Client Architect Agreements

Architectural Services Agreement

The agreement that records what an architect will do, what it costs, and who carries which risk, and why the wording of the scope clause matters more than anything else in it.

One term, several very different documents

"Architectural services agreement" is used loosely in Australia. Sometimes it means the standard Client Architect Agreement published by the Australian Institute of Architects. Sometimes it means a short letter of engagement an architect has written themselves. Increasingly it means a bespoke consultancy agreement handed to the architect by a developer, a builder or an institutional client, drafted by that party’s lawyers and weighted accordingly.

They are all "architectural services agreements", and they allocate risk in very different ways. An architect who treats a client-supplied consultancy agreement as interchangeable with the Institute form can end up with an uncapped liability, an obligation to novate to the builder on demand, a fee that is not payable until milestones outside their control are met, and no copyright in their own drawings.

The other common failure is quieter. The scope of services is described in a sentence or two, so nothing distinguishes the services the fee was priced on from the services the client later expects. Every subsequent argument about additional fees becomes an argument about what the scope always meant.

  • A client-supplied consultancy agreement is assumed to be equivalent to the standard Institute form.
  • Scope is described too briefly to show where the priced services stop and additional services begin.
  • Liability is left uncapped, or capped at a figure the professional indemnity policy will not answer.
  • Fee stages are tied to events the architect does not control, such as authority approvals or the client’s funding.
  • Copyright and moral rights in the drawings are assigned away without the architect noticing.
  • There is no right to suspend for non-payment, so the only practical remedy is to keep working unpaid.

What a sound architectural services agreement settles

A workable agreement does six things well. It defines the scope of services in enough detail to be measurable, and says expressly how services outside that scope are instructed and charged. It sets the fee basis, the timing of invoices, and what happens on late payment, including a right to suspend. It caps liability at a figure that matches the professional indemnity insurance actually held, and ties the cap to the insurance rather than to a round number.

It then deals with the design itself: who owns copyright, what licence the client gets and on what conditions, and how moral rights are handled. It addresses whether the architect can be required to novate the agreement to a builder under a design and construct arrangement, and on what terms. Finally it sets out how the engagement ends and how disputes are dealt with before either party reaches for a lawyer.

The Institute’s Client Architect Agreement (current version CAA2024) already does most of this competently, and for many commissions it is the sensible starting point. The judgement call is whether the particular commission, client and insurance position fit its assumptions. Where a client insists on their own form, the useful exercise is not to rewrite it but to identify the handful of clauses that are genuinely unacceptable and negotiate those.

Standard Institute form vs a client-supplied agreement

Comparison: Institute CAA2024 against Client-supplied consultancy agreement.
AspectInstitute CAA2024Client-supplied consultancy agreement
Who drafted itA joint industry body, intended to be even-handed between architect and client.The client’s lawyers, for the client. Even-handedness is not the design goal.
Scope of servicesStructured by stage, with a schedule to record inclusions and exclusions.Often a short description plus a broad catch-all, which tends to absorb additional services.
LiabilityA limitation of liability the architect completes, intended to align with insurance.Frequently uncapped, or capped well above the professional indemnity cover held.
Copyright in the designRetained by the architect, with a licence to the client for the project.Commonly assigned to the client outright, sometimes including future use on other sites.
Payment and suspensionDefined invoicing points with an express right to suspend for non-payment.Milestone or approval-linked payment, often with no suspension right.
Novation to the builderDealt with separately and consciously, if at all.Sometimes a standing obligation to novate on request, on terms fixed later.

Who this protects

Sole practitioners

The one document standing between your fee, your insurance position and your drawings, and the client’s expectations. Worth getting right once and reusing.

Growing practices

A consistent agreement and a known list of clauses you will and will not accept, so risk does not depend on which director signed the client up.

Clients and developers

A clear, enforceable record of the services being bought, what triggers additional fees, and what rights you get in the design.

Common questions

What is the difference between an architectural services agreement and a Client Architect Agreement?

In practice they describe the same thing: the contract under which an architect provides services to a client. "Client Architect Agreement" usually refers specifically to the standard form published by the Australian Institute of Architects, currently CAA2024. "Architectural services agreement" is the broader term and often refers to a bespoke agreement prepared by the client rather than a standard form.

What should an architectural services agreement include?

A defined scope of services with a mechanism for instructing and charging additional services; the fee basis and invoicing timing; a right to suspend for non-payment; a limitation of liability aligned to the professional indemnity insurance actually held; copyright and moral rights in the design; how and whether the agreement can be novated; and provisions for termination and dispute resolution.

Can I sign the client’s own consultancy agreement instead of the standard form?

You can, and on larger commissions you may have little choice. The point is to read it against your insurance and your fee before signing, rather than after. The clauses that most often need negotiating are the liability cap, the copyright position, the payment triggers, and any obligation to novate to the builder.

Does the agreement have to be in writing?

In every Australian state and territory the codes governing registered architects require a written agreement with the client before architectural services are provided. Beyond that requirement, the written agreement is what fixes your scope, protects your fee, and limits your exposure.

How should the liability cap in an architectural services agreement be set?

It should be expressed by reference to the professional indemnity insurance actually held, so the cap and the cover cannot drift apart when the policy is renewed on different terms. A cap stated as a bare dollar figure can quietly exceed the cover, which defeats the purpose of having a cap at all.

Get your architectural services agreement reviewed

Whether it is the standard Institute form, your own letter of engagement, or a consultancy agreement handed to you by a client, get it read by a solicitor who is also a registered architect.