In this issue we explain why terms of engagement are an important issue.

Recent cases before the Professional Conduct Committee suggest there continues to be architects who overlook the need to provide their clients with adequate terms of engagement.

The importance of providing your terms before undertaking professional work cannot be overstated, as the findings of recent cases demonstrate.

• On one occasion, some initial advice turned into a professional commitment without the architect setting out his terms of agreement in writing to his client. When problems arose on the project the client was not clear on the architect’s role or his responsibilities.
• In another case, while the architect had set out their fee for the job, they too failed to specify what role they would be taking, and so the client mistakenly believed their architect was acting as their project manager/ contract administrator.
• In a further case, the architect verbally advised his client of his terms but failed to provide written confirmation as he did not intend to charge the client for the work. When the project increased in scope, confusion arose and as a result the architect failed to meet his client’s expectations.

The common theme amongst these cases was that clients were left confused and disappointed, and that the architects had to spend a huge amount of time dealing with the recriminations – time which could have been spent on fee-earning work.

While there are a number of standard contracts and terms of engagement that can be purchased, they can also be easily produced in a bespoke standard letter. Terms do not have to be unwieldy, but can simply use the basic provisions set out under Standard 4.4 of the Code of Conduct as a foundation.

As a guide, you should set out:

• the contracting parties;
• the scope of the work;
• the fee or method of calculating it;
• who will be responsible for what;
• any constraints or limitations on the responsibilities of the parties;
• the provisions for suspension or termination of the agreement, including any legal rights of cancellation;
• a statement that you have adequate and appropriate insurance cover as specified by ARB;
• the existence of any Alternative Dispute Resolution schemes that the contract is subject to and how they might be accessed;
• that you have a complaints-handling procedure available on request; and
• that you are registered with the Architects Registration Board and that you are subject to this Code.

Some of these points are legal requirements, and a failure to address them could render any agreement between you and your client void. You can view the current Code of Conduct here. If you have any questions about this or other points related to your professional conduct or practice please contact the professional standards team via email at professionalstandards@arb.org.uk or phone us on +44 (0) 20 7580 5861. We will be publishing the revised Code of Conduct, which includes minor changes to the current Code, in due course. Please look out for communications on this.