From time to time an architect may be offered a referral fee from a contractor or supplier. This is where some additional payment or benefit is made to the architect in the event of their client choosing a particular service or product. The acceptance of such payments should always be treated with the utmost caution by any responsible professional due to the inevitable issue of conflict of interest.

As a starting point, Standard 1.4 of the Architects Code of Conduct and Practice provides that where you make or receive any payment or other inducement for the introduction or referral of work, you should disclose the arrangement to the client or prospective client at the outset. This obligation was not met by an architect at the Professional Conduct Committee last week, which resulted in a finding of unacceptable professional conduct and an 18 month suspension from the Register, after she failed to disclose a £15,000 payment from a selected contractor.

Even where any payment or offer of payment is disclosed to a client, an architect should ask themselves whether it remains appropriate for them to proceed. The answer to that question will depend on the scope of the service being offered, but it must inevitably undermine the independence of advice offered in a tender process. It calls into question whether they would be able to achieve the legal requirement to act impartially as a Contract Administrator.

There is no outright prohibition of receiving referral fees, but to avoid any allegations of misconduct, an architect should be able to demonstrate that they have carefully considered all the potential consequences of accepting the gift. They should be able to demonstrate that its acceptance will not impact on the integrity of the architectural service being offered, and that the client and any other affected parties have provided informed consent.