Construction Contracts - Law and Management (2015) 55

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22 Construction contracts

Another function fulfilled by a formal agreement for services is that of


attributing fees to various aspects of the work. By listing the activities to be done
sequentially, those activities can be grouped together so that parts of the fee can be
paid at each of the major steps in the consultants’ involvement.
A potential problem arises when different professions each have their own
professional services agreements, and this may lead to confusion. It can be
unproductive and cause wasted work or delay because the purpose behind writing
the standard terms has been to standardize the relationship between the client and
the consultant. This misses the significance of teamwork in construction. It is
essential that the team acts as a whole, and the fragmentation created by differing
terms of appointment can compromise this (Latham 1994).
As stated above, these standard professional services agreements are contracts
and thus subject to the rules of contract law. The terms within them relate to the
obligations of the parties, and detail the services to be carried out and the payments
to be made for them. These terms need to be incorporated into the contract between
the parties, for they are not a contract in themselves. The general situation is that
they will not be automatically incorporated (i.e. implied) unless the client is
familiar with the usual relationship between client and architect and has engaged
similar professionals before on similar terms.1 Otherwise, the terms must be
expressly included by reference to them from the document that forms the contract.
This can be done by using a memorandum of agreement, signed by the parties,
which refers to and expressly incorporates the conditions of engagement or
professional services agreement. Indeed, most standard agreements currently in
circulation include articles of agreement, recitals and an attestation or a sample
form of agreement.
It is becoming common practice for professional institutions to publish their
documents as forms, containing the memorandum of agreement (or articles of
agreement) as well as the conditions. These forms are completed and signed by the
parties, incorporating the conditions into the agreement.
At one time, professional institutions specified mandatory conditions of
engagement for their members, along with minimum scales of charges. But the
Monopolies and Mergers Commission declared that such minima were not in the
public interest and should be abolished. In consequence, mandatory conditions of
engagement were abolished in the UK in 1982.

2.5 ARCHITECT

The traditional role of the architect has involved three fields of responsibility. First
is a design role. Second is to manage the project, generally representing the client’s
interests. This includes managing the design process, leading other designers and
consultants and overseeing selection and appointment of the contractor. The third
role, expected under the building contract, involved contract administration
including acting as an independent certifier where the architect has to judge certain

1
Sidney Kaye, Eric Firmin & Partners v Bronesky (1973) 4 BLR 1.

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