Client Architect Agreements
Client Architect Agreements for a Growing Practice
As a practice grows, one signed form is no longer enough. Consistency, sub-consultants, novation and client-side terms all start to matter. Here is where a growing practice needs its agreements to keep up.
A practice with several architects and a broader project mix cannot rely on ad hoc terms. Different people sign up different clients, projects get larger, and clients begin to present their own agreements. The client agreement stops being a single document and becomes a system the practice has to manage.
The goal at this stage is consistency without rigidity: one standard set of terms the whole practice uses, room to adjust for larger or commercial clients, and a clear position on the points that carry the most risk. That is as much about protecting margin and reputation across many jobs as it is about any single commission.
The challenges
Consistency across architects and projects
When several people engage clients, terms drift. Without a standard agreement and a clear process, the practice ends up with a patchwork of positions and uneven risk.
Sub-consultants and coordination
Larger projects bring in engineers and other consultants. How they are engaged, and how their liability and coordination flow through your agreement, needs to be deliberate rather than assumed.
Novation on design and construct
On design and construct projects the architect is often novated from the client to the builder. The terms of that novation, and what changes when it happens, are a frequent source of dispute if they are not set up properly.
Client-side terms
Commercial and developer clients increasingly present their own consultant agreements. Reviewing and negotiating those terms, rather than signing them as offered, protects the practice from one-sided risk.
Delegation and staff
As work is delegated, the practice needs terms and processes that hold up regardless of who runs the job, so the standard of engagement does not depend on the individual.
The opportunities
A standard set of terms
One agreement, used consistently, gives every engagement a known starting point and makes risk across the practice easier to see and manage.
A stronger negotiating position
Knowing which points to hold and which to trade lets the practice respond to client-side agreements from a position of understanding rather than pressure.
Risk that scales with the practice
Terms built for larger projects, sub-consultants and novation let the practice take on more ambitious work without taking on unmanaged exposure.
Common questions
How do we keep our client agreements consistent as we grow?
By adopting one standard agreement the whole practice uses, with a defined process for the limited situations where it is varied. Reviewing that standard form periodically, and against the projects you now take on, keeps it aligned with the work and the risk as the practice changes.
A commercial client has sent us their own consultant agreement. Should we just sign it?
Not without review. Client-side and developer agreements are usually drafted in the client’s favour and can shift liability, payment risk and copyright away from the practice. Reviewing and negotiating the terms before signing is a normal and worthwhile step, particularly on larger engagements.
What is novation, and why does it matter to our agreement?
Novation is where your appointment is transferred, commonly from the client to the builder on a design and construct project, so that you then act for the builder. The terms on which that happens, and what changes for your obligations and liability, should be dealt with clearly in the agreement rather than left to be worked out when it occurs.
How should sub-consultants be handled in our agreements?
The agreement should be clear about which services you provide directly, which are provided by sub-consultants, and how responsibility and coordination flow between them. This avoids gaps where no one is clearly responsible, and stops liability landing on the practice for work it did not control.
Keep reading
Client Architect Agreements overview
What a Client Architect Agreement covers and how it differs from a building contract.
ContinueContract review
Review of client-side consultant agreements before you sign them.
ContinueDiscuss your agreement
Talk through your engagement terms with a solicitor who is also a registered architect.
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