather than domestic work where there can be problems with the client remaining in occupation.

Design and Build JCT Design and Build Contract

4.4.1 - Partnering in Construction Projects. § reliable product quality – eg zero defects or reduced reworking § completion on time § cost reduction § shared problem solving § improved efficiency § improved profits § shared savings § long term relationships

4.5.1 - Tender Process

Single stage selective tendering (Most Common) §

Selection of contractors

§

Preliminary enquiry if contractor is capable and interested

§

Interview

§

Sending out documents

§

Time for tendering

§

The formulation of bids

§

Examination of a priced bill

§

Negotiated reduction of tender

§

Preparing contract documents

§

Contractor Selected

4.5.2 - Advantages and Disadvantages of Selective Tendering Advantages: §

If the pre-selection process has been done properly, any of the contractors is satisfactory to the employer

§

Therefor consideration on Price along can be made

§

Reduced cost of tendering in comparison to open to tender

§

All the contractors may be in the same status so they get more profit & the work is also in good Quality.

Disadvantages §

The tendered rate may be high when compared with the open tender but when consider the standard & good management it brings advantage to the client in the long run.

4.5.3 - Informing Client of error in the Tender Return by X contractor. §

Details of Discrepency

§

Reference to type of tendering procedure and conditions in tender documents

§

Contractor has been asked to confirm whether or not he wishes to stand by his price

§

Suggest interviewing two lowest tenders

4.6.1 - Phased Work issues.

Practical issues §

Dates of phases

§

Dates of leases that may have been signed with tenants

§

Areas including within which phases

§

Access to the completed parts in terms

§

Health and Safety

§

Insurance

§

Services

Contractual Issues §

If sectional completion is to be used, separate completion supplement will need to be added to the contract

§

Separate completion dates are set for each section

§

Certificates of Practical Completion are issued of each section, signifying the start of the Defects Liability Period for each section

§

Only one final certificate is issued at the end of the Defects Liability Period (or when the Certificate of Making Good Defects has been issued) for the last section

§

If the project is to be phased by granting partial possession to the employer, separate completion dates will not be set for the separate parts

4.7.1 - Discuss the role of the architect and the relationship with the other members of the professional team.

- Usually the lead designer as base principle

(Subject to Procurement method and Contract Choice)

4.8.1 - Describe under what circumstances you may be asked to enter into a Collateral Warranty.

§ A collateral warranty is a form of contract which runs alongside, and is usually supplemental to, another contract. § Usually a collateral warranty creates a contractual relationship between two parties where none would otherwise exist. § It takes the form of a contract between the party to the underlying contract who is providing services or carrying out work and a third party who has an interest in the proper performance of that contract. § Architects may be required to enter into a collateral warranty in favour of a funder, tenant or prospective purchase when engaged by the Employer or in favour of the Employer when engaged by the contractor.

For example: § that the collateral warranty is no more onerous in terms than the original contract § that your PII has approved the wording of the collateral warranty § that all other consultants/contractor have entered into collateral warranties § that the collateral is limited to an agreed number of subsequent tenants

4.9.1 - What is PFI?

§

Private Finance Initiatives (launched in 1992): partnership takes place in the form of a long term contractual arrangement

§

PFI give local authorities the opportunity to deliver higher quality and more cost-effective public services by giving authorities access to new sources of capital investment and management skills for new or improved facilities, such as schools, roads, police stations, museums and leisure centres

4.10.1 - Issues to Consider when Selecting a Contractor.

1. The firm’s financial standing and record 2. The firm’s recent experience of building at the required rate of completion 3. The firm’s general experience and reputation in this area 4. The firm’s competence and resources in respect of statutory health and safety requirements 5. The firm’s approach to quality assurance procedures 6. Whether the management structure of the firm is adequate for this type of contract 7. Whether the firm will have adequate capacity at the relevant time 8. Inspect Previous Work 9 Talk to previous employers, architects

4.11.1 - Advantages/Disadvantages of QS preparing Contract Preliminaries and Specification.

Advantages: §

Less Risk upon architect

§

Any errors QS will be held responsible

§

Less workload allowing Architect to focus on design

Disadvantages: §

Part of the design duties

§

Architect will specify materials and will have to communicate them to QS – additional workload

§

The role of the Architect being diminished to purely a designer

§

In these circumstances will be the lead consultant for tender process

§

Reduced fees for the reduce workload for Architect

§

More chances of errors within the Contract Documents

4.12.1 - Why chose a Standard Form of Contract §

Standard forms of contract are drafted taking into account a legal backdrop of common law and statutory rules.

§

It will normally be less expensive

§

Generally more convenient to use a standard form than to arrange for one to be specially drafted

§

Many have detailed and comprehensive relevant guidance, which is in turn based on authoritative legal opinion, for example through having been tested in the courts.

§

JCT forms in particular are widely used

§

held to be fair and balanced in the interests of the parties.

§

Wide range of forms available to suit individual project

4.12.2 - Why is it risky to amend Standard Forms of Contract §

Bespoke amendments can easily impair the balance of the forms

§

Precise meaning of the contract conditions could be a matter for endless argument between lawyers.

§

Contractors and others may not be familiar with it

5. CONTRACT ADMINISTRATION 5.1.1 - Key features within SBC11 (PLESE REFER TO CRIB SHEET)

5.2.1 - Prepare a generic agenda for site meetings. List the items

§ Apologies for Absence § Minutes of Previous Meeting § Matters Arising § Main Contractor's Report on Progress § Programme § Consultants Reports § Site Issues § Labour Position § Information Required § Materials Supply Position § Clerk of Works' Duties and Report § Sub-Contractors, Suppliers and Utility Companies § Electrical & Mechanical Services § Cost Control and Other QS Matters § Instructions and Variations § Health and Safety § Monitoring Check Lists Complete § Any Other Business § Date of Next Meeting and subsequent dates to be agreed

5.2.2 - Chair a site meeting

§

Record of those attending

§

Acceptance of previous minutes

§

Items arising from previous minutes

§

Progress related to programme

§

Information required by contractor

§

Information required by consultants

§

Subcontracts

§

Health and Safety

§

Financial review

§

Date of next meeting

5.4.1 - Processes for Managing project information

Research § Research previous job records to discover: § Original planned design/construction programmes § Original resource allocations § Agreed fees and proposed fee allocation § Estimated profit § Compared to: § Actual programme achieved § Actual resource allocation - check old time sheets § Percentage of fee actually spent at what stages § Recommended allocation of fees as suggested in SFA 99 guide § Actual profit (or loss) § Discuss with colleagues who previously worked on job § Were the previous jobs of the same size and same procurement method? § If not, do similar research into other past projects that were of a similar nature Programme § Break project down into stages and tasks § Establish network diagram to illustrate dependency of tasks - in conjunction with client and colleagues with previous experience § Allocate an estimated time period for each task, based on research described § Above § Determine the critical path § Check whether this met the client's timescale requirements Resourcing § Allocate an estimated number of staff for each task, based on research describe above § Determine manpower loading § Check with personnel manager/partners in office whether this number staff will § be available at these times § Check whether there are sufficient fees to cover the required manpower § What methods of programming and monitoring would you use for a project of this nature. (8 marks)

Programming methods § Moveable 'post-it' notes to establish logic diagrams and dependency of tasks § Once established in principle, the information can be fed into the office § computerised programming system, for example, Hydra § Easy to update Monitoring methods § If using a computerised programming tool, electronic time sheets can be feed back into the programme § Therefore able to compare estimated programming and resourcing with actual programming and resourcing § At the outset I would establish with the in-house team, the design team, and later with the contractor, a strategy for monitoring progress

5.5.1 - Describe briefly the difference between novation and consultant switch. § Consultant switch is when the architects enter into two separate contracts the first with the employer and the second with the contractor each will cover the services applicable to each appointment. §

Novation is when the contract between the employer and architect is replaced by a contract on identical terms between the contractor and architect.

5.6.1 - Contractor Gone in Liquidation. Action Required?

§

Seek confirmation of the insolvency position with the company via one of the Directors if possible or indirectly through other lines of communication via major subcontractors, and obtain the name, address and telephone number of the person or persons appointed to oversee the insolvency affairs.

§

Notify the client and consultants of the situation

§

Arrange an immediate stop on all payments (in whatever stage).

§

Ensure that an immediate site and materials audit is carried out, and that the site is made weather-tight and suitably secured to prevent the removal of unfixed materials and any remaining plant. (Ownership of plant can be clarified subsequently; normally the employers have the beneficial use of unfixed materials to complete the works, but again any legal challenges relating to ownership can be pursued subsequently).

§

Beware of sub- contractors whose payment will cease, removing materials or other goods from site to minimise their loss, often without any legal entitlement.

§

Arrange meeting with employer to discuss situation and way forward

§

Prepare a report to summarise the overall position and obtain a preliminary view from the Q.S. as to whether the Employer is owed money or has sufficient monies withheld to resolve outstanding issues.

§

Check whether or not there is a bond and if so that the bondsman is notified of the insolvency position.

§

Eventually, following formalisation of the receivership/liquidation, a letter will be received from the receiver/liquidator confirming the company’ s status, and the date from which it will be formally applied. At this stage too, decisions will have to be made as to the best method of completing outstanding works.

5.7.1 - Briefly explain the differences between section completion and partial possession.

§

If the employer wishes the Works to be completed according to a particular timetable, sectional completion, which is designed for this purpose, should be used and the appropriate parts of the Contract Particulars should be completed which impose contractual obligations.

§

In the event of a sectional completion supplement not being completed the alternative would be to consider partial possession.

§

The purpose of the partial possession clause is to enable the employer, with the consent of the contractor, to take possession of any part or parts of the Works before practical completion of the whole of the Works.

§

Note that the employer cannot take possession without the contractor’ s consent (the contractor is in possession of the site), but the contractor may not refuse such consent unreasonably.

5.8.1 - What is Defective Work?

‘Under JCT SBC Q ’11 clause 3.18 a defect is defined as any work, material, or goods not in accordance with the contract documents. A contract administrator owes a duty of care to the employer to discover defects and bad workmanship.’1

5.9.1 - When are Certification and Payments used Certification and notices concern contractor payment in building contracts § Interim Certificates: Architect/CA to Employer · within 5 days of the due date § Payment Notice: Employer to Contractor · not later than 5 days before the final date for payment § Interim Payment Application/ Notice - If necessary: Contractor to QS · not less than 7 days before due date § Payless notice – If necessary : Employer, Architect/CA, QS to Contractor - not later than 5 days before the final date for payment Monthly basis up to 1 month post practical completion, then every 2 months

§ Notification of revision to Completion date – If necessary : Architect/CA · § Non completion Certificate – If necessary : Architect/CA · § Practical Completion Certificate : Architect/CA As deemed appropriate

§ Certificate of Making Good : Architect/CA As deemed appropriate

§

Final Certificate : Architect/CA

As deemed appropriate

5.10.1 - What is Variations. § SBC 5.1 as the alteration or modification of the design or the quality or quantity or quantity of the Works from that shown in the contract documents. They include additions, omissions, and substitutions, alterations of kinds or standards of materials, or the removal from site of materials delivered for the Works, unless the removal is because the materials are defective.

5.11.1 - When are Bonds and Guarantees Used

§

a bond or a guarantee is an arrangement under which the performance of a contractual duty owed by one person (principal debtor) to another (beneficiary) is backed up by a third party (bondsman, surety or guarantor)

§

to give financial protection where the principal debtor becomes insolvent

5.12.1 - Guaranteed Maximum Price?

§

The contractor is responsible for cost overruns, unless the GMP has been increased via formal change order

§

A guaranteed maximum price helps to reassure the employer

§ Savings from completing the project for a price below the GMP can e shared §

between the contractor and employer

5.13.1 - Contractors Duties in regards to Statutory undertakings.

The contractor is under a statutory duty to comply with all legislation that is relevant to the carrying out of the works, for example in respect of goods and services, building and construction regulations, and health and safety. The duty is absolute and there is no possibility of contracting out of any of the resulting obligations.

SBC11 imposes a contractual duty in addition to the statutory duty. Under clause 2·1 the contractor is required to carry out and complete the works ‘in compliance with ... the Construction Phase Plan and other Statutory Requirements’. The contractor is required to pay all fees and charges, but unless these have already been included in the contract sum or are covered by a provisional sum, the amounts will be added to the contract figure (cl 2·21).

5.13.2 - Site Insurance and Security during Statutory Undertakings.

Degree of possession is such that there must be no interference that prevents the contractor from working in whatever way or sequence it chooses. With most jobs this means that the contractor must be given clear possession of the whole site until practical completion.

The SBC11 contract particulars require the entry of a ‘Date of Possession’ of the site and a ‘Date for Completion’ of the works.

When the contractor is still in possession of the site, and the employer wishes to ‘use or occupy the site or the Works or part of them’, then clause 2·6 provides for this. The purposes for which the employer might require this are described simply as ‘storage or otherwise’, so, in theory at least, the clause places no limits on what form the use might take. The consent of the contractor in writing is required, and the contractor would not be unreasonable in withholding permission unless the intervention and inconvenience are likely to be minimal, or unless an agreement is reached over granting an extension of time and/or compensating the contractor for any losses. Before the contractor is required to give consent, the employer or the contractor as appropriate must notify the insurers (cl 2·6·1). If under Insurance Option A any additional premium is required, the contractor notifies the employer of the amount and this is added to the contract sum (cl 2·6·2).

5.14.1 - Injury and Accident on Site. §

Liability of Accident

§

Site Security – was the contractor in attendance?

§

Was it recorded?

§

Did contractor give consent to be on site?

§

Advice CDM co-ordinators of incident?

§

Advices partners and discuss action to be taken?

§

Advice to see doctor?

5.15.1 - Guidance procedure to be taken when assessing Extension of Time / Loss and Expense. §

Contact Suppliers

§

Request critical path analysis from contract demonstrating delay

§

Consider Programme

§

Decision on claim can only be made after receipt of the information request.

5.16.1 - You ask Contractor for quote for additional work, but it is too high – What Action can you take? §

Inform Client of the quote

§

Negotiate with the Contractor for a lower price

§

Request from contractor for alternative contractors to come on site and carry out the works (the main contractors permission)

§

If he refuses than client has no option to adopt his quote or carry out them works at the end

§

Provisional Sums

§

Best to request various quotes at Tender Stage

6. LAW/LIABILITY/DISPUTE RESOLUTION 6.1.1 - Dispute Resolution Procedure

§ Negotiation – the most common form of dispute resolution, where the parties themselves attempt to resolve the dispute. § Mediation – a private and structured form of negotiation assisted by a third party that is initially non-binding. If settlement is reached it can become a legally binding contract. § Conciliation – as mediation, but a conciliator can propose a solution. § Adjudication – an expert is instructed to rule on a technical issue – primarily used in construction disputes as set out in the Housing Grants, Construction and Regeneration Act 1996 where awards are binding on the parties at least on an interim basis – i.e. until a further process is invoked. § Arbitration – a formal, private and binding process where the dispute is resolved by the decision of a nominated third party, the arbitrator or arbitrators. § Litigation – the formal process whereby claims are taken through the civil courts and conducted in public. The judgements are binding on parties subject to rights of appeal.

6.1.2 - Client Refusing to Pay.

§

Seek to discuss the issue with Mr Hunt.

§

Are there any valid reasons for non-payment?

§

Seek an early date for payment. If this date passes without payment, send a firm reminder to Mr Hunt.

§

If no payment is received within 2 weeks; send a final demand to Mr Hunt.

§

Inform your Professional Indemnity Insurer.

§

If no payment is received, initiate legal proceedings.

§

Refer to the Client Agreement to establish if this should be litigation or arbitration.

§

You could choose to go to adjudication for a speedier decision, but the decision will not be final.

6.1.3 - Action to be taken when potential Claim may arise.

§

Recognize potential for protracted legal dispute

§

Recognise potential for practice to be brought into the legal action

§

Inform your Proffessional Indemnity Insurers

§

Practice cost/charges for supplying information and for any future involvement

6.2.1 - Different Insurances.

§ Public Liability Insurance - Public liability insurance differs from professional liability in that it covers injury or death claims that result from a negligent design towards third parties. § Professional Indemnity Insurance - It is essentially designed to cover the costs of claims and defence costs against you for mistakes you make. § Employer’s Liability – To provide indemnity against liabilities to employees § Premises and contents – Covers loss of damage to the office and contents § Build Insurance – Building users insurance against latent defect

6.2.2 - There is a requirement for architects to have P.I .Insurance – which authority requires this and what level of insurance is required?

ARB requires under Standard 8 of the Architects Code - Standards of Conduct and Practice provides that: § Architects should not undertake professional work without adequate and appropriate professional indemnity insurance cover. § The Board recommends that the minimum limit of indemnity provided by PII should be £250,000 for each and every claim.

6.3.1 - Two years after completion of a project a serious roof leak has occurred due to defective workmanship. What liability is there on the part of the contractor to correct this and under what legislation.?

§ For latent damage: either 6 years from the date on which the damage occurred or 3 years from which the party wishing to claim first knew about the important facts. § An action cannot be brought after 15 years after the date of the negligent act. § This is usually called the ‘long stop’ and it applies whether or not the important facts were known within the 15 years, and whether or not damage occurs.

6.4.1 - Employing Consultants directly issues?

§ The potential problems with this arrangement are the increased liability for the consultants’ work and the administration of fees (ie paying the consultant even if the client is late in paying you). § Minimise liability by notifying and agreeing arrangement with PII, ensuring that subconsultants have appropriate PII, back-to-back agreements, collateral warranties

6.5.1 - What are various ways in which Architect can be held Liable for damages/ negligent/ incompetence.

§

Professional negligence ’ is a convenient shorthand for describing the liability of a professional – whether in contract or in tort – for breach of the obligation (or duty) to provide professional services with reasonable care and skill and diligence.

6.6.1 - Contract Law

§

In general terms, contract law can be described as a body of rules of agreement based on mutual exchange of obligations. Parties to a contract are free to agree the obligations to which they wish to be bound and once a contract is concluded, its binds the parties in law.

§

An architect has a duty to use reasonable skill and care in the course of his employment

§

An architect will be tested against the conduct of other architects

§

The courts recognise that failure is not conclusive evidence of breach of duty:

§

‘The surgeon does not warrant that he will cure the patient, nor does the solicitor warrant that he will win the case’

6.6.2 - Law of Tort

§

It is well established, that an architect owes a concurrent duty of care in tort to those whom he also owes contractual duties of care.

§

Concerned with the conduct that causes harm to a party’s personal, proprietary or financial interests

§

Law of wrong-doing: provides a system of loss distribution and regulates behaviour within society

§

To be actionable it is not enough that an act or omission as a matter of fact harms another person’s interests – the wrong must also interfere with some legal right of the complaining party

6.6.3 - Land Law

§

Land law is concerned with the rights of a landowner in or over his own land and the rights (or 'interests') that others may have over that land

§

Law of conveyancing is concerned with the mechanics of the creation and transfer of rights in and over land, usually, but not necessarily, pursuant to a contract between a seller and a purchaser