Good Practice Guide

Professionalism at Work

Richard Brindley
RIBA Publishing, 2022

Published by RIBA Publishing, 66 Portland Place, London, W1B1AD

ISBN 978 1 85946 958 3

The rights of Richard Brindley to be identified as the Author of this Work

have been asserted in accordance with the Copyright, Designs and Patents Act
1988 sections 77 and 78.

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without prior permission
of the copyright owner.

British Library Cataloguing-in-Publication Data A catalogue record for this

book is available from the British Library.

Commissioning Editor: Alex White Assistant Editor: Clare Holloway

Production: Richard Blackburn Cover design by Design by S-T Ltd Designed
by Studio Kalinka Typeset by Academic + Technical, Bristol Printed and
bound by Page Bros, Norwich

Image credits Figure 1.1 RIBA Collections; Figure 1.2 Bill Davis / RIBA
Collections. Figure 6.5 CQ Model is property of the Cultural Intelligence
Center; Figure 6.6 © Marsha Ramroop 2018; Figure 9.1 Architects Registration
Board; Figure 9.3 Carys Rowlands.

While every effort has been made to check the accuracy and quality of the
information given in this publication, neither the Author nor the Publisher
accept any responsibility for the subsequent use of this information, for any
errors or omissions that it may contain, or for any misunderstandings arising
from it.
[Link]

DOI: 10.4324/9781003231462
Contents
Dedication
About the author
Acknowledgments
Introduction
1 Professionalism: an overview
2 Professionalism at work with clients
3 Professionalism at work with money
4 Professionalism at work with the law
5 Professionalism at work with projects
6 Professionalism at work with people
7 Professionalism at work with society
8 Professionalism at work with insurance
9 Professionalism at work with professional conduct
Index
Dedication

I would like to dedicate this book to Owen Luder CBE PPRIBA (1928-2021),
whose book Good Practice Guide: Keeping out of Trouble (published by RIBA
Publishing over multiple editions between 1991 and 2012) acted as an
inspiration. His insightful and candid views on how to be a successful
professional provided valuable guidance and inspiration for my, and many
others', career as an architect. Owen based his guide on his experience as a
leading practitioner in the successful Owen Luder Partnership from the 1960s
to the 1990s and as President of the RIBA (twice), chair of the ARB and a
prominent UK construction industry leader.

Richard Brindley
About the author
Richard Brindley is a chartered architect with many years' experience in
small and large practices and was active in developing the profession while
Director of Practice and then Executive Director of Professional Services at
the RIBA from 2003 to 2015. Richard now runs an independent consultancy
company, providing strategic management advice and project delivery
support to professional membership and construction industry bodies, as well
as being a university lecturer and course director for RIBA Part 3 courses.
Acknowledgments
This guide is a product of all the experience and knowledge I have had the
great fortune to gain during my professional career as a practising architect,
executive at the RIBA and consultant across the UK and international
construction sector. I am grateful to all my bosses, clients, work colleagues,
co-professionals and friends and family who have guided and inspired me
throughout my career. I would like to particularly thank the following
wonderful people who have helped me write this guide for you:

Jane Duncan OBE, PPRIBA, Jane Duncan Architects Ltd

Simon Foxell RIBA, The Architects Practice
Peter Godfrey, RIBA Insurance Agency
Tzena James RIBA, RIBA Standards Committee
Owen Luder CBE, PPRIBA, author of Keeping Out of Trouble
Andy Munro, former COO of the RIBA
Nigel Ostime RIBA, Hawkins Brown Architects and chair of RIBA
Client Liaison Group
Carys Rowlands, Head of Professional Standards, RIBA
Linda Stevens, Head of Client Services, RIBA
Alex White, commissioning editor at RIBA Publishing,
Introduction

Doing the right thing, not just doing things right

This book is different. Unlike most other RIBA Good Practice Guides and
professional manuals, which focus on 'doing things right', this guide is all
about 'doing the right thing'. Instead of simply presenting textbook theories
and rules about professional practice, this guide aims to be a personal guide
on how to be a successful practitioner while maintaining your professional
integrity and ethical values, enabling you to avoid business difficulties as you
strive to create great architecture.

'Doing the right thing' is the very essence of professionalism. It is all about
having an informed ethical and strategic approach to your work, in the
interest of the greater good and for the wider public benefit. This is far more
than just 'doing things right', which is mainly about following the
recommended procedures and applying knowledge correctly. 'Professionalism'
is also integral to your approach to your work and your judgement, and
requires you to have the skills, emotional intelligence and personal ethical
values to uphold your professional integrity.

Professionalism is not difficult, nor is it expensive. But it is worth a lot to you,

your practice, your clients and society. Conversely, not acting professionally
can be costly - financially, environmentally, socially and reputationally - and
can impede your career fulfilment and personal wellbeing. Professionalism is
mostly common sense, but it is far more than just putting theory into practice.

I have based this guide on the wealth of experience I have gained over my
career as a practising architect, and on the insights of the profession and
construction industry I gained as the Director of Practice and Professional
Services at the RIBA. I have also had the privilege of working for and leading
small, medium and large architectural and multi-professional practices, in a
variety of sectors, for a wide range of clients and projects, both in the UK and
internationally. I now apply my professional skills and knowledge as a
mentor, teacher, trustee and independent consultant to students, practices,
professional bodies and charities across the construction industry.

This guide aims to share what I have learnt, often the hard way, about the
great importance of professionalism and the personal integrity you need to
enable a rewarding (in every sense of the word) career. It focuses on what, in
my experience, are the areas where things can and do go wrong in
professional practice and careers, sometimes with serious consequences. In
each of the following chapters, I have highlighted and given practical tips on
key professional issues, including on the business risks and ethical pressures
they often raise, which are rarely dealt with in formal education or mentioned
in other textbooks. Each topic is supported by personal insights from key
people who have been actively engaged with developing and guiding our
wonderful profession of architecture.

Each of the chapters in this guide has covered a key aspect of being an
effective professional:

Clients - taking good care of them and dealing with them successfully.
Money - having a prosperous career and profitable practice.
Law - understanding and complying with legal obligations and
avoiding disputes.
Projects - managing projects effectively and profitably.
People - working well with people and getting the best from them.
Society - serving the wider public interest by considering users, society
and the environment.
Insurance - managing risks and avoiding claims.
Professional conduct - fulfilling professional codes and dealing with
complaints.
The intention of this guide is not to be a replacement for all the detailed
practice manuals and technical good practice guides, but to complement and
supplement them. If there is one overall message in this guide, it is to make
good use of your acquired knowledge and experience to develop emotional
intelligence and a set of personal professional values that you can apply to
real-life situations, such as tackling difficult decisions, making moral
judgements or dealing with demanding people and conflicts. It is also about
creating a safer work-life balance, avoiding worries and trouble, and
maintaining your professional integrity.

Hopefully, this guide will give you at least some of the insight and inspiration
you will need to enjoy a successful and rewarding career and to be truly
professional.
1
Professionalism: an overview

Professionalism is not the job you do, it is how you

do the job

DOI: 10.4324/9781003231462-1

How do we define 'professionalism', or a 'profession' or being 'professional'?

There are many different views and numerous treatises on the subject, but
they generally agree on the following key characteristics:

• Doing work that is paid.

• Applying specialist knowledge or expertise.
• Completing specific training and qualifications.
• Working impartially.
• Applying independent informed judgement.
• Working ethically within a set of codified values.
• Being honest and trustworthy.
• Balancing the differing needs of clients, users, society and the
environment.
• Having a wider public interest and longer-term view for the greater
good.

The essence here is that professionalism is not just the job you do, but it is
how you do your job. It is having a set of values, behaviours and wider
responsibilities in how you apply your specialist knowledge and skills. This
applies to architects and the other recognised professions across the design
and delivery teams in the built environment sector.

Professionalism is demonstrated by more than just qualifications, knowledge

and skills. It also requires integrity, ethics and trust. Demonstrating and
maintaining a high level of professionalism in your conduct and values will
help you to create stronger relationships with your client and employer, as
well as the team you work with, the people you do business with and the
public who will use, or benefit from, the products of your work.

Each chapter of this guide focuses on a different set of professional issues,

such as working with clients, handling money, working with others,
managing projects and complying with the law. This chapter looks at the
background and current issues of professionalism, as well as its dynamics,
which are crucial for operating as a successful professional today.

To appreciate the importance and current drivers of professionalism for the

future, it is worth understanding how professionalism has developed over
time, particularly for architects in the UK.

History of the professions and professionalism

The concept of professionalism and the establishment of the modern

professions developed from the trade guilds and from the learned societies for
the church, law and medicine. These originated from the transaction of
providing protected privileges and recognised status to particular people in
return for the development and application of their specialist knowledge and
skills to a prescribed standard. There soon developed systems of exclusive
membership, training and regulation and compliance with an ethical code,
and for maintaining a degree of integrity. The aim was to create an honest,
skilled and knowledgeable broker that people could trust, who was concerned
not only with their client's interest, but also the wider interest of society, the
state and the environment.
From Greco-Roman to medieval times, there developed elaborate professional
systems for most trades, as well as for religion, law and medicine. They
formed the basis of local and state governance, vestiges of which still exist
today in the form of livery companies in the City of London and elsewhere.1
This served well enough for running primarily agricultural economies with an
established feudal social hierarchy but, as international trade grew and the
Industrial Revolution took hold, the changing financial, social and political
dynamics created a need to evolve the system.

The UK was at the forefront of the Industrial Revolution, with the

development of new knowledge and technologies. It was also undergoing a
radical change in the way of thinking, through an intellectual and
philosophical movement that soon became known as The Enlightenment. The
vast changes in society led to the development of a new model of chartered
professional bodies and professional codes, ethics and regulation from the
early 19th century.

The invention of steam turbines, combustion engines, textile looms, steel

furnaces and mass production systems soon led to the creation of new and
much larger conurbations, with large workforces concentrated around key
resources (such as water, coal, iron and clay), all connected by newly created
canals, railways and roads. Society quickly became urbanised and
mechanised, particularly in the UK, and London became the first city in the
world to have a recorded population of over 1 million, while other British
cities were also exploding in size and wealth. Influence and people moved
away from agriculture and the domination of land ownership. Increasing
power and money became concentrated in a new elite of industrialists,
manufacturers and global traders.

The shocks to the economic and societal systems led to an urgent need for
well-informed and independent experts who could help create and operate
these rapid advances in scientific knowledge and social structures. There was
also the need to control the exuberances of the free-for-all market economy
and to define and maintain the standards of the new modus operandi for the
industrialised trading world. Who was going to be the repository of this new
knowledge? Who would set the standards? Who could look after the interests
of the public and provide reliable, unbiased and trustworthy judgement? The
answer was: the Professions.

Figure 1.1: Office of architects Bodley and Garner, London, 1883

Within a relatively short period, from the early part of the 19th century, a
plethora of new professions, with their own representative bodies, were
established for medics, lawyers, accountants, architects and all sorts of
engineers. A seal of approval and civic oversight, along with an obligation to
uphold the public interest, was awarded to the many newly formed
professional bodies through the granting of a royal charter, a particular British
construct.

Professionalisation of architects

The Royal Institute of British Architects (RIBA) was one of these new
professional bodies, formed in 1834, gaining its royal charter from William IV
soon after, in 1837. The purpose of the RIBA was very eloquently described as:
the general advancement of Civil Architecture, and for promoting and facilitating the acquirement
of the knowledge of the various Arts and Sciences connected therewith It being an Art esteemed and
encouraged in all enlightened nations as tending greatly to promote the domestic convenience of
Citizens and the Public improvement and embellishment of Towns and Cities

which can be simply summarised as the 'advancement of architecture'.2

Figure 1.2: RIBA headquarters, 66 Portland Place, London

The creation of professional codes, qualifications, standard terms for

appointment by clients and fee scales followed quickly afterwards, all of
which developed and formalised the concepts of professional integrity and
behaviour. In several professions, there was also statutory regulation, legally
protecting the rights of those who could exclusively practise in the field. For
architects, a form of statutory regulation emerged in the 1930s, in the form of
statutory protection of the title 'architect' - although not of the function or
work of an architect. This was controlled by an independent regulatory body,
the Architects' Registration Council of the UK (ARCUK), which became the
Architects Registration Board (ARB) from 1997.3

Peculiarly, it is only the use of the title 'architect' that is statutorily protected.
Anyone can carry out the functions of an architect in the UK, just not call
themself an architect unless they are suitably qualified and registered. There is
little statutory protection of any form of engineering, surveying or planning in
the UK, but in Europe and elsewhere in the world there are various forms of
protection for both the function and title of many built environment
professions, including architects.4 Many of the other national systems for
regulating professionals have been based on the British models, with the state
taking on the self-regulating functions found in British royal charters.

An infrastructure of status, privilege and protectionism gradually grew

around the professions. This was often mirrored by similar exclusive rights for
trades, fiercely won and guarded by their trade unions. Many professions had
generous fixed fee scales, so that they competed only on merit and quality of
service, without having to haggle with clients over price - which was
considered far too commercial and therefore unprofessional.

With the government-led reconstruction across Europe after the Second

World War, many more professionals worked directly in the public sector,
providing a public service, insulated from the commercial pressures of the
private sector. In the mid-1950s, about half of the registered architects in the
UK were in salaried employment and the public sector. However, this fell
significantly, to below 8%, in the UK from the 1980s to the 2010s, due to the
political and economic changes that reduced state provision and focused more
on the private sector and open global markets.5

Rise of consumerism to balance professionalism

The value of organised professions was already being questioned as they were
being established from the late 18th century. In 1776, the Scottish economist
and moral philosopher Adam Smith famously described them as 'a conspiracy
against the public' in his treatise An Inquiry into the Nature and Causes of the
Wealth of Nations.6 This sentiment was echoed by the playwright and critic
George Bernard Shaw in his 1906 play The Doctor's Dilemma as 'conspiracies
against the laity', when commenting on the methods used by professions to
acquire prestige, power and wealth.7

Overtime, and despite the public interest obligations written into royal
charters and statutory regulations, the professions were increasingly seen
through the early to mid 20th century as self-serving, overly protected and
privileged; focused mainly on looking after their own and their clients'
interests, rather than the interests of wider society and the public good.
Concern was often triggered by high-profile and much publicised failures in
professional decisions and products. A recent example of this was the cladding
failures in the Grenfell Tower fire. From the latter half of the 20th century,
public trust in professionalism diminished and the professions failed to
convince both government and society of their value in terms of protecting
public standards and that they warrant their protected privileges and status.

This led to the rise of consumer protection legislation in the UK and across the
globe, to protect individuals from these more protected professionals, with
their more powerful clients and corporate organisations. Professionals were
increasingly seen as abusing their greater knowledge, influence and status to
bamboozle ordinary citizens, which led to growing public pressure on
governments to change the balance of power. The result was the dismantling
of many professional privileges, and the giving of additional rights and
protection to consumers in their contracts with professionals and commercial
organisations. From the 1980s, a raft of consumer protection legislation was
established in the UK, such as the Consumer Protection Act 1987 and the
Consumer Rights Act 2015. The effect of this legislation on the contractual
relationship between consumer clients and their professionals can be seen in
Chapter 2 (on clients) and Chapter 4 (on the law), in the sections on
appointment agreements.
Professional bodies such as the RIBA were forced to reposition themselves and
their members and to make changes to their professional restrictions.
Mandatory minimum fee scales in the UK became recommended fee scales in
19818 - these lasted until 2003, when a tightening of rules by the Office of Fair
Trading meant that professional fee scales were no longer allowable. The
RIBA codes were also relaxed in 1981, to allow architects to advertise, directly
approach clients and openly compete for work through competitive fee bids.9

The onset of open competition coincided with economic supply and demand
upheavals through the cyclic recessions of the 1980s and 1990s, which led to
the average percentage fees charged by architects being reduced by half over
these two decades. Architects, who were often poorly trained in running a
business, like many other professions, had to become far more aware of their
costs, adjusting their business models as necessary, and were forced to find
more ways to promote themselves and convince clients that their services
would provide good value for money. During this period there were also
significant changes to the ways architects work and provide their services,
principally due to the arrival of the internet and the introduction of computer-
aided design (CAD) and building information modelling (BIM), as well as new
forms of procurement, such as design and build contracts and the Private
Finance Initiative. Architects had to be much more commercially aware,
careful and precise about defining and costing their services. It can be argued
that this was a positive step in developing professionalism, resulting in higher
quality and better delivery of professional services.

The future of professionalism

The demise of the professions has been widely predicted, and many theories
espoused about big changes to the way we will work in the future and the
likely future relevance and role of professionalism. This includes work done
by the RIBA and the Edge Group about the UK built environment professions
and their professional bodies.

The main premise is that a combination of new technologies, globalism,

political popularism, social change (equity, diversity and fairness),
environmental challenges and, more recently, global pandemics is completely
changing the way we live and work and relate to each other. It will also
change the role of professionals, and we may see the concept of
professionalism broaden and be redefined.

Ownership of specialist expert knowledge was always at the centre of any

professional system. However, there has been an explosion of knowledge and
freely available access to an exponentially growing plethora of information
online. Professional bodies are no longer the custodians and gatekeepers of
knowledge, being unable to compete with internet-based global knowledge
providers. It has also become impossible for any individual, or even group of
professionals, to know all there is to know about their speciality. How to make
sense of the overload of information has become the key challenge. The role of
professionalism is moving from the ownership and awareness of knowledge to
its interpretation and application.

New knowledge is developing so fast that what an architect needed to know

and learn to become qualified to practise becomes rapidly out of date and they
will need to update their knowledge regularly throughout their career.
Therefore, all professions need a way of maintaining their competencies.
Increasingly, mandatory systems of continuing professional development
(CPD) have been established by most professional institutions, including the
RIBA.10 Since the early 2000s, both the ARB and the RIBA have a mandatory
requirement for registered and chartered architects in the UK to continue to
undertake structured learning and cover a set syllabus. This is monitored by
the RIBA and evidence of CPD is often checked if there is any complaint or
accusation of professional negligence. The RIBA has recently determined a set
 FURTHER READING: FUTURE OF
PROFESSIONALISM FOR ARCHITECTS
A Theory of General Ethics: Human relationships, nature, and the built
environment by Warwick Fox (Cambridge: MIT Press, 2006)

Architecture, Ethics, and Technology by Louise Pelletier and Alberto

Perez-Gomez (Montreal: McGill-Queen's University Press, 1994)

Architecture and its Ethical Dilemmas by Nicholas Ray (London: Taylor

& Francis, 2005)

Collaboration for Change: The Edge Commission Report on the Future of

Professionalism by Paul Morrell (The Edge, 2015)

Ethics and the Practice of Architecture by Barry Wasserman, Patrick

Sullivan and Gregory Palermo (New York; Chichester: Wiley, 2000)

Professionalism for the Built Environment by Simon Foxell (Abingdon:

Routledge, 2019)

The End of the Professions? The restructuring of professional work

edited by Jane Broadbent, Michael Dietrich and Jennifer Roberts
(London: Routledge, 1997)

The Ethics Toolkit: A compendium of ethical concepts and methods by

Julian Baggini and Peter Fosl (Malden: Blackwell, 2007)

The Future of the Professions by Richard Susskind and Daniel Susskind

(Oxford: Oxford University Press, 2015)

The Future of Work by Charles Handy (Oxford: Basil Blackwell, 1984)

The Professionals' Choice: The future of the built environment

 professions edited by Simon Foxell (London: Building Futures, 2003)

of core competencies, starting with Health and Life Safety, Climate Literacy
and Ethical Practice, that architects need to achieve to be competent to
practise. Chartered Members will be required to demonstrate an awareness
and understanding of these areas to renew their membership from 2024.11

The ascendance of social media has brought new challenges for

professionalism. The narrowing and polarising of opinions, coupled with the
opportunity to promote misinformation across digital platforms, distorts
balanced and trustworthy advice and decision-making. It is possible to choose
to believe only the news and views of those that suit us most, without it being
necessarily reliable or true, which undermines the relevance of an accurate
professional opinion.

Yet these challenges are also a great opportunity to highlight the value and
necessity of professional knowledge and expertise, which should be unbiased
and trustworthy. The big issues facing society and individuals, from climate
change to sustainable use of scarce resources and demographic expectations,
increasingly need the application of informed judgements and thinking
holistically about the bigger picture and the wider impact on society. The
professions, particularly architects, can - and must - rise to this challenge and
have a valuable and important future role.

PRACTICE INSIGHTS

Future of professions in the UK built environment

By Simon Foxell, The Architects Practice and the Edge Group

Looking to the future is both foolhardy and very necessary. We need to

prepare ourselves for what the future holds, but we are also duty bound
to influence it for the better. Given the challenges that we already know
UK built environment professions will face in the years ahead - from
economic recovery to job automation and climate and biodiversity
breakdown - how will the role of built environment professionals
change?

While significant dangers of loss of function and potential irrelevance lie

ahead, there are also major opportunities for individual professionals,
professional practices and the professions collectively. Analysing where
professional skills are likely to contribute competitive value (or not) in
the years ahead can offer an insight into all our futures.

Under threat

• The ability to identify opportunities and then to transform places

to achieve betterment has been intrinsic to built environment
professionals for centuries. It will remain so, but it is under
significant threat from automated expert systems that can offer
superior results without all the fuss.
• Technical ability has also been a key professional attribute for as
long as anyone can identify, but it is also the most likely area to
be displaced by new technology, whether physical or
intellectual.
• Much current work results from being able to navigate complex
legal and regulatory regimes, including funding, planning and
building standards systems. This work will be done more
effectively on a machine-to-machine basis and can be expected
to wither.

Level pegging
 • Creativity and ingenuity on the part of built environment
professionals can both add economic value and maintain value
that would otherwise be lost. This will continue to be highly
prized and rewarded; but the challenge will be to run companies
based on problem-solving alone, without the accompanying
regular income generation of project delivery.
• Through high levels of competence backed with insurance,
professional firms absorb vast amounts of project risk,
something of great value to their clients and others. This is likely
to sustain their attraction to those employing them.
• The ability, born of extensive experience, to steer projects
through apparently intractable political mazes will maintain the
importance of professionals, as will the talent to foresee trouble
and to ensure sufficient preparations have been put in place.

Increasing in value

• As technology change continues to dominate, professionals will

have an important mediation role, ensuring that new
technologies are adopted when appropriate and utilised
effectively. This role is only likely to grow.
• The role of professionals as coordinators, collaborators and
catalysers, well beyond that of project management, has long
been a key, if relatively unspoken, part of their value. It will
come to the fore, but it needs to be more formally asserted.
• The extent of the ongoing environmental challenge means that
finding, monitoring and learning from solutions to climate-
related issues will dominate almost all built environment
professionals' working lives for the foreseeable future.
• Public purpose has been much discussed in recent times and is a
fundamental, if much neglected, building block of
professionalism. If, and only if, this core aspect can be rebuilt, by
 both individuals and professions as a whole, will it become a
strong carrier of value.
• Knowledge and expertise will continue to be a major source of
future value, but they need to be continually tested and
extended. Significant time and effort will have to be devoted to
keeping abreast of and generating new knowledge and skills. •
The ability to provide social value, whether in the form of
wellbeing, community cohesion or other, wider improvements, is
critical to the functioning of society in a conflicted world and
may become the most valuable built environment professional
service in the years ahead.
• The cultural offer of professionals will continue to be highly
praised and sought after, but perhaps this cannot be thought of
as a professional attribute at all. After all, no professional has
ever been reprimanded for ignoring it and none has a monopoly
over it.

The pressures on professionals are not just the diminishing of respect, trust
and recognition as the 'keepers of knowledge'. They are also the economic,
political, cultural and ideological changes in our globalised society. These
have caused a radical reappraisal of the purpose and value of professionals.
The legitimacy and need for professionalism is again refocusing on the
qualities of impartiality and honesty, being an independent synthesiser and
interpreter of knowledge, and having a real commitment to the greater public
good.

New expectations of professionalism

The relevance and definition of professionalism is now coalescing around a
new set of expectations. These go well beyond just having specialist
knowledge and expertise. The following is a list of the key attributes (in
alphabetical order, not a hierarchy of importance) that are now needed and
sought from professionals:

Arbiter: Balancing the needs and relationships between the client, business
colleagues and society, resolving differences.

Business skills: Commercially aware and entrepreneurial, but with a public

interest ethos.

Catalyst: Being an instigator, catalyst and collaborator to provide the social

conscience and glue that allow liberal economies to function.

Competence and stability: Knowledgeable and experienced, trustworthy,

managing expectations, resilient and remaining calm under pressure.

Delivery: Being efficient and effective in providing your services, creating a

good client/user experience, good communicator, empathetic and relating well
to the client.

Empathy: Ability to understand, inspire and influence others. Having and

using emotional intelligence.

Ethics: Having the public interest and cultural and wider public benefits at
heart. Offering honest and independent informed advice. Open
communication, transparency and an ability to overcome self-interest.

Integrity: Behaving honestly and with principles that safeguard and improve
the quality of the standing and reputation of the profession. Serving and
protecting the interests of the community. Acting with impartiality without
being unduly influenced by others -in the way you believe to be right- and
doing this openly and with conviction.

Judgement: Capable of applying specialist knowledge and expertise to make

complex judgements, fairly and independently. Managing risks and taking
decisions.

Knowledge: Acting as a synthesiser and interpreter of complex knowledge,

and keeping your knowledge up to date and relevant through structured CPD.

Leadership and teamwork: Able to inspire, convince and engage others,

providing team leadership, coordination and collaboration and working well
collectively.

Visionary: Having creativity and flair, being innovative and problem solving.
Having a particular awareness of environmental and social issues for
architects.

Conclusion
Being professional in a contemporary setting requires a rich variety of skills
and knowledge. Yet much of this is not new; it is just seen differently. There is
a new and increasing emphasis on empathy, and on how professionals relate
to others, particularly their clients and business colleagues, society and the
environment, which is encapsulated in the current ARB and RIBA Codes of
Professional Conduct.12,13 The RIBA code is based on three guiding principles:
integrity, competence and relationships. The ARB updated its code in 2019 to
include 'respect for others'. The implications of this are discussed in more
detail in Chapter 9 (on professional conduct).

Professionalism is not only about the job you do, it is more about how you do
your job. It is not just having the specialist knowledge, skills and experience to
do your job, it is also having a set of values and behaviours that extend
beyond your responsibilities to your client, which address your
responsibilities to society more widely and to the environment. There are
many new challenges for professionals to address, from climate change to
technical and societal changes, which will shape the relevance of and
demands on architects and other professionals into the future. The
expectations and demands of clients are also changing.

Endnotes
1 Melling, J.K. Discovering London's Guilds and Liveries (London: Shire Publications, 2003).

2 RIBA Royal Charter (1837) RIBA Collections.

3 Under the Architects (Registration) Act 1931 and Architects Act 1997.

4 EU Directive 2005/36/EC, on the recognition of professional qualifications (Brussels: European

Commission, 2005).

5 Mace, A. The Royal Institute of British Architects: A Guide to its Archive and History (London:
Mansell, 1986).

6 Smith, A. An Inquiry into the Nature and Causes of the Wealth of Nations: A Selected Edition, Oxford
World Classic, edited by Sutherland, K. (Oxford: Oxford University Press, 2008).

7 Bernard Shaw, G. The Doctor's Dilemma, Penguin Classics (London: Penguin, 1987).

8 RIBA. Recommended Fee Scales (London: RIBA, 1981).

9 RIBA. RIBA Code of Professional Conduct (London: RIBA, 1981).

10 RIBA. CPD Core Curriculum. See: [Link]/education-cpd-and-careers/cpd/cpd-

corecurriculum [accessed 23 August 2021].

11 RIBA. Mandatory Competences. See: [Link]/knowledge-and-

resources/resourceslanding-page/mandatory-competences [accessed 23 August 2021].

12 ARB. The Architects Code: Standards of Professional Conduct and Practice (London: ARB, 2017).
Available at: [Link]/wp-content/uploads/2016/05/[Link].

13 RIBA. RIBA Code of Professional Conduct (London: RIBA, 2021). Available at: [Link]/
knowledge-and-resources/resources-landing-page/code-of-professional-conduct.
2
Professionalism at work with clients
DOI: 10.4324/9781003231462-2

There can be architecture without architects, but not

architects without clients

Clients are vital for architects. Without them, there are no buildings to design
and no market for your professional services. The relationship between an
architect and their client is crucial and complex. Ensuring it's a positive and
rewarding experience is important for both parties, requiring a professional
approach, otherwise it can become fraught with professional risks. This
chapter is all about understanding clients and how to set up, establish and
maintain a fulfilling client relationship.

What do clients want from architects?

A client is the user and commissioner of the architect's services, but it's
important to note that clients vary widely. They may be an individual or a
client group, ranging from a homeowner to a major contractor or government
client. No two clients have the same needs or demands of their architect. The
first step for any architect is to gain the best understanding of their client's
needs, whether financial, social, cultural or specific.

To gain a better understanding of how clients view architects and what they
want from them, the RIBA carried out a series of surveys with a wide range of
clients between 2013 and 2018 in its RIBA for Clients initiative.1 The findings
were not altogether surprising, but they did give a clear picture of what the
profession needs to do to improve its client relationships.

Encouragingly, most of the clients surveyed were satisfied with the services
they received from architects and the design solutions that were created. They
appreciated architects' design talents and rated the skills of professional
architects more highly than those of non-architects. However, contractor
clients in particular were less satisfied by the way architects managed the
design process and the design team. Clients were even more critical of how
architects understood and responded to their needs and how they
communicated with them during their project. The RIBA's report on this
extensive survey of clients is well worth reading and is freely available on the
RIBA's website.

PRACTICE INSIGHTS

RIBA for Clients

By Nigel Ostime, Delivery Director at Hawkins\Brown Architects and

Chair of the RIBA Client Liaison Group

The key conclusion from the RIBA's client surveys was that clients think
UK architects are great designers, but they want them to be better
businesspeople and to equate being business-like with professionalism.
From the wide-ranging feedback, three activities stood out among the
services that clients want architects to perform:

• managing finance
• obtaining feedback for continuous improvement
• providing (the right sort of) leadership.
Managing finance

Clients want their architects to demonstrate a good understanding of

their business and the property sector they operate in. They must
understand the financial drivers behind the projects they are responsible
for managing on their clients' behalf. Clients also reported that they
want their architects to be business savvy - so architects must, for
example, know their overheads, and be able to negotiate their fees
knowing what it will cost them to deliver the service.

Feedback

Clients also want to be asked for feedback on the services provided (to
facilitate continuous improvement) and to have post-completion
analysis (Post Occupancy Evaluation) of their buildings. There is no fee
for providing feedback, so it does not happen. But this is very short-
sighted. Manufacturing has always recognised the need for a feedback
loop. The construction industry needs to make this happen.

And this should not just be feedback at the end of the project; for
optimum benefit, there needs to be opportunity for continuous feedback
throughout the process.

Leadership

Clients also want leadership. Not a didactic, 'do as I say' type of

leadership, but rather a collaborative, 'leading from the front' style.
Clients see architects as the natural leaders of the design team and this is
a role that the profession must focus on in the future if it is to thrive.
What clients think of architects

The RIBA Client Liaison Group went on to produce a second report, What
Clients Think of Architects (2016).2 Based on an online survey, satisfaction
ratings for architects' services were assessed from the responses of 958 clients,
who ranged from individual domestic clients to large commercial clients and
contractors. The survey questions were deliberately phrased to encourage
clients to give honest feedback and to focus on where they think there is room
for improvement. The purpose of the survey was not to seek praise, but to
learn how architects can continuously improve their services to clients.

The key findings showed that clients were generally pleased with their
projects and buildings. The highest scores came from private domestic clients
- 76% were 'very satisfied' or 'fairly satisfied' with their project - while
contractors give the lowest satisfaction scores. Architects' design skills were
also highly rated, and clients appreciated their project's aesthetic and other
design qualities (such as levels of daylight, room dimensions, ease of
circulation, and so on) and their architect's ability to meet the brief. Private
domestic clients were more satisfied with architects on all counts than were
contractor or commercial clients.

Importantly, architects' process management abilities were less well rated.

Although clients gave architects good ratings for some aspects of the process,
such as interpreting client needs, explaining and communicating, clients were
less satisfied with other aspects of architects' process management, their
commercial understanding and their ability to add value, adhere to the
programme and manage work. Contractors gave substantially lower
satisfaction scores than other clients.

Architects known and selected personally by the client were more highly
rated than architects chosen in another way. It seems that clients were more
satisfied when there was a personal element in the way they selected their
architect.
In other words, architects selected through personal recommendation, or
because the client had used them before, were rated significantly higher than
architects selected through an advertisement or framework or via novation
(on a design and build project).

Architects who followed up after the end of the project were rated
significantly higher than architects who did not. Furthermore, among
architects who did seek feedback, those who were not under contract to do so
were rated even more highly than those who were.

Clients' wish lists

The following list, compiled from a wide variety of sources of client feedback,
including the RIBA's reports, summarises the things that clients include in
their wish lists for their architects and consultants. It is a useful checklist for
how you promote, organise and deliver your services to your clients.

• Listening and understanding - Awareness of the client's needs and the

drivers and constraints on their project. Ability to develop a client
brief and scope of services that focuses on the client's primary
objectives and business case.
• Knowledge and competence - Knowledge, skills, expertise and design
competence, evidenced by results and feedback. Good at synthesis,
interpretation and application of information and knowledge.
• Vision and creativity - Innovative and creative design skills. Ability to
create attractive, affordable, buildable and well-performing solutions.
Problem solver, providing good solutions. Able to optimise the
development opportunity and create long-term value for the client,
users, society and the environment.
• Leadership - Proactive leadership. Ability to coordinate the design and
delivery teams, enthuse and guide others and champion the client's
vision. A team player.
 • Business value - Commercial and financial awareness, and the skill to
understand fully and implement the client's business objectives and to
create and maximise the project's financial value for the client.
• Delivery - Well-organised business procedures, project management
processes, client relationship and communication systems, all focused
on delivering results with clearly defined and managed budget,
programme and quality controls. Able to manage expectations and
achieve outcomes that meet or exceed what was agreed with the
client.
• Responsibility - Motivation to step up and take responsibility.
Engendering a no-blame, no-excuses culture across the project team.
Ability to own up to and fix mistakes or omissions without fear of
retribution or undue penalty.
• Certainty - Robust approach to risk and change management.
Understanding and mitigating risks and changes to time, cost, quality
and reputation. Effective systems to monitor, report and deal swiftly
with unforeseen effects and uncertainty.
• Communication - System for keeping the client fully informed and
regularly updated. Being on the same wavelength, proactive, receptive
and aware of what is going on across and around the project. Being
the main contact with and unified voice of the design and construction
team.

PRACTICE INSIGHTS

What clients want

By Linda Stevens, Head of Client Services at the RIBA

The RIBA puts thousands of clients in touch with architects every year
through the Client Referrals Service, the online 'Find an Architect'
service and RIBA Competitions.

The advice we offer to practices is backed up by evidence gathered by

the RIBA's Client Liaison Group. We found that clients share the
following five fundamental needs and wants.

1. Championing the vision Clients are willing to invest

significant trust in architects who can nurture a vision from
conception to completion. To take advantage, architects should
do two things: bolster their team's skills and techniques, so they
champion the vision from beginning to end; and ensure that
their communication is engaging, authoritative and persuasive.
2. Listening and understanding While clients want their
architect to challenge the brief, they do not want to have to
argue about design aspirations that do not align with theirs.
Equally, they do not want the architect to squander the value
they have added by an excellent design through inefficient
project management. The lessons for architects are to speak the
client's language, pre-empt problems and optimise the design to
meet the client's key drivers.
3. Engaging with people Clients value good teamwork,
collaboration, cooperation, communication, anticipation,
respect, empathy and so on. These characteristics are important
in building trust and overcoming the stresses that inevitably
arise on even the smallest of projects. The trick for architects is
to find the sweet spot between leading the design vision and
working collaboratively with colleagues who will help to
deliver it. Central to this is the ability to sustain regular,
constructive communication.
4. Delivering technical talent Clients recognise it is good design
that adds most of the value to projects. However, with
disruptive new technology now affecting practice, clients also
increasingly see the profession as falling into two broad but
 separate categories: concept architects and technical delivery
architects. They wish it were otherwise. Knowledge and
competence always matter. Architects should be investing in
Modern Methods of Construction, BIM skills and innovation,
treating cost, time and other client constraints as the gritin the
oyster, and ensuring that their designs are sustainable, human-
centred and considerthe whole-life of the building.
5. Learning and improving Clients increasingly expect evidence
of competence and assurances of quality. The more
convincingly an architect can prove that they add value, the
more they can dictate the fee. The key is for architects to collect
honest evidence of design effectiveness and service quality
through feedback, which should be used strategically to direct a
programme of continuous professional development.

Choosing your client

Professionalism applies not only in how you provide services to your clients,
but also in how you choose the right clients and projects for your practice.
Clients can be a pleasure to work with and profitable for your practice, but
they can be hard to win and easy to lose. An ineffective client relationship can
cost you time and money and cause a lot of stress. At worst, when client
relationships break down severely, they can cost you your reputation, your
business and your career. Most of the legal disputes and claims against
architects' practices - over money or for professional negligence - are
instigated by clients. Being able to understand what type of client base will
work best for your practice is a vital skill. This will enable you to decide
whether your aims align with those of a potential new client and, if not, to
communicate clearly why this is the case. Do not be frightened to say no if
you feel the client will not be a good fit for you or your practice.

Clients come from a variety of sectors and cultures, with different needs and
demands of their architects. They can operate in the public or private sector,
and can be an individual or a complex corporate organisation, novice or
experienced, focused on commercial or not-for-profit objectives and have
projects ranging from the tiny and personal to the gigantic and civic. But the
principles of a good client relationship remain the same.

Clients prefer to work with architects they know and may have worked well
with before, as evidenced in the RIBA's client surveys.1,2 Developing and
nurturing long-term client relationships is not just worth the effort, it is the
professional approach.

There are so many questions you need to answer before agreeing to sign up
with any client:

• Is the potential client bone fide?

• Are they trustworthy, reasonable and stimulating?
• Will they be good for you to work for?
• Are they serious and committed about their project?
• Have they got the capability to achieve their project and can they fund
it through the various stages?
• Do they really know what they want or need?
• What are their overall aims and goals for the project?
• How do they select and work with their consultants?
• What do they expect from their professionals?
• Can you work successfully with them?
• Is this a type of client you want to work with and a project sector you
want to be in?
• Do you have the credibility and ability to win this client and the
project?
• Do you have the experience, expertise and resources to deliver the job?
• Will this client enhance your reputation, be profitable and lead to
 future work?
• Will this client and project help you to fulfil your personal and practice
ambitions and goals?

Finding out how good a potential client is, and how suitable they and their
project would be for your practice, requires both intuition and a rigorous
process of investigation. The following checklist is a valuable tool for ensuring
you adopt a professional and organised approach when choosing to take on a
new client.

CLIENT SELECTION CHECKLIST

Before agreeing to work for a new client, it is both worthwhile and
professional to conduct a thorough assessment of their circumstances
and business set-up. To do this, consider the following questions:

Client identity - What is the precise name and legal entity of the client
you will be contracting with in your appointment contract?

Corporate or consumer client - Will the client be acting personally, or

on behalf of a corporate body? They may be contracting with you
personally, or as their own limited company, a private partnership or a
sole trader. This will affect their legal rights and therefore how you will
work with them. If they are an individual, consumer protection laws
will apply and will affect your appointment contract (more about this in
the section on appointment contracts, later in this chapter).

Company status - Is the client a limited company or some other form of

business entity? If so, it may be part of a larger conglomerate, a
subsidiary of a parent company or a member of a consortium. Is it a
private or publicly owned company? Who is in charge, and what
controls and resources does the company have? If the company becomes
insolvent, who will continue the project? Is the company, and any
parent company, registered in the UK? What do the records at
Companies House say about the organisation? You may need some form
of guarantee from the parent company, or their funders, to ensure the
client will have the authority and funds to do and pay for the project
you are being contracted to do.

Decisions and instructions - Who is the person, or group, that will

select you for appointment? And on what basis? How do they make
decisions? Who will be the specific person, the appointed 'client
representative', from whom you receive your instructions and obtain
approvals? Do they have the authority to do this?

Payment of fees - Who will pay your fees? It should be the same entity
as the one you will be contracting with in your appointment contract. If
not, be very careful, as you will also have to have contractual
obligations to the fee payer. Who would you make a claim against, or
even sue, for any non-payment of fees?

Ability to pay - Will the client be able to pay your fees and expenses?
Check any publicly available company accounts and, if these are not
accessible or not recent, ask the prospective client directly for their
current accounts and proof of financial status so you can check if they
have the resources to pay you. If it is a subsidiary company, do they
have the assets and authority to pay you? It is easy and inexpensive to
carry out your own credit checks via a reputable rating agency. On
international projects, where payments can be tricky, and there are
added risks due to exchange rates, legal certainty and banking
conventions, it would be wise to insist that the client sets up pre-paid
bonds, held by a reputable bank in sterling, for payment of your fees
when due.

Payment on time - Can you rely on being paid on time and in full? It is
good practice to pre-agree a fee payment schedule, comprising regular
and smaller payments, to maintain your cash flow and credit control.
This enables you to spot payment difficulties early on and to deal with
them before any outstanding debt gets too large. You are not a bank or
source of finance for your client. It is worthwhile finding out who else
does business with this client and to check with them about the client's
payment record.

Approach to money - Does the client have a realistic budget and clear
understanding of their finances for the project? Do they see their project
as an investment to realise their objectives; or is it merely an
inconvenient expense, suggesting they will be reluctant to spend money
and will focus mostly on reducing costs? Clients usually focus on value,
not cost - they are driven and willing to spend money if they can see a
return on that investment. Be wary of clients who focus on how little
they can spend and how they can reduce costs. This may also affect how
they approach your fees - for this type of client, it is more about the
lowest cost, rather than the value you can add. Or are they duty-bound
to accept the lowest fee bid? Good clients want good value for a fair
price - they rarely haggle on price if you convince them you are offering
value and a good service for your fee.

Expertise - Is the client knowledgeable or inexpert about their business

and the project sector? What level of support will they need from you?
Do they know what they are doing and want from you? What are their
overall aims, objectives and targets for their project?

Public profile - What do social media and online profiles tell you about
the prospective client? Are there any adverse (or positive) comments
about how they do business and pay their suppliers? Ask others who
may know this client. It is better to do this by phone, or informally, face
to face. You will get a more candid assessment than through anything
written or more formal.

Reputation; Do they have a good public reputation for being successful,

efficient, trustworthy and ethical? Do they treat their employees,
 consultants and suppliers well? Are they decisive? How do they conduct
their business: fairly, clearly and collaboratively, or secretively,
aggressively and combatively?

Personal impression: Does this potential client seem genuine,

trustworthy and serious about their project? Do they share your design
and professional values? Do they listen and respect the advice of their
consultants? Does their personality feel compatible with yours? Can you
work with them? Your own personal vibes are important and valuable,
particularly when honed by your previous experience.

Working with your client

Research into your client always pays dividends, particularly if it is done
before you choose to work with them. What you find out will help you to
understand and work with that client. It will help you to respond to their
needs, get to know them and build a trusting relationship. When you first
meet your client, or make a proposal to them, you should interview them as
much as they interview you. Establishing a good client-consultant relationship
is a two-way process.

As well as carefully checking out your new potential clients, you should also
periodically check your existing and long-term clients. You may think you
know them well and believe all is fine. But they can change, particularly if
their leadership, ownership, personnel, finances or business priorities change.

Find out as much as you can about your client before signing up with them. If
you receive any negative signals or feedback, do think hard before
committing.

Do not be embarrassed about carefully checking out your prospective clients.

An understanding client will see this as due diligence and they should
appreciate this, and you are more likely to go up in their estimation as being
responsible, careful and professional. They may also be similarly checking on
you. If they are asking you for client references, recent accounts or a banker's
assurance, see it as a positive sign they are interested in you and that they are
also careful in selecting their consultants.

If you get qualified or negative responses to your enquiries, or still feel

uncertain or unclear, it may be better for you to say 'no', no matter how much
you want the job. Always remember, before you sign up with them, it is never
too late to say 'no, thanks'. It is always easier to say 'yes', but the art of
professionalism is also knowing how and when to say 'no'.

Like all relationships, a good client relationship requires constant attention

throughout the project. Personal and face-to-face engagement (in person or
via a video call) is far more valuable for building trust and respect than more
remote and formal communications, whether online, by telephone or in
writing.

Even if you have done all of the above and are sure that this is a client with
whom you could work and who has a good project to work on, things can go
wrong. Relationships can deteriorate, unpaid invoices can pile up. The scope
of the project and your services may alter beyond those you are comfortable
with. At some point you may have to decide that the relationship is no longer
workable or repairable and the risks of working with this client, and on their
project, outweigh the rewards.

Certain clients can be unreasonable and make unacceptable demands. At the

onset of the project, decide what your limits will be and, politely but clearly,
let your client know where the boundaries are. Will you respond to calls,
emails and meetings at nights and weekends, unless it is a dire emergency?
What are your financial limits for unpaid fees? How do you expect you and
your team to be treated? What are unacceptable behaviours?
If you decide to part company with your client, you need to consider how to
do this professionally and with minimal fuss and cost, minimising the effect
on everyone's reputation and relationships with other parties. You will need
just cause to take such action and to terminate your contractual obligations.
There are forms of reconciliation and dispute resolution that can and should
be explored first. The triggers and processes for withdrawing from a client or
project will usually be set by the terms of your appointment contract. Check
and comply with those carefully to avoid a counterclaim.

If it does not compromise your contractual or ethical position, it may be

worthwhile to find someone else willing and able to work with your client,
who can take on your role and responsibilities. Make it clear it is a business
and/or professional difference, not a personal one.

At the end of each project, it is good to review what you have learnt from this
client relationship and to use it to inform the selection process for your next
client and project. If you are disciplined and follow a proactive process of
client selection, this will result in an increase in successful projects, fewer
worries and a more fulfilling professional career.

Getting paid

Not getting paid is a big problem. The bigger the project and the larger the
fee, the bigger the problem can become. This issue is only outlined here -
regarding aspects relating to clients - but is addressed in more detail in
Chapter 3, on money.

It is important to keep monitoring the financial position of your clients. A

client who is financially sound at the outset of a project may get into trouble
later. Keep on top of regular payments and be aware of any outstanding costs
and fees for any client. A good strategy is to invoice regularly - 'little and
often' should be the maxim. A delay in payment of fees is often a good
indicator of trouble in the client's finances. Don't allow this to go
unchallenged or to get worse.

If your client changes identity, or if you are novated to a new client, check
that they are as financially secure as the original client.

If a client does not comply with the agreed fee arrangements and gets behind
on payments, it is important that you contact them as soon as you discover it.
It is best to do this informally and gently at first, on the phone or when you
next meet them, but be persistent if it continues to be an issue. If needed,
indicate that you will be prepared to invoke the payment provisions they have
agreed to in their contract with you (e.g. charge interest, stop work or
withhold the copyright licence).

Appointment contracts
To establish and maintain a professional client relationship, it is essential that
you have a comprehensive, written contract of appointment with your client
and that it is in place at the very start of any project. This is not only key to
running a successful practice, but also a requirement of the ARB and RIBA
codes of professional conduct.

The UK legal system recognises verbal contracts, but it would be foolhardy to

rely on one in our increasingly litigious age as they are prone to
misunderstandings and disputes. The ARB and RIBA acknowledge this by
demanding that registered and chartered architects must have written
contract agreements (not necessarily a RIBA standard form of agreement)
with their clients.

It is difficult to prove exactly what was agreed in an unwritten contract, even

if there were witnesses to your conversation. In dispute resolution and
litigation, the judges decide on the documented evidence before them. If the
evidence is not explicit, the law tends to give the benefit of the doubt to the
client, particularly a consumer client. This also applies to informal light-touch
written agreements and letters of intent, where the disputed issue might not
be adequately covered in the brief text.

This is why the ARB and RIBA codes of conduct require all registered and
chartered architects to have a written agreement with their clients, and for
this to be in place before any work commences.3'4 Failure to do this puts you
at risk of serious professional misconduct, and even of being struck off the

ARB register or expelled from RIBA membership. If a formal complaint about

you is made to the ARB or the RIBA, this tends to be the first question that
the ARB or RIBA will ask. The lack of a comprehensive written appointment
contract between an architect and their client is a frequent cause of successful
professional misconduct claims.

Any form of written contractual agreement can be used, as long as it complies

with the ARB's requirements. However, using a standard RIBA Professional
Services Contract is sensible and highly advisable.5 If you use a different or
bespoke form of appointment contract, it is imperative that you check and
ensure that it closely follows the terms and conditions of the latest RIBA form
of contract. Otherwise, you may not be in compliance with your professional
indemnity insurance policy requirements, and will thereby be uninsured and
not compliant with the ARB and RIBA codes.

It is common practice for experienced clients to have their own form of

appointment contract and to insist that their consultants use it. This is
understandable, but not sacrosanct, and clients could be open to change.

Standard forms of appointment contract, such as the RIBA Professional

Services Contract suite, are based on extensive experience, analysis of case
law and consultation with insurance underwriters, client forums and
construction industry bodies, to achieve a fair balance of responsibilities and
risks between the parties that is both insurable and tested in law. They are
also carefully designed to be individually tailored to suit the specific needs of
the client and the project, without compromising the standard terms and
conditions. It is therefore in the client's best interest, as well as the
consultant's, to use standard forms of appointment contract, or to ensure their
bespoke forms follow the standard forms very closely.

Standard appointment contracts

The following list outlines why you should use a RIBA Professional Services
Contract or other standard contract. As well as offering advice for your
professional practice, it may be a useful tool for persuading a client to use a
standard contract, or to ensure that their own appointment contract is based
as much as possible on a standard contract.

The key benefits of using a RIBA Professional Services Contract, or other

relevant and recognised standard form of appointment contract, are that it:

• engages the consultant within a framework that has a proven legal

basis and incorporates current standard industry practices,
procurement methods and legislation
• enables a successful client-consultant relationship by establishing a fair
and reasonable allocation of risk between the two parties • clarifies the
respective undertakings of the parties, providing comfort and
protection for both the client and the consultant
• is less expensive, more convenient and safer than developing and
keeping up to date your own bespoke forms
• enables all the consultants on a project team to be engaged on the same
basis and to work together seamlessly
• prevents contractual misunderstandings and disputes, and has clear
provisions for resolving complaints and disagreements.

There are also more detailed technical advantages in using standard forms of
appointment contract. These are that the contract:
 defines the scope of the work to be carried out (in the case of the RIBA
contracts this is mapped against the RIBA Plan of Work)
allocates and defines responsibilities and liabilities (including duty of
care), which can be covered by professional indemnity insurance
has a proven legal basis - established using case law and tested in the
courts - which dispute resolvers and litigation judges rely on to make
their decisions
confirms the legal framework in which the contract operates (form of
contract law, pertinent legislation, etc.)
defines the fees, calculation methods and payment arrangements
asserts and retains copyright over any intellectual property and limits
use of any confidential information
is likely to comply with the RIBA and ARB codes of conduct
requirements, which will be checked in any claims for professional
negligence and misconduct
coordinates with other recognised construction contracts (RIBA, JCT
(Joint Contracts Tribunal), NEC (New Engineering Contract), etc.)
identifies the parties to the contract and states who has the authority
to make decisions and give instructions
clarifies the different legal status of a consumer client
sets out methods of dispute resolution and complaints handling
defines the provisions for the suspension and termination of
obligations under the contract.

There are several variants of the RIBA Professional Services Contract,

developed to deal with a range of different contractual situations. It is
imperative that the right form of contract is chosen, which depends on:

type of client (commercial or consumer)

type and complexity of the project (Concise version for simpler and
smaller projects)
services required
procurement route
 form of construction contract
relevant legislation.

Detailed advice on how to select the right form of appointment and the right
construction contract for your client and their project is covered in various
publications, including Good Practice Guide: Fees,6 and by specific CPD. These
also give guidance on how to tailor a contract to meet the specific needs of a
client without adversely affecting the legal terms and conditions. However,
unless you are highly experienced and knowledgeable in this complex field, it
is important that you seek advice from an independent expert, particularly
from your professional indemnity insurance provider, before signing up to
any bespoke or amended standard form of appointment contract.

Bespoke appointment contracts

It is usually easier to convince a new client - one who has not previously
engaged consultants or architects - to use a standard form of appointment
contract. But experienced clients, such as developers, contractors and larger
corporations, are likely to have developed their own bespoke contracts, which
they require their consultants and contractors to use. Some consultants,
including architects, are also known to develop personalised terms and
conditions for their own appointment contracts.

Creating bespoke agreements by tinkering with the terms and conditions of

tried and tested standard forms of contract may seem worth doing, but it
rarely is and can have unintended adverse consequences. Even small changes
to the standard terms can alter the balance of risks and liabilities between the
parties, sometimes to professionally and commercially unacceptable levels. If a
client wants you to use a bespoke contract, or insert a new clause, it would be
advisable to establish why this is the case as there may be a better way to
accommodate their concerns.

Having shorter, seemingly simpler and less onerous contracts is also

misguided. Edited versions can entail more risk, rather than less, through
what is left unsaid. There are good reasons - and many years of legal
precedence - behind why the RIBA Professional Services Contract suite is the
way it is. The legal requirements and professional liabilities surrounding
consultancy services are complex and extensive, as set out in Chapter 4, on
the law. Any changes or additions to established standard contractual clauses
should only be drafted and then carefully checked by legal experts for both of
the parties.

It is impossible to survey the whole construction market accurately, but it is

known that bespoke contracts are used for the majority of design team
appointments in the UK construction industry. Therefore, it may be difficult
to avoid using bespoke appointment contracts. The RIBA advises clients,
architects and consultants alike that the terms and conditions of bespoke
appointment contracts should at least be based on the RIBA standard
conditions, which are seen as the established industry norm and form the
basis for case law and professional indemnity insurance. If faced with a
nonstandard contract, or a significantly amended standard one, you should
consult your professional indemnity insurers and seek legal advice.

The key things to look out for in a bespoke form of appointment contract are
as follows:

Duty of care - anything that changes the legally important phrase:

'the reasonable skill, care and diligence to be expected of an Architect/
Consultant experienced in the provision of such services for projects of
a similar size, nature and complexity to the project', or the addition of
clauses and terms that would impose a greater duty of care on the
architect, such as 'expert', 'professional' or 'indemnify'.
Fitness for purpose clauses or performance warranties - anything
that imposes absolute obligations on the architect to comply with the
brief, budget, programme or specific performance standards.
Collateral warranties - which may impose on the architect different
or more onerous obligations to other parties than those of the
appointment contract. If the client needs to include other parties in the
contractual obligations (e.g. funders, tenants or partners), it is better to
use the device of 'third party rights', which are based on the same
terms as the main contract (although it will still be important to be
mindful of the extent and identity of those being offered these rights).
Ownership of copyright - terms that transfer copyright to the client.
Under the standard terms, copyright of intellectual property is retained
by the consultant/architect and a licence is given to the client for use
of the design upon full payment of the agreed fees. However, keep in
mind that clients may want to have full ownership of the copyright of
your work. Copyright has a real commercial value, which should be
reflected in the fees if ownership is transferred. Retaining copyright is
a powerful way of ensuring payment of your fees, as the licence can be
revoked if the fees are not fully paid, which would stop the client from
making use of your design efforts without due recompense.
Subconsultants' and other consultants' terms - other consultants
that you have to work with should have identical contractual terms
and shared responsibilities and risks, whether they are directly or
indirectly (via a main consultant) appointed by the client.
Hazards, deleterious materials, environmental and pollution
liabilities - any additional liabilities should come within the current
coverage provided by your professional indemnity insurance. This will
vary from time to time, as new hazards are discovered. For example,
many external cladding systems became quickly uninsurable after the
Grenfell Tower fire in London in 2017.
Professional indemnity insurance - any requirements to remove
'joint and several' liability or to have excessive or unlimited insurance
liabilities. Although not popular with some clients, try to ensure that
your contract has a 'net contribution clause' (payment cap) or
maximum limits to the value of any payout (that are within the level
of your insurance cover). These are different, but interrelated issues.
The professional indemnity insurance market is volatile and affected
 by changes in wider economic conditions. The insurance requirements
in the contract should always be dependent on cover being readily
available and at commercially reasonable rates.
Economic and consequential loss clauses - anything that changes or
extends your liabilities beyond the costs of making good any design or
construction mistakes. If this has to be included, then ensure that there
are prescribed financial limits.
Liability periods - anything that extends your liability beyond the
normal six-year period for contracts or 12 years for deeds (see Chapter
4 for an explanation of liability periods). There will be an additional
cost for the added insurance premium you will need to pay, not to
mention the greater liabilities, over the longer period of time.
Assignment or novation - anything that affects your right to decline
being transferred to a client you do not wish to work with.
Legal jurisdiction - whether the contract will be governed by law
other than UK contract law (which varies slightly between England
and Scotland). If the contract law of another country is to apply, make
sure you are fully aware of the consequences of this and that your
professional indemnity insurance will still be valid.

The above list illustrates how important it is to approach contracts with

professional rigour and to seek expert legal advice where necessary, to ensure
you have an appointment contract that is fair and workable for both you and
your client.

Letter of intent agreements

It can be difficult to get the project and the scope of your services, or even the
method of construction procurement, fully defined at the start of a project.

'Letters of intent' are often used to get a project commenced before many of
the issues have been resolved and full appointment contracts or construction
contracts can be signed. If they have to be used, they must be carefully
assessed for their contractual implications (which are often unintended) for
the project and your professional duties.

A letter of intent may appear to comply with the requirements of the ARB and
RIBA codes to have a written agreement in place before you start. However, it
may not adequately cover all the points raised in these codes, and it is likely
to greatly increase your risks and liabilities. This is verified by the large
number of legal disputes and successful claims related to letters of intent.

It is far better to get the key aspects of the job resolved and defined as much
as possible beforehand, to enable a proper appointment or construction
contract to be signed, rather than signing a temporary letter of intent and
hoping it can all be sorted later. Holding out for a proper contract before
commencing the services or procurement often leads to the important
outstanding matters being resolved more thoroughly and quickly.

If you cannot avoid starting work under a letter of intent, make yourself and
the client aware of the limitations of such arrangements and the added risks
for both parties. Ensure that the appropriate full contract is agreed and in
place as soon as possible - set a time limit for this. It may seem that
everything is adequately covered with a phrase such as 'to be in accordance
with the terms and conditions of the RIBA Standard Professional Services
Contract'. However, this can have unintended consequences due to many
important aspects not being specified in the letter of intent, such as the limits
on insurance cover, procedures for fee payments and forms of dispute
resolution. To cover all these matters adequately, it might be simpler and
quicker to invest the time needed to agree a full appointment contract in the
first place. You can always add to and change the details of the project and
your scope of services in the original agreement as you proceed. The key is to
keep a written record of any changes and any instructions, copied to and
confirmed by your client.
Appointment contracts summary

This section has focused on the appointment contract because it is the

foundation of any architect-client relationship and any project. It is also the
single issue that causes the most aggravation for architects and other built
environment professionals, through complaints, disputes, claims and
professional conduct cases. The following checklist is a valuable tool to ensure
you are conducting the process professionally and to help you avoid getting
involved in a dispute.

CHECKLIST FOR APPOINTMENT CONTRACTS

□ Ensure you always have a written appointment contract, to
comply with ARB and RIBA codes.
□ Use the right form of contract for the project and for the type of
client (commercial or consumer) to ensure that the appropriate
legislation is covered. For commercial clients, use a separate
form of appointment for the role of Principal Designer.
□ Check the name of the client in the contract and ensure it is the
same as the entity that gives you instructions and pays your fees.
□ Review bespoke and altered contracts carefully for any
significant differences to the standard terms and conditions from
the RIBA Standard Professional Services Contract and the terms
of your professional indemnity insurance cover.
□ Check that the contract terms, or accompanying project
documents, do not extend your duties beyond exercising
'reasonable skill and care' and do not increase your liabilities.
□ Ensure that the schedule of services is accurate and reflects what
you can deliver. Do not undertake work that is beyond the
expertise and resources of your practice.
□ Do not provide guarantees for anything beyond your direct
control or take on responsibility for the work of others.
 □ Clearly set out your fees, the method of calculation and how and
when they are to be paid. Ensure your client understands the
payment provisions.
□ Explain, negotiate and agree your terms of appointment with
your client. Have written evidence of this, particularly for
consumer clients.
□ Try to retain copyright. If copyright is to be transferred to the
client, ensure there are limits to the content and usage of the
information. Ensure you will still have ownership and control of
your standard details and specification. You may need expert
legal advice to deal with this.
□ Agree the format and content of all information to be provided,
particularly electronic data, such as CAD drawings and BIM
models. □ Record all decisions, approvals, instructions and any
changes in writing. Confirm these with your client.
□ Inform your client of your complaints procedures and of the
options for dispute resolution and termination of the contract.
□ If possible, do not start any work until a full agreement is signed.

Communicating with your client

Communication with clients is an important skill for delivering successful
outcomes at a high professional standard and for developing strong
relationships within the industry. A common complaint from clients is that
architects do not always listen to or try to understand their business or project
needs. Listening and understanding are acquired skills that can be developed
at any stage in your career.

Listen carefully to your clients. What are they telling you about how they feel
and what they want and need? What the client says they 'want' can be
different from what they actually 'need'. A key part of professionalism is
being able to understand, articulate and satisfy those client needs. Clients may
not have the skills or knowledge to articulate what they really need, nor be
able to appreciate the opportunities and solutions for their project. That is the
value of engaging a professional, who can use their specialist expertise and
creative thinking skills to identify the potential of a project and provide the
client with a solution they could not realise for themselves.

Beyond listening and understanding are the core communication skills of

enquiring and affirming. The architect should explore and constructively
challenge and test the initial assertions of the project brief with the client. This
establishes an ongoing dialogue and a close working relationship with the
client, which in turn build trust, empathy, respect and understanding
throughout the course of the project. Constant communication enables the
architect to guide and help the client to achieve, or even exceed, their aims.

Good communication pervades everything, from how you promote your

services and engage with clients, to how you deliver services throughout the
project, and to how you continue to provide services after the project is
completed, though feedback and a post-completion review of the project.

Clients are receptive to practices that listen, take the time to understand their
needs, showcase commercial awareness, work collaboratively, lead from the
front and have the skills and resources to deliver their services efficiently and
effectively, as well as creating positive outputs. It is important and
professional not to overpromise on what you can deliver. It is far better to be
able to promote yourself and your practice as being reliable and able to fulfil
the agreed outcomes.

From the beginning, be truthful and realistic about what you can do within
your expertise and resources, then follow through with delivering on the same
basis. Managing your client's expectations avoids disappointment and disputes
later.
Being in regular contact with your client - keeping them informed of progress
and of any difficulties or variations - and making sure they sign-off on
everything is crucial. It is worth agreeing to communicate formally at regular
intervals, such as at monthly client meetings or at the end of each RIBA Plan
of Work stage. Doing so will aid smooth project delivery, while giving the
client confidence through your organised and professional approach. In a
complex project environment, where there is a tight schedule and large sums
of money are at stake, it is easy for misunderstandings to arise. To help you
pre-empt such problems, it is good to add feedback as a standard item on all
client meeting agendas. It is then important that you act on the feedback, and
any other concerns that are raised, even if these seem inconsequential or
unsubstantiated.

Keeping records
Affirming, confirming and recording the project brief, as well as all decisions
and instructions from the client, is crucial for a strong client relationship and
successful project. Misunderstandings and disputes generally arise where
records are unclear or verbal instructions and agreements cannot be
substantiated. It is vital to be fastidious about recording and confirming
everything that is agreed, changed or instructed by the client. Formal records
play a crucial role in resolving any complaints, disputes and claims.

Technically, recordings of telephone conversations, witnessed site meeting

conversations, copies of emails, electronic messages and informal file notes
are acceptable legal evidence. However, it is good practice to have a formal
record of all these decisions and changes on any project, which demonstrates
rigour and a high professional standard. Practices often have standard
templates for recording decisions and changes. This can be a record sheet or
file or a log, that is regularly updated, reviewed and issued to the client, other
consultants and contractors for their information and agreement. A review of
any decisions or instructions should be a standard agenda item for any client
or project meeting, to be confirmed in the minutes, providing clear evidence
of this process and that all the relevant parties were aware of and have signed
off any changes, in case anything is subsequently disputed or denied.

Duty to inform
Not only do professionals have a 'duty of care' to their clients, they also have a
'duty to inform'. This is covered in more detail in Chapter 4, on law, and
included in the standard form appointment contracts, as it should also be in
any non-standard contract. It is a less onerous liability than duty of care, but
it is still important to clarify. For example, under standard contract terms you
do not have any direct responsibility or liability for work done or items
provided by other consultants, the contractor, suppliers or manufacturers. But
you do have a professional duty to your client to inform them if you become
aware of anything that any other party does wrong or differently from what
was contractually agreed.

Dealing with client complaints

It is important to have a clear and transparent complaints procedure for your

practice and for all projects, and for everyone on the project team to be aware
of and follow that procedure. This is a requirement of the RIBA's Chartered
Practice scheme. The RIBA has very useful templates for complaints handling
procedure7 and can provide guidance on their use to its members. The RIBA
also has its own complaints procedure for dealing with complaints against its
members, which is worth reviewing.8

In case you cannot satisfactorily resolve a query or complaint from your client
directly and quickly, it is useful to have a referral system in place, so you can
pass the issue on to a business partner or your boss. If you are a sole
practitioner, you could refer the client to an outside broker or independent co-
professional. Log all complaints, and communicate to complainants how the
issues are being handled. Some may also be notifiable to your professional
indemnity insurer. Deal with all complaints and monitor their progress,
keeping the complainant and your insurer regularly informed of progress and
of any outcomes. Review complaints regularly at your partner/director
meetings, as all complaints are potential business risks that must be properly
managed.

It is usually better, cheaper and quicker to deal with any queries, complaints
and disputes by personal interaction and discussion. However, some may be
contentious and serious enough to be escalated to a formal procedure of
dispute resolution. There are various levels of resolution, and it is worthwhile
starting at the simplest level and proceeding up the scale - if it becomes
necessary and as appropriate to the issue - progressing from conversation to
mediation, then to adjudication, arbitration and, as a last resort, litigation. The
formal procedures are all covered in the standard forms of appointment
contract.

Litigation is an expensive, cumbersome, contentious and fraught way of

dealing with disputes. It is best avoided if at all possible as the costs of the
litigation process often far exceed the value of the solution. Generally, over
60% of professional indemnity insurance payments goes towards paying legal
costs, with only 40% going towards the rectification of the problem or
compensating the aggrieved party.

Conflicts of interest
As a professional acting as an independent, impartial adviser to your client,
you may find you have a conflict of interest. This will most likely be due to a
relationship you have with another client or project, particularly if they could
be regarded as being in competition with your client or project. However,
conflicts of interest can also arise regarding business colleagues, other
consultants, contractors, product suppliers and manufacturers with which you
have business dealings, or from family or personal connections. Even if the
conflict of interest is only perceived, it has the potential to compromise your
professional position.

It is vital to act with integrity and to declare any potential conflicts of interest
at the outset or as soon as they emerge and become known to you. It is now
common practice - and worthwhile instigating if you do not already do so - to
have conflicts of interest as a standard agenda item for all meetings, so that
any known or potential issues are declared and recorded.

Conclusion
Choosing the right client, looking after them well and relating to them
properly are key to your professional success and personal happiness.
Ultimately, it is about building and nurturing a relationship of trust. It is
worth working hard to achieve a healthy and successful client relationship.

Endnotes
1 RIBA Client Liaison Group. Client & Architect: Developing the Essential Relationship (London: RIBA,
2015). Available at: [Link]/knowledge-and-resources/resources-landing-page/
client-and-architect-developing-the-essential-relationship [accessed 23 August 2021].

2 RIBA Client Liaison Group. What Clients Think of Architects (London: RIBA, 2016). Available at:
[Link]/-/media/GatherContent/Working-with-Architects-survey/Additional-
Documents/[Link] [accessed 23 August 2021].

3 ARB. The Architects Code: Standards of Professional Conduct and Practice (London: ARB, 2017),
 clause 4.4. Available at: [Link]/wp-content/uploads/2016/05/[Link].

4 RIBA. RIBA Code of Professional Conduct (London: RIBA, 2021), Principle 2, clauses 2.1 and 2.2.
Available at: [Link]
Additional-Documents/[Link].

5 RIBA. RIBA Professional Services Contracts 2020 (London: RIBA, 2020). Available at:
[Link].

6 Farrall, P. and Brookhouse, S. Good Practice Guide: Fees (London: RIBA, 2021).

7 RIBA. RIBA Complaints Handling Procedure Templates (London: RIBA, n.d.). Available at:
[Link]/-/media/GatherContent/Business-Benchmarking/Additional-Documents/
[Link] [accessed 23 August 2021].

8 See [Link]/knowledge-and-resources/resources-landing-page/dispute-resolution
[accessed 23 August 2021].
3
Professionalism at work with money
DOI: 10.4324/9781003231462-3

Money makes the world go round. It is also the root

of most disputes

Adopting a professional approach to financial management is crucial for

ensuring a successful professional career and practice. Architecture and other
professions in the built environment sector are notoriously lowly paid,
compared with professions in other sectors. The average salaries for architects
in the UK are less than 66% of those for lawyers and only 50% of those for
medical doctors.1 And when you get to the senior positions, the differentials
only increase, There is a similar pay scale difference for professions in other
European countries. Why is this?

The main cause lies within the professions themselves, which often
undervalue their services. Architects and engineers are not always primarily
motivated by money and may not completely understand the true value of
their services, but there are also other factors at play. The UK construction
industry is capital intensive with small profit margins, highly dependent on
the economic cycle and relatively risky compared with other industries. Most
of the money is made (or lost) in the property investment and speculation
sectors, at the end of a project. The income and profits may be worked out at
the initial project appraisal stage, but they are only achieved when land and
building development potential are realised. However, the creative and
technical professions, such as architects and engineers, are typically involved
at the outset stages of this process, before the development value and profits
are secured.

The solution to this conundrum of undervalued professions is twofold. First,

these professions need to engage with financial matters to enable them to
understand the value of their work. This begins with building cost awareness
and interest throughout the professional education and training processes.
Money is mostly ignored, or at best cursorily covered, in current professional
education and training programmes for the architecture, engineering and
planning professions. Second, the value created in property development
needs to be related to the professions whose efforts help to create it. Fee
calculations and recompense mechanisms should take into account the
eventual value added for the developer, financier, owner and/or user, not just
the development costs. Architects are not always involved with overall project
budgeting, but they should ensure that they are, and that they work with the
client at an early stage to develop the overall cost plans and understand how
the project value is to be generated.

Pay in the architecture profession is relatively low, reflecting the lack of

connection between project values and the profession's value. The average
annual salary for a qualified architect (at least five years ARB registered) in
the UK in 2020 was £40,000 (Figure 3.1), ranging from a median of £150,000 for
partners in large practices (100+ employees) to £25,000 for sole practitioners,
with £30,000 being the median salary for newly qualified architects in small
practices.2 This is low compared with other UK professions, but higher than
for European colleagues, for whom equivalent earnings are about 20% lower.3

The proportion of architects working part time has more than doubled over
the past 10 years in both the UK and Europe. Part-time architects now make
up 25% of all working architects in the UK and 20% across Europe. This
accounts for 100% of the growth in the profession over the past decade. It also
reflects new flexible ways of working and the gradual improvement of gender
balance in the profession, which has traditionally been male dominated.
Although it is improving, there is still a gender pay gap of 3% in the UK, and
an appalling 21% across Europe, partly due to the higher proportion of male
architects in more senior and higher paid positions.3 This is gradually
diminishing as more women enter the profession and are appointed to more
senior positions in architectural practices. Since 2017, all UK businesses with
over 250 employees have had a legal obligation to gather and publish their
gender pay gap data. Although there are very few architectural and
consultancy practices of this size, the RIBA does provide useful best practice
guidance and encourages all practices, of whatever size, to voluntarily
evaluate and share their gender pay gap data. It also encourages practices to
take positive actions to improve their gender balance, through their
recruitment, progression and retention of staff, for the benefit of the wider
profession and the performance of their businesses. The RIBA encourages all
RIBA Chartered Practices to pledge to 'close the gap' by signing the RIBA's
Inclusion Charter, and provides helpful information on how to achieve this on
its website.4

Figure 3.1: UK architects' pay distribution, 2020

When you look at the overall pattern of reward within the profession, you see
a distribution curve for architects that is more akin to those for other creative
jobs (e.g. musicians, actors and writers) than for other technical professions.
Similar to the music industry, there is a relatively small, highly paid elite, then
a fair proportion in the middle, in the median salary ranks, and then a long
tail of low-paid independent architects struggling to make a reasonable living
wage. Everyone wants and deserves to earn a decent wage, but this requires
changes to industry norms. There are now campaigns to raise awareness and
engender changes to establish fairer and more sustainable pay structures
within the profession, which has prompted discussions across the industry.5

If you consider the talents and skills needed, the high-cost investment in long-
term, high-level training, the formal qualifications required and the
professional responsibilities and risks of the job, the low level of architects'
salaries in the UK is not an equitable reward. This does reflect the profession's
lack of business skills, interest in money and understanding of its true value.
Many architects see their career as being more of a 'passion' than a
'profession'. Put simply, if you do not value yourself and understand how you
create value for others, how can you convince your clients and employers that
you are worth it? This chapter focuses on understanding financial principles
and how to value your services and manage money, to overcome the
profession's low perception of its financial worth.

Historic fee scales

Certain members of the profession look back nostalgically to a perceived
golden period of presumed status and respect for professionals - and to the
mandatory predetermined fee scales. The use of predetermined fee scales, set
and enforced by the RIBA up to 2003 (Figure 3.2), may have been convenient,
but it resulted in architects not having to bother about managing their costs or
knowing how and where their fee was earnt for different work stages, or even
knowing if the percentage fee determined by the RIBA's fee scale graphs,
based on historical averages, was the right fee for their particular project or
client.

Fixed fee scales and restrictions on competition, and the resultant disinterest
in money and lack of commercialism, did not serve the profession well. They
gave the profession a false sense of security and entitlement, but no awareness
of the value of their services in society. Reliance on mandatory and
recommended fee scales resulted in many architects not developing a clear
understanding of their costs and their value, or the skills to confidently
negotiate their fees with their clients.

The traditional lack of interest in money among the professions, and in their
education systems, and a poor understanding of the value they bring for
clients, coupled with downturns in the economic cycle and changes in
procurement methods, has directly led to the decline in financial recompense
and influence for architects and other built environment design professionals.
Fortunately, this is gradually changing. The younger and up-and-coming
professionals hanker less for an unknown past and are seeking greater
commercial awareness, to prosper in the real world of the present and
foreseeable future. This includes understanding, calculating, negotiating and
carefully managing finances and fees.

Fee calculations
The traditional way of expressing construction consultants' fees is as a
percentage of the construction cost, but this is no longer the norm, with only
28% of UK architects' fees (32% across Europe) now based on the construction
cost. Lump sum fees have become far more popular, accounting for 42% of UK
architects' fees and 28% of the fees in Europe.3 A further 23% of fees in the UK
are based on hourly rates, which leaves only 7% of all UK architects' fees
based on other methods, of which only a small proportion are related to the
value added by the consultant. If consultants wish to improve their earnings
by sharing in the value that they add for their clients, then their fee structures
will need to shift towards different fee structures, based on value rather than
costs. Architects will also need to persuade their clients that they too will
benefit from using value-based fees.

Figure 3.2: Example RIBA percentage fee scale for normal services6

Percentage fee scales, based on construction costs, were developed and

promoted for the convenience of the consultant, rather than the client, for
ease of calculation and for an era of higher inflation, with mandatory fee
scales controlled by the professional bodies. It is understandable why clients
are not keen on percentage fee scales and why there has been a gradual move
away from them. They are not in the best interest of the consultant either.

If you look at it from the client's point of view, the higher the cost of
construction the higher the consultant's fee. There is no incentive for the
consultant to reduce the client's construction costs - quite the reverse. If the
budget is exceeded and the project needs to be redesigned to effect cost
savings, extra effort is required of the consultants but for a reduction in their
fee, unless a mechanism for an additional fee for any design alterations has
been agreed.

The construction cost is variable during a project. At the outset, before

anything is designed and can be costed, a percentage fee is calculated on a
notional construction cost, usually based on known average costs of previous
similar projects. But these generic costs might not reflect the nature of this
particular project, or its site and economic context, or the specific level of
service required by the client. Subsequently, the construction cost and the
related fee will be updated, as the design details, procurement methods and
site issues become known during the design development stages.

But there is still a large amount of cost estimation in these figures. The
construction cost becomes a bit clearer when the contractor has agreed a
contract price to construct the project. But the actual construction cost is not
truly known until the building has been completed and any changes and
claims have been resolved. Appointment and construction contracts generally
do have provisions to recalibrate the construction cost, and thereby the basis
of the consultant's percentage-based fee, during the course of the project. But
this creates uncertainty for both the client and the consultant.

It is no surprise that the industry has now moved towards 'lump sum' fees,
which give a bit more certainty for everyone. However, this requires the
consultant to decide in advance their resources and the costs and business
risks entailed in providing their services, before they know all the details of
the project. The services and the outputs also need to be clearly defined and
monitored, so that any unexpected changes and additions to the project can be
dealt with as it proceeds.

If the extent of the services required is unquantifiable - which is particularly

likely at the very early exploratory stages of the project or in the event of
unexpected changes - then the fee can only really be based on hourly rates for
time spent. Limits on the amount of time can be set, to provide a cap and
degree of certainty on costs for both the client and the consultant.

Value added fees

A more positive way for a consultant to calculate and promote their fee is to
link their fee to the value they add for the client, rather than by selling hours
as a cost to the client or taking a percentage cut of the capital cost of a project.
The client will be keener to engage and pay for the consultant if the
consultant's recompense is measured as part of a successful outcome, rather
than being based on the inputs. So, how can the consultant's fee be based on
the value they add for the client?

It is difficult, but not impossible, to establish metrics for value in any project
type and client sector. The measures may not be just financial, such as added
sales or letting value, or construction cost savings. They can be based on
operational efficiencies, such as additional operational floor space, improved
efficiencies in the use of the building, better learning outcomes for educational
buildings and better health outcomes for healthcare projects, or even
improved staff recruitment, retention and absence ratios. The key issue is that
the value metrics must be relevant to the client or user and be measurable.

The problem with output-based metrics is that the benefits cannot always be
proved or measured until the facility has been completed and in use for some
time. This would delay payment to the consultant until long after the
provision of their services. Some value-based metrics are realisable before
completion of the project, such as the certainty and quantum of development
achieved by the planning approval, or the value of the construction contract
when secured. However, these outcomes still occur long after the consultant
has expended a lot of effort on the project. Therefore, a value-based fee should
be used in combination with other, traditional input-based methods, such as a
lump sum, time-charge or percentage fee.

Value-based fees can create bigger profit margins for consultants and be a
sure way of increasing the incomes of professionals. A fee could be a very
small proportion of the value of the benefit to the client, but it could represent
a huge proportion of the architect's recompense. For example, 0.5% of the
value of added lettable or sellable space can easily represent 30% or more of
the architect's traditional fee. The construction cost is usually less than one-
third of the project value, and if the architect's fee is 3% of the construction
cost, this gives a gearing of 1 in 100, compared to the value of a traditional
input-based fee.

There are also other benefits to value-based fees. They engender a positive
dialogue between the consultant and the client, and create a greater
understanding between the parties of what matters most to the project before
it starts. Value-based fees also build a longer-term engagement for the
consultant with the client and users, extending after practical completion. The
consultant keeps their connection with the client by carrying out ongoing
work, such as sorting out any teething problems, and is paid for this privilege.
This fulfils the purpose of RIBA Plan of Work Stage 7: Use. It also aligns the
interests of both parties and creates synergies through working on this
together, which makes for a richer design process and better outcome for all
concerned.

Having even a small proportion of the overall fee based on value added is a
useful way to improve client relations, as well as the pay and reward for
architects. It is worth considering as a component of any fee proposal.

How much to charge?

Architects are often required to bid competitively to secure work and clients.
There is no quick and easy way to decide what fee you should propose or
negotiate. You first need to carefully work out what the job requires, then
decide what resources you will need and what they will cost you. You then
need to add an allowance to cover your overheads, expenses and profit
margin. Then last, but by no means least, you need to price in a risk factor and
the earnings potential for working for this client on this type of project, within
the overall context of your other workload and business objectives.
It is imperative that you know the costs of running your business and carrying
out projects, otherwise how will you know what to bid for any new projects?
It is crucial that you keep accurate records and regularly monitor all
operational costs and resources used on projects, such as time sheets, travel
(particularly mileage) and other expenses and fee payments.

If you know the costs of your business and the inputs required for the project,
doing the mathematical calculations is relatively simple. The complex and
clever bit is deciding the values you put on all the subjective variables. Even
experienced practitioners can get this wrong and significantly underestimate
the fee, particularly if they are under pressure to win the work by offering the
lowest bid or are not precise in what they will provide for the fee.

The key is to clearly understand and carefully manage your business costs and
the resourcing requirements and profit margins for the project, so that you
avoid underestimating the fee and the resourcing required to do the job
professionally. You may decide to take less profit from a good project or new
client, in a new sector, but a commercial decision such as this needs to be well
informed - are you sure the rest of your practice's workload can support your
business development and research, as well as the wellbeing of your staff and
yourself?

If the fee is too low for the agreed amount of work, the resourcing and quality
of the work inevitably suffer, leading to higher risks and unprofessional
practice. Many practices have to rely on long working hours and unpaid
overtime to make projects even marginally profitable. This is not good
working practice, as it is unfair on you and your staff, affects morale,
performance and wellbeing and creates an unfulfilling work-life balance. It is
not a sustainable way of running a business.

Calculating time costs

All fees are based on the amount of time required from people with the
relevant skills to complete the project. This is applicable not only to hourly
rate charges, but also to lump sum and percentage-based fees. It is surprising
how often practices do not properly count the hours to be spent on a project
or do not base their fees on the real costs to the practice. The following time-
costs calculation sets out the issues to be considered in deciding any hourly
charge out rate for fee-earning staff or the rates to be used in developing any
fee proposal.

HOW TO CALCULATE PEOPLE COSTS AND

TIME CHARGE OUT RATES
Time-charge component Amount

For a Project Architect:

Annual salary £35,000
National Insurance - 13.8% of salary £4,830
Additional benefits (pension, subscriptions, medical
insurance, training, etc.) - say 6.2% of salary (can be between £2,170
3% and 20%)

Total annual salary cost paid by employer (salary + 20%) £42,000

Office overheads (rent, insurance, admin staff, equipment,

utilities, etc.) - say 100% (varies dramatically, depends on £42,000
practice, can be between 80% and 200%)

Total annual employment cost (2.4 x salary) £84,000

Profit margin (includes directors' fees, reserves, etc.) - say

£12,600
15% employment cost
 Project Architect's annual cost (2.76 x salary) £96,600

Indicative hourly time charge out rate for a Project Architect

earning £35,000 p.a., based on 1,500 fee-earning hours p.a. £64.4/hour
(see below)

The number of productive fee-earning hours per year varies greatly

between different roles within a practice. It depends on the amount of
non-fee-earning tasks (administration, marketing, management, etc.)
that each role has to do. These non-fee-earning duties tend to be greater
for more senior roles, therefore the hours available for fee-earning work
for partners, directors and sole principals would be significantly less
than in the example shown here, for a more junior role. The hourly
charge out rates for senior roles would, of course, be higher than the rate
shown above for a project architect.

Working time Hours per

component year

52 weeks x 5 days x 7.5

Working hours 1,950
hours/day
Less annual holiday 22 days (165 hours) -165
Less bank holidays 9 days (67 hours) -67
Less sickness/absence average 4 days (30 hours) -30
Net working time (87% of total working time) 1,688
varies, for admin., CPD, etc. -
Less non project time -188
say 11%
(Ƈ 77% of actual productive
Fee-earning time 1,500
time)

The RIBA benchmark for productive time is 1,700 hours per year for fee
earners. However, that may be optimistic as it assumes only about 5% of
 time is non-productive and is based on an eight-hour working day. The
productive fee-earning time of a senior director or partner the time not
spent on running and marketing the business, etc. - is generally about
50%, or as little as 20%, of their overall working time.

The figures used above are for guidance only, but represent a typical
example. Amounts will vary immensely between different practices
(particularly overheads) and different roles and should be calculated
specifically for your business and workload. Actual figures need to be
used for each real situation, but the method of calculation remains the
same.

There is a RIBA Good Practice Guide specifically on fees, which provides

more detailed guidance on calculating and agreeing fees.7

Expenses
As part of the appointment contract and the fee agreement, the recovery of
the expenses incurred on the project should be agreed. Expenses can amount
to a significant sum, and will typically cover the costs of travel, printing, BIM
models, presentation materials and physical models and also planning and
building control fees.

Expenses can be accounted and charged for individually, preferably with a

mark-up to cover your administration costs. Clients sometimes prefer that
expenses are included in the fee, usually as a percentage of the total fee, often
3-5%.

Whichever way you recover these costs, you will need to keep accurate
records of all expenses and office costs related to the project and the client and
to retain all receipts. This is essential for tax reclamation (VAT) and enables
you to keep track of the costs. By reviewing records from completed projects,
you can establish the typical amounts of expenses to be expected for different
types of project. These can be used to set realistic figures for expenses to be
included in the overall fee for future projects.

If expenses are included within the fee, you need to set clear limits on the
various items, such as the amount of travel or number of copies of documents,
and describe in precise detail what is included and what is excluded. If the
client asks you to commission an expense on their behalf, you should clearly
state in your order that the purchase is on behalf of your client and that the
client is ultimately liable for the payment.

Fee bidding
Once you have calculated your proposed fee, based on the total amount of
time required from all the different roles and the expenses on the project, and
your associated office overheads, you need to think about the client and the
competition, before deciding whereto pitch your fee bid. You may wish to put
in a low-cost bid, to be competitive and win the job, particularly if the client is
selecting their consultant primarily on price. To achieve a low price, you need
to know the realistic minimum amount of work and expenses that will be
required to do the job professionally and be prepared to work as efficiently as
possible. If you do choose to put in an 'at cost' bid, you will need to rely on
other fee-earning projects to provide your business profits and to cover
contingencies for this project.

For any fee bid, it is essential to describe precisely what is included in your
price and what is excluded. You should also clearly state your assumptions
about the project, and the resources and expenses that the bid is based on. In
your fee proposal, carefully detail the amount of work inputs and outputs that
you will be providing, such as the numbers of drawings to be supplied and
meetings to be attended. You can always offer add-on extras and more
elaborate services later, for an additional fee.

Whatever price and services you are offering, consider your USP (unique
selling proposition) for the client and how it differentiates you from the
competition. It is good practice to tailor it to the client and their project and to
promote it in your fee bid. The key proposition may be your relevant
experience, design ability, project management capability or track record on
delivery. Whatever you claim, to be professional, ensure it is truthful and
achievable.

Fee agreement
Once your bid has been accepted, a written fee agreement should form part of
the overall appointment contract. This is a requirement of the ARB and the
RIBA for any UK registered and chartered architect. The fee agreement should
be fully detailed and cover all money issues: how much is to be paid, when,
how and what for. It is advisable that the fee agreement is a distinct
document, written as a separate schedule to the appointment contract.

The fee agreement can include different fee arrangements (time charges, lump
sum fee, percentage fee, etc.) for different stages of the job. The frequency and
amounts of the payment instalments should be set out clearly in the
agreement. The agreement should carefully describe what is included in this
fee, which would generally be related to a separate schedule of services,
preferably based on the RIBA Plan of Work stages, and a project programme.
It should also detail the number of meetings, site inspections and key
resources to be provided within the fee, as well as how expenses and any
changes or additional work will be charged.

If you are VAT registered, the fee agreement and any invoices you issue
should make it clear that your fee excludes VAT and that this will be charged
on top of your fee, at whatever rate is applicable at the time. It is best to note
VAT separately on all your invoices and payment receipts. If you are not
registered for VAT at the time of making your agreement but expect to
become registered during the course of the project, make it clear at the outset
that you will be obliged to add VAT to any invoices issued and due for
payment after your date of VAT registration.

It is important to finalise the fee agreement before you start the project or
commence any initial speculative unpaid work. Your negotiating position is
strongest at this stage, before you have provided any services. You should not
put yourself or your practice in the situation where you have invested so
much in the project that you feel you cannot afford to walk away or that you
have to accept a lower fee.

If your client prevaricates in settling a fee agreement, it may be an early

indicator that you will struggle to get your fee instalments paid over the
course of the project. Without a firm agreement, there is a risk that the project
will continue to creep ahead and never reach a conclusion on services or fee.
You should have an office policy statement to rely on, which is clear about
what happens in the event of non-payment, so you can stop work if this
occurs. Despite the ARB and RIBA requirements, the omission of non-
payment provisions happens more frequently than you may think.

If you will be working with other consultants on the project, you should know
their fee arrangements and the terms and conditions of their appointment
contracts, particularly if you are to be the lead consultant responsible for
coordinating their services. It is important for you to know if they will have
different forms of payments from you for the different stages of the project, or
if they are not being paid, or have a fee dispute with the client. This could
affect their performance and motivation to work with you and the other
consultants. If you have an oversight of their appointment agreements, you
can identify and draw attention to any ambiguities, gaps and overlaps in the
services, roles and responsibilities. It is also in the client's interest, so they
should not object to you having this information. It can also be reciprocated,
so the other consultants are aware of your contract terms.

The RIBA Professional Services Contract suite8 includes versions of the

standard contract that can be used by the various consultants and
subconsultants, which has the great advantage of everyone being engaged
under the same terms and conditions. This will be beneficial to everyone,
including the client, as it eliminates any gaps or differences between
consultants' contracts, particularly regarding insurance cover and professional
liabilities.

Fee disputes

Most fee disputes with clients and subsequent fee recovery cases are lost or
result in less being paid to the consultant than was originally agreed. The
consultant also has to bear the added costs and effort of going through a
dispute resolution or litigation process. Fee disputes mainly happen because
there is no written fee agreement or, where one does exist, the agreement does
not properly cover the issues in dispute, such as changes or additions to the
fee. It is strongly advised not to begin work, even initial speculative work,
without first agreeing with your client, in writing, your fee and the
mechanisms for dealing with any changes or queries.

Getting paid
It is impossible to overemphasise the importance of cash flow to the successful
running of a practice, which directly relates to getting paid regularly and on
time. It starts with having a precise fee payment schedule agreed with the
client, which can be closely monitored.

Structure your fee instalments so that you receive regular payments. It is

better for payments to be monthly, if possible, rather than at the end of a
RIBA Plan of Work stage. If you are working on different work stages at the
same time, these need to be separately noted in your invoicing. The monthly
regular payments can be 'on account' for a particular stage, and you can
always have an additional consolidation payment or incentive fee at the end
of each stage. If the project is large or fast-moving, it may be worth having
even more frequent fee payments, fortnightly or even weekly, to keep the
value of your 'work in progress' in check.

It is useful to prepare and submit a fee invoicing schedule to the client for
them to agree in advance of starting work, and to have this incorporated into
the terms and conditions of your appointment contract and the fee agreement.

If possible, include in your fee agreement a requirement for the client to sign
off each RIBA Plan of Work stage and to pay the due fee instalment for that
stage before the next stage is started. This will also enable the client to budget
correctly and manage their cash flow, in line with any funding or income
supply.

Before signing up, it is well worth checking if your client has the means to
pay and a good credit rating. Even with an established client you have worked
with before, it is still worth checking their current financial status. Do you
know how the client will be funding the project? Is this funding in place?
Does your client have a good track record of paying in a timely manner? It is
also sensible to keep your fee exposure to a particular client or project in
check, as it is risky to be over-reliant on just one source of income.

You should set up your accounts system to issue invoices as soon as they are
due. Until you have invoiced the client, they are unlikely to pay you. After
invoicing, there is always a time lag before you get your money, while the
client approves and processes your payment. Getting paid promptly is often
trickier for the earlier design stages, which may be before your client has all
their project funding in place. This is also an issue for contractor clients, who
tend to work on very tight margins, and your design and construction
supervision services are likely to be completed well before the client gets their
payment for that bit of construction. Be aware of the triggers for the client's
funding, which may be dependent upon the granting of planning consent and
consequential increase of the site value and development certainty.

Carefully managing your cash flow - so that you keep within your credit limit
and bank overdraft - will also keep your bank happy and more inclined to
help you if you do get into difficulties. Keeping within overdraft limits will
also reduce your interest charges.

Having issued your invoice, it is worth regularly and methodically checking

that your payment is being processed by your client and or has been paid in a
timely manner. Check that there are no queries or outstanding issues or
legitimate complaints that may be delaying your payment. Resolve any of
these concerns promptly, to ensure the client has no reasonable excuse not to
pay you on time. Be prepared to stop work if the client does not pay on time
and is in breach of their contractual obligations under your appointment
contract.

Payment systems

To make paying easy for your client, the payment process should be
coordinated with the client's payment systems and accounting procedures, not
just your own. Ensure the content and format of your invoices comply with
what the client needs in order to process them. It is also worth finding out
who is responsible for paying your invoices, as invoice approval and payment
processing may be done by different people.

If your client pays their bills on a particular day of the month, ensure your
invoices arrive in the system in time to be processed before that deadline.
Otherwise, you will have to wait an additional month for your payment,
regardless of the payment period stated in your terms of business. Check with
the client, or their finance team, that your invoice has been processed for their
next batch of payments. Most payments are now done electronically by BACS
payment, so ensure your client has your correct bank account details and the
right reference code for each payment, so you can trace them on your bank
statements.

Adopt a system for monitoring and chasing up late payments and rigorously
enforce it. There is no harm in checking the progress of an invoice a week or
so before its payment deadline. It is a good reminder to the client, and prompt
early warning should there be any problems.

If you are reliant on cheque payments and have concerns about the financial
strength of your client, get any cheques specifically cleared by your bank.
Businesses can go into liquidation in the time between a cheque being issued
and cleared. Alternatively, you can insist on being paid by banker's draft.

It is very useful if your fee agreement states that you can refuse to start the
next stage of the project until an overdue payment is cleared through your
account. This will be a helpful incentive for prompt payment of your invoices.

Late payments

Late payments cost you money. Your fee agreement needs to include an
incentive for your client to pay you on time. Most standard appointment
contracts, including the RIBA Professional Services Contract, include a
provision that allows interest to be charged on late payments. You might not
always want to carry out this threat, but it is good to have it in your armoury.
Interest rates should be set above the current loan rates - you need to make it
cheaper for the client to pay you and incur bank charges than not to pay you!

You may feel that your client will not pay the interest and you do not want to
upset them. But it is good business practice to make it clear that late payment
will be chased. If you do decide not to charge your client the interest due on a
late payment, it is still worthwhile letting them know that in this instance you
have considerately let them off this payment.
If you do end up going through dispute resolution or litigation to secure an
unpaid fee, interest on late payments can be recovered as part of any
settlement in your favour. To enforce any interest payment, you must be able
to prove your entitlement to charge interest for late payments in your contract
with the client.

It is important to state on all your invoices your terms of business for

payment. You should include the precise date by which payment is due
contractually and a statement that interest payments can be incurred if
payment is not received by that date.

As well as charging interest on late payments, you could consider offering an

incentive to the client, such as a discount, for early or prompt payment. This
can be valuable for maintaining your practice's cash flow.

Project delays
Planning the resources for a project is based on the assumption that the
project will proceed in accordance with its agreed programme, but projects
often get changed and delayed, and sometimes aborted, which can disrupt
your business plan and cash flow. You may have expended great effort and
incurred significant costs before a project is started, which you need to recoup
in later stages, which should be covered in your appointment contract. You
should also consider including compensation for delay and early termination,
for any reason beyond your control. It is prudent to allow for some delayed
projects, late payments and bad debts in your cash flow predictions and
business planning.

Change of client
With the increased use of design and build forms of procurement, it is
increasingly likely that you will to be transferred to another client during the
course of a project. However, novation can be fraught with difficulties. You
will need to be able to cleanly and completely transfer to your new client,
generally the building contractor. If your original client continues to have
some form of authority over you, or you still have direct responsibilities to
them, this creates professional and business conflicts of interest. This situation
may put you in breach of the ARB and RIBA codes of professional conduct
and can affect your professional indemnity insurance cover.

It is preferable to have a new appointment contract with your new client for
their stages of the project, or to use a recognised form of novation agreement,
such as the one provided by the Construction Industry Council (CIC).9
Novation creates complex contractual issues and it is well worth getting
expert legal advice if you are likely to be novated.

When negotiating your fee agreement, you may have agreed a lower fee for
the initial stages of the project, say up to obtaining planning permission, on
the assumption that you would continue working on the project and get paid
for taking the project to its completion. However, there is always the risk that
the client may sell the site with the benefit of planning approval. The new
owner may want to bring in their own consultants to complete the project for
them. It is useful to include an additional bonus for achieving planning
approval, or a severance fee to compensate for loss of earnings if your
involvement in the job finishes early. As an incentive, you could offer to
waive these if the new client agrees to appoint you to continue the job for
them, assuming you want to work for the new client and there is a sufficient
and compensating profit margin in the ongoing fees.

For a design and build project on which you will be novated part way
through, it is advisable to negotiate your fee for the second stage with the
original client at the beginning, to create certainty for both clients. It is also
useful to have a let-out clause in your appointment contract, which says you
do not have to agree to be novated if you are not completely happy with the
new client and the changed arrangements. Your agreed fee should be based on
a clearly prescribed level of service, which may be varied later if the services
required by the new client are different.

Keep records
It is always useful to keep a separate file (on paper and digitally) for all issues
relating to the fee and any payments for a project. Update and monitor this
file regularly. Ensure that your fee instalments are up to date, invoiced and
paid. Include in the file records of any changes to your services or the design
that affect your work, together with records of your fee negotiations and
changes - this will prove very useful if you have any queries about your fee or
need evidence to support any dispute.

Speculative work
Although not recommended as good professional practice, you may feel you
have to speculate and do some work for free to obtain a client or project.
Alternatively, you may be put under irresistible pressure by the client to take
on jobs on an 'at risk' basis at the start. But only do so with great care, and
ensure this does not overstretch you financially or compromise your
professional principles. The risks of doing speculative work must be
worthwhile and there must be an achievable greater reward than fully paying
work.

Have a clear policy on how much, if any, speculative work your practice is
prepared, and can afford, to take on, and have specific criteria for assessing
any speculative job. The following checklist presents a range of questions you
should ask yourself before agreeing to take on speculative work.
As with any new project - whether speculative or not - or new client,
carefully assess the project and the client before committing to speculative
work. What is the likelihood of it being successful, useful and, ultimately,
profitable for your practice? Is this just an opportunity to lose money and
maybe your professional reputation and practice? If an opportunity or client
seems too good to be true, then more than likely it is! Think through the risks
to your business and professional reputation.

Understand the balance of risks between you and the client. It may be
appropriate or necessary to take on a reasonable share of the risk when your
client is also bearing their share, perhaps before the project is secured and the
funding is in place. But if the client is not directly put at risk by the project,
particularly in the case of a public sector client, why should you be?

As you are taking on a financial risk, then this should be reflected in your fee,
so that you earn a bigger share of the gains if the project is successful. This
could be through a higher fee for the remaining stages, a bonus on securing
the project or a share of the equity profits of the scheme.

Think of the gearing of the risk. Your fee is 100% of the value of the project to
you. But for your client, your fee will be a small portion of the overall project
cost. Typically, the architect's and design team's fees represent no more than
10% of the client's total costs, and often less than 3%. Therefore, limit the

CHECKLIST FOR ANY SPECULATIVE WORK

Why do I want to take on this project for free (for money,
experience, contacts, profile)?
What special opportunities does this project provide (new client
or work sector)?
What are the chances of the project proceeding and becoming
fee earning?
 How much additional reward (fee) will I receive for taking on
this speculative risk?
Can I afford to take on (and lose) this project?
Do I have the resources to do this project without it affecting my
other work?
What effect will it have on my practice and professional
reputation?
Why doesn't the client want to pay for this work at this stage?
Will the client be able and willing to pay more later?
Is the client serious about the project and wanting to retain my
services?
When and how should I or could I stop working on this
speculative project?
Are the risks being shared fairly by the client and other team
members?
Overall, do the benefits outweigh the risks? Is it worth it?

proportion of the overall fee you are prepared to put at risk. This should not
be more than 10% of the overall fee for the project.

Ensure your fee-earning work can support the costs of your speculative work.
Do not starve fee-earning work of resources in order to undertake work at
risk. Speculative work should not put you in debt, compromise your
reputation or risk your business failing. Be aware of the consequences if none
of the speculative work comes to fruition. Also assess the upside risks - if all
the speculative projects come good, can you cope with the resulting
workload?

You must set limits on how much you are prepared to bet on a speculative
project or client. Be precise about how much work you are prepared to do, the
time and the costs you are prepared to invest and have at risk before it must
become fee earning or be abandoned. Stick to these limits. Ensure that you
have a written appointment contract with the client in place before starting,
covered by your professional indemnity insurance. This contract should have
a clause that enables you to stop any speculative work when you decide to,
when you have reached your set limits or when the chances of the project
being successful have diminished.

Make your client aware of your cut-off limits at the start and inform them
when you are approaching these limits. If your client is serious about the
project and wants you to continue, then agree some recompense for
continuing. This will demonstrate your client's commitment to the project and
to you. It will also impress your client that you keep to your word and you are
business-like and professional.

Ideally, to be professional, no work should be done speculatively. But if it is

unavoidable, keep the amount of speculative work you do under control.
Monitor it carefully and regularly. Never be afraid to cut your losses and stop
working speculatively on a project or for a client.

Decide very carefully and precisely what you are prepared to take on
speculatively. If you choose to go ahead, ensure that you take on only a
reasonable proportion of the risk and that there is an acceptable chance of
success and adequate reward.

Additional work and changes

All projects change and evolve as they develop throughout their design,
procurement and construction stages. There should be allowances for a
reasonable amount of change within the original fee and project programme.
However, be mindful of being asked to do more work than expected on
significant changes, beyond the original scope of the project, without first
agreeing an additional fee and extra time for doing this work.
In the original appointment contract, the project and your services need to be
described in as much detail as possible, as the agreed fee is based on this
definition. It is also a good idea to set limits beyond which changes to the
scope of the project will trigger a reassessment of the services and the
associated fee and programme. These triggers can be set as proportionate
increases (say more than 5%) in the construction cost, floor area or
programme.

This applies not only for lump sum fees, which are fixed for a specific service,
but also for percentage fees. Where there is a percentage fee, if the services are
extended due to changes that do not increase the construction cost, there will
be no increase in the fee. Similarly, redesign work or value engineering may
be required, or the construction cost may be reduced, which will affect the
value on which the percentage fee is based.

Variations and changes will affect your fee, your costs and your resources.
Think carefully and ensure you are able and happy to carry out these changes
before you agree to do them.

When to stop work

The most difficult decision with a client is when to suspend or terminate your
services. How and if you do this depends on the terms of your appointment
contract. Generally, you can only stop if there is a material breach of the
contract by the client or if you have 'break clauses' in the contract, perhaps at
the end of certain stages. If you walk away, you need to be able to justify why
contractually. Otherwise, you may end up in bigger trouble and give your
client cause to sue you or report you to the ARB or RIBA for unprofessional
conduct. If your actions are found to be unjustified by a dispute resolver or
court, you could face substantial costs and damages. ARB's disciplinary
committee has, in the past, upheld the complaints of clients whose architect
has abandoned them before their project is complete. You must take legal
advice before terminating your services under any contract.

Clients can also be in breach of their contractual duties. The most common
causes are not paying the architect all of what they are due, not paying the
architect on time, not making key decisions, not giving necessary instructions,
contravening health and safety legislation, changing the project beyond
recognition, behaving unreasonably, and asking the architect to do something
unprofessional.

Most appointment contracts allow you to give notice and suspend your
services until a breach or disputed matter is resolved. If this is not done in a
timely manner, the contract can be terminated.

If you terminate a contract, weigh up the risks of not working again for this
client. You must also be prepared to deal with any reputational implications,
and have a response ready if there is any adverse publicity, which your
aggrieved former client may raise against you.

Financial key performance indicators

It is important to understand the financial key performance indicators and
their implications for your business. Adopting a professional approach to
financial management is crucial for ensuring a successful and thriving
business with longevity. You should keep track of these indicators for your
business. Keep them up to date, review them frequently and promptly act on
what they are showing you. The key indicators of financial performance are
as follows:

Turnover - The total amount of money that your business makes

(income), generally measured over a year.
Profit - The difference between your total income and your costs in
generating that income. If your costs exceed your income, you will
have a negative profit, otherwise known as a loss. Profit is not always
easy to determine, and the different forms of profit are often
misunderstood.
Gross profit - The margin you make after you have deducted all your
fixed operational costs from your total income. These costs would
include salaries paid to employees, but not dividends or bonuses paid
to directors, partners or share owners. They also do not include tax
payments or financing costs, such as interest on loans, or any money
you need to retain for planned investment for your business or to build
and maintain a cash reserve fund (to maintain cash flow or cope with
possible rainy days). If all these other costs are added to the direct
business costs and then subtracted from your total income, this gives
you your net profit, which is a better predictor of future cash flow and
the ongoing viability of your practice. Therefore, it is a key indicator
to be aware of and regularly monitor.
Cash - The money you currently have in your bank account. The
amount of cash you have determines your ability to pay your bills
(liabilities).
Cash flow - The flow of money into or out of your business. The rates
of flow, positive and negative, can fluctuate dramatically. To maintain
their cash flow, many businesses need an overdraft facility or loan
from their bank, or use more expensive short-term credit facilities.
Going beyond the limits of available and affordable credit can be
disastrous for any business or individual. Your business may have
enough work to be profitable in the long run, but if you have not
received enough income into your account, you may run out of cash
and be unable pay your immediate costs. This is likely to be terminal
for your business. Businesses do not go bust because they are not
profitable and not making money. They go bust because they run out
of cash. One in three businesses in the UK fails within its first three
years, and in nearly all cases it is because the business runs out of
cash. Understanding your cash flow and being able to predict and
manage upcoming cash surpluses and cash shortages is crucial.10 If
you can foresee a possible cash shortfall approaching in the future, you
must take prompt action by bringing forward income payments,
delaying the payment of liabilities, temporarily increasing your credit
limit with your funder, or a combination of these. However, bringing
in more cash does not necessarily mean an increase in profits. As you
grow to generate more cash, your overall costs are likely to grow too.
The focus for financial success must always be on the 'bottom line' -
the net profit margin - and on keeping the cash flowing.
Liquidity and current ratio - Measures a company's ability to pay its
short-term obligations (linked to cash flow). The current ratio is
calculated using the two key figures that are available on a company's
balance sheet, by dividing the company's total current assets by its
total current liabilities. An ideal figure is between 1.5 and 3. If the ratio
dips below 1.5, consider it an early warning. A ratio of less than 1
indicates that there is not enough cash coming in to cover the bills.
Any business needs to be aware of its ability to pay its liabilities.
Tracking this figure regularly can give advance warning of business
cash flow problems and that remedial steps may be needed.
Work in progress - The value of the work you have done to date but
have not yet invoiced for. Work in progress is a key indicator for any
business that is primarily selling its people's time. It is the equivalent
of the value of stock in hand for businesses that make or sell products.
It requires an accurate assessment of the value of the work you have
completed as a proportion of the fees you are due for the whole
amount of work. Just because you are halfway through the time and
resources allocated for a particular piece of work, it does not mean
that you have completed half of this work or generated half of the
value in it. You may be behind, or even ahead, of schedule. It is
important that you accurately assess the true amount of work
completed, otherwise it will distort your work in progress figure. The
objective is to keep the value of work in progress as low as possible,
which can be achieved through prompt and frequent invoicing.
Debtors - Money you have invoiced for but which has not yet been
 paid. Obviously, you want to keep the amount of debt to a minimum
to manage your cash flow. A good way of monitoring debt is to
measure debtor days. This is the average number of days between the
date of invoicing and the date the business receives the money. This
can be measured for individual clients, so you can focus on the clients
that take longer to pay and chase their payments. You can also factor
it into your cash flow calculations for any future jobs with those
clients.

The following simple example will help you to understand the importance of
cash flow and work in progress for any professional consultancy practice,
particularly one starting out in business.

UNDERSTANDING CASH FLOW AND WORK

IN PROGRESS
A good client asks your practice to design a £2 million project.
You agree a percentage fee of 7%, which would give you
£140,000.
The practice has overheads (rent, light, insurance, etc.) of £30,000
a year, has a single architect partner and employs one junior
architect.
In the first three months of the project, the practice works
diligently on the design, during which time it spends £7,500 on
overheads and £23,000 on the two salaries and taxes.
The practice invoices £50,000 for the design stage, as agreed in
the fee schedule. This is very profitable: costs of £30,500 vs
income of £50,000.
The client typically has 30 days to pay, but is a little late in
paying the invoice (developers have cash flow problems too).
Meanwhile the practice carries on working on the next phase
and incurs another £20,000 of costs plus £2,000 expenses while
 waiting to be paid for the design stage.
The amount of unpaid work (known as work in progress or lock-
up) now totals £52,500. Even after the client's cheque arrives, you
will still have spent more cash than you have received so far.

The amount that you have to pay out (on costs and expenses) before you
receive payment from the client is known as working capital. Business
will always have to bear this burden so you need to be prepared and
plan for it. For this simple example, the business needs £60-70,000 of
working capital and this requirement will increase as the business
grows. Businesses should generally have access to working capital
equivalent to around three months' turnover, preferably as cash in the
bank or maybe through a borrowing facility with a bank or funder.

'Cash is king', so produce regular cash flow forecasts and take steps
immediately if you see a problem ahead. Banks will respect early action.
It shows that you understand your business, which will give them
confidence in you. If you put off contacting your bank until you don't
have enough money left to pay your wages bill, they will not be
impressed!

Actively manage your customers and suppliers. Ask for stage payments,
and be prepared to negotiate up front. Keep a close eye on debtors, and
actively manage slow payers. The costs of some of your overheads can
be spread monthly or quarterly to help cash flow. Take particular care
when the business is growing because it exacerbates the amount of work
in progress. Accountants call this 'overtrading', which is when there is
insufficient working capital to pay the increased costs generated by the
growth in the business.

And finally, get a good accountant. If an accountant wanted to build a

house, you would strongly recommend they use an architect. You would
argue, correctly, that you would get a better job and it would probably
save them money and create more value. So why would you scrimp on
 professional and tax advice? Choose your accountant carefully, find
someone with whom you are happy, who will give you good business
advice, as well as help you to complete the tax returns for your business.

Taxation
When considering buildings, development and construction, the client should
be advised to consult a tax professional before doing anything. Tax
arrangements often need to be made in advance, and not doing things
correctly or at the right time may result in significant additional and
avoidable tax liabilities being incurred. Any professional, particularly an
architect, should be aware of the principles of taxation relating to their line of
business, and be able to make their clients aware of these issues, but should
also advise them to get professional expert tax advice.

Here are two typical examples of how taxation affects simple residential
development projects and how your clients could save significant amounts of
tax through thoughtful tax planning.

EXAMPLES TO ILLUSTRATE THE EFFECT OF

TAXATION

Developing part of a garden

A client decides to build a house on part of their garden, to provide a

nest egg for the future. The building plot gains planning consent and is
now estimated to be worth £200,000, an increase of £170,000 for a piece
of land that was previously the client's vegetable patch.
 Because it is part of the client's main residence, any gain is currently
exempt from Capital Gains Tax (CGT). However, had the plot been sold
to a developer first, before planning consent was secured, no shielding
would have been available and tax at 28% would probably have been
payable on the gain, amounting to £47,600.

Retirement

The same client wants a nest egg because they are about to retire. Before
retirement, the client earned £65,000 a year, but their pension will be
£30,000, and they plan to retire at the end of March. You apply for
planning consent in January, it is granted in March and the tax year
ends on 5 April. However, if you had delayed the application for
planning consent until April, the CGT bill would have been reduced by
£17,000, because the client would have become a basic rate taxpayer.

These two examples are simplified, and you do not need to know the detailed
rules of taxation, which change frequently, but you should have an awareness
of the basic types and principles of taxation. The information in this chapter is
intended to assist in developing that awareness, but it does not make you an
expert on tax. The professional thing to do is always to advise your clients to
seek the expertise of a tax professional to ascertain and optimise the tax
implications for their project.

Taxes, charges and grants applying to the building

Value Added Tax (VAT) - The most important tax relating to

buildings is VAT. In the majority of cases VAT must be added at the
current rate of 20%, but there are important exceptions, including new
building construction, buildings for disabled people or building your
own home. A reduced rate of 5% can apply if installing energy saving
 products and for certain work for people aged over 60. There are also a
wide range of other exemptions for certain communal and charitable
buildings, certain conversions for housing associations and protected
buildings.
Community Infrastructure Levy - Most new development - creating
a new building or adding a floor space of 100m2 or more (net) - is
potentially liable for a levy of around £80/m2. A wide range of
exemptions exists, including residential annexes and extensions, self-
build social housing and charitable development, but the exemption
has to be applied for and obtained beforehand and a commencement
certificate issued.
Specialised grants - Grants exist to encourage people to develop
buildings in a way that helps the government to meet a wider goal,
such as an environmental or energy efficiency target. The
incorporation of plant, machinery or materials that qualify for a
subsidy can be a welcome boost for your client. It can also help the
building to meet BREEAM or other standards.

Taxes applying to the client, their business and your business

A complex range of different taxes will apply to the client and may have an
impact on a project. These include the following:

Capital Gains Tax

Income Tax
Corporation Tax
Inheritance Tax
Stamp Duty Land Tax - the application of this tax depends on the
particular circumstances of the purchaser and the purchase: Is it a
second home? Is it a first purchase?
Form of practice

Most practices now operate as limited liability companies, including sole

traders and previous partnerships. The main reason why practices do this is to
reduce their exposure to personal liabilities and to take advantage of certain
tax concessions. The relative tax and legal advantages of being a sole trader,
partnership, limited liability partnership, limited company or employee
ownership trust are always changing, based on government's changing budget
proposals and political priorities. Deciding on the most appropriate financial
and legal structure for your practice requires careful consideration, with
expert advice, and the choice needs to be reviewed regularly.

Traditionally, professional practices had to be partnerships without any limits

on liability, due mainly to the rules set by the professional bodies. But that
changed from the 1980s, with the increased commercialisation and reduced
protection of the professions.

Partnerships are made up of individuals (partners) who are jointly and

severally responsible for all of the partnership's actions, with unlimited
personal liability. Setting up a partnership is relatively easy, but adding a new
partner, or retiring an existing one, is a complex operation and involves the
reallocation of past and future liabilities between the different partners. The
partners all have 'joint and several' liability, which means that if a claim
against the partnership exceeds the limit of the partnership's professional
indemnity insurance cover, then all or any of the partners could be pursued to
recover any additional liabilities from their personal assets.

Limited liability companies protect the directors from being made personally
bankrupt by limiting their personal liability in the event of insolvency or a
catastrophic claim on the company. As a director, you would not be liable for
the negligence of other directors (unlike in a partnership), but you cannot
avoid liability for your own personal negligence. You may lose your practice
and the capital invested in it, but your personal assets cannot be used to pay
the company debts or excess damages (unless you have provided a personal
guarantee to the company or its funders).

Companies are separate legal entities, where the shareholders and directors
are not personally responsible for the company's debts. A company structure
is a more flexible practice vehicle in which to operate than a partnership and
offers the highest level of protection of personal assets. If you are starting up
in practice, the simplest and easiest way to contain your liabilities is to
commence as a limited company. All companies must file annual accounts at
Companies House, so your financial record becomes public information.

The Limited Liability Partnerships Act 2000 created a new halfway house,
between the traditional partnership, with unlimited personal liability, and the
limited company. Setting up a limited liability partnership (LLP) limits each
partner's personal liability, but retains the essence of a partnership, rather
than a commercial company. Although the collective liability of the partners
can be limited, individual partners can still be pursued at a personal level for
recovery of the LLP's debts.

An employee ownership trust (EOT) is another form of practice structure that

is becoming increasingly popular. It was introduced in 2014 by the UK
Government to encourage more businesses to set up a corporate structure
similar to the John Lewis model and to facilitate wider employee ownership.
In an EOT the employees own all or most of the shares in the company. It
offers several valuable benefits for businesses, their employees and the
owners, including tax incentives, succession planning, employee engagement
and fair profit sharing, rewarding everyone's efforts in building up and
creating value in the business. It can also help to attract and retain talented
employees and create a positive team culture, which makes it well suited to
creative people businesses such as architecture.

You need to have appropriate professional indemnity insurance cover,

whatever the structure of your practice. If you change your practice entity,
you must notify all your existing clients and obtain their agreement to
changing their contract to reflect the new legal structure of your practice.

The decision on whether you should trade as a partnership, an EOT, an LLP or

a limited company is ultimately one that you should discuss with your
solicitor and accountant.

Conclusion

Money really matters. How you handle your finances and the finances of a
project for your client is a key aspect of professional practice. Money is the
obvious and very visible area in which to demonstrate the professional values
of the architects' ARB and RIBA codes of honesty, integrity, competence and
relationships. This also builds the vital professional components of trust and
respect with your client, the project team and your work colleagues. Getting it
wrong is a main cause for professional misconduct and contractual claims
against architects. If you know your value and how to be profitable and
manage your finances carefully, you can have a rewarding professional
career.

Endnotes
1 [Link] compensation data software.

2 RIBA. 'RIBA Jobs Salary Guide 2021' (London: RIBA, 2021). Available at:
[Link] [accessed
23 August 2021].

3 Architects Council of Europe, The Architectural Profession in Europe 2020: A Sector Study (Brussels:
ACE, 2021).

4 RIBA. 'Gender Pay Gap' (London: RIBA, 2020). Available at:

[Link]/about/equalitydiversity-and-inclusion/gender-pay-gap [accessed 23 August
 2021].

5 RIBA. 'The RIBA's first meeting with Future Architects Front' (London: RIBA, 2021). Available at:
[Link]/knowledge-and-resources/knowledge-landing-page/riba-meeting-with-
future-architects-front [accessed 23 August 2021].

6 RIBA. A Client's Guide to Engaging an Architect (London: RIBA, 2000).

7 Farrall, P. and Brookhouse, S. Good Practice Guide: Fees (London: RIBA, 2021).

8 RIBA. RIBA Professional Services Contracts 2020 (London: RIBA, 2020). Available at:
[Link].

9 Construction Industry Council. Novation Agreement - ab initio (London: CIC, 2018).

10 Office for National Statistics. 'Business Demography, UK: 2019' (ONS, 2020).
4
Professionalism at work with the law
DOI: 10.4324/9781003231462-4

Professionalism is the best and cheapest lawyer

A core element of professionalism is understanding, applying and complying

with the law. It is certainly unprofessional and dangerous not to be aware of
the legal principles that control the provision of professional services, such as
duty of care, copyright and contract law, and basic employment law. A built
environment professional also needs to be conversant with the legislation
relating to buildings, particularly that related to planning and construction.
But even more important than awareness is compliance with these legal
principles.

Legal and contract issues are covered in great detail in many law books and
other RIBA guides, such as the. Architect's Legal Handbook and Law in
Practice.1,2 This chapter focuses on gaining an understanding of the key legal
principles, their implications and how to comply with them by acting
professionally, thereby mitigating your risks.

Risky business

The High Court deals with proportionally more cases arising from the
construction industry than from other industries. Although negligence claims
are rare, the risks for architects are high. Their dual role of design team leader
and contract administrator makes them responsible for coordinating design
and construction work by other people. Architects are also in the front line for
insurance claims made by clients, as investment costs and development risks
are high and projects are of great importance to clients and their businesses.

The value of successful insurance claims against architects, and the relative
cost of their professional indemnity insurance premiums, tends to be lower
than for other built environment professions, such as structural and services
engineers. Professional conduct and negligence cases against architects are
also relatively rare, no doubt because of their professionalism.

Apart from the usual business risks of finding work, getting paid and making
a profit, architects may find themselves facing legal claims for negligence,
breach of contract, non-compliance with legislation, building defects and
development losses, or even criminal charges for health and safety breaches.
Legal claims can come not only from clients, but also from employees,
building users and third parties who may be affected by your actions, or lack
of them. All of these can result in expensive claims, fines or, in extreme
circumstances, prison sentences, and carry the risk of being struck off by the
ARB or the RIBA for unprofessional conduct. Even if you are innocent,
defending legal actions is expensive and time consuming. It is best to avoid
getting into this situation by being fully aware of the law, carefully managing
your risks and maintaining a high level of professional conduct. Legal risks
are avoidable, or can be mitigated to a minimal level and cost, if you
understand and follow the law as it applies to your role and responsibilities.

Duty of care
The primary obligation of any professional is their 'duty of care' to both their
client and the wider public interest. This is a very different legal concept from
the more familiar principle of 'fitness for purpose' (which is discussed below).
This can be simply explained as the difference between brains (applying
knowledge to provide a service) and beans (producing and providing goods).
This results in two very different obligations: of professional 'negligence' and
a 'fitness-for purpose' warranty or guarantee.

If you buy a can of baked beans from a shop, you expect it to be exactly what
it says on the tin: edible and even tasty. If it is not, you have a legal right to
receive either a replacement can containing the correct product or a full
refund and, possibly, compensation for any costs or inconvenience you have
incurred because of the faulty product. These could include the costs of your
travel and the time spent returning it to the shop and compensation for your
ruined meal. You have a warranty or guarantee. In other words, the can of
baked beans must be fit for purpose. This is the legal principle for the supply
of all goods and services.

However, if you require your brain to be fixed by a lobotomy, by using the

professional services of a brain surgeon, it sets up a different type of legal
obligation. There is less certainty that the medical treatment will be
completely successful. You cannot take your brain back to the shop and have
it replaced, in the same way as you can with baked beans. The brain surgeon
cannot provide a guarantee, they can only use their best endeavours and
specialist skills to make the treatment as successful as possible. In other words,
they only owe you a 'duty of care'. You could only sue the surgeon for
negligence if they have not been as skilful and careful as you could reasonably
expect a qualified brain surgeon to be. This legal obligation of duty of care
applies to the provision of all professional services.

An architect is required to exercise 'reasonable skill, care and diligence' in

performing their services. Your formal contractual relationship with the client,
who may be the contractor on the building project, will define this duty of
care. The contract may also extend this obligation - so that you also have a
duty of care to others - through the application of 'third party rights' or via
collateral warranties. These create contractual obligations, determined under
contract law. But you also have similar obligations to others who you do not
have a direct contract with but who may suffer damage or loss because of
your possible negligence. This public interest obligation is created under
'common law' or 'tort'. A breach of legislation can also be negligence, which is
a failure in duty of care to the state and punishable by the state under
criminal law.

There are three different types of legal obligation, all of which create a duty of
care for providers of professional services:

contract law (contract)

common law (tort)
criminal law (legislation).

If something goes wrong with the building you have designed, or there is a
breach of a contract you are party to, it is not necessarily your fault or due to
a failure in your duty of care. It may be the fault or others or due to
something beyond your control or knowledge. If you have behaved
professionally, you will have a good defence against any complaint or claim of
negligence. In addition, for any legal claim to be successful, in contract, tort or
criminal law, there must have also been a foreseeable loss or harm directly
suffered by the claimant.

Duty of care in RIBA contracts

The RIBA Professional Services Contract 2020 (clause 3.1)3 precisely describes
the duty of care as:
In the performance of the Services and discharging all the obligations under the Contract, the
Architect/Consultant will exercise the reasonable skill, care and diligence to be expected of an
Architect/Consultant experienced in the provision of such services for projects of a similar size,
nature and complexity to the Project.

The key words, shown in bold above, are 'reasonable skill, care and diligence'.
These should be used, without alteration, in any form of appointment
contract, as all architects' professional indemnity insurance cover is based on
this wording, which also applies to other professions and has a precise legal
meaning, determined by many years of case law judgements. Changing the
words, or qualifying them in a particular way, may mean that your insurance
cover is void and your contractual obligations for 'duty of care' have been
greatly increased. You should check this with your professional indemnity
insurance provider or legal adviser.

The reference in the clause to projects 'of a similar size, nature and
complexity' should also not be altered in any appointment contract. Implying,
or specifically stating, that the consultant has specialist knowledge or
expertise, or that the project requirements are particularly elaborate in some
way, will raise the expectations for the duty of care. It is important to retain
this statement in any appointment contract, to clearly separate the contractual
duty of care from the obligations of common law standards and the Supply of
Goods and Services Act 1982.

Importantly, the RIBA Professional Services Contract 2020 (clause 3.1) goes on
to say:
... the Architect/Consultant's duties and obligations shall be deemed to be subject to the exercise of
such reasonable skill, care and diligence and nothing contained in this Agreement or elsewhere shall
be construed as imposing on the Architect/Consultant any greater duty than the exercise of such
reasonable skill, care and diligence.

This may sound pedantic or tortuous, but it does usefully prevent the duty of
care from becoming more onerous or creeping towards more onerous 'fitness
for purpose' type obligations.

This important issue is also covered in the chapter on clients (Chapter 2).
Many bespoke appointment contracts, or alterations to the standard RIBA
contracts, try to contractually raise the bar for this duty of care. This should
be determinedly avoided, particularly if it voids the architect's professional
indemnity insurance cover, which would be in neither the architect's nor the
client's best interests. It is important to check appointment contracts carefully
for the expected or implied duty of care. Look out in particular for any
performance guarantees or warranties, which may relate to the building's
specification or to the achievement of a particular deadline or outcome, such
as planning permission by a particular date or for a specific amount of
development. If in any doubt, refer the proposed appointment contract to your
legal adviser or insurance broker for checking before you sign it.

ORIGINS OF PROFESSIONAL NEGLIGENCE:

THE SNAIL IN A BOTTLE OF GINGER BEER
The development of the legal concept of professional negligence is all
due to a decomposed snail found in a bottle of ginger beer. This is a true
story that is so uniquely bizarre that you could not make it up. It is the
famous and memorable legal case of Donoghue v Stevenson (1932), better
known as the 'Snail in the Bottle' or 'Paisley Snail' case.4

In 1928, Mrs Donoghue's friend bought her a ginger beer from a cafe in
Paisley, in Scotland. She had consumed about half of the ginger beer
when she poured out the remainder of the contents of the bottle, which
was made of dark opaque glass, into her glass. To her horror, she found
the decomposed remains of a snail in the glass, causing her stress, and
later she became ill.

Mrs Donoghue had no direct contractual relationship with either the

cafe owner or the manufacturer of the ginger beer. Therefore, she could
not make a claim through any breach of a contract. So, she issued
proceedings against Mr Stevenson, the manufacturer, for negligence, but
the law of negligence at the time was very limited and only applied if
there was some established contractual relationship. This was
increasingly thought in legal circles to be too limiting and unfair. Mrs
Donoghue's case was seen by lawyers as an ideal test case to change the
law. Over four years this case gradually climbed its way up to the top of
the UK's legal ladder, the House of Lords.

The House of Lords eventually found in favour of Mrs Donoghue and

held that the manufacturer did owe a duty of care to her, which had
been breached, because it was reasonably foreseeable that failure to
ensure the product's safety could cause harm to a consumer of their
product. However, the primary legal principle that this judgement
established, and which the case is best known for, is the 'neighbour
principle'.

In his judgement, Lord Atkin cited the biblical rule to 'love thy
neighbour' and established that you 'must take reasonable care to avoid
acts or omissions which you can reasonably foresee would be likely to
injure your neighbour'.

This is the key legal case that led to the creation of the legal concept of
'negligence'. It established the general principle whereby one person
would owe a 'duty of care' to another person, even where there is no
contract between them. This was an evolutionary step in the common
law for 'tort' - it separated negligence from just contract law.

Subsequent significant legal judgements from the House of Lords -

Hedley Byrne v Heller (1964) and Caparo v Dickman (1990)5 developed
the definition of professional negligence by establishing the following
legal elements or tests to prove negligence:

1. Duty - The defendant has a duty of care to the claimant (the

neighbour principle),
2. Breach - The defendant did not take reasonable care to fulfil
that duty.
3. Cause - This breach directly caused some form of harm or loss
to the claimant, due to the defendant's actions (or lack of
action).
4. Proximity-The harm/loss caused by the breach was reasonably
 foreseeable by the defendant.
5. Damage - There is a value to the harm or loss suffered by the
claimant, due to this breach of care.

It is hard to overemphasise the impact of the 'Snail in the Bottle' case on

professional negligence for architects. It put Paisley, near Glasgow, on
the international legal map and its significance has been recognised by a
statue of Mrs Donohue being erected in the centre of the town, near the
site of the cafe where the bottle of ginger beer was sold and consumed.

Fitness for purpose

Fitness for purpose obligations are hard to avoid entirely. This is particularly
the case for residential projects, because the Defective Premises Act 1972
requires that any residential building has to be fit for habitation. This
obligation is really aimed at the owner or landlord, but it can include the
designer, if the designer's duty of care is not carefully described in their
appointment contract.

This type of obligation can also arise in design and build contracts. The
contractor's contract is likely to contain fitness for purpose clauses, to ensure
the building will meet a prescribed level of quality and performance. These
obligations are often passed on to consultants working for the design and
build contractor, as part of their appointment contracts - in some seemingly
innocuous clause requiring the consultant to comply with the construction
obligations of the contractor. This should be resisted.

Any proposed appointment contract should be carefully checked for the

inclusion of such clauses. This sort of warranty obligation should not be
transferred to your appointment contract. If they cannot be avoided, they will
certainly need to be precisely prescribed in some way to comply with your
professional indemnity insurance cover requirements and checked by your
insurer.

The common law test for negligence provides that a professional person is not
negligent if their work is of the same standard as that of another reasonably
competent member of their profession, but this obligation can be increased by
a contract clause. Ultimately, the court will make a judgement on whether an
architect, working on this type of project, could reasonably have been
expected to know about, decide on or identify a particular defect or issue.

By contrast, a fitness for purpose obligation imposes a higher duty, such as an

absolute contractual obligation to achieve a specified result. This sort of
breach would not require proof of negligence. In 2017, the Supreme Court
ruled that any fitness for purpose requirements in the technical requirements
of a contract must stand, despite any other contractual obligations regarding
the exercise of reasonable skill and care.6 All the more reason to carefully
check and negotiate, if necessary, all the clauses in any appointment contract.

Third party warranties

A contract is usually between two parties - in the case of a building project,
between the client and the consultant or contractor. However, the contractual
obligations can be extended to other parties, such as the project's funders or
the building's users or future owners. This can be done either by including
them as 'third parties' in the contract or by setting up separate collateral
warranties. The Contracts (Rights of Third Parties) Act 1999 provides for
additional parties to be added to a contract, which would extend your
contractual duty of care to more people, although you may already owe a
duty of care in tort to these parties.

Extending your professional obligations and liabilities for the project and its
project team, can be quite burdensome. Additional obligations must be
checked carefully, preferably by your legal adviser and professional indemnity
insurance broker. Try to ensure that any extended contractual duties or
collateral warranties are similar for the other co-consultants, subconsultants
and contractors working with you on the project. Check and confirm this with
your insurers before signing any contract that includes third party rights or
has separate collateral warranties.

If you have to include additional parties in your professional services

obligations, it is better and simpler to do this by adding named third parties to
your appointment contract. As collateral warranties are separate contracts,
they could have different and more onerous terms than your main
appointment contract and therefore should be avoided. However, if you have
to enter into a collateral warranty, you must carefully check that it has exactly
the same (or lesser) level of obligation, duty of care and time limits as your
main contract. Involve your legal advisers and professional indemnity insurers
with this.

If you are taking on additional risks and obligations, it is legitimate and

sensible to negotiate an additional fee. These rights will be of value to the
other parties, but will potentially raise the cost of your indemnity insurance
premium, not to mention increasing the risks to you.

Copyright
The general principle of copyright is that it is owned by the creator/author/
designer of the product or creative outcome. For an architect, it applies to
your designs, drawings and specifications, and enables you to control what
you have created and to reuse or reproduce it. It prevents your client from
changing your design or using it for another project without your permission.
Such permission could also require an additional fee to be paid to you.

A client has an implied licence to use your design, but for the sole purpose for
which they have paid you a fee. This is clearly set out in the terms and
conditions of the RIBA Professional Services Contract. The RIBA contract
provides the client with a licence to use your material, but only for the sole
purpose or project for which it was intended, and upon payment of the agreed
fees. This licence may be suspended or revoked if any due fees have not been
paid, which is a very powerful incentive for the client to pay your fees on
time. If the client does not pay all your fees, or breaches the related terms of
your appointment contract, you can take out an injunction against your client
to stop work on the project until the dispute has been resolved.

Copyright is a valuable asset. Many clients realise this and insist on

transferring the ownership of your copyright to themselves, as part of the
appointment contract. This should be resisted, and copyright should certainly
not be given up lightly, without negotiating reasonable compensation via an
enhanced fee at the outset of the project.

There are many implications of selling your copyright to someone else. The
obvious one is that if your client were to use your design again for another
development, you would not gain any benefit from it, and you may still have
liabilities for the design. Giving up copyright also restricts your own use of
the design in the future. You would need the permission of the new copyright
owner to use the design again (including any standard details or specification
clauses, which you may want for your other projects), and this could come at
a cost.

Therefore, if you do agree to transfer your copyright to your client (perhaps

due to pressure from the client), ensure that it is restricted to specific items,
such as the general arrangement design specific to the project. It should
exclude anything that you may wish to use again, such as standard details,
specification notes or BIM protocols and software. You could also retain your
right to reproduce the elements of your design for which you have
relinquished the copyright without having to pay any fees to the new owner.
It is advisable to include in your appointment contract a clause that
indemnifies you from any liability for any other use, or misuse, of your
design, and the selling on of your copyright material by the future owner to
anyone else for use on another project.

The client generally has the right to use your design, for the intended purpose
and project, if the agreed or reasonable fees for it have been paid, up to the
completion or termination of your services, in accordance with your
appointment contract. The client is also entitled to use another consultant, or
design and build contractor, to complete the project and develop your design.
The client could sell on the site or building to another party with the benefit
of your design, without your further involvement in the project. The legal
principle is that the client has paid for the design and complied with the
contract conditions you agreed, and therefore has the right to use it for its
intended purpose.

If you have agreed a reduced fee with your client for the initial stages of the
project - say, up to gaining planning permission - make sure there is a clause
in your appointment contract that states your services will be retained for the
ongoing stages, or that you will be paid a compensatory additional fee if you
are supplanted, either by your client or whoever takes on the project. You are
in a stronger negotiating position to agree this additional protection of your
copyright at the onset of the project, before your appointment contract is
signed.

Although copyright is a powerful and valuable tool, it is notoriously difficult

to prove a breach of your copyrighted design. Case law on copyright shows
that even a minor change to your design by another person would be enough
prevent you successfully claiming for breach of your copyright.

A way of reinforcing your copyright is to include the copyright symbol (©) on

all your drawings and documents, with a brief statement naming your
practice as owner of the copyright and warning that the drawings must not be
reproduced in whole or part without your written permission. The symbol
identifies your copyright ownership and brings it to the attention of anyone
using the information.

When employing staff, including contract self-employed staff, ensure that all
employment contracts specify that you (or your practice), as the employer,
retain the copyright of all work produced by employees during their term of
employment in your office.

Avoiding and managing claims

Most negligence claims against professionals are made by clients, which is

why it is important to maintain a good and professional working relationship
with yours. The key is to keep in close contact and frequently communicate
with your client, so you can become aware of any issues as they arise and deal
with them promptly, before they can grow and develop into a legal dispute.

It is essential to have a regular client feedback system, which acts as an early-

warning system to alert you to any client dissatisfactions, and a complaints
handling procedure, in case an issue leads to a complaint. A client feedback
system also provides a helpful record, should a dispute materialise, and
demonstrates that you had kept a professional eye on things and that you
react quickly to issues, even if the client has not previously alerted you to
them This can be very useful evidence in handling any claim or dispute
resolution.

Almost every architect's practice receives at least one negligence claim during
its lifetime, so do not feel persecuted or devasted if it happens to yours. You
can also be dragged into a negligence claim by others; for example, if there is
a claim against the contractor or another consultant on the project and you
are apportioned part of the responsibility. Many claims are unsubstantiated,
and may even be a device for the client to avoid paying or to reduce the fee.

There is no definitive data on the claims rates for the industry or the various
professions, as many claims are dealt with and settled confidentially between
the parties. However, it is estimated that fewer than 25% of claims against
professionals, or their practices, are successful. Successful claims are often
settled at a much lower rate than the original claim, but the cost of defending
them can be hefty, not only financially, but also in time, reputation and
personal angst.

Your professional indemnity insurer should provide a claims handling service

- ensure that your insurance will adequately cover you for this. If you are
successful in defending a claim, some of your costs may be reimbursed as part
of the settlement. But this rarely, if ever, covers the full cost of defending a
claim, or compensates you for the stress and sleepless nights it may have
caused. So, the answer is to avoid facing any claims, if at all possible.

If a client considers you have breached the contract or been negligent in

carrying out your duties, they have up to six years after the end of a contract
in which they can make a claim. This period is extended to 12 years for
breaches of contracts that have been executed 'under seal' as a deed.

For negligence claims, the time limit is six years from the date on which the
negligent action or resultant damage occurred or was reasonably discovered.
This is covered by the Limitation Act 1980. The date when the clock starts
ticking on the time limits for making contractual claims is not easy to
ascertain, particularly for projects that include construction stages. It is
generally not the date of the end of the original contract. Unless the contract
specifies otherwise, the time period usually starts when the final certificate for
the contract has been issued. If there are unresolved defects, this can be some
time after the end of the defects liability period. This can easily be two or
more years after the date of practical completion.

Latent defects
Some construction defects caused by failures in design, workmanship or
materials might not become apparent or readily detectable (even with the
exercise of reasonable care) until many years after completion of the project.
If they were not identified as part of the contract, either during construction
or within the defects liability period, they are known as 'latent defects' (as
opposed to 'patent defects', which are apparent). There has been much case
law and some legislation over the years regarding latent defects, particularly
relating to foundation failures and subsidence.

There is also a limitation period within which the owner or successive owners
of a building can make a negligence claim (under tort, not contract), which is
three years from first becoming aware of a latent defect, and an overriding
long-stop of 15 years from the act of negligence that resulted in damage.

Clients can also use collateral warranties and building warranty schemes with
their contractor and consultants to create an extended contractual obligation
for latent defects. Alternatively, this can be achieved by including third party
rights in a contract. This effectively gives similar contractual rights and duty
of care obligations to other identified parties, who are not directly part of the
contract, usually the project's funders, successive owners or tenants.

Different rules apply for claims of personal injury or illness, which could be
made by an employee or a building owner or user; however, such claims are
rare. The person has up to three years to make such a claim from when they
became aware of the injury or illness, but this period can be extended by the
courts, To guard against such claims, check that your business and
professional indemnity insurance covers you for such risks.

Compliant contracts
Clauses in contracts must be legal and fair. The courts can overrule unlawful
clauses and strike them out of a contract. This may affect how other parts of
the

contract operate, so it is best to avoid them in the first place. This is covered
by the Unfair Contract Terms Act 1977 - and additionally, for consumer
clients, by the Consumer Protection Act 1987 and the Consumer Rights Act
2015. The Housing Grants, Construction and Regeneration Act 1996 (known as
the Construction Act) forbids the use of certain clauses, such as 'pay when
paid' or 'pay when certified', and requires provisions for adjudication to be
included in construction contracts. The law is complicated on the issue of
unfair terms and conditions in contracts, particularly for professional services
and construction contracts. All the more reason to use compliant standard
forms of contract and to seek expert legal advice if you are asked to use a
bespoke or amended standard contract.

Statutory breaches and criminal charges

There is a plethora of legislation that affects the design and construction of
buildings, as well as the provision of professional services. It covers planning
and building, health and safety, consumer rights and the provision of sen/ices.
Breaches of a statute or common law are classified as unlawful acts - crimes
punishable by the state. Some carry hefty fines and custodial sentences. You
cannot insure yourself against a criminal conviction, and if you are found
guilty the ARB and RIBA may take action to censure or expel you from the
register and Institute, particularly if the conviction reflects on your
professional integrity and reputation. This would be the case where there has
been dishonesty, fraud or abuse, even if it was not directly related to your
professional practice.

Statutory breaches can trigger a claim for negligence from your client or
professional body. The best way to avoid this is to be aware of the law and
your statutory obligations. As soon as you become aware of any action of a
client, contractor or co-consultant that has caused a statutory breach, or even
the prospect of one, it is your duty to inform that party, preferably recorded in
writing.

Proposing corrective action to avoid or remedy this breach would also be the
professional thing to do. Depending on the severity and type of the statutory
breach, it may also be necessary to inform the relevant statutory authority
promptly, and to demand that work is stopped immediately and not resumed
until the breach is remedied. This is definitely the case for health and safety
issues, where people's wellbeing and lives may be at risk. If you do not take
these actions promptly, you could leave yourself open to a legitimate claim for
negligence.

Breaches of planning legislation appear quite commonly in professional

negligence claims. They tend to relate either to unlawful development (i.e.
without the necessary approvals) or to non-compliance with planning
approvals. This particularly applies to work affecting listed buildings and
development in conservation areas, which have additional statutory
protections. For example, strict controls relate to trees and external works in
these special locations. Generally, all trees in conservation areas are
automatically protected and specific permission is needed to fell or trim one,
and some trees may have specific tree protection orders (TPOs). At the start of
any project, check local authority records to see if any buildings, features or
landscaping have a protected status that might affect your work.

LISTED BUILDINGS
Non-compliance with the statutory protections afforded to listed
building can have serious repercussions. A well-known example relates
to 31 Doughty Street in London. This building was part of a terrace of
ten Grade 2 listed Georgian town houses built between 1794 and 1810. In
1993, consent had been given to a housing association to convert three of
these houses into social housing. Listed building consent had been
 granted to demolish the interiors of nos. 29 and 30 Doughty Street, but
not that of no. 31.

The architect was apparently not aware the consent did not apply to no.
31 and had not been informed by the client. As work progressed, the
local planning authority was alerted by English Heritage that the
interior features of no. 31 had been stripped out. The architect was fined
£2,000. This was the maximum fine at the time, equivalent to about
£4,000 in 2020, but the maximum is now much greater. The housing
association was fined £1,000 plus costs of £5,500 (equivalent to about
£13,000 in 2020). But the costs of restoring not only the interior features
of no. 31, but also the reputations of both the client and the architect,
were much greater. The architect was also sanctioned by the ARB and
the RIBA.

Sadly, there are many more similar examples of this salutary tale. All of
the problems could have been avoided if the architect had checked that
the necessary statutory consents were in place, which is simply done by
checking the publicly available local authority records.

(Source: Planning Week, 14 October 1993.)

Before starting work, ensure that all necessary consents are in place and then
complied with. Do not allow your client to start work, including demolition
and site preparation, before the relevant permissions and notifications are in
place. There are often pre-commencement planning conditions to be dealt
with before work can start on site, which may take some time to complete. If
you think a structure is unsafe, you must inform the local authority at once, as
well as the client and anyone on the site. Advise on any urgent works that
may need to be done to remove the immediate danger, then agree on the
permanent solution.

Health and safety is an area covered by a lot of legislation and legal

obligations, which are likely to change in the future following the recent
Building Safety Bill (developed as a direct consequence of the Grenfell Tower
fire in 2017).7 The Bill includes new criminal charges and creates new roles to
take responsibility for health and safety issues on construction sites. Health
and safety on site is also legislated for under the Construction (Design and
Management) Regulations 2015 (CDM Regulations). Occupational health and
safety, both in your own workplace and in the workplaces you design for
others, is covered by the Health and Safety at Work etc. Act 1974. The design
of access into and within buildings must ensure accessibility and usability for
all people, including those with a range of disabilities.

It is not only a legal duty but also a moral and ethical duty of any
professional, particularly architects, to ensure that all involved in the
construction process of any of their projects fully comply with the applicable
health and safety legislation, to protect themselves, their colleagues and the
end users of their projects.

Health and safety risks are severe and could result in long-term illness, serious
injury or even death. The time limits for claims are therefore far longer than
for negligence or building defects claims. Likewise, the courts can award
much higher damages and fines, and even prison sentences, for breaches of
health and safety law than for other areas of legislation.

Risk management
To adopt a professional approach to practice, it is essential to have and use an
effective risk management system. Risk can never be fully eliminated, but it
can be reduced significantly. Your risk management system should identify,
record and manage risks, including any complaints, business threats, contract
breaches, design errors and project problems, as they become apparent or can
be anticipated. Being able to spot and deal with any issues early and promptly
is a characteristic of being professional and makes good business sense.
Effective risk management is the foundation to good project management and
should be applied to even the smallest projects.

When considering project risks it is usual to think of catastrophic events, such

as a tower crane collapsing onto the building or a major fire on site. However,
the reality is that it is more likely a series of minor events will combine to
derail the project or cause a disaster, such as the changes to cladding
specifications and use of incompatible fire safety protocols that led to the
fatalities in the Grenfell Tower disaster. These risks are determined not only
by the competency and actions of the design team or contractor, but also the
inter-relationships, dependencies and golden thread of responsibility
throughout the project. These are the risks of unintended consequences you
need to consider.

Having identified a risk, ensure the relevant people are informed, particularly
the client and your professional indemnity insurer. Not notifying in time
could give your insurer the opportunity to void your cover for this item. Take
prompt mitigation and rectification action, to reduce your exposure to claims
and losses. Be aware of those risks over which you have no control or that are
unforeseeable and often uninsurable, such as pandemics, economic crashes
and climate change, and seek to cover as many of them as possible in your
insurance. Likewise, advise your client of the potential risks to them and their
project. Even if catastrophic risks are insurable, it may not be financially
viable to have complete cover. Being fully aware and looking out for potential
and unexpected risks is essential.

Understanding the nature of the possible risks to your project is important for
working out how to avoid or mitigate them, thereby enabling you to fulfil
your professional duty of care. Risks can include both an occurrence of a
negative event and a non-occurrence of a positive effect. Simple examples
might be late delivery of key materials, windows arriving on site being found
to be the wrong size or screeds not drying on time. When considering risks, it
is usual to think in terms of likelihood and impact: How likely is it that an
event will occur? How much of an issue will it be if it does occur? Many texts
and resources on risk management are available, which you are advised to
study and apply.

Risks can be assessed and managed by having a comprehensive risk register

for every project. The following box outlines the key principles of using a risk
register as part of a professional approach to risk management.

RISK REGISTERS
1. Risk identification

Identify any risks that might affect the progress and completion
of the project. This is best done by looking at the project and its
processes holistically and imagining what could go wrong.
Getting the project team together to brainstorm the project at
its inception is effective. It is helpful to have a standard risk
register template that can be used for every project, and
reviewing project risk registers from previous projects can
prove a useful memory jogger. Making the identification of
risks an integral part of the project management, such as part of
the critical path on a project, highlights on those elements
which will have the greatest impact if they are late or need
correcting.

2. Risk evaluation

List all the identified risks separately but grouped together by

risk type, in a table or spreadsheet. In the next column, identify
the mitigations for each risk. In the following columns, assess
the possible impact and the likelihood of each risk (these are
often given scores that are then multiplied together to evaluate
the relative importance of each risk).
 3. Risk mitigation

Having identified and evaluated all of the risks, you now need
to manage them methodically. Typically, there are four
approaches to risk mitigation:

Avoid - Risks that have a high likelihood of occurring and

will have a major impact should be avoided. For
example, health and safety shortcuts.
Transfer - Risks that have a high impact but low
likelihood could be transferred or shared, for example
by purchasing insurance.
Accept - For some risks, the cost of mitigating or
removing the risk may be greater than the cost of the
risk occurring. Such risks can be accepted, but they
should still be carefully monitored.
Limit - Some risks can be limited through a combination
of avoidance and acceptance, by taking some avoiding
actions, but accepting the risk that remains.

4. Risk management

Note the mitigative actions on the risk register, confirm that

you are content with the resulting net risks and satisfy yourself
that these are under control. You cannot eliminate risks
altogether, but if you have put effective risk mitigation in place
then the likelihood is that things are less likely to go wrong -
and if they do go wrong, you can be confident that you have a
plan in place to deal with them.

To practise professionally, it is essential to have and use an effective risk

management system. It is vital to remain vigilant about managing your
professional risks, particularly if you are overstretched by too much work,
leaving you with too little time or a lack of resources.

Dispute resolution
There are several well-established formal methods of resolving disputes in the
construction industry or related to professional services. These include
mediation, adjudication, arbitration and litigation. (The first three methods
are known as 'alternative dispute resolution' - or ADR - as they are
alternatives to going to court.) Some forms of dispute resolution are required
by legislation, such as adjudication, which, under Part II of the Construction
Act, must be available in all construction contracts. Most construction
contracts and contracts for professional services contain specific clauses for
the provision of dispute resolution. Dispute resolution is covered in greater
detail in other RIBA guides and other legal publications, so this section
highlights only the key points for a professional approach.

Of course, it is better to prevent issues or complaints developing into formal

disputes in the first place, which is why it is so important to nurture good
client and project team communications and relations. This will make it easier
to identify and resolve any issues amicably as they arise. In case an issue does
develop into a complaint, it is important to have an effective practice
complaints procedure in place to deal with it (see Chapter 2 on clients).

The ARB and the RIBA sensibly recommend to both clients and architects that
they should first try to resolve any differences of opinion or concerns by
direct communication, before even thinking about making a formal complaint.
If this fails to resolve the issue and the emergence of a dispute is unavoidable,
you can look to the various forms of formal dispute resolution. It is better to
start with the less formal and quicker forms of ADR and, if you have to, to
escalate up to more formal and binding methods. The following paragraphs
outline the main methods of ADR, in order of escalation.
Mediation is an informal and voluntary process that uses an impartial
and independent third party to help the two parties in a dispute to
reach a mutually acceptable solution. It does not impose a resolution
and only becomes binding with the consent of all parties. The
mediator provides a formal structure and facilitates communication
between the two parties. The mediator has no decision-making power,
they can only assist in the negotiations. The aim is to help the two
parties in the dispute to reach a voluntary agreement themselves,
which can only become legally binding if both parties formally agree
to the resolution.

Several organisations, including the RIBA, have registers of accredited

mediators from which a suitable mediator can be selected, by mutual
agreement of both parties (there is often a fixed fee for this service).
Mediation is a relatively quick and inexpensive form of ADR, and is a
good place to start in resolving a dispute, but it is only suitable when
both the parties have a genuine wish to settle.

Adjudication is a contractual or statutory procedure for swift dispute

resolution. It is carried out by a third party adjudicator selected by the
parties in dispute. Adjudication decisions are binding, but they can be
referred to arbitration or litigation for a final decision. Adjudication
generally follows a strict timetable, requiring a decision to be reached
within 28 days, and are usually based solely on written evidence
submitted by the parties. The adjudicator can adopt an inquisitorial
role (and may ask for additional evidence to check the facts) and has
discretion in how legal costs are awarded (unless this is excluded by
the terms of the contract).

The Construction Act provides a statutory right to adjudication in

most construction contracts and contracts for architects' services (a
notable exception being a contract with a residential occupier), even
when it is not expressly provided for in a contract. A nominating
 body, such as the RIBA or the Royal Institution of Chartered
Surveyors (RICS), can be specified in a contract, or either party may
apply to a recognised nominating body for the appointment of the
adjudicator.

Adjudication is intended to be a straightforward and speedy process,

without the need to involve lawyers. However, you may also wish to
seek the advice of your legal adviser, particularly in formulating your
written evidence. Adjudication tends to be more costly and onerous
than mediation, but it is generally more cost effective and speedier
than arbitration or litigation.

Arbitration is legally binding and the decision of the appointed

independent arbitrator is final. The arbitrator's decision is enforceable
in the same way as a court judgement, but the decision is private and
not part of any public record. As well as being private, arbitration is
usually significantly quicker and cheaper than litigation. The
arbitration process resembles a trial. The arbitrator hears the evidence
from both sides and can interrogate and seek further evidence, before
giving their decision.
Third party opinion is another, if less common, form of ADR. It
involves an independent expert being appointed on behalf of the
parties to provide an impartial and expert opinion, with
recommendations for the settlement. Third party opinion tends to be
used for disputes over a valuation or technical matter, such as the cost
or performance of a product or service. It can be a speedy process that
is done by mutual consent, rather than as part of the contract terms.

Conclusion
Professionalism entails a high level of rigour and attention to detail as your
conduct is always subject to scrutiny under the law, particularly should a
claim be made against you. Providers of professional services, particularly in
the construction industry, are subject to many, often complex, laws and
regulations. An architect, or any other built environment professional, is not
expected to be a legal expert. However, it is valuable to have an
understanding and overview of the legal context in which you provide
professional services and to be able to advise your client appropriately. Most
of the law, and how it is applied, is common sense, but the detail is key.
Compliance is a crucial part of running a professional and successful practice.
If in any doubt, seek expert legal advice, or encourage your client to do so.

Endnotes
1 Speaight, A. (ed.). Architect's Legal Handbook: The Law for Architects (Oxford: Architectural Press,
2010), 9th edn.

2 Wevill, J. Law in Practice: The RIBA Legal Handbook (London: RIBA Publishing, 2018).

3 RIBA. RIBA Standard Professional Services Contract 2020 (London: RIBA Publishing, 2020).

4 Donoghue v Stevenson [1932] AC 562. The doctrine of negligence.

5 Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465. Assumption of responsibility; Caparo
Industries pic v Die km an [1990] 1 All ER 568. Three stage test.

6 MT Hejgaard A/S v [Link] Climate and Renewables UK Robin Rigg East Ltd [2017] UKSC 59.

7 Ministry of Housing, Communities and Local Government. Building Safety Bill (Bill 139-EN)
(London: HMSO, 2021).
5
Professionalism at work with projects
DOI: 10.4324/9781003231462-5

Good things happen for those who plan

Managing the project

Designing and constructing a building is a complex process. It involves
responding to many different demands and interests, coordinating a wide
range of stakeholders and skills, and working with others on a mixture of
creative, technical and practical issues. There are great risks and uncertainties,
as construction projects are subject to the vagaries of the economic, political,
regulatory and social environments. They require intensive capital investment
with high development risks, often for modest returns. This applies as much to
the smallest and seemingly simplest of building projects as it does to the
largest and most complex project.

The design, construction, use and post-occupancy process is not linear or

straightforward. Turning an idea into a reality is a creative process, with
many iterative thought processes, return loops and dead ends, as different
solutions and options are explored. Construction has a complex and
fragmented supply chain, requiring the many different components and skills
to be assembled from a wide variety of different sources. The process has to
manage change throughout the project, as different opportunities and
challenges arise and alter the original plan. This often has to be done within
demanding time constraints, and where many critical paths affect the
programme and sequencing of activities.

To manage such a complex process requires great expertise on the part of the
designer, coordinator and manager of the project. This calls on the
professionalism of the architect, working collaboratively with the client,
project manager and other design team professionals.

RIBA Plan of Work

A great tool for project delivery is the RIBA Plan of Work.1 It is a

comprehensive and detailed process map that is freely available, widely
established, simple to use and universally applicable to all scales and types of
design and building projects. It is also relevant to many other complex
production processes and projects. The latest version is structured as a
continuous process and circular learning loop, from Stage 0 (Strategic
Definition) to Stage 7 (Use) (Figure 5.1).

This chapter follows the RIBA Plan of Work stages, with an overview of how
to manage a project professionally. It does not attempt to replicate the detailed
guidance on the application of the RIBA Plan of Work stages found in other
books and RIBA practice and project guides2,3 and uses slightly different
terminologies to relate to the professional issues. Instead, it focuses on what to
think about professionally and to prepare for in order to carry out a project
effectively, ethically, successfully and with integrity.
 Figure 5.1: RIBA Plan of Work 2020

RIBA Stages 0-1: Strategic Definition and

Preparation and Briefing

The client's requirements - defining the project

The client's requirements, or brief, is a vital starting point for achieving a

successful project and a satisfied client. The number of problems encountered
on a project - affecting construction programmes, build quality and cost
control - can be directly related to the quality and proper use of the original
brief agreed with the client.

Satisfying your client's and other stakeholders' requirements is crucial for the
success of your project and your client relationship. It is therefore important
that these requirements are accurately and comprehensively captured in the
project brief.
Projects invariably develop and change as they progress and more becomes
known. The project brief therefore needs to be an evolving document that
manages these changes as they emerge. The client's requirements often
change during the project, as many things will not have been known or
decided at the inception of a project, and challenges may arise, such as
unexpected ground conditions, and the client's and market situation may
change. If these happen, the project brief needs to be reassessed, reviewing the
implications for the cost, timing and quality of the project. The impacts and
benefits of these changes for the client, and on your services, will also need to
be considered, as they could affect other members of the project team, the
contractor and, even, funders, insurers and users of the building. The changes
may also require significant alterations to the cost plan and project
programme. The balance of the capital expenditure and the ongoing
operational expenditure throughout the building's life cycle may also need to
be recalibrated, as the outcomes and ambitions of the end product are
developed.

The brief also needs to consider how the progress and performance of the
project will be measured. These metrics can include economic, social and
environmental impact and value targets. There are many systems and tools
already developed to do this, including Design Quality Indicators,4 the
Building in Quality (BiQ) Tracker,5 BREEAM6 and Passivhaus.7

As the RIBA Plan of Work stages progress, the client's brief is confirmed in
the Client Requirements document for the project (Stage 0), from which a
Project Brief is developed (Stage 1) and then an Architectural Concept (Stage
2). It is vital to formally agree and record any new decisions and changes as
and when they happen during the course of the project. All changes to the
original brief should be confirmed, in writing, with the client, and there
should be a formal system for recording any changes and approvals.

The brief should be updated and re-issued regularly, particularly after a

significant change has been agreed. The latest brief (or the relevant sections of
it) should be issued to all the relevant parties, to ensure that anyone who may
be affected by these changes is informed. Each project should have a
client/project brief file, which is a chronological register of all the
confirmations of the client's decisions and updated versions of the issued
briefing documents. There are several useful tips and templates for this in the
RIBA Job Book2 and the Handbook of Practice Management.8

Establishing the brief

It is important for you arid your client to spend as much time and effort as
possible at the beginning of a project to ensure the brief is right, even if you
are both keen to get on with the job. Having a detailed and accurate brief
agreed at the start helps to avoid future misunderstandings and mistakes and
reduces the amount of subsequent change. It also helps you and your client to
define the scope of your services precisely, by clarifying the resources and
recompense you will need to do the job properly and to make a fair profit. All
this reduces the risk of claims and disputes arising, so greatly improves the
chances of maintaining a good client relationship and achieving a successful
project.

Effective brief writing is a specialist skill. On complex projects it may be

worth hiring a specialist brief writer or holding briefing workshops with the
client and their stakeholders. This will not only help to create a more accurate
brief, but also enhance your understanding of the client and their needs,
engage the client stakeholders with the project and help to develop ongoing
working relationships. If the design team is involved, the briefing workshop
can be used to discuss and develop the design strategy for the project and to
agree the methods by which the whole project team will work together to
develop and exchange design information. Instead of the client's brief, the
outcome can be a full 'project implementation plan' (PIP) (also known as a
'project execution plan' (PEP) or a 'project quality plan' (PQP)), which should
be cross-referenced to any BIM or digital execution plan for the project.
Defining the brief

The majority of clients engage in a building project only once in their lifetime,
and many others very infrequently. They may have an idea of what they
want, but this is not necessarily what they need, and they might not know
how to define and achieve their ambitions. Even with experienced and repeat
clients, who may have already prepared a detailed brief for the project, it is
still essential to explore their needs carefully and to record and confirm them
in a written project brief, with an initial idea of the outcome and the likely
costs and time involved. A handy way of doing this is to have a practice
questionnaire, or explanatory leaflet, that describes your services and explains
what is entailed and helps to elicit the client's brief.

In developing the brief, it is useful to have face-to-face meetings with all the
key stakeholders on the project, so you can benefit from their views and assess
whether they concur with what the client wants. At exploratory meetings
with the client, and their key stakeholders, you can show examples of your
work on other, similar projects to gauge their reaction. During this process,
the client's real requirements will hopefully emerge, which may have evolved
significantly from their original thoughts. Use this process to clarify any
uncertainties and to develop as precise a brief as possible. Establish what is
most important to the client. Is it the quality, time or cost of the project? Rank
these key issues according to their relative priorities.

Having a clear idea of the budget and its limits is important. If the client has a
fixed budget limit, it is not worth developing ideas that will exceed this
budget. Developing the brief may expose the fact that the budget is unrealistic
or overly ambitious, and that the client has unrealistic expectations. It is vital
to be honest and clear from the beginning about any concerns you may have
about achieving the ambitions of the brief, particularly the costs. Clients, and
sometimes their consultants, can be swept away with enthusiasm and become
overoptimistic and underestimate the costs, time and risks of a project. Your
client may not, at first, want to hear that their financial expectations are
unrealistic, but they will ultimately value the professionalism you have shown
in considering their value for money and responsibly managing their
expectations.

Consumer clients (that is, clients who are individuals rather than companies)
have the added protection of the Consumer Rights Act 2015. Under this Act,
you will have to formally record that you have carefully reviewed and agreed
the brief, and the terms and conditions of your professional services contract,
directly with your consumer client, and have documentary evidence to prove
this. It is, of course, good practice to do this for all your clients and on all your
projects. This can be done by sending the client a letter, or notes of a meeting,
confirming the process you have gone through with them to agree the brief
and the contract terms for your services.

Even experienced clients, who appoint consultants and develop projects

regularly, may not be as clear about the requirements of a project as they
believe they are. For example, they might not have thought about it from the
point of view of the users, the neighbours, the environment, the planners, or
the contractor and the design team. Your client may even provide you with a
comprehensive brief at the onset, but it is still very useful to go through this
with them in detail, checking every aspect. This is not only to ensure that the
brief is right and that you both understand it correctly, but also to
demonstrate your interest in the client and their project, as well as your
thoroughness and professionalism. Identify and resolve any omissions or in
consistencies; if these cannot be satisfactorily dealt with at the start, before
you agree your fees and appointment terms, ensure they are recorded for
future resolution.

The following checklist outlines the main questions and issues to be reviewed
in developing the client's requirements and the initial project brief. It is not a
comprehensive list, but an indication of what should be covered. Develop
your own form of standard checklist, based on these considerations and the
ethos of your practice for establishing client briefs and your design approach.
Adjust and personalise it as necessary, to include any particular requirements
for specific clients and projects. Producing a bespoke project-specific checklist
demonstrates a high professional level of attention to detail, even if it is
largely based on your standard format.

PROJECT BRIEF CHECKLIST

What are the client's objectives and ambitions?

Key objectives and targets of the client for the project.

Budget and programme.
Funding and tax planning issues.
Own use or speculative development.
Eventual return on investment or site value expected.
Nominated consultants/suppliers/contractors (and if to be used,
who controls them?).
Preferred procurement system.
Risk profile and appetite.
Corporate responsibility and reputation.
Social and environmental ambitions.

What building or outcome does the client require?

Use and occupancy of the building, compatibility with local

planning policy issues.
Amount of accommodation, size of building, floor heights, open
spans, floor loadings.
Performance standards, life expectancy of the building and its
key elements.
In-use operating costs and energy usage, maintenance planning.
 Environmental performance, carbon/energy usage, naturally
ventilated or air-conditioned, water and waste, heating,
information technology (IT) requirements.
Special components, materials, suppliers, finishes.
Future flexibility, adaptability and extendibility.
Complete 'fit-out' or 'shell and core'.
Fixtures and fittings and level of finishes.
Design aspirations or audience/clientele for the building.

What are the site constraints?

Permitted land use and maximum development.

Planning restrictions, listed building status, conservation area.
Land ownership and covenants.
Site survey (accurate and up to date), boundaries ownership.
Existing trees (TPOs?) and landscape features, natural habitats.
Retained/refurbished buildings or new build.
Site ground conditions, soil type, water table, bearing capacity.
Local area and site subject to subsidence or flooding.
Environmental issues (pollution, noise, light, smell).
Restrictive covenants, rights of way, adjoining neighbours, rights
to light, access.
Site access, vehicular/pedestrian/services, parking.

What are the time and programming constraints?

Deadlines for the client, start and completion dates.

Timetable for the funding or occupancy.
Availability of the vacant site.
Phasing and sequencing requirements.
Timing of site preparation and demolition works.
 Time required for: planning approval, design, building approval,
procurement, construction, commissioning.
Lead-in time for particular components or fittings.
Procurement route, contract type, construction method (how
does it affect programming?).
Commissioning time before full occupancy.
Staged or partial completions, any sequencing and phasing of
occupation.
Areas of uncertainty or risk in the programme, contingency in
the critical path.
Flexibility of the timetable.
Priority and achievability of any time constraints and deadlines
(which may determine procurement route and method of
construction).

How much is the client prepared to pay?

Overall project budget and construction budget.

Balance of initial capital cost and ongoing operational costs (this
relates to the quality and performance of the building).
Quality of building required (see section above on the 'building').
Flexibility of the costs and cost sensitivity.
Contingencies to deal with uncertainties or unknowns.
Professional fees, other consultants, surveys, planning fees.
Requirements of the funders/banks.
Warranties or third party agreements.
Requirements for valuations and certification.
Cash flow requirements, not only of the client but also of the
contractor, suppliers and consultants.
Responsibility for cost estimates, valuations and cost control
(separate quantity surveyor?).
 What services does the client require?

RIBA Plan of Work stages required.

Detail and extent of information required.
Information format (BIM, CAD, printed, models, visualisations).
Other consultants (directly engaged by the client or the lead
consultant).
Principal Designer (under the CDM Regulations) and health and
safety roles.
Contract administration and site supervision.
Preferred procurement method.
Appointment contract conditions (professional indemnity
insurance level, liability period, etc.).
Client representative (who makes the decisions and gives the
instructions?).

Are there any special project or client requirements?

Finding out about the project

On receiving the initial project enquiry, it is professional to carry out some

basic due diligence checks, such as making preliminary investigations into the
client (if new to you), the market for the project, the local planning
requirements and any environmental restrictions (related to flooding,
contamination, etc.). Most of this can be done anonymously online, or through
personal contacts. It will give you an overview of the viability of the project
and the likely demands of the client, as well as the risks involved in gaining
planning consents and other approvals.

Check if the site and/or building survey and any other project information is
generally accurate and can be relied upon. Check also that it is supplied in a
format (CAD/BIM) that is usable. Do the surveys include: site topographical
details, trees and ground conditions; building dimensions and conditions;
services? If you have any doubts about the accuracy and extent of the
available survey information, do recommend to your client that new full
surveys are carried out. Check with the client that there are no restrictions on
the use of the project information they have provided (i.e. there are no
copyright or other restrictive issues). Finally, get confirmation from your
client of whether the site deeds contain restrictive covenants or give others a
right of access across the site.

You and the project team are relying on the information provided by the
client, and it is reasonable for you to expect this to be correct. This is
recognised legally and covered in standard forms of appointment contracts,
but still worth specifically noting to the client that you assume that all the
supplied project information is correct and that you will be relying on it in
good faith. If any of the information proves to be wrong, you are protected
from actions due to the deficiencies.

It is important to find out, understand and agree how the project and your fee
are being funded, and by whom. Are they able to pay you? How will they pay
you? What are the procedures for payment? How will any cost changes be
dealt with? Clients, and their funders and investment partners, may have
specific requirements and triggers for the release of funding. Will they be
involved in decision-making about the design and in signing it off? Who will
be the 'client representative' - to instruct you and make the project decisions?

Make sure that everyone involved is clear about the project budget, payment
procedures and cost controls, including the agreed schedule of interim
payments throughout the project. Doing so ensures the client is fully aware of
their funding obligations and enables you and the project team to manage
your own businesses.

The project programme needs to be prepared, discussed and agreed with all
the parties involved. Identify the critical path through the programme and any
areas of float. Are there any critical target dates (such as planning approval)
and, if so, how fixed are they? Will there be phasing of different parts of the
project? What is the availability of the site? What are the main programme
risk areas? What planning issues are there? What type of procurement route
would best suit the programme? Monitor and update the programme at all
stages. Advise the client, firmly and in writing, if you consider any of the
target dates to be unrealistic or challenging, particularly before committing to
the construction start or completion and occupancy dates.

This is the best time to review the legitimacy and realism of the project and
that you have the skills and resources required to do the job properly and
professionally. If your initial investigations and analysis of the client's
requirements indicate that it will be difficult, if not impossible, to achieve the
project as planned, you need to inform and warn the client straight away. It is
in their best interest, and your professional duty of care obliges you to do so.
If the concerns become a deciding factor in whether you start the job, for you
or your client, it allows you to part on good terms, without the risk of a claim
for negligence.

Establishing the project team

Construction projects have increasingly complex team structures, particularly

for the design team, even on simple projects. Changing legislation and ways
of working are creating new roles, such as project and design managers,
Principal Designer, and specialist consultants and advisers on planning,
environmental impact, cladding, drainage, fire safety, etc.

It is crucial that you, and everyone else involved with the project, understand
your role and your relationship to the other members of the project team.
Help to ensure everyone is clear about who is doing what, who reports to
whom, who decides on what, and who takes overall responsibility. The RIBA
Plan of Work includes the use of a Responsibility Matrix, which is a schedule
that defines what each role does and who they are. For more complex
projects, with many different roles and relationships, this can become a large
matrix. The CIC provides a multidisciplinary role and responsibility matrix
template as part of the CIC Scope of Services documentation, which is helpful
for more complex and larger projects.9 The RIBA Standard Professional
Services Contract allows the various roles that the architect is to take on in the
project to be specified in the schedule of services.10

Issues generally arise at the interfaces of the different roles and their
responsibilities. Areas of contention can arise around the junction between the
below-ground and above-ground drainage and services, the ownership of the
overall BIM/CAD model, and the checking and updating of the project
programme. There should be a check on the communication, digital, technical
and software capabilities and compatibilities of all members of the design
team, which can be confirmed in a BIM execution plan.

The contract terms for the various members of the design team should be
similar (if not identical) and compatible with each other, regardless of
whether the specialist consultants or subconsultants are appointed directly by
the client or by the lead consultant or architect. Direct appointment of
consultants by the design team leader or architect does, however, increase the
responsibilities, liabilities and management control of the design team leader
or architect.

It is particularly important that the design team members' appointment

contracts have the same levels and limits of professional indemnity insurance
cover, contractual liability periods, methods of dispute resolution and
copyright ownership and similar terms and conditions for their services. This
should also apply to new members of the design team, who may come on
board during the course of a project.

The client, the other design team members or, even, your own practice may
not wish to disclose the full content of their individual appointment contracts.
However, it is advisable and legitimate to ask the client to confirm that key
terms and conditions are the same for all members of the design team. You
have more control over the terms and conditions for subconsultants directly
engaged by you. Ensure that they have the same terms and conditions for the
project as you do, so there are no gaps or differences in your professional
obligations. There is a subconsultant version of the RIBA Professional Services
Contract, which can be used alongside the Standard version for the lead
consultant.

RIBA Stages 2-3: Concept Design and Spatial

Coordination

Design development and approval

Creating and developing the design is one of the prime areas in which the
architect's and their design team colleagues' talents are employed. Design is a
complex, inspirational, exploratory and iterative process, exploring new ideas
and options until the best-fit solution emerges. The design solution that is
chosen needs to be able to be realised, through the process of procurement and
construction, which can involve managing complex manufacture, supply and
assembly processes while also navigating the planning approval process and
supply chain, and assembled in an unpredictable site environment.

It takes skill to coordinate and manage all the moving parts, options and
unknowns. A successful project is usually the result of a clear brief, an
engaged client, a clearly structured project team and a well-organised process.
Pulling this all together, and being the conductor of this cacophony of an
orchestra, is the traditional role of the architect. But, as a profession,
architecture has become increasingly focused on the creativity, not the
deliverability, of outcomes. Clients see this as the real weakness of architects -
good on design, but wanting on delivery (see 'What clients think of architects',
in Chapter 2 on clients). To be professional, architects and designers need to
concentrate as much on the competent management and delivery of the
project as they do on the performance, quality and creativity of the design.

Project and design management

Separate roles have emerged to deal with the overall management of the
increasingly complex process of design and construction. Having a separate
project manager to oversee the overall process became popular in the UK from
the 1980s. A new project management profession emerged in the construction
industry, but was more focused on the technical, financial and delivery sides
of the process and became dominated by professionals from quantity
surveying backgrounds. Architects initially lamented that their traditional role
of design team leader had been usurped, but soon realised that project
management that focused on the technical parts of the project and on driving
the project team did not fully solve the issues for the client. To effectively
manage a complex project requires a much more holistic overview and range
of creative, people and political skills - the range of skills embedded mostly in
the architect's profession.

More recently, the role of design manager has emerged, which is now
frequently used by developer clients to manage the creative parts of the whole
process, particularly on larger projects. The role focuses more on the art than

the science of management, employing the softer ski lis of managing and
coordinating people and the creative process.

The role of managing the design process is valued by the client. It requires the
holistic overview, synthesising skills and lateral thinking approach that
characterise architects and similarly trained creative professionals. As the
design and construction process becomes ever more complicated, the role
provides a more relevant and effective future for the architectural profession

Design management is an area where architects should showcase and promote

themselves to clients, on projects of all scales and types. It requires an
understanding of the creative process, an overview of the wider project
objectives and an intuitive skill of organising, coordinating and directing the
design team. This comes naturally to those with an architectural training and
interest. To be effective, it also requires the application of robust practices.
These include:

keeping the design team inspired, on board and focused on the project,
through regular coordination meetings and information exchanges
between members of the design team
knowing the sequencing and consequences of the design process and
the implications of any design decisions on the performance, costs,
programme and outcomes of the project
carefully managing the political processes, and any public
consultations, for the planning approvals
most of all, keeping the client involved, managing their expectations
and getting their timely decisions and sign-offs.

Value engineering

Value engineering is intended to increase the value and performance of a

project by resolving design problems and eliminating unwanted costs. It is
vital to conduct this process with honesty and to factor in its wider benefits to
the project, the end user and for the welfare of all, rather than merely as a
cost-saving process with potentially harmful consequences. Cutting corners
may reduce the initial costs or shorten the programme, but it can diminish the
functionality and quality of the project. Value engineering can therefore
become a misnomer as it may result in the project costing more, rather than
less, if the bigger picture and longer-term value are not considered. Designers
must be prepared to be constructively critical and aware of the longer-term
and wider implications for the project and the client.
Value engineering should start at project inception, where the benefits can be
greatest, but it is more usually commenced following the establishment of the
detailed cost plan. It should involve the whole project team and complement
the development of the project brief. The contractor should also be brought
into this process, as soon as they are known, as they can make a significant
contribution to streamlining and adding value through the construction
process.

To be truly effective and live up to is name, value engineering should be about

taking a much wider, whole-life view of the building, not just the design and
construction stages. Benefits to be looked for include improvements in quality
and reductions in life-cycle costs and environmental impacts.

Procurement route

There are now many different forms of procurement and types of contract,
and an ever-increasing range of reasons for selecting the best-fit procurement
route for the client and the project. This choice of procurement route will
affect the structure of the project team and influence the types of appointment
agreements and scopes of services for project team members. The pros and
cons of different forms of procurement and construction contracts are
discussed in detail in other RIBA Good Practice Guides.11 This section focuses
on the overall considerations regarding how to decide which one is best and
how to manage that process in a professional manner.

Selecting the best procurement system need not be overcomplicated. Most

small to medium-sized projects are still best served by the so called
'traditional' procurement route, where the design and construction
information are prepared by the client's design team, possibly with elements
of contractor-aided or subcontractor design, and the contractor is engaged by
competitive tender or negotiation. The construction is then supervised by a
contract administrator, appointed by the client, but independently managing
the contract between the client and the contractor. The RIBA, RICS and other
standard forms of appointment for consultants, and the standard forms of JCT
building contract, are based on this 'traditional' procurement route, but they
are generally adaptable, or have different versions, for use with other
procurement routes, such as design and build. The traditional form of
procurement is very familiar to the industry and traditional contracts have
been well tested in the courts.

There are many variants of design and build procurement, which together
have become the most prevalent form of construction procurement in the UK
(when measured in construction value). Design and build is promoted as a
way of saving time and of reducing risk and cost uncertainty for the client.
Experience shows that this is rarely the case, as time still needs to be spent
(perhaps even more time) on developing the design and organising the
construction. The risks are not reduced - rather, the balance of risk is shifted
from the client to the contractor. The client pays a price for this transfer of
risk and loses some control over the project. Cost certainty does not seem to
be any better for design and build projects, and changes during construction
tend to cost more.

Cost certainty is less a function of procurement route and more a result of

making timely decisions and few changes. Whatever the chosen procurement
route, for certainty and efficiency in cost, time and output there is no
substitution for clear project objectives, a well-managed design and
construction process, a clear 'golden thread' of responsibilities throughout the
process and good teamwork between the client, the design team and the
contractor.

If any particular procurement route was definitely cheaper, faster or more

certain, it would become the norm and all others would become redundant.
Which procurement route is the best fit for a particular project depends on the
interrelationships between the following complex issues:

risk appetite and experience of the client

 type of client (consumer, corporate, public)
size and complexity of the project
certainty of the design and the project outcomes at the outset
cost certainty and constraints, funding requirements
time constraints, the need for speed
level of client control over the finished project
services required from the consultants.

The procurement route needs to be discussed in detail and agreed with the
client as early on in the project as possible as it will shape the scope of your
services. The RIBA Plan of Work provides for the procurement route to be
thought about from the very beginning of Stage 0 (Strategic Definition) and
finalised by Stage 3 (Spatial Coordination). The earlier the procurement route
is known, the better.

The preferred procurement process can be tentatively decided at the start, to

enable the design team's scope of services and appointment contracts to be put
in place and the outline project budget and programme established. It can
then be reviewed and tested during the initial project stages and the final
decision made later, preferably before Stage 3. If it is changed later, it is likely
to require a change to your scope of services, programme and fees, as well as
to the project's programme and budget.

RIBA Stage 4: Technical Design

Construction contracts

Deciding which construction contract to use depends on the chosen

procurement route and the type of project. As with consultants' appointment
contracts, it is better to use a standard form of construction contract wherever
possible, as they are tried and tested under contract law and accepted by
professional indemnity insurers. There are plenty of different standard
construction contracts to choose from (JCT, NEC, RIBA, etc.), and guides such
as Which Contract?12 offer advice about which one to use. The key is to decide
which contract to use as early as possible, as the construction information and
contract documents will need to be prepared in accordance with that
particular contract's conditions.

Before the client signs the construction contract, it is useful to attach a

summary of their contractual obligations along with all the agreed contract
documentation (or at least a detailed schedule of the documentation). For
consumer clients, provide a written explanation of the role of the independent
contract administrator, even if you are not fulfilling that role. Ensure the
client understands that, even though they are employing and paying the
contract administrator, the contract administrator's role is to act
independently and to administer the construction contract fairly (the
construction contract being between the client and the contractor).

Instructions to the contractor can only be given by the contract administrator,

and not directly by the client. If you are carrying out the role of contract
administrator, you should not only inform the client not to give instructions
to the contractor, but also make sure the contractor knows they are only to
accept and act on instructions from you. This can be very difficult to achieve
and maintain, particularly if the client is based on site or sees the contractor
more frequently than you. Your role as contract administrator is to supervise
the contract, inspect the works and issue instructions to the contractor. If the
client, or anyone else, finds something on site they do not like, or thinks is not
right, or wishes to change, then they need to let you know, not the contractor.
Make sure everyone understands this contractual obligation.

Construction contract documentation

Obviously, any design and construction information you produce needs to be

as accurate and comprehensive as possible. Having insufficient time or
resources, or too little fee, are not legitimate excuses for not doing it properly.
It is your professional duty to ensure that you do have the capabilities to do
the job you signed up for. If you foresee or encounter any problems in
achieving this then you have a duty to inform your client - you can be
deemed to be negligent if you do not. Any errors, contradictions or omissions
will have to be resolved later, costing both you and the client more time,
money and angst.

The successful tenderer or negotiated contractor will have offered to construct

the building for a price that is based on the information supplied to them in
the tender/negotiation documentation. The finalised documentation then
becomes part of the legal agreement. The different items (such as drawings
and specifications) all need to be listed, with the relevant versions identified,
as contract documents. It is important to get the contract documents as
accurate and complete as possible, to mitigate the need for contractual
changes due to any omissions or errors. If any changes need to be made to the
documents, and the contractual conditions, these need to be agreed with the
contractor and, possibly, the price and programme adjusted.

It is likely that the construction information will not be complete at the time
the construction contract is agreed. This is usually dealt with by agreeing a
'request for information' (RFI) schedule with the contractor, listing
information to be issued during the construction period. This can also double
up with the process for recording and dealing with the Site Queries, as the
project progresses. It is beneficial for the design team leader to take the
initiative and to compile this schedule, identifying what information will be
supplied, when and by whom, to the contractor. The contractor can then
respond to this, rather than setting the pace for the flow of information from
the design team. If you provide construction information late, this could
prompt a valid claim from the contractor.

Do check all documents carefully before you issue them. Be careful not to take
on responsibility for information provided by other design team members,
suppliers or the contractor-you may not have the knowledge or competency to
do so. But you do have a duty, particularly as design team leader, to check the
coordination and completeness of others' information and to let them know if
you have any concerns. If you have to confirm that you are content with
others' information, state clearly this is only for 'coordination' purposes and
not for accuracy and correctness.

For design and build contracts, be careful when acting for the contractor and
working up a design prepared by the client's design team. Get written
confirmation that you can rely on this information and that your client has a
licence to use the design and is responsible for any faults, inaccuracies or
discrepancies therein.

Recommending contractors

You may be asked by your client to recommend contractors or suppliers for

their project. Before doing so, make sure that they are bone fide, reliable and
able to do the job successfully. Be very careful about making
recommendations that others will rely on - remember your duty of care (see
Chapter 4). Carry out checks as you would for a potential client. Even if you
are familiar with the contractor or supplier, check their current financial
viability, their claims history and their recent performance on projects for
other clients. Your client can expect to rely on your professional advice. If any
problems arise later, you need to be able to demonstrate that you acted
professionally and took all reasonable precautions to ensure your
recommendations were reliable and honest.

Health and safety strategy

Health and safety is an area that has been subject to increased legislation and
more demanding legal obligations. Legislation includes the Construction
(Design and Management) Regulations 2015, and changes are likely to be
brought about by the Building Safety Bill.13 The CDM Regulations created a
Principal Designer role, with specific responsibilities for the health and safety
aspects of the design of the project. But there are also health and safety roles
and responsibilities for all members of the project team, including the client.
Everyone has a shared responsibility to consider and reduce health and safety
risks during the design process. The RIBA Plan of Work also includes the need
for a Health and Safety Strategy to be created and implemented for any
building project.

The key health and safety actions for the architect or contract administrator
are as follows:

Checkthatthe client has selected and appointed a competent Principal

Designer.
Make sure the project team is competent and has the resources to
address health and safety issues.
Check the client is aware of their duties and is carrying them out.
Design out construction risks and identify any unavoidable hazards
during the design process.
Develop and provide information to constructors on health and safety
issues and any unavoidable hazards.
Coordinate your work and approach with those of others to improve
the way risks are managed and controlled.

RIBA Stage 5: Manufacturing and Construction

Construction programme

Most construction contracts oblige the contractor to prepare a detailed work

programme. This should include a critical path analysis, to identify where the
crunch points occur.

Although the construction programme is the responsibility of the contractor,

there are key aspects of the construction programme that the contract
administrator should do or oversee, as follows:

Establish and agree the key dates for when specified things need to
have been achieved.
Monitor actual progress on site against the contractor's agreed
programme.
Record any delays, and ask the contractor how they plan to overcome
the delays or if they will affect the completion date.
Establish the reasons for any delay, and determine whether the delay
is due to an issue for which the contractor is responsible or if it is a
client responsibility.
Record any delays as they accumulate during the construction process.
Check that the RFI schedule matches and is appropriate for the
programme.
Regularly check the anticipated completion date and inform the client
accordingly.

If the design team leader has proposed an outline information supply

programme and an RFI schedule for the construction process (at Stage 4), then
the contractor could be asked to base their programme on those. This would
mean the design team, rather than the contractor, drive their own programme
of work. If the contractor initiates the programme and RFI schedule, they may
make unreasonable and unrealistic demands for design information and
decisions, which are difficult to achieve - or which have even been set up to
cause the design team to fail, to provide an opportunity for the contractor to
make a claim against the client.

Start on site
If at all possible, ensure the construction contract is signed before any work
starts on site. As with professional services contracts, the difficulties and risks
of working under a letter of intent mean that such an arrangement should be
avoided (as set out in Chapter 2 on clients). The client may press for site start
before the contract documentation can be finalised or the insurances and
warranties are in place. Make sure that the implications and risks of starting
on site without having all the contract elements in place are known by the
client.

Only use a letter of intent to commence the construction work if absolutely

necessary. There may be problems in the way it has been drafted that mean it
differs from or does not cover the intended terms and conditions of the
construction contract. There is much case law that proves this point. Disputes
usually arise around the issues that prevented the contract being signed in the
first place. Sometimes, contracts never quite get signed, even by the end of the
project. This is very risky and should be avoided. Warn the client and the
contractor that it is in both of their interests to be fully covered contractually.
It will be very difficult for you to administer a contract that does not yet exist
or where there are still areas of disagreement.

If a site start is unavoidable before the contract can be signed, it is better to

agree a limited package of initial work to be started under a letter of intent,
with no commitment to continue with any further works if, for any reason,
the contract does not proceed.

The payment arrangements for the contractor should be agreed before the
ordering of materials and construction commences. These should include the
frequency of valuations, certifications and payment instalments, with a cash
flow forecast for both the client and contractor. It is the contract
administrator's role to ensure that these arrangements are implemented
according to plan and that the client pays on time.

Any changes from the original plan and construction programme must be
carefully recorded and updated forecasts issued.
Architect's instructions

All construction work, particularly where there is a change to the design,

must be instructed formally in writing, in the way prescribed by the
construction contract. The main standard forms of contract have standardised
forms for these instructions. Each instruction should clearly identify the actual
(or at least the provisional) value of the work in the instruction, highlighting
any changes to the contractual budget and programme.

Cost control is vital - variations, cash flow and forecasted or actual final costs
all need to be monitored. If there is a quantity surveyor or valuer on the
project, it is usually their role to oversee the cash flow and prepare these cost
statements. But it is still the responsibility of the contract administrator to
keep the client informed of the costs and construction progress. It is important
to have regular planned updates with the client, as clients need to know what
is happening on their project and do not like surprises, particularly on cost
overruns.

Payments and valuations

If you are acting as the contract administrator without the services of a

quantity surveyor and so are responsible for valuing completed work,
assessing the amount to be paid and issuing interim payment certificates, you
need to do this as fairly and accurately as possible. You must not be
influenced by the client or the contractor on this, it must be your independent
professional judgement. It is your responsibility to ensure the contractor is not
overpaid or underpaid. If the client loses money through overpayment or the
contractor suffers due to the withholding of funds that are due, you could be
accused of negligence for unprofessional judgement.

When valuing completed work, you should exclude any defective work.
Materials and components that are not yet on site should also be excluded.
Where the contract allows for payment for off-site components and materials,
they should be listed separately and the client's ownership confirmed.
Otherwise, there may be problems with proof of ownership if the supplier
goes bust before the components or materials are delivered on site.

If you have any doubts or queries, question the quantity surveyor (if there is
one) and the contractor, or check for yourself.

Procedures for issuing interim payment certificates are strictly controlled by

the construction contract clauses. Ensure you comply with them.

Managing changes

If the client wishes to make changes to the agreed design, you need to explain
to them the potential outcomes. You may need to make changes if the contract
documents are found to contain errors or omissions, or the site conditions and
constructing process mean they are required. Contractors may see changes
and variations as an opportunity to increase costs, thereby increasing their
profit margin on the project. They may have tendered keenly for the project
and may actively be looking to make their profit from the client's changes or
architect's mistakes.

If client or design changes are unavoidable, assess their impact on the project's
programme, budget and overall outcome. Also assess how these changes may
affect your services - additional resourcing, time and fees may be required.
Agree each of these changes to the project and your services, in writing, with
the client as the project progresses. Do not delay or wait until the changes
have been done. It will be far more difficult to negotiate and agree them with
the client later, when the work is completed. You have a duty to keep your
client informed, and your duty of care means that you need to deliver their
project, as agreed with them. Clients are likely to become disgruntled if
surprised by unexpected additional fees, costs or delays.
Site visits and inspections

Ensure you have a structured programme of site visits and inspections. You
should have worked this out and detailed it in your scope of services, as part
of your appointment contract, even if only as an estimate on which to base
your fee. The frequency of site visits and inspections will depend on the job
and the client. They should take place both at regular intervals and at specific
milestones or critical events during the construction period, such as before
filling in foundation trenches. Allow for sufficient time to inspect the works
and discuss on-site issues with the contractor, as well as to attend site
meetings.

As contract administrator, you are not supervising, just inspecting the

construction works. Your role is to ensure, as far as reasonably possible, that
the works are in accordance with the contract and are of an acceptable
standard. It is the contractor's responsibility to guarantee the works have been
carried out correctly and are fit for purpose.

Clients sometimes wish to appoint their own site representative, or you may
have the benefit of day-to-day oversight by a traditional on-site clerk of
works. However, this is very rare nowadays. If there are other site
representatives who are supervising or inspecting the works, do insist that
they report to you and make this clear to all concerned. It is the contract
administrator who has the overriding contractual responsibility for
construction supervision and should also have the authority for the role.

Schedule your site visits to coincide with critical events on site, such as before
filling in foundation trenches. As mentioned before, the frequency of your site
visits depends on the job and the client but should be noted in the
construction contract and your appointment agreement.

It is important to keep records of the progress of construction, such as regular

site notes, photos and videos with date stamps, as they can become valuable
evidence later, if any disputes or claims arise.
Extension of time

If the contractor believes that completion of the building will be late, whether
or not the cause was due to them or outside of their responsibility, they are
contractually obliged to give the contract administrator written notice of a
claim for an extension of time, giving the reasons for the delay and the impact
it will have on the completion date. The contract administrator decides if it is
a relevant cause, and if the proposed extension is substantiated and
reasonable. The claim can be rejected or accepted, or the contract
administrator can grant an alternative extension of time, based on the
available facts and their own professional judgement. The contract
administrator has to respond within a time limit specified by the contract
(usually 12 weeks or less).

As the contract administrator, you may need to ask for more information or
query points. Do not make a decision until you are happy you have all the
information you need. Judging an extension of time is not an exact science, it
requires professional judgement. The contractor may naturally ask for more
than can be reasonably substantiated. If liquidated and ascertained damages
are at stake, the contractor and the client will both take a keen interest in your
decision as there may be significant sums of money at stake.

You will need to justify and substantiate your professional decision,

demonstrating that it is fair and reasonable. This can be a very complex issue
- if you are uncertain, seek experienced legal contractual advice on assessing
extensions of time.

RIBA Stage 6: Handover

Practical completion
Practical completion can happen before the contractual finish date. It can also
happen after the client has taken possession of all or part of the building. If it
is unavoidable that handover to the client is to occur before practical
completion, you should make the client aware of the contractual and practical
risks of doing this and carefully note all the outstanding works that need to be
completed for practical completion to be achieved.

It is the contract administrator's role to make an independent, professional

judgement on when practical completion has been achieved. The decision
must be objective and independent of any wishes of the contractor, client or
anyone else, to certify practical completion before (or after) the contract
administrator is fully satisfied that it has been achieved. To do otherwise
would be unprofessional and potentially negligent.

Contractors naturally want the practical completion certificate to be issued as

soon as possible, as this triggers additional payments and ends some of their
construction and insurance responsibilities. Clients might also press for
practical completion to be achieved early, so they can get into their new
building quickly. Conversely, clients may want it to be delayed as they do not
yet want to take possession.

There is a simple legal definition and test of 'practical completion', supported

by detailed legal judgements, which is the building being usable for its
intended purpose. As the term implies, it must be 'practically', but not
necessarily 'absolutely', complete. There may still be minor items to complete
and minor defects to make good, so long as they do not prevent the reasonable
use of the facility. If the number and nature of defects or unfinished items is
such that they would hamper the reasonable use of the building, or that
making them good would be very inconvenient for any occupant, then it can
be justifiably argued that practical completion has not been achieved.

There may be financial damages to be paid by, or deducted from, the

contractor for late completion, but these must not be more than a reasonable
estimate of the losses the client would actually incur due to a delay caused by
the contractor. They are not intended to be a penalty for late completion or an
incentive to complete on time. If time is of the essence for the client, you may
wish to suggest a financial bonus for early or on-time completion. But any
incentive to complete the project early should not result in compromises on
quality or safety.

The date of practical completion triggers the start of the defects liability
period (DLP), and marks the end of the period for which liquidated and
ascertained damages (LADs) can be claimed. Any outstanding minor defects
and works should be fully listed, and reasonable costs for dealing with them
withheld from the certified sum. The contractor is obliged to make these good
as soon as reasonably practical and convenient for the client, but certainly
before the defects liability period is ended and the final payment certificate is
issued.

Handover

Managing the client's expectations at handover and ensuring a smooth

transition through commissioning to full occupation and use of a new
building are crucial to the ultimate success of the project and for the client's
overall satisfaction. When the client and the building's users see the finished
product for the first time, they might suddenly realise that something is not as
they had expected - or they may even be pleasantly surprised.

A helpful initiative called Soft Landings was launched by BSRIA in 2009 (and
has been updated several times, mainly to accord with the changes in the
RIBA Plan of Work). It is a process for managing the gradual handover of a
new or refurbished building, and for monitoring its initial usage and
providing feedback on its performance. It is increasingly being adopted by
commercial clients. If it is to be used, this is best agreed at the outset of the
project. The Soft Landings framework is available via the BSRIA website.14

The client has a lotto consider as the contractor clears up and moves off the
site and the building occupants prepare to move in. Testing and
commissioning of all the services and facilities is also required and enough
time should be allowed for this all to happen properly.

If possible, the architect or design team leader should be retained and

resourced to help the client through this important stage. If not already
included in the original scope of professional services, it is good to agree and
provide a support service of professional aftercare, which could be for up to
three years after practical completion, under RIBA Plan of Work Stages 6 and
7. This will enable you to deal with any issues as they arise, keep your
relationship with the client going and provide valuable feedback and
experience for your (and your client's) next projects.

Final account and payment certificate

The final payment certificate can only be issued when all the items that were
outstanding at practical completion and any defects discovered during the
defects liability period have been satisfactorily completed. The final accounts,
presenting the final overall costs of the contract, also must have been agreed.
This can take some time to achieve, as there may be outstanding claims to be
resolved.

Differences can still persist between how much the contractor believes they
are owed and how much the client is prepared to pay, despite the best
endeavours of the contract administrator to negotiate an agreement. If this
happens, the contract administrator needs to assess what divides the client
and the contractor and make a professional judgement on what would be a
fair final settlement.

On quite a few projects, the contract administrator never issues a final

payment certificate. There is a view that it is too risky for the contract
administrator to certify that everything has been successfully completed, and
that their professional liabilities will be less onerous if they do riot issue the
final certificate. This is a misguided view and a disservice to both the client
and the contractor. It can be argued that all this does is perpetuate the
contract administrator's liabilities, and that it is unprofessional (maybe even
negligent) not to issue the final certificate.

RIBA Stage 7: Use

Occupation and use

Stage 7 was added as a new stage of the RIBA Plan of Work in 2013. It is yet
to become commonly adopted by the UK construction industry, but awareness
of its importance and benefits is gradually increasing. There is a greater
understanding that buildings in use often do not perform as well as they
could, particularly regarding energy use and carbon emissions, and there
could be significant gaps between predicted and achieved performance. This
may be due to a variety of issues, including poor briefing, deficiencies in the
design and construction processes, little connection between the building
design and operation and, by no means least, inefficient operation by the
users.

Even if your client does not appreciate the benefits of paying you for this
stage, it is a good idea to build in a bit of leeway in your fee calculations and
resourcing, to support some 'free' in-use aftercare for the client. Another
alternative is to offer your aftercare services, perhaps under a separate
contract for Stage 7: Use monitoring, but rather than charging a fee, you will
be given use of the post-occupancy evaluation data.

It is useful to keep in touch with your client after they have started to use the
building, so you can deal with any early teething problems as they arise and
before they become complaints and disputes. You can also benefit from the
continuing relationship with your client, through future work opportunities
and recommendations to others.

Stage 7 services can be provided as part of a Soft Landings framework, as

mentioned previously for Stage 6. Aftercare service and operational feedback
should be considered at the outset of the project, and could include carrying
out a post-occupancy evaluation with the users, monitoring and
benchmarking the building's performance, and providing training and
facilities management.

There is so much valuable information that can be gained from post-

occupation evaluation, which can be used by the client and the occupiers to
improve the use of their building and reduce its operational and maintenance
costs. It also provides valuable feedback and experience for the design team, as
well as the client, to benefit their future projects and encourage responsible
professional behaviours.

Building insurance
Building insurance is an issue that needs to be considered at the beginning of
a project and managed throughout the whole project process, but changes as
the buildings are handed over and occupied.

For existing buildings, the client usually insures the existing property and the
construction works, including cover for the contractor. If the client does not
own the building or site, check if the existing owner or funder is insuring the
building and construction.

For new buildings, the contractor normally insures the works as they progress
up to handover and practical completion. If anything happens to the structure
or site during construction, it is the contractor's liability. It is the architect's or
design/project team leader's responsibility to check, or at least remind the
client, that appropriate insurance cover is in place at all times. An insurance
broker can assist with procuring building insurance. Confirm with the client
that their insurance brokers have arranged for periodic checks to be made
throughout the project, to confirm that the insurance cover is still in place and
valid.

If the client takes part possession of the site or building, the insurance cover
for that part needs to transfer from the contractor to the client. There may be
complicated arrangements for shared access areas that the broker will need to
sort out.

Knowing when to stop

The most difficult decision on a project and with a client is whether to
suspend or terminate your services before they are completed. How you can
do it, and in what circumstances, depends on the terms of your appointment
contract. Under standard forms of appointment, you can only terminate your
services if there has been a material breach of the contract by the client (i.e.
non-payment of fees) or events outside of your control prevent you
continuing and you have given the required amount of notice of termination.

There are specific reasons that enable immediate termination, such as

becoming bankrupt or insolvent, becoming incapacitated and death. To enable
you to terminate for other reasons, you can introduce into your agreement
with the client additional break clauses - say, at the end of certain stages, or if
you have exceeded your agreed limit of inputs into a speculative project.

Despite the limitations on your ability to terminate a professional services

contract, you still need to know when to stop. You may have persistent
difficulties in getting paid fully and on time, the project is changing beyond
recognition from what you originally signed up for, or the risks are rising
intolerably on the project. If the project cannot be turned around, you will
have to face up to the fact that continuing with it may be worse, and costlier
for you, than walking away from it.

Consider withdrawing if you can no longer provide the services required or

cannot afford to work on this project or for this client, and do not let your
losses, debts or risks get to a point that you cannot afford to walk away. Your
payment terms should be precisely described in your appointment contract,
along with the actions you can take should the client be in breach of the
agreed terms. It is useful to have an office policy on working if agreed fees are
outstanding, which your client can be made aware of, and to stick to it
politely but resolutely. This is simply being professional.

You have a professional duty of care to your practice, your employees and
yourself to ensure that you can properly complete the project, which is also
ultimately in your client's interest as well. Weigh up the risks of working, or
not working, again for this client. Look carefully at the termination clauses
and triggers in your services contract and ensure you comply with them. If
you do withdraw from the project, you must be able to justify why you took
the steps you did. Otherwise, your actions may be found to be unjustified by a
court or ADR process, and you could face substantial costs and damages.

Conclusion

Running a successful and efficient project starts with establishing the right
brief, in as much detail as possible, and getting it agreed by the client, and
then putting the right design team in place. Then there is the ongoing
organisation and skilful management of the complex design and construction
processes, which require extensive professional knowledge and experience, to
be applied with great care, skill and professionalism.

All of this is essential for the successful completion of a construction project

one that fulfils the project's objectives, creates a valuable and useful long-term
asset, on time and on budget, leaves a happy client and project team and
appreciative end users, has avoided claims and disputes, and allowed the
architect to make a profit while retaining their professional integrity.

Endnotes
1 RIBA, RIBA Plan of Work 2020 (London: RIB A, 2020).

2 Ostime, N. RIBA job Book, 10th edition (London: RIBA, 2020).

3 RIBA, RIBA Plan of Work 2020 Overview (London: RIBA, 2020).

4 [Link] [accessed 23 August 2021].

5 [Link]/working-with-an-architect/building-in-quality-tracker [accessed 23 August

2021].

6 [Link] [accessed 23 August 2021].

7 [Link] [accessed 23 August 2021].

8 Ostime, N. Handbook of Practice Management, 9th edition (London: RIBA, 2013).

9 Construction Industry Council. The CIC Scope of Services (London: CIC, 2007). See:
[Link] [accessed 23 August 2021].

10 RIBA, RIBA Standard Professional Services Contract 2020 (London: RIBA, 2020).

11 For example, Farrall, P. and Brookhouse, S. Good Practice Guide: Fees (London: RIBA Publishing,
2021).

12 Lupton, S. and Stellakis, M. Which Contract? Choosing the Appropriate Building Contract, 6th edition
(London: RIBA Publishing, 2019).

13 Ministry of Housing, Communities and Local Government. Building Safety Bill (Bill 139-EN)
(London: HMSO, 2021).

14 Building Services Research and Information Association. Soft Landings Framework2018: Six Phases
for Better Buildings. BG 54/2018 (Bracknell: BSRIA, 2018). See: [Link]/uk/consultancy/
project-improvement/soft-landings/ [accessed 23 August 2021].
6
Professionalism at work with people
DOI: 10.4324/9781003231462-6

Professional services are all about people

Understanding people
Being able to understand what drives and motivates other people, and
yourself, is a vital skill for life. It is also a crucial skill for your career in a
people business based on professional services. To be a successful professional
in the construction industry, you must be personable, empathetic and trusted
by clients, co-consultants, contractors and colleagues. You need to be skilled at
working collectively with others in teams and motivating and leading others,
and be fully aware of how others will feel, react and respond. To be able to
work effectively on any project requires a collaborative and coordinated
effort, working with, understanding and appreciating others.

People are the main resource of any professional activity. Professional

consultancy services are all about thinking, providing specialist knowledge
and applying that to make judgements. Professional practice, particularly in
architecture and construction, requires working together with others and
constantly forming, and re-forming, teams of different people to work on
different projects. Despite their importance, the skills required to understand
others and ourselves are rarely part of any professional training. We have to
develop our people skills intuitively and through experience.
There are many benefits of being able to understand people. It helps you to:

communicate effectively
establish better relationships
know how others will react and what is important to them
motivate/influence/convince/impress others
lead effectively and empathetically to improve team performance and
contentment
avoid or resolve conflict and misunderstandings
appreciate the diversity and talents of others
improve your self-awareness and your responses to the behaviour of
others.

Emotional intelligence
The ability to understand people requires emotional intelligence, which is an
attribute that may come naturally to a few with more empathetic
personalities. We usually develop a degree of emotional intelligence as we
grow up and experience life, but it can be developed and honed to a higher
level with conscious effort and practice. It is worthwhile thinking about this
and deliberately developing these skills. It can help our personal
professionalism in so many important ways. It is the softer social skills, as
well as the technical and legal aspects, that are becoming more valued by
clients.1

The concept of emotional intelligence, and how to evaluate it, was developed
by academics Peter Salovey and John Mayer at Yale and New Hampshire
universities in the 1980s2 and became more widely known through Daniel
Goleman's book published in 1995.3

There are four interrelated components of emotional intelligence (Figure 6.1):

 self-awareness - how aware you are of your emotions, which leads
you to...
self-management - your ability to control your emotions, which
expands into...
social awareness - your understanding of others and your awareness
of the dynamics of groups, which then enables...
relationship management - your leadership skills, the ability to
inspire, develop and support others.

Figure 6.1: The four components of emotional intelligence

These are all essential skills for any professional. Emotional intelligence is
something you may pick up intuitively, but it is rarely, if ever, mentioned in
formal professional education and qualification. Thankfully there are many
accessible texts and online resources on the characteristics of emotional
intelligence and how to develop your emotional intelligence skills. It is well
worth taking the time to explore and learn from these resources yourself.

Personality types
Humans are hardwired to be social beings. Throughout human evolution, as
societies and cultures emerged over many millennia, we have been trying to
better understand how we behave and relate to each other. Different cultures
across the globe have separately developed their own psychosocial theories
and categories for different personality types (which were often used to
diagnose and treat medical conditions). The remarkable thing is how similar
these theories are, even though they were developed in isolation from each
other, and in very different social and cultural traditions.

The most prevalent system for categorising personality types today is the
Myers-Briggs Type Indicator (MBTI®), developed by an American mother and
daughter team in 1943 and inspired by Carl Jung's 1921 book Psychological
Types.4,5 MBTI is not the most sophisticated system of personality
categorisation and it has its critics, and alternatives have been developed by
several psychologists, management academics and leadership theorists.

However, MBTI remains popular because of its simple principles and

flexibility, with different degrees of blends of each characteristic, and many
find it remarkably accurate in identifying overall personality traits, in
themselves or others. There are several different forms of personal MBTI-style
assessment which can be done online, quickly and free of charge. These may
help you to understand yourself, as well as other members of your team, and
how you can better understand and work with each other.6

Personality assessment is increasingly being used in recruitment and team

selection, but care must be taken to ensure these tests are unbiased and are
consistent with the principles of equity, diversity and inclusion.

Teamwork
Most business activity is not done alone. In fact, few human achievements or
ideas are solely due to one person. Any business activity, even sole
practitioners, requires teams of people (sometimes from other organisations),
bringing together an array of different knowledge, skills and ways of thinking.
Learning to work well in teams is a vital skill for any professional. By utilising
the talents of others effectively, you can achieve far more than you could by
yourself.

Businesses often fail to thrive if they only recruit and involve people with
similar social and cultural backgrounds and outlooks. This can be very
limiting for business effectiveness, particularly in the complex process of
designing and constructing buildings. Recruitment, team-building, staff
support and management policies in any professional practice should follow
recognised standards to support the social, physical and mental wellbeing of
its people and to encourage equity, diversity and inclusion. Having teams of
people with different backgrounds and skills can provide benefits in a range of
areas. It could help a practice to:

make use of a wider range of knowledge, experience, talents and

strengths
widen social networks and business contacts
develop personal skills and emotional intelligence
enable creativity through different ways of thinking and broader
experiences
cover any blind spots in knowledge and approach
build trust and relationships
reflect society, its client base and real life.

There is a real difference between groups of people who work together and
teams with a common purpose. 'Groups' tend to be collections of individuals,
who coordinate their individual efforts to pursue a shared interest, value or
aspiration. In contrast, a 'team' is more engaging, being defined as a group of
people who share a common purpose with a collective goal and who need to
work together to achieve their goal. An understanding of this can help to
develop the way you work in your practice and on projects, from being part of
an organised group of people to being a member of a far more effective and
closer team of colleagues.

Team work is a valuable asset for designing and constructing buildings. Most
of the dynamics within a team relate to the interactions between individuals.
These are generally not visible or obvious, but they are intuitive and implicit
and are felt. Understanding what is going on under the surface of a team, and
paying attention to it, is vital for effective teamwork.

A lot of thought and research has gone into understanding why some teams
are more successful than others, and how this success can be replicated and
developed when establishing new project and practice teams. Six key
characteristics are generally identified as being crucial for effective teams:

leadership - clear direction, roles and responsibilities

purpose - common and shared goals, vision and mission
trust - understanding and caring for each other
identity - sense of belonging and accountability
communication - open, honest and respectful
commitment - willing to contribute and help others.

Examination of why some teams are less successful has identified the
converse of the key attributes of effective teams. The American management
academic Patrick Lencioni has articulated this as a hierarchy of the five
behavioural dysfunctionalities of teams (Figure 6.2):7

1. absence of trust - unwilling to be vulnerable within the group

2. fear of conflict - seeking artificial harmony over constructive debate
3. lack of commitment - false buy-in for group decisions creates
ambiguity
4. avoidance of accountability - ducking responsibility
5. inattention to results - focusing on personal success, status and ego.
 Figure 6.2: Lencioni's hierarchy of dysfunctionality in teams

Leadership
Good leadership is widely recognised as being a key element of good
organisations and successful projects. It can partly be attributed to innate
personality traits, but it is predominately due to developing an approach based
on skills that can be learnt, mainly by practice.

There is no one personality profile that constitutes a good leader. Leaders and
leadership styles come in many different forms, shapes and sizes, and from all
parts of the spectrum of personality classifications. Just think of the very
different types of effective political leaders we have had. It is true that
different contexts and challenges are more suitable to certain styles of
leadership than others, but they all tend to share the same core characteristics.

There are many well-known theories on leadership in business and

professional practice, including those by Peter F. Drucker8 and Charles
Handy,9 but there is a general consensus on the key characteristics and
qualities of good leadership in an individual or organisation. These can be
defined as:
 authenticity and integrity
vision for the future
inspiration to others
commitment and passion
enable and motivate others
rise to the challenge
good communication
clear decision-making
direction-setting and path finding
accountability
delegation and empowerment
creativity and innovation,

Authenticity and integrity

Authenticity and integrity are generally seen as being key leadership qualities.
They are also the focus of this guide. Authenticity is all about being who you
are and keeping true to yourself. This depends on your own personality traits.

The qualities of authenticity in leadership can be defined as:

being guided by a shared set of professional values

being honest, open-minded and fair when applying professional values
using your own personality
acting in the collective interest
being considerate, just and equitable
providing consistency and predictability.

The key characteristics of integrity are different from, but complementary to,
those of authenticity:

discerning what is right and wrong

doing the right thing, not just doing things right
 acting in the way you know to be right and doing so openly and with
conviction
using the professional values and rules in which you believe, not
deciding simply on the circumstances or precedents.

Create a shared vision

Effective leaders are future-orientated and have a clear vision and purpose
that they want to share with others. People are motivated most not by fear or
reward, but by ideas that capture their imagination.

Inspire and encourage, commitment and passion

Good leaders unleash enthusiasm in others to reach the shared goals and to
believe in the shared vision. They seek to energise others by passion,
enthusiasm and emotion; they celebrate the success of others.

Enable, motivate and communicate

Leaders do not seek to achieve everything themselves, they achieve results

through and with others. Leaders build trust and loyalty. They foster
collaboration within the team they build and lead. They communicate clearly,
appropriately and inspirationally.

Rise to the challenge

Leaders seek challenging opportunities to change, grow, innovate and

improve; they do not just accept 'business as usual'. Leaders experiment, take
risks, thrive on adversity and learn from any failures.
Set the direction and show the way

Leaders not only set the direction, but also go first and live the behaviours
they want others to adopt. People will believe not what they hear their leaders
say, but what they see their leaders consistently do.

Accountability, delegation and empowerment

Leaders take responsibility for their own actions, and do not blame others for
their failings or mistakes. They are able to trust, delegate and empower others
in the team to contribute to the team's goals, while still taking overall
responsibility.

Leadership styles

There are many different effective styles of leadership, the main differentiator
being between extrovert and introvert styles (Figure 6.3). Which of these is
more effective depends on the cultural context, the type of business activity
and the nature of the workforce or team. But the most important factor in
establishing an effective style of leadership is authenticity - the style you
adopt must fit with your personality.

Figure 6.3: Characteristics of introvert and extrovert leadership styles

Communicating and presenting

Being able to communicate effectively and present your work convincingly is

an essential skill for most professionals. This is particularly true for architects,
who have to make pitches for their work, convince others about their design
ideas and manage diverse project teams. Sadly, this is a skill that does not
feature much in the formal education and training of professionals, so
communication skills tend to be developed on the job, by trial and error,
without much formal understanding about what works and why. This section
aims to remedy that deficiency by highlighting the impact of presenting
knowingly and in a focused way.

A lot of time is spent in preparing written, drawn and verbal presentations,

focusing on what we present. But not as much thought or effort goes into how
we communicate, or consideration given to how it will be received. There
have been many research studies on what people remember from
presentations and the impact they have on the audience. The results of this
research are surprising. Collating the results of all this research shows that
only 7% of what is said (the words) is remembered, while about 38% of what is
retained is how it is said (the voice). Surprisingly, the main impact, 55%, is due
to the visual messages you give (pictures, props, clothes, etc.) (Figure 6.4). So,
it is the combination of how you look, your tone of voice, use of language and
style of deliverythat really matters. Itis certainly worthwhile focusing on these
attributes, learning more about them and practising your skills through
presentation workshops.
 Figure 6.4: Impact of communication

Presentation checklist

Before you start preparing any presentation, there are several questions you
should ask yourself if you want it to be engaging and successful:

What is the main purpose and desired outcome of this presentation?

What are the key points/messages you want to get across?
Who is your audience and what is the best way to present to them?
What information will you choose to present, and what will you leave
out?
Who is doing the presentation and, if there are to be multiple
presenters, what role will each play?
How will you ensure clarity and understanding, and create empathy
with the audience?
How will you use your voice, body and movements to achieve the
optimum impact?
How will the audience remember your content?
If it is a client presentation for work, how will they remember and
choose you, or agree to your proposal?
Presentation structure and tips

Every presentation you do should have a clear structure, from beginning to

end, aimed at achieving the desired outcome for the audience. This is the same
for presentations that are in person or online, verbal, visual or written, to an
individual or a group, and is particularly important for presentations where
you are pitching to a client, or employer, for a job.

The following list presents tips for planning and giving a presentation:

Begin with impact - Start with a memorable key point, introduce

yourself and any co-presenters, gain the audience's attention quickly.
Tell a story - Give context and meaning, take your audience on a
journey, tell them a story about their project, with them in the starring
role!
Keep it relevant - Audiences only pay attention to ideas and
proposals that are immediately relevant to them (i.e. why they should
appoint/use you for the project/job).
Make it simple and clear - Use simple graphics, easily readable fonts
and understandable language.
Have memorable key points - Give a maximum of three messages,
which must be memorable, dramatic and relevant to the client/project.
Create empathy - Reassure the client of your understanding of,
commitment to and relevance for their project.
End on a high note - Finish with a punchy message, or USP, for the
audience to remember you by - this should answer their 'Why you?'
question.
Address the audience - Focus on your audience, not your notes or
slides. Be very aware of your body language and tone of voice - keep
them positive and use them to emphasise your message. Keep your
audience engaged.
Observe reactions - Stay alert and observant on how your message is
being received by your audience. Are they attentive? Does their body
 language signal engagement and approval?
Expect the unexpected - Be prepared for interruptions. If things go
wrong, don't panic, regain control and carry on.
Keep to time - Finish before any time limit expires. Time yourself.
Engage/respond - Prepare for questions that the client is likely to ask.
Engage the client with questions of your own to start a conversation.
Farewells - Leave with thanks, confirming your enthusiasm for the
job/client. Your parting words should leave your key message ringing
in their ears.

Rehearse and practise your presentation beforehand and test it on others.

After the presentation, follow up with an email, phone call or letter. This is an
effective way of confirming your appreciation, reaffirming your enthusiasm
and reinforcing your key message. It will significantly increase the impact of
your presentation and keep you in the mind of your client.

Wellbeing
Our wellbeing, and how we nurture it, has become increasingly important. A
greater focus is now rightfully devoted to wellbeing in our personal careers,
our workplaces and our work-life balance. This guide highlights the key issues
of how we can approach wellbeing in our practice with professional integrity
and empathy.

For any business, it starts with the recruitment process and employment ethos
and polices, not only for employed staff, but also for the directors and partners
who lead and own the business. There is a professional obligation, enshrined
in the ARB and RIBA codes of conduct for architects, to respect others and to
treat them fairly, empathetically and with integrity. This applies to everyone
we deal with, including our clients, those we work with and for, and
particularly those who we lead or are responsible for. This fits within the
overall professional context of being concerned with the wider public interest,
encompassing users, society and the environment.

Awareness and openness about mental health has also improved, thanks to
the change in attitudes brought about by various initiatives created by
businesses, charities and other institutions (including the RIBA and the
Architects Benevolent Society (ABS)), which is removing the stigma
surrounding stress and mental health in the workplace. Businesses are
encouraged to support their staff's wellbeing by nurturing an environment of
active listening and support. Employees are also encouraged to talk about
their mental health, if they feel concerned, to someone within the organisation
who has been appointed as a wellbeing champion, with the empathy, training
and resourcing to alleviate these issues.

The RIBA provides useful guidance on how to manage stress in practice,10-12

and the Architects' Mental Wellbeing Forum (supported by the RIBA and
ABS) has developed a useful Architects' Mental Wellbeing Toolkit.13 These
resources include a simple three-step process for managing stress:

1. Assess - Identify the issues that are triggering this stress, including
the causes and any solutions.
2. Appreciate - Understand the manifestations of this stress and explore
actions to overcome it. Accept that it is OK not to be OK.
3. Adjust - Take actions to overcome the stress, by dealing with the
causes (delegate excess workload, resolve conflicts, etc.). Mitigate the
effects by dealing with issues you can change, but recognise and
don't worry about what is beyond your control to change.

The key issues are knowing who to ask for help, and to actively listen to
others who may need support. This help and support may be available from
external helplines, chat rooms and care packages.

Leading by example is essential within any organisation. Having the support

of the senior leadership and communicating and demonstrating this to the
workforce should be part of the way of working in a practice, and not just a
one- off campaign. It is also important to keep in mind that mental health and
wellbeing are very individual issues, with different cultural nuances, therefore
a simple 'one-size-fits-all' approach is unlikely to be adequate.

Equity, diversity and inclusion

An increasingly important part of professionalism is how professionals relate
to, work with, design for and support the needs of all of society - which
should be with fairness, respect and integrity. This has evolved into the three
interrelated concepts of equity, diversity and inclusion (often referred to as
EDI), which are now included in professional codes, business policies and
legislation. These matters are now extensively covered and widely promoted,
but it is worth considering, in the context of professionalism with people, the
definitions and drivers for equity, diversity and inclusion in any professional
practice.

Equity

Equity is the impact of having a diverse range of people, who are consciously
included in an organisation.

Equity is different from equality. Equality is treating everyone the same, and
works if everyone is at the same starting point. This is not the case in many
organisations and bias means unintended discrimination often occurs.

Equitable workplaces support the different needs of individuals. Equity is

about eliminating barriers and creating a level playing field to provide fair
treatment, access, opportunity and advancement for all, while striving to
identify and eliminate barriers that have prevented the full participation of
some individuals or groups. It helps to define and uphold the diversity- and
inclusion-related goals and actions of an organisation and society.
Tackling equity issues requires an understanding of the root causes of the
disparities within our society and in any organisation, including an architect's
practice. Equity is promoting justice, impartiality and fairness within the
procedures, processes and distribution of resources to provide equal
opportunities and outcomes for every individual within a team or
organisation. Every professional should consider, develop and implement their
project in an equitable manner, taking account of different personal needs and
ensure their practice procedures support this goal. This should be done in
coordination with the practice's diversity and inclusion efforts. Not only is
having proactive equity objectives and procedures ethical, it also makes good
business sense to be able to get the best out of the valuable people resource
within any team or practice.

Diversity

Diversity is simply the mix of visible and invisible difference. Just as we

would speak of a diversity of plant and animal life, there is a diversity of
human life. And just as we would not describe one plant specimen or a single
animal as being diverse, it would be nonsensical to do so when referring to an
individual person.

The Equality Act 2010 talks about difference in terms of nine protected
characteristics - age, disability, gender reassignment, marriage and civil
partnership, pregnancy and maternity, race, religion or belief, sex and sexual
orientation. This can, in itself, be seen as an issue, as it forces us to silo
difference. The way we self-identify may be different to any label that others
might give us, including the law, and we are all made up of several identifiers.

White, able-bodied, heterosexual men make up just 3.1% of the UK population

(based on Office for National Statistics figures for London and south-east
England), so it is inaccurate to talk about others as minority groups. Women
are more than half the population, and non-white people make up a global
majority, so it is better to talk about under-representation.

Teams and organisations should reflect the diversity of the human population
and a variety of lived experiences. While a person is not diverse, collectively
they can provide a diverse range of experiences, approaches and outlooks.

Diversity in a professional setting is about having a rich mix of different

personal attributes, many of these are defined and protected by law, as
mentioned. A diverse group, community or organisation is one in which a
variety of different social and cultural characteristics co-exist to be fully
representative of the society within which it belongs and which it understands
and supports. This all starts with a recruitment process that actively promotes
diversity and which addresses under-representation in an organisation's
workforce.

Inclusion

Inclusion is how each different individual is valued and developed or provided

for. For example, when designing an inclusive work or community space, the
architect has to consider and provide for all the people who may use or benefit
from the space. This is not just about accessibility and facility, but also the
operational systems and policies for the space. This is best done by engaging
and working closely with a wide spectrum of the people and community we
are designing for.

Inclusion is a culture in which people feel their different perspectives, styles

and needs are respected, valued and taken into account. It is a conscious act.

Inclusion is not an automatic consequence of a diverse team. It has to be

specifically designed into, and actively implemented for, any team or
organisation. It is not a human attribute (such as diversity characteristics), but
a value system and quality of human experience within an organisation. In a
culture of inclusion, staff feel safe and confident to express their authentic
selves and know they belong to something bigger. To achieve this, any
business needs to have specific policies and procedures to actively promote
and implement inclusion.

In order to create a culture of inclusion, it is recommended that the Cultural

Intelligence (CQ®) framework is used (see the box below).

CULTURAL INTELLIGENCE
By Marsha Ramroop, Director of Inclusion and Diversity, RIBA

People come in glorious variety, and a working environment that is

inclusive of this variety promotes high engagement, productivity,
increased profitability and innovation.14

Being inclusive of variety, difference and diversity is not always

straightforward; it requires particular skills within leadership and an
understanding of people and perspectives beyond your own experience
and realm.

We live and work in an increasingly globalised and multicultural

world.15 The barriers around what is acceptable and familiar are
constantly being broken down. Getting to grips with how to lead and
manage others who have different views, values, experiences, lifestyles
and approaches is key to being successful.

The Global Leadership and Organizational Behavior Effectiveness

(GLOBE) study examined leaders and followers across 62 countries to
determine similarities and differences in what followers want from their
leaders.16 When asked, followers had some agreement in what they did
and did not want in terms of negative (e.g. dictatorial, ruthless,
egocentric, irritable) and positive (e.g. trustworthy, dependable, decisive,
honest) attributes, but the way these adjectives were described when
manifested in the individual still varied considerably. For example, how
I determine 'trustworthiness' may be different to how you do.
'Irritability' may be acceptable in some circumstances, and you may be
more tolerant or sympathetic to it than others are.

So, how do you navigate these nuances?

Inclusive Culture Pyramid

The Inclusive Culture Pyramid© is a paradigm of my own design, which

overlays four different ideas; Cultural Intelligence (CQ®), the McKinsey
Influence Model of Change, the levels at which inclusion needs to be
implemented, and the four areas of an organisation as I have identified
them.

The purpose of the Inclusive Culture Pyramid is to describe the strategic

process required to embed inclusion in any organisation.

Cultural Intelligence

CQ is the foundational principle and framework of behaviours required

to be inclusive. CQ is the capability to work and relate effectively with
people who are different from you; it is a measurement - a quotient,
hence the 'Q' - as well as an improvable skill.17

CQ is broken down into four key competencies, which in turn are

broken down into 13 subcategories in total, each identified in order to
help people pinpoint the areas they need to improve.
 Figure 6.5: The four CQ® competencies: Drive, Knowledge, Action and Strategy

CQ is separated as follows:

CQ Drive - the curiosity and motivation needed to work well

with others.

Subcategories: intrinsic motivators, extrinsic motivators, self-

efficacy.

You are more likely to be effective at working with and relating

to others who are different from you if you want to.

CQ Knowledge - understanding the kinds of differences that

describe one group as different from another, without resorting
to stereotyping specific cultures.

Subcategories: leadership, values and norms, socio-linguistics,

business.

You are more likely to be effective at working with and relating

to others if you are cognisant of various differing values and are
willing to listen to those with life experience that varies from
your own.

CQ Strategy - learning how to plan effectively in light of

cultural differences.
 Subcategories: checking, planning, self-awareness.

You are more likely to be effective at working with and relating

to others if you know and understand yourself fully and check
your assumptions, and think about what you are thinking about,
using structure and procedures to mitigate unconscious bias.

CQ Action - being able to adapt behaviour when the situation

requires it.

Subcategories: verbal communication, non verbal

communication, speech acts.

You are more likely to be effective at working with and relating

to others if you are adaptable in your behaviours but remain
authentic in yourself.

McKinsey Influence Model of Change

The next component of the Inclusive Culture Pyramid is the McKinsey

Influence Model of Change.18

In both research and practice, McKinsey found that transformations

stand the best chance of success when they focus on four key actions to
change mindsets and behaviour: fostering understanding and conviction,
reinforcing changes through formal mechanisms, developing talent and
skills, and role modelling. Collectively labelled the 'influence model',
these ideas were introduced more than a dozen years ago in a McKinsey
Quarterly article, 'The psychology of change management'.19 They were
based on academic research and practical experience - what was seen to
work and what did not.

A recent McKinsey Global Survey examined successful transformations

and found that they were nearly eight times more likely to have used all
four actions than just one.

Levels of inclusion

The third component of the Inclusive Culture Pyramid is the levels at

which the two overlaid principles need to be adopted. First, at individual
level; second, at team level; third, at departmental level; and finally, as
an organisation. This paradigm only works if every individual in an
organisation takes responsibility for inclusive change, which they can do
when they have the CQ framework to work with and are supported
with the change model. Everyone in your immediate team needs to be
rowing in the same direction, with the same principles guiding the
change; the departments form and implement inclusive policy and
procedure, and every department does this across the organisation.

Areas of organisation

The final component of the Inclusive Culture Pyramid is identifying the

four areas of the organisation and ensuring each is robust in the way it
delivers inclusion. The four areas are:

attraction and recruitment - how you get people into the

organisation/sector
staff engagement, management and progression - how you
treat your people in the organisation/sector
 Figure 6.6: The Inclusive Culture Pyramid® - four levels, four sides, four CQ
cornerstones and four areas

products and services - how you create the output of your

organisation/sector
users, clients and customers - how you attract and treat the
people who use the output of your organisation/sector.

When you bring all of these elements together, you can address any
agenda in the diversity and inclusion space in order to bring about
equity, but it starts with every individual knowing and understanding
their CQ.

It is fairly straightforward to describe, but much harder to do. This is a

granular, detailed piece of work that requires time, effort and resource,
 and certainly discomfort at times.

Approaching and managing these issues can cause you to feel defensive
- we have been socialised to feel this way, in order that we do not upset
the status quo. If you do find yourself feeling this way, you have a
choice: lean into the discomfort or shut down. If you do the latter, you
will walk away from the engagement no better off than when you
started it; but, if you accept the discomfort, and work through it, not
only will you learn and grow, but you will be more successful at
improving your CQ Drive.

If you make this investment in time, energy and resource, from that will
come growth, learning and, ultimately, better environments, increased
productivity and enhanced business.

Employing people
People are the most valuable asset and highest cost for any professional
services business. They also pose the greatest risk and vulnerability of
businesses. Having good employment policies and practices - knowing how to
inspire people, treasuring them and enabling them to work well with others is
key to any business's success.

There is extensive published and online information available on best practice

for employing people and looking after their wellbeing, and professional
bodies such as the RIBA also provide helpful information tailored to their
professions. The RIBA Chartered Practice scheme provides guidance and sets
employment and personal development standards for architecture practices.
The RIBA also provides specific support and guidance on mental heath and
wellbeing in practice and support for LGBT+ communities (see the section on
wellbeing, above).
Employment law

This section does not attempt to cover all the details of employment law.
Instead, it aims to give an overview of the principles of employment law and
some thoughts on how to achieve best employment practice in your
professional career and business.

People working in the UK benefit from an established and extensive

framework of employment law, which has developed and evolved over many
years. This legal framework provides a minimum charter of employment
rights, based on various statutory acts and regulations, case law precedents
and common law rights. For established professions, these are supplemented
by specific requirements and standards from their professional and
registration bodies. For architects in the UK, employment rules and guidelines
for practices are issued and updated regularly by the ARB20 and the RIBA.21
Together, these regulate the relations between employees and employers.

UK employment law may be complex and extensive, but the principles behind
it are straightforward and simple to understand. The objective is to achieve
high standards of behaviour and a fair balance of rights between employees
and employers. Good employers want to get the best out of their staff, and
motivated individuals want to have a fulfilling career within a respectful
working environment. The government wants to have an effective and
efficient workforce and employment conditions that create a vibrant national
economy. Employment laws aim to enable all of this and so should be seen in
a positive light and applied constructively. Having good employment
conditions and positive employee-employer relationships is vital for the
success of any business.

OVERVIEW OF KEY UK EMPLOYMENT

LEGISLATION
Employment Rights Act 1996 - gives the right to leave for
childcare, and the right to request flexible working patterns.
National Minimum Wage Act 1998 - provides the right for all
workers over school leaving age to be paid a minimum wage.
Workers over the age of 23 are entitled to receive the National
Living Wage. Rates for London differ from the rest of UK.
Working Time Regulations 1998 - limit the hours that can be
worked and provide for paid holidays, work breaks and
maximum working periods. There are exceptions for critical
sectors of activity (transport, medical, police, army, etc.) and opt-
out provisions (requiring written agreement). The key provisions
require (unless excluded or opted-out):

■ a maximum average of 48 working hours a week, reduced

to 40 hours for those aged 16-18
■ a minimum of 28 days of paid holiday every year
(includes public holidays) at least one full day off every
week
■ a 20-minute rest break on all working days longer than
six hours
■ no more than eight hours of night shift working in any
24-hour period.

Equality Act 2010 - requires that all people are treated equally
and without discrimination. The Act contains a set of protected
characteristics, including age, gender, race, religious beliefs and
sexual orientation. A worker that is unfairly treated at work or
unfairly dismissed on the basis of any of these protected
characteristics can make a claim at an employment tribunal. The
Act also protects pregnant women's rights. Employers must
positively accommodate the needs of disabled people. Part-time
staff, agency workers and people on fixed-term contracts must
be treated similarly to full-time or permanent staff.
 Public Interest Disclosure Act 1998 - protects employees from
being victimised or dismissed for disclosing details to their
employer (or, in limited situations, to certain prescribed bodies,
such as the Health and Safety Executive or the Care Quality
Commission) about certain acts, including criminality, breaches
of the law, dangerous working practices and environmental
damage. Where a disclosure is made in the public interest, the
worker should have the full protection of the law and not be
subject to dismissal or victimisation in the workplace on account
of their whistleblowing.
Pensions Act 2008 - gives workers the right to be automatically
enrolled in a basic occupational pension, whose funds must be
protected according to the Pensions Act 1995.

The definition of a 'worker' or 'employee' can also be complicated, as is

how all these requirements and rights relate to particular groups of
individuals, such as self-employed consultants and part-time casual
workers. The UK Government is tightening up on these definitions,
particularly the tax office, HMRC.

Employment contracts

A contract of employment is an agreement between an employer and an

employee, setting out the conditions and expectations for the employee's
work, and the financial remuneration and other benefits that the employer
will provide. It is a common misconception that every employee must have a
written employment contract by law in the UK. This is not true, but
employers are required to give employees certain basic information about
their job (duties, hours, pay and notice period) in writing within two months
of the employee commencing work.

Therefore, it is sensible and advisable to have all the conditions of

employment written into a formal contract. A copy of this contract should be
provided as part of any offer for a job, along with any requirements for
reference checks, proof of identity (passport) and right to work (National
Insurance reference, and visa for foreign nationals).

Some arrangements that are agreed verbally can also be considered as being
part of an employee's contract. While this is legal in the UK, it can cause
problems in the event that a dispute arises about any unwritten, verbally
agreed arrangements. An employment tribunal hearing may then be forced to
rely on other written evidence to determine any dispute, such as salary
payment records and time sheets.

EMPLOYMENT CONTRACT CONTENTS

An employment contract for professionals should include the following:

Employer - name of employer, place of work, who you report to.

Job description - job title, outline of duties and responsibilities.
Working hours - times of normal working, break times, any
other requirements (flexi-time, evening and weekend working).
Salary - amount and method of payment (usually paid in arrears
in monthly instalments). Compulsory tax (PAYE: Pay As You
Earn scheme), pension and National Insurance payments to be
deducted by the employer. Where relevant, minimum wage or
living wage minimum rates.
Benefits - Pension, bonuses, incentives, insurance cover
(medical, death in service). Also, any requirements or provision
for development, training, CPD and qualification. All RIBA
Chartered Practices are required to provide a CPD programme
and support for those doing their RIBA qualifications and formal
professional experience. Employers are not legally obliged to
provide these benefits (except for a contributory pension scheme)
and their value to the employee is taxable.
Start and probation - start date for the commencement of the
employment and length of any probation period. There are
normally curtailed benefits and a shorter notice period during
probation, which can be from a week to up to 6 months, or more.
Absence - notification procedures and pay if off work due to
illness or incapacity. If an employee is absent due to illness for
four or more days, they are entitled to be paid at least Statutory
Sick Pay (SSP is £96.35 per week in 2021/22 and reassessed
annually). Employers do not have to pay any more than this, but
many do agree to pay all or some of the salary above SSP for
specific periods of illness. This is an additional discretionary
payment by the employer and can be a significant benefit of
employment.
Holidays - 28 working days' holiday per annum must be
provided as a legal minimum, this includes public holidays.
Employers can, and often do, offer longer holiday allowances,
the amount often related to periods of services with the business.
Maternity/paternity leave - leave of up to 52 weeks is
permitted for the mother, part of which can be shared with the
father. The employee is entitled to Statutory Maternity Pay
(SMP) for most of this period and Statutory Paternity Pay (SMP)
for up to two weeks' leave. The employee is entitled to return to
work in the same/similar role and the employer has to retain this
job opportunity for up to one year.
Notice period - both employees and employers are obliged to
provide each other with some notice before terminating the
employment agreement. The minimum period of notice by law is
one week for employees and between one and 12 weeks for
employers, depending on the length of service. But significantly
longer periods of notice are often required in the contract,
particularly for senior and critical employees.
Confidentiality and copyright - an employee's obligations to
 maintain the confidentiality of company or project information
and data protection, with any procedures for dealing with
breaches. It often covers maintaining the reputation and public
image of the employer's business. Ownership of the copyright
and intellectual property rights for the employee's work is
usually retained by the employer. These obligations can continue
beyond the end of the employment.
Disciplinary and grievance procedures - the employer's
disciplinary procedures for any performance and conduct issues,
and the grievance procedure for dealing with a complaint from
an employee.
Termination - circumstances and procedures for terminating the
employment. This usually includes immediate dismissal (no
notice period) by the employer for gross misconduct by the
employee, such as theft, dishonesty, discrimination, defamation,
violence and criminal conviction.

Employment termination

An employment contract should describe the circumstances and procedures

for the termination of the employment. The employee usually has a specified
period in which to give notice of their intention to leave their job. For an
employer, terminating an employment contract is more complex. They need
to have due cause for the termination and must follow the procedures
prescribed by legislation. Employees are also legally protected from being
dismissed illegally. There are three different categories of illegal dismissal:
unfair, constructive and wrongful, which are outlined below.

Unfair dismissal
If an employee has worked for their employer for two years or more
continuously, they have the right to be protected from unfair dismissal. The
employer must have a valid and substantiated reason for terminating an
employee's employment. These include:

lack of capability - if the employee's health or capabilities are

inadequate, or the employee does not have or loses the qualifications
and skills needed to do their job (normally specified in the job
description)
poor conduct - where the employee has not complied with the
employer's reasonable conditions, such as being consistently late,
breaking confidentiality or behaving offensively or criminally (this can
also be outside of the work environment)
redundancy - where the job ceases to exist and there is no alternative
suitable role for the employee to fulfil
illegality - when the employee's continued employment would
contravene the law (such as if they lose their right to work lawfully in
the UK)
some other substantial reason - which has put the reputation and
livelihood of the employer's business at risk, such as personality
clashes with clients, project team members or work colleagues.

If an employee believes that their employer has dismissed them unfairly (i.e.
without any of the valid reasons above), or has discriminated against them in
some way, they may be able to make a claim for unfair dismissal at an
employment tribunal hearing.

Constructive dismissal

Constructive dismissal is when an employer breaches a key term of an

employee's contract or restricts their ability to do their job. This can happen if
the employer makes the employee's working conditions untenable or
unpleasant, or if the employee suffers discrimination, bullying or harassment
by fellow workers and the employer fails to take action to protect them from
this behaviour. This may force the employee to resign and they may be able to
make a claim for constructive dismissal at an employment tribunal hearing.

Wrongful dismissal

Wrongful dismissal occurs when a statutory or contractual procedure has not

been followed or notice has not been given by the employer when an
employee's contract is terminated. The notice period must be at least as long
as that specified in the employee's employment contract, or comply with
statutory minimum periods, except if the employee is dismissed for gross
misconduct.

Disciplinary procedures

In order to ensure that employees are not unfairly dismissed, every employer
is required to tell their employees, in writing, about their disciplinary
procedures. This is to ensure employees are aware there are procedures that
must be followed. These procedures should comply with the ACAS Code of
Practice on Disciplinary and Grievance Procedures.22

Broadly speaking, disciplinary procedures should be followed to prevent

someone from being unfairly dismissed. Procedures should provide for a
stepped process of verbal warnings, written warnings, final warning and fair
hearing before someone can be dismissed. Where the procedures have not
been followed correctly, an employee may be entitled to make a claim for
unfair dismissal at an employment tribunal hearing.

Redundancy
Redundancy is the termination of employment when a job comes to an end or
a role ceases to exist due to a change in workload, changes to working
practices or closure of the workplace. An employer cannot use redundancy to
replace an employee with an other to do the same role.

If only part of a workforce is being made redundant, there is a right to

challenge the selection criteria for redundancy. Some employers may use
overly subjective criteria or may choose employees for redundancy based on
discrimination against protected characteristics, such as age, pregnancy or
maternity. If an employee believes this has happened to them, they may be
able to start a claim at an employment tribunal.

If a business is bought or the job outsourced, the current job holder has the
right to be transferred. The Transfer of Undertakings (Protection of
Employment) Regulations 2006 (TUPE) require that employees' terms cannot
be worsened without a good economic, technical or organisational reason.

Employment tribunals

In the UK, claims to an employment tribunal are common, as an employee or

ex-employee can issue a claim without having to prove merit. Even if a claim
against an employer is unsuccessful, it is rare for the employer to recover the
costs they have incurred in defending the claim.

The largest number of claims are for unfair dismissal. In the UK, employers
must have a statutory or fair reason to dismiss an employee (conduct,
capability, redundancy, retirement [about to be repealed], statutory illegality
and 'some other substantial reason') and must follow a set statutory fair
procedure to terminate their employment (or even to discipline an employee).
If this procedure is not followed, the individual may have a right to issue a
claim that they have been unfairly dismissed.

If an employee succeeds in a discrimination claim (for example, on the

grounds of gender, race, age or disability) a tribunal award is uncapped, so it
can be very expensive for the employer.

Conclusion
People are our most important asset and should be understood, engaged,
valued, managed and treated properly. To be an effective professional, it is
crucial that you understand both yourself and other people: our variety of
personalities and backgrounds, our wellbeing needs and how we can work
well together and be motivated through effective leadership. There is a
complex and comprehensive range of employment legislation in the UK that
you need to be aware of and comply with, whether as an employee or an
employer. Successful professional practice depends on it.

Endnotes
1 RIBA Client Liaison Group, Client & Architect: Developing the Essential Relationship (London: RIBA,
2018).

2 Salovey, P. and Mayer, J.D. 'Emotional intelligence'. Imagination, Cognition and Personality 9(3)
1990:185-211.

3 Goleman, D. Emotional Intelligence: Why It Can Matter More Than IQ (New York, NY: Bantam, 1995).

4 Myers, I.B. with Myers, P.B. Gifts Differing: Understanding Personality Type (Mountain View, CA:
Davies-Black Publishing, 1995 [1980]).

5 Jung, C.G. Psychological Types (London: Routledge, 1971).

6 MBTI online testing: [Link]/cgi-win/[Link] [accessed 23 August 2021].

7 Lencioni, P. The Five Dysfunctions of a Team (San Francisco, CA: Jossey-Bass, 2002).

8 Drucker, P.F. The Effective Executive (New York, NY: Harper & Row, 1967).
 9 Handy, C. The Empty Raincoat (London: Hutchinson, 1994).

10 RIBA. 'Looking after your mental health and wellbeing'. Available at: [Link]/
knowledge-and-resources/knowledge-landing-page/talking-about-mental-health-and-wellbeing
[accessed 23 August 2021].

11 RIBA. 'Top tips to manage stress'. Available at: [Link]/knowledge-and-resources/

knowledge-landing-page/top-tips-to-manage-stress [accessed 23 August 2021].

12 RIBA Chartered Practice Toolbox. Available at: [Link]/knowledge-and-resources/

resources-landing-page/chartered-practice-toolbox [accessed 23 August 2021].

13 Architects' Mental Wellbeing Forum. Architects' Mental Wellbeing Toolkit (AMWF, 2019). Available
at: [Link]/resources [accessed 23 August 2021].

14 Bourke, J. Which Two Heads Are Better Than One? How Diverse Teams Create Breakthrough Ideas
and Make Smarter Decisions (Sydney, NSW: Australian Institute of Company Directors, 2016).

15 Livermore, D. Leading with Cultural Intelligence: The Real Secret to Success (New York, NY:
AMACOM, 2009).

16 House, R., Dorfman, P.W., Javidan, M., Hanges, P.J. and de Luque, M.S. Strategic Leadership Across
Cultures: The GLOBE Study of CEO Leadership Behavior and Effectiveness in 24 Countries
(Thousand Oaks, CA: SAGE Publications, 2013).

17 Further detail on the background research into CQ can be found on the Cultural Intelligence Center
website: [Link] [accessed 23 August 2021].

18 Basford, T. and Schaninger, B. 'The four building blocks of change', McKinsey Quarterly, April 2016.
[Link]/business-functions/organization/our-insights/the-four-building-blocks--of-
change [accessed 23 August 2021].

19 Lawson, E. and Price, C. 'The psychology of change management', McKinsey Quarterly, June 2003.
[Link]/business-functions/organization/our-insights/the-psychology-of-
changemanagement# [accessed 23 August 2021].

20 ARB employment guidelines are available at: [Link].

21 RIBA. RIBA Chartered Practice Employment Policy Guide (London: RIBA). Available at
[Link].

22 Advisory, Conciliation and Arbitration Service. Code of Practice on Disciplinary and Grievance
Procedures (London: ACAS, 2015).
7
Professionalism at work with society
DOI: 10.4324/9781003231462-7

Society needs professionalism to define and support

its values

'Public interest' is a balancing concept, based on the greater benefit to the

larger part of society or a relevant group. It is not about what may be of
interest to the public, but what is, on balance, for the overall 'good' of the
public and creates the least harm or disadvantages to others. It relates to
anything that supports the rights, wellbeing and commercial and cultural
interests of society.

Public interest has become increasingly enshrined in UK legislation - such as

the Consumer Protection Act 1987, the Public Interest Disclosure Act 1998 and
the Freedom of Information Act 2000 - but it is usually purposely loosely
defined in law and professional codes, as it is dependent on the context and
the balance of interests and benefits. What is regarded in law as public
interest is ever changing, to protect the greater good as circumstances change.
For example, the Coronavirus Act 2020 gave emergency powers to the UK
Government to temporarily curtail personal and business rights and freedoms,
to balance the more pressing need to protect the population against a lethal
pandemic. Powers are changed as existing threats subside or new threats or
changes in public, values emerge.

The public interest of society and the community is also addressed in

professional codes. Professionals have a duty to evaluate and take a balanced
view on what is in the best public interest. For example, the RIBA Code of
Professional Conduct, Principle 2 (Section 14: Community and society), states:

14.1 Members shall have proper concern and due regard for the effect
that their professional activities and completed projects may have on
users, the local community and society.
14.2 In performing professional services Members should promote
stronger communities and improve equality, diversity and inclusion in
the built environment.

A prime reason for the development of the concept of professionalism and the
formal establishment of professions was to help define and to independently
support, promote and protect the interests of the public (see Chapter 1).
Professional codes and obligations also evolve to serve the changing needs and
expectations of the public, such as the RIBA's introduction in 2021 of new
mandatory competencies in health and life safety, climate literacy and ethical
practice. For example, the RIBA has recently adopted a knowledge schedule
on ethical practice, to define the new mandatory competencies, which include
obligations for society and the end user, as well as the wider world.

RIBA ETHICAL PRACTICE KNOWLEDGE

SCHEDULE
In light of the growing focus on ethical practice and professionalism, this
knowledge schedule aims to be a framework for the exploration of ethical
thinking, reasoning and decision making within architecture and
architectural practice, and collects the issues that RIBA Chartered
Architects will be expected to understand under the RIBA mandatory
competence in Ethical Practice.
Ethics in practice

history and definitions

recognising an ethical issue
virtue ethics/social contract ethics/duty ethics/utilitarian ethics
defining behaviours - codes, regulations, sanctions and best
practice
public interest - how it is defined and who is responsible

Duty to oneself

the codes of conduct and practice

principles and values
competence
continuing professional development
pro bono work
corruption

Duty to the profession

the codes of conduct and practice

reputation and value
respecting previous appointments
copyright & credit
whistleblowing
research, POE & building berformance
equity, diversity and inclusion (including the RIBA Inclusion
Charter)

Duty to those in the workplace

 employment law
the codes of conduct and practice
company culture
respecting colleagues
managing practice
equity, diversity and inclusion (including the RIBA EDI Policy
Guide)

Duty to those commissioning services

the codes of conduct and practice

lay clients
experienced private clients
public sector clients
confidentiality

Duty to society and the end user

building regs, housing standards and planning policy

the codes of conduct and practice
equity, diversity and inclusion (including bias and
discrimination)
health and safety
modern slavery
community engagement and regeneration
social value and social responsibility
rights of future generations

Duty to the wider world

the codes of conduct and practice

 the climate and biodiversity emergency
sustainable and regenerative design
supply chains
rights of nature

Resolving ethical issues

core values
decision making
life long learning
independence
advocacy
resources and toolkits

Social value
There is an implicit obligation upon architects to help create social value for
users, communities and society in the work they do in creating new built
environments. The principles of social value are wider than just economic or
environmental value, they include the value of increased equality, wellbeing
and social cohesion and newly created opportunities.

The UK Government has included consideration of social value in the

procurement of public services since 2012, which has been reinforced by the
Public Services (Social Value) Act 2012. This Act requires anyone who
commissions public services to think about how they can also secure wider
social, economic and environmental benefits. This generally involves engaging
with the stakeholders of any project to establish what are the social benefits
they most need and value and to agree a method for measuring the impact of
the outcomes of the project. Several systems to help assess and calculate social
value for public procurement projects in the UK are available online, which
can also be applied to private sector projects, particularly those involving
larger scale urban regeneration and the creation of new communities.

Social Value UK is the professional body for social value and impact
management in the UK and a good source of information about implementing
and achieving social value.1

Environmental challenge
The climate change and global biodiversity emergencies are the greatest
challenges now facing the world and the future of humanity. On top of this
are increasing scarcity of resources, from water to food and precious metals,
and rising pollution, affecting the quality of our air, oceans and lands.
Professionals, particularly those related to our built environment and
infrastructure, have a crucial role in overcoming these challenges and
developing innovative solutions, and there is increasing public expectation on
them to take a lead. Any response to these global challenges raises ethical
issues and involves significant changes for individuals, society and global
populations and new responsibilities for future generations, which puts even
greater pressure on our concepts of professionalism.

The RIBA and other UK professional bodies are increasing their focus on these
mega issues and raising the professional obligations, mandatory competencies
and performance standards for their members to deal with these challenges.
The RIBA has adopted the 2030 Climate Change Challenge, developed with
the Green Construction Board and other UK professional bodies, and is
encouraging its members and Chartered Practices to sign up and implement
the initiative.2 The Challenge includes targets for operational energy use,
embodied carbon and water use reduction, for both new and existing
buildings. The ambition is to achieve net zero whole life carbon for new and
retrofitted buildings by 2030 and for the whole UK building stock by 2050.

Specific refinements and additional metrics for these targets are being
developed for the different building sectors (commercial, residential, etc.),
with a progression of increasing percentage reduction from the current
baselines and minimum regulatory standards.

The way buildings are designed and constructed, and how architects operate,
is changing dramatically to meet this great environmental challenge. There is
a vast array of publications and guidance on the technical, implementation
and business aspects of this subject, but not much on the professional issues
this raises for architects and co-professionals. The professional codes and
mandatory competencies (ARB and RIBA) for architects have already changed
to focus more on the environmental and sustainability issues, as has the RIBA
Plan of Work.3-6

As well as developing knowledge and competencies in this area and gearing

up practice policies and procedures, there is the important issue of informing
and convincing clients, other consultants, suppliers and contractors to achieve
zero whole life carbon and sustainable environmental targets in all their
projects. The architect has a professional responsibility to be the sustainability
champion, expert and leader to meet this challenge. This should be seen not as
a burden, but as a great opportunity for architects and co-professionals to
enhance their relevance and value to their clients and society.

Building performance
Building performance is usually measured in relation to specified design
criteria or regulatory standards for physical, social and environmental
considerations. A building's physical efficiency can be evaluated on
parameters such as heat loss, energy and water usage, carbon emissions, fire
resistance, structural performance and maintenance costs. The building's
performance in use can also be assessed, by examining aspects such as rental
or sales income generation or occupation and visitor rates for commercial
buildings, and educational and health outcomes for schools and hospitals. The
performance of the design and construction process can be assessed using
metrics such as people and material resources used, embedded carbon,
wastage of materials and time and cost of construction.

It is harder, but not impossible, to measure the comfort and user satisfaction
performance of buildings. This can be done by conducting regular post-
occupation surveys, with clear metrics for comfort factors such as temperature
range, ventilation, acoustics, lift waiting time, etc.

The way some buildings perform when completed and used may not live up
to the design intentions. The difference between anticipated and actual
performance can be significant and detrimental to the occupiers, owners and
the environment. This 'performance gap' is a significant issue for the UK
construction industry and can result in contractual disputes, legal proceedings
and remedial works. Ongoing client relationships and professional reputations
can suffer if the actual building performance does not live up to expectations
or agreed standards.

Clients may need to be persuaded that it is worth investing in post-occupation

and building performance evaluation (RIBA Plan of Work Stage 7: Use), given
how much money, time and energy the client has already invested in the
project. Continuing engagement with the client and involvement with the
building following its completion and occupation are very useful in
maintaining client confidence, being able to quickly deal with any issues that
may arise and gaining valuable feedback from the project to benefit future
work. Some practices build some 'aftercare' service into their fees and project
resourcing, even if the client has not specifically commissioned this service.

There are several well-established building and post-occupancy performance

monitoring systems that can be used, such as the Construction Industry
Council's Design Quality Indicators and the post-occupancy evaluation
element of BSRIA's Soft Landings framework.7'8

Solving professional dilemmas

Wider professional obligations to society and the environment can give rise to
professional dilemmas and ethical issues. Professionals have to face complex
choices, balancing the differing needs of clients, occupants, users, regulators
and the public, as well as the project team and work colleagues. There is often
no one clear correct answer, but a best-fit balance of conflicting issues to
optimise the overall benefits and minimise the detrimental outcomes. For
example, how do you trade off the environmental benefits of having natural
ventilation in a building against the comfort and commodity of an air-
conditioned building while coping with increasing extremes of climate?

To deal professionally with these complex decisions, balancing conflicting

values and priorities, it is useful to develop and apply a clear process for
making ethical judgements. This process should start with information
gathering, so you can collate all the relevant facts, differing needs, required
standards and expected outcomes. You should then explore with the client,
users, community and project team the key issues and potential conflicts, so
that you can evaluate and identify the various issues, potential consequences,
preferred outcomes and decision-making process for the project. When this
has been established, the criteria and processes can be agreed, preferably
collectively. It is likely that a difficult decision will have to be made - one that
does not suit all of the stakeholders - but if the process to reach that decision
has been transparent, fair and inclusive, then it can be substantiated ethically
as a valid professional judgement.

Endnotes
1 Social Value UK website: [Link] [accessed 23 August 2021].

2 RIBA. RIBA 2030 Climate Challenge (London: RIBA, 2021). Available at: [Link]/-/
media/files/Climate-action/[Link] [accessed 23 August 2021].

3 ARB. The Architects Code: Standards of Professional Conduct and Practice (London: ARB, 2017).
Available at: [Link]/architect-information/architects-code-standards-of-conduct-
andpractice/ [accessed 23 August 2021].

4 RIB A. RIB A Code of Professional Conduct (London: RIBA, 2021). Available at: [Link].
com/knowledge-and-resources/resources-landing-page/code-of-professional-conduct [accessed 23
August 2021].

5 RIB A. RIB A Code of Practice (London: RIBA, 2021). Available at: [Link]
knowledge-and-resources/resources-landing-page/code-of-practice-for-chartered-practices [accessed
23 August 2021].

6 RIBA. RIBA Plan of Work 2020 (London: RIBA, 2020). Available at: [Link]/-/media/
GatherContent/Test-resources-page/Additional-Documents/[Link].

7 Design Quality Indicator website: [Link] [accessed 23 August 2021].

8 Building Services Research and Information Association. 'Building performance evaluation' webpage:
[Link]/uk/consultancy/building-improvement/building-performance-evaluation [accessed
23 August 2021].
8
Professionalism at work with insurance
DOI: 10.4324/9781003231462-8

Insurance isn't risky, it's safety

Architecture, like many other professional endeavours, can be a risky

business. It is a professional responsibly to mitigate these risks and provide
adequate protection for the client and end users, as well as for the
professional. These risks are due to the complex and indeterminate nature of
providing professional architectural services:

Designing and constructing buildings is a complex process, involving

large amounts of money and great potential for mistakes, accidents
and disputes.
Coordinating and integrating the inputs from a variety of specialist
consultants, suppliers and constructors creates a host of liabilities and
responsibilities for the design team leader.
Determining and delivering the client's requirements while also
satisfying the user's needs poses many challenges, including managing
the differing expectations.
Society has become increasingly demanding, and business generally
more litigious.

The combination of these issues creates very particular business risks for
architects. Professional indemnity and other business insurances are therefore
essential for any practitioner.
Whether you run your own practice, are an employee, personally doing an
occasional project, mainly retired, or are just giving free friendly advice, you
are still liable for your professional inputs if something goes wrong with
anything you have worked or advised on. This may end up with a claim for
compensation or negligence against you. It makes no difference whether a
professional person provides advice for a fee, for benefits in kind or free of
charge, they still have a duty of care to their client. In the eyes of the
regulators and professional bodies, anyone using or relying on the
professional services of an architect, or built environment professional, even
for informal pro bono advice, can expect their work to be covered by
professional indemnity insurance (PII).

The ARB and the RIBA also require registered architects and Chartered
Practices to have appropriate insurance to protect the interests of their
clients.1,2 In the ARB's Architects Code, Standard 8 'Insurance arrangements'
states:
8.1 You are expected to have adequate and appropriate professional indemnity insurance cover for
you, your practice and your employees. You should ensure that your insurance remains adequate to
meet a claim. You are expected to maintain a minimum level of cover, including run-off cover, in
accordance with ARB's guidance.

Anyone who has had the experience of defending a negligence or damages

claim will know that it can be a worrying experience and is time consuming
and costly, with the potential to seriously damage your professional
reputation and livelihood. However, insurance cover is not just a burden, it
can also be a valuable business asset and an important marketing tool that sets
you apart from many of your non-professional competitors.

PII not only covers the costs of compensation for negligent acts for
professionals, it can also cover the costs of defending a claim, as well as
providing a reliable source of advice for taking on and managing contractual
liabilities and risks.

If you are an employed professional, it is important to check and satisfy

yourself that appropriate insurance cover is provided for you by your
employer, particularly if you are working through an agency or as a
temporary external consultant. The need for PII cover extends to any
professional work undertaken in a private capacity outside your main practice
or employment. It is your responsibility to ensure that your professional work
is adequately covered and that appropriate cover is in place before you
undertake any work. Otherwise you could be personally responsible for losses
caused by any work you have done privately or for others and be in breach of
the ARB and RIBA codes.

This chapter focuses on PII, but it also mentions the other types of insurance
cover that professional practices should have in place.

REASONS TO HAVE PII

The ARB and the RIBA require any registered and practising
chartered architect to have PII.
Clients want security, and there has been a growing trend
towards litigation, particularly among commercial clients.
Professionals have a personal duty of care to their clients, and to
a wide range of third parties, including users and society.
Architecture has many specific design and business risks.
Construction is a high value, complex and inherently risky
industry.
PII provides architects with valuable cover for defending or
paying out for any negligence claims.
It is a positive selling factor for clients that you are protected, for
their benefit.
What is PII?

PII is a form of business insurance that covers professionals for the costs of
mistakes they may make, or may have contributed to, when providing their
professional service. Its primary purpose is to provide financial protection for
the client, not the professional; however, it does enable professionals to fund
any successful claims that are made against them and to cover their legal
costs.

PII has developed over the years into policies that primarily cover professional
negligence, for incorrect advice, mistakes, omissions and breach of a duty of
care. PII polices, depending on the type of cover purchased, can also now
cover losses due to:

legal costs incurred in defending a claim and the payment of a

successful claimant's legal costs
business interruption or lost revenue for the client
defamation - making or supporting libellous statements about the
client or claimant
breach of confidence - unintentionally disclosing sensitive information
without permission
breach of copyright, trademarks or intellectual property
loss of or damage to documents in the care of the professional
civil liabilities - non-criminal unintentional actions that cause
damages to third parties
acts carried out by employees, on behalf of the practice, that cause a
loss to the client.

PII policies are written on a 'claims made' basis and are generally annually
renewable. This means that the cover is for any claims made during the year
of insurance, up to the financial limit and under the conditions of the cover
purchased. The claim may be for an issue that occurred several years before,
when the professional could have been covered by a different insurer under
different terms or different practice name. It is insuring the historic risks of a
professional or their practice.

PII policies are normally on an 'any one claim' or 'each and every claim' basis.
This means that the professional is covered up to the full limit of indemnity
for each claim received during the insurance year. For example, if your PII
policy limit is £1 million and you are unfortunate enough to receive three
claims within the year of under £1 million each, but together adding up to £2.5
million, your policy would still cover you for the total value. The full £1
million limit would be available for each of the claims. Look out for and avoid
the alternative PII policy wording of 'in aggregate', which means that the
cover is only up to the total of all the claims that are received in a year. In the
example above, this would only cover 40% of the total value of the claims,
rather than the full 100%.

For higher PII policy limits (above £5 million), cover is likely to be structured
as multiple layers of insurance, placed with different PII underwriters. The
first layer is referred to as the primary layer, and the additional layers are
known as excess layers. A typical policy structure for £10 million would be a
primary layer for the first £2 million, a first excess layer for the next £3
million, and a second excess layer for the final £5 million. If this £10 million
layered policy was arranged on an each and every claim basis, all the loss
would be absorbed by the primary layer insurer, and the excess layer insurers
would only be involved if there was a single claim that was settled for more
than £2 million. This significantly reduces the risk for the insurers of the
upper layers, which in turn reduces the cost of the overall premium.

A recent change in the PII market is the formulation of policies as 'aggregate

plus unlimited round the clock reinstatement'. This means that the full limit of
indemnity available for any claim is rotated across the various layers of
insurers for the different claims settled. Using the £10 million cover example,
the first £2 million of the total claims would be paid by the primary layer, and
the next £0.5 million by the first excess layer. When the £2 million primary
layer is eroded by claims, this part of the insurance limit is reinstated as the
top layer of the stack, so it would only become involved again when the
remaining £8 million of the other layers have been utilised.

One way of thinking of this kind of structure is as a stack of playing bricks. As

bricks are removed from the bottom of the stack to pay claims, they are
replaced at the top of it. The number of bricks is always consistent, but their
position in the stack changes. It is a way of spreading the risk between the
different insurers.

The ARB and the RIBA have specific minimum requirements for PII cover for
architects.3 Ensure via yourinsurance broker that your PII policy is ARB and
RIBA compliant.

Project-based insurance
Directly insuring the risks of a construction project has been promoted for
many years as a better solution for both clients and the design team. With PII,
clients have the more convoluted and less certain process of having to first
prove the negligence of the consultants or contractors before they can gain
any remedy or compensation via the professionals' PII. Project-based
insurance provides direct insurance cover for the asset or risk, similar to how
most other consumer insurance works for property, cars, pets, etc. However,
this form of insurance has not taken hold in the construction industry, except
for large infrastructure projects (such as Crossrail and Heathrow Terminals 4
and 5), mainly due to project-based insurance being more costly and not
completely removing the need for some PII.

Although project-based insurance provides simpler and more certain cover for
the client, it does come with other complications and costs for construction
projects. To ascertain the risks and an economic insurance premium for a
project requires much more inspection and certification as the design and
construction progresses. There are so many variables and complexities in
assembling a building and there is a view that letting the designers, suppliers
and constructors off the hook for their liabilities could lead to them being less
conscientious.

Insurers therefore demand a much higher level of inspection and quality

management for project-based insurance than building control usually
provides for. It requires the project team to use a partnering form of contract,
so that a 'no blame' culture is established, enabling any issues to be identified
and dealt with as they arise. Everyone in the project team needs to be
encouraged to inform their manager if they think anything is not right, to
prevent any issues escalating into something bigger. The UK Government is
encouraging the use of integrated project insurance for public construction
procurement.4

Even with comprehensive and integrated project insurance, it is impossible to

eliminate the need for PII. There is still a need to pinpoint the cause of a claim,
so that it is the perpetrator that mainly pays, particularly if there are large
sums of money at stake. The higher costs and complex processes associated
with project-based insurance generally make this form of cover uneconomic.

Owner's protective professional indemnity

Owner's protective professional indemnity (OPPI) policies are an alternative
to project-specific policies and are complementary to professional liability
policies. They are specifically for the owners of construction projects,
providing cover for damages outside of the professional liability cover of the
design team on the project. The 'owner' may be the funder of the project,
rather than the client you directly deal with.

OPPI policies are used more for international and larger scale work, as an
alternative to project-based insurance and where the normal PII of the design
team does not operate or cover the risks. OPPI can provide the owner with
cover for damages that exceed, or are outside of, the cover of the PII policies
of the design team professionals. It can also provide the owner with cover for
the full duration of the project (not just annually arranged), and for third
party claims. Policies may be written on a project-specific basis, or on a
'blanket' basis for all of the construction projects of the owner.

An OPPI policy offers no cover to the professionals but allows the principal
owner of the project to insure against their potential losses, which might
exceed the PII coverage. The terms of these policies are usually confidential to
the owner. You may need to make a client aware that such cover is available
for situations requiring higher levels of indemnity.

Insurance protection
The primary way of reducing your financial exposure to professional business
risks is by having PII. However, even if you have and monitor project quality
procedures in your practice, your PII might not cover you fully for a
catastrophic claim. There is also the small possibility of your PII company
going bankrupt, which would leave you without cover and unable to fulfil
your contractual obligations and ARB and RIBA requirements. Insurance
protection schemes can economically cover you for that unlikely event. If
your practice workload is extensive and varied, it can be prudent to spread
your PII cover over several insurance companies or underwriters, to avoid a
total loss of PII cover if one insurer fails. Seek advice from your PII broker.

There is a risk of a major claim being larger than the level of your insurance
cover, especially when legal costs and consequential losses are taken into
account. Limiting your liability, by agreement with your client, to your agreed
level of PII cover or sharing the risk with the other project consultants is a
sensible precaution (see the 'Nets and caps' section below).
However, you cannot limit your liability to claims from third parties. As a sole
practitioner or a partnership, claims not covered by your PII become claims
against your personal assets, which can result in you being made personally
bankrupt. This is a risk you can avoid, or at least minimise, by professionally
managing your business risks and PII cover, as set out in the rest of this
chapter.

The PII market

The PII market has specific characteristics that are different from other forms
of insurance. These are beyond the control of the professionals being insured,
but it is important to understand the dynamics of this market as the
availability, price and terms of PII insurance can fluctuate greatly. The PII
market depends on a wide variety of volatile interconnected issues, including
the current economic conditions, global insurance risks, changes in regulatory
and legal requirements, current technical knowledge, political stability, public
confidence and the recent claims history of the insured and the industry.
Therefore, the premiums, market conditions and insurance risks for PII are
constantly being reassessed by the insurance underwriters and brokers.

PII is a quicker market for insurers to get in and out of, with annually
renewable policies, compared with other types of business insurance, which
tend to provide cover over a longer term. If an insurer is looking to adjust the
risk profile and market sectors of its 'books' - its overall insurance policies - PII
tends to be their first port of call. This adds to the volatility of the PII
insurance market, particularly in the construction sector.

The insurance marketplace is affected by the general economic situation, as

insurers look to invest during periods of growth and divest in a downturn.
The level of claims has a tendency to rise in a recession, when people have
more time on their hands to complain and also a greater need to recoup any
losses. The occurrence of major catastrophes, such as hurricanes and
pandemics, can cost the insurance industry significant sums of money, and
this affects the overall trends in premiums.

When a practice renews their PII insurance each year, the details and cost of
the cover can vary dramatically. For example, annual PII premiums increased
and policy cover changed significantly following the Grenfell Tower fire in
2017, which triggered major concerns about the fire safety of cladding systems
that led to certain types of cladding and materials becoming uninsurable. It
was also the genesis of the Building Safety Bill, announced in 2020, containing
significant changes to the fire safety obligations for building designers.5 In
recent times, there have been significant changes in the insurance cover for
asbestos, pollution, flooding, terrorism and energy performance.

Therefore, all standard forms of appointment contracts have an insurance

provision for the cover to be dependent on what is currently readily and
economically available in the market.6 Many projects and their professional
team's appointments have durations of several years and the PII market, and
therefore the cover available, can change dramatically between one year and
the next. This is also mentioned in Chapter 2 in relation to appointment
agreements with clients, but here is a reminder that it is essential to ensure
that any bespoke professional services appointment contract contains a similar
clause on the availability of insurance.

PII policies are generally individually assessed and tailored for each practice,
their market sector and workload, as well as their risk profile. But there are
generic, automated PII products available online for small-scale practices and
professionals, those with lower levels of turnover, working in more familiar
sectors (small-scale residential) and providing limited lower-risk services
(early design stages, not detailed design or construction supervision). These
policies are normally provided as part of wider group policies for select
groups, such as smaller RIBA Chartered Practices with lower fee turnovers.

With the increasing pressures and complexities of designing and constructing

buildings in a rapidly changing environmental, economic and regulatory
context, with new technologies and risks emerging, the global PII market is
hardening. This means that there is a reduced capacity and appetite for new
insurance, premiums are increasing, and insurers are becoming more diligent
and cautious when taking on new risks and unproven customers.

Architectural practices that know what they are doing - with robust risk
management procedures and efficient operational processes - and have a
proven good track record are becoming even more attractive to PI insurers.
Insurers prefer policyholders that actively manage their client relationships
and contracts and keep them fully informed. They increasingly prefer to build
up long-term relationships with practices and people they know and trust.
This is particularly the case when insuring a practice's past performance with
PII. It significantly reduces the risk of 'claims made' annual insurance,
knowing that it is less likely there will be subsequent claims during the year
of the policy. These practices are valued by insurance brokers and
underwriters and tend to be offered better PII coverage and lower premiums,
even when the PII market is tricky.

Cost of PII
The cost of PII cover depends on a wide variety of factors, some of which are
specific to the individual professional or practice. Premiums are based on a
practice's type and size, nature of work, type of clients, project contracts'
terms, annual turnover, claims history and risk management processes, as well
as the financial limit of the cover and the excess, the level of claims handling
and support services to be provided and the current PII market conditions.

In assessing the premium rate, insurers will look carefully at the risks they are
taking on based on your work-load history and your list of identified potential
claims. Recent claims that have already been settled should not affect the
premium as much, but they can have an influence if the underwriter (new or
existing) gets the impression that you adopt risky practices and poor risk
management.

Rates for PII insurance premiums for architects' practices generally range from
1% up to 5% or more of fee income or annual turnover. This equates to about
0.1% to 0.25% of the construction value insured. Insurance premium tax of 12%
is also payable on insurance premiums, but premiums are not subject to VAT.

PII is not a cost-efficient form of insurance for the client or the professional,
mainly due to the convoluted processes and high legal costs of proving
negligence, for both pursuing and defending claims. No more than 40% of the
total premium cost of architects' PII goes towards paying damages. The
remaining 60% or more is spent on the legal costs, with a very small
proportion of this (generally less than 5% of the total 100%) spent on the
administration of PII. It is the high level of legal costs that leads insurers to
seek to settle some claims without legal recourse (particularly those with
relatively low value and where there is some element of liability) as early as
possible to reduce the legal costs.

Despite its inefficiencies, PII does provide protection for the client that is
cheaper overall than other forms of insurance, such as project-based insurance
or the European form of 'inherent defect' insurance.

Amount of PII cover

How much PII cover, or what financial limit of indemnity, a practice should
have depends on several factors, not just the overall annual fee income. There
is no simple or standard answer and each practice is different, because of the
type and sector of the work undertaken, the nature and needs of the clients,
the size and risks of the projects and the practice's contractual obligations. The
financial limit selected is generally a balance of the requirements of the
projects and the clients, tempered by the practice's view on exposure to risk
and the affordability of the premium.
Practices should maintain sufficient PII cover to enable them to meet claims
arising not only from making good any defects in the design and construction
of the projects due to negligence, but also claims that may arise from
consequential loss and personal injury. This includes losses to the client due to
delays and additional costs, such as lost rent or income generation, additional
funding and extended temporary accommodation costs. The level of cover
relates more to the construction and property value of the projects than to the
practice's fee income.

As a rough guide, a practice's level of PII cover should generally be about

three of four times its annual fee income. If the fees represent about 3% to 8%
of the construction value of the projects, it will give cover for between 10%
and 25% of the construction costs. This is generally sufficient to cover the
costs of making good an error or omission of the architect. There are often
claims where the consequential losses are significantly more than the
construction cost and where claims exceed the contract value. The smaller the
contract value, particularly for residential work, the more likely it is that there
will be a claim that exceeds the project value. Basement works are particularly
prone to this as they can cause damage to the adjoining property, and
premiums for covering this type of work tend to be higher.

In more costly and larger scale catastrophic negligent faults, there are
generally other factors and people (co-consultants, contractors, suppliers,
approvers, etc.) involved who contributed to the disaster and so share the
liability for the costs (see 'Nets and caps' below). However, there is no
substitute for carefully considering your potential exposure, evaluating and
mitigating the risks, and seeking expert advice to assess the appropriate level
of cover for you and your practice. A good insurance broker will be able to
provide some advice on this, but the key advice is to purchase as high a limit
of PII as is commercially viable.

The ARB and the RIBA recommend a minimum limit of PII cover of £250,000
for each and every claim. Most PII policies for architects' practices are based
on this minimum level and amounts lower than this may not result in any
reduction to the premium.

The level of PII cover is often determined by the demands of your clients and
the size of your projects. This can be problematical for a practice that usually
works on projects within a certain value range (say £0.5 million to £2 million),
and so has annual PII cover to reflect the usual value (say £2 million), but is
offered a larger scale project (say £5 million) with demands for higher levels
of PII (say £5 million). It is possible to buy an increased indemnity limit for
just this specific project (of £5 million), but the additional premium may be
about the same as it would cost to raise the cover for all of your projects to the
higher amount. It is possible to charge your client an additional fee for the
additional costs of your PII cover for their specific project. You can limit the
maximum level of cover on your smaller projects to a much lower amount by
including an insurance cap in the appointment contract.

Having cover for complaints handling and legal costs is increasingly

important. Most PII policies cover these costs and provide a claims handling
service. Checking your insurer's approach and track record on this is crucial in
deciding on your PII cover. Further, check the insurer's attitude to alternative
dispute resolution, especially to adjudication, how they negotiate and whether
they meet claims effectively and efficiently. Most PII claims are settled
privately out of court, some are settled by dispute resolution, and a very few
reach litigation. Over 60% of insurance pay-outs relate to the handling and
legal costs, with less than 40% spent on the compensation, which indicates
where the value is in your PII premium and the support you need from your
PII broker and underwriter to contain the legal costs.

Excess
Excess is the initial amount of any claim that is your responsibility to pay and
which is not covered by your PII. Like all forms of insurance, the greater the
excess amount, the lower the premium. Insurers prefer some level of excess to
deter frivolous and smaller scale claims. The level of the excess can vary
considerably and is generally imposed by the insurer. It normally ranges from
a minimum of £500 for the smallest of practices to £25,000 or more for large
practices working on larger projects.

Exclusions

Where risks are considered too unpredictable or costly, insurers exclude them
from their policies. The exclusions primarily comprise a list of deleterious
materials, which regularly changes as new hazards become apparent. These
changes cause complications in how the issues created by new exclusions can
continue to be insured, particularly on an ongoing project.

For example, asbestos was commonly used as a lagging and roofing material
up to the 1980s, before its serious carcinogenic effects became known.
Asbestos subsequently became a banned material in new construction and
therefore uninsurable. However, there is still a need to deal safely with
asbestos hazards in existing buildings, particularly in the examination and
refurbishment of buildings where the presence of asbestos is not fully known.
Some PII polices still cover for negligence in removing or working around
asbestos, but this cover is extremely limited and no longer covers personal
injury claims. Where you suspect, or become aware of, the presence of
asbestos, you should inform your client and any site operatives and
recommend a specialist to deal with the issue. You should also include this in
your record of potential risks and claims.

The Grenfell Tower fire in 2017 also provoked new insurance exclusions,
particularly in relation to cladding and fire safety design. This high-profile
disaster also provoked the drafting of new legislation (as proposed in the
Building Safety Bill5) including additional health and safety obligations and
liabilities for building designers.
If new and unavoidable exclusions are imposed on your policy at renewal,
you should check the terms of your current appointment contracts and, if
required, inform your client of this change. You should also do this for former
clients on recently completed projects for which the liability period has not
yet expired. You should avoid any future work that would leave you
uninsured.

Nets and caps

An effective way of containing your PII liabilities is to have a net contribution

clause or insurance cap in your appointment contracts. Both are included in
the RIBA Professional Services Contract, but commercial and developer clients
are less keen on these and often try to have them deleted from standard
appointment contracts. Similarly, nets and caps are often missing in clients'
bespoke appointment contracts, but it is still worth negotiating for and basing
your fee on the level of risk you are taking on a project.

A net contribution clause limits the extent of your liability, so that you are
only liable for the proportion of the client's loss that was due to your failure to
exercise reasonable skill and care in undertaking your services. It excludes the
remaining proportion of the loss, which has been determined to be due to the
failures of other members of the design team, or the contractor, or due to
circumstances beyond your control. The apportioning of the loss between the
various parties involved is agreed by negotiation between the parties, or by
independent assessment by the appointed assessor/adjudicator/arbitrator, or
as judged by a court.

Most losses in construction projects are due to a combination of factors and

actions (or lack or action) by several parties involved in the project. For
example, a successful claim may be made for the disruption and making good
of faulty construction by the contractor, or an error in the design of a
subconsultant. However, the contract administrator should have discovered
the construction defect during their site checks, or the design team leader
discovered the design error when checking and coordinating the design
information, so they are partly liable for the losses.

A net contribution clause is valuable to all concerned as it is a fair way of

sharing the risks and making everyone responsible for their own work.
Although it is also in the client's interest, clients generally resist net
contribution clauses, as they consider them to be inconvenient and restrictive.

Clients will often try to put all of the liability onto the lead consultant's PII
(generally the architect's). In the event of a claim, the lead consultant then has
the task of claiming against the other contributing parties for the proportion
for the loss that they caused.

Insurance caps simply limit the maximum amount of damages recoverable

from an individual project team member, either to the value of their PII cover
or a figure agreed in the contract with the client. This protects the professional
by ensuring that the maximum pay-out is totally covered by their PII, but it
does not limit the value of claims for personal injury or to third parties.

Net contribution clauses and insurance caps work independently of each other
and can be combined. It is best to have both. But, if only one of these is
acceptable to a client, it is preferable to the consultant to have a net
contribution clause. The insurer may prefer an insurance cap as it gives a
definite limit to the liability they are covering.

For consumer clients, due to the requirements of consumer protection

legislation, it is important to clearly explain any insurance cap provisions to
them and to have written evidence of this explanation. It is more likely that
an individual inexpert client could get a cap overturned if they could say they
did not understand what it meant. The general legal view is that the more
sophisticated the client, the more knowledge they have of the construction
and contractual process, the harder it is to allege that the cap is an unfair
contract term.
It is worth specifically mentioning in your initial pitch or fee proposal for any
job, and in your standard terms and conditions for your services, that your PII
liabilities will be based on having a net contribution clause and insurance cap.
If this is not acceptable to the client, then the removal of one or both of these
devices can be negotiated, with a compensatory adjustment in the fees for
taking on the additional risk.

Insurance risk register

A good way to mitigate insurance risks and to manage potential and real
claims is by maintaining an insurance risk register for your practice. It should
be an integral part, if not the central core, of the risk management system for
your business. It need not be complicated or time-consuming, and can be a
simple and effective way of keeping out of trouble, saving you money and
stress in the long run.

To start, you should identify any risks on all your projects and in your
business operations and have a process for reviewing and recording them
regularly.

Make it a standing agenda item for all your project team and management
meetings. Record formally, in a written register, all newly identified potential
risks and any updates to previously identified ones. Categorise the risks by
project, date, type, priority and person responsible for dealing with it. For each
risk, provide a brief description, numerical assessments of its likely occurrence
and impact, and the mitigating actions. Guidance on risk registers is readily
available on the internet, along with several standard register formats.

The insurance risk register should be a living document, regularly updated

and frequently referred to and actioned. Remember to sign off any risks that
go away or are dealt with and resolved, but keep them as a record in the
historic risks section of your register. The overall responsibility for this
register and its upkeep should be owned by the appointed risk manager in
your practice, which is preferably someone senior. The register should be
reviewed and acted upon at every senior management meeting.

It is worth implementing a process to regularly update (quarterly or monthly)

your PII broker on your practice risk assessment, which can be done by simply
sending them a copy of your up-to-date risk register, in confidence and for
information only. Separately identify the risks that you are formally notifying
to your insurer and on which you want them to advise you or take some
action. The register and your regular communications with your PI insurer
will be useful evidence for your annual renewal form and show that you are
careful and responsible in managing your risks. The register also identifies the
risks that have been resolved and the current status of the ongoing ones,
quantifying the risks that you are seeking cover for in the forth coming year.

Starting or renewing your PII

As PII is an annually renewable insurance, each year a new proposal form is
required, with an update on the work history and risk profile of the practice.
As PII is a 'claims made' type of insurance, it is all about insuring history. It is
important that the proposal form is completed accurately and
comprehensively, as the new policy is based on this information and can be
voided if there is not full and honest disclosure of the risks to be insured.

The PII market is volatile and the terms and conditions of the next year's
insurance cover may be different to the current year's. Your existing insurance
broker and underwriter may not have an identical product available to
continue your insurance. If possible, it is sensible to continue cover with the
same insurer and on as similar terms as possible, particularly if you have
ongoing claims or potential claims, or you feel you may be slightly
underinsured. It will help to protect you in the event that disputes arise from
projects completed in previous years when you were also insured by them.
Due to the increasing level of uncertainty and regulatory changes for
insurance in the construction industry, many PI insurers in the construction
sector are asking more questions and giving closer scrutiny to new and
renewing policyholders. These may include a questionnaire relating to
cladding, basements and COVID-19. The renewal process can take longer and
involve more inputs from you, so allow enough time to do this properly.

When completing the PII documents, you are required by the Insurance Act
2015 to make a fair presentation of all relevant information. If you have a
practice brochure, formal risk management procedures or other methods -
such as always including a liability cap in your appointment - include such
information with your proposal form. If a claim has been successfully made
against your practice, you should include a description of the claim and state
both the lessons learned from it and the steps taken to prevent a recurrence.

Proposal forms can change slightly each year. The detailed terms and
conditions of seemingly similar policies from different underwriters and
brokers can significantly differ. So it is important to read the fine print
carefully. Look closely at the details of any exclusions, conditions of the 'any
one claim' (not 'aggregate') basis and legal fees, and the level of support
provided for handling claims and advising on new contracts. It is also worth
checking who is the solicitor acting for your insurer, to ensure they may not
also be acting for you or your key clients (a potential conflict of interest).

It is your, or your practice's, responsibility to fully understand the terms and

conditions of your PII policy and to be satisfied that it fulfils your professional
and practice requirements. If in any doubt, ask your broker for an explanation.

To acquire or renew your PII successfully, with a cost-effective premium, the

following points should be considered:

Prepare for your application for insurance well in advance of the

renewal or commencement date. Insurers need time to assess your
risks and prepare the best proposal. You need time to collate the
 information, assess your future insurance needs and explore the
current PII market through arranging alternative quotations.
Demonstrate your understanding of your business and its risk profile.
Provide information about your record-keeping, client relations,
project management systems, risk management, claims notification
and complaints handling procedures.
Provide evidence of your appointment contract conditions, and that
you have robust contractual documentation in place for all your
projects.
Produce a risk register for all your recent and current projects and a
claims history document that is up to date and accurate.
Be cautious before changing your existing insurer. You may benefit
from a cheaper premium, but there is additional risk if there are
outstanding claims or notifiable incidents.

Notification of claims
As soon as you become aware of a potential claim, or if you receive an
unexpected claim, it is essential that you notify your insurer immediately.
This could be when a mistake or defect becomes apparent or when a dispute
arises between parties in the project.

Insurers need to know of any potential claim at the earliest opportunity.

Notifying your insurer of a circumstance that may give rise to a claim allows
them to give you helpful advice on how to respond to a complaint, and gives
you the opportunity to use the insurer's expertise in dealing with the issue.
There may be tight time limits for defending and dealing with a claim under
some dispute resolution procedures, such as adjudication, and your insurer
needs as much time as possible to deal with this on your behalf. Keeping your
insurer informed and talking to them about issues that may give rise to claims
demonstrates your business awareness and proactive management of
insurance risks. It is equally important to keep your insurer regularly updated
with any new information on potential and ongoing claims.

Making a notification of a circumstance that may give rise to a claim should

not adversely affect your insurance premiums in the future. In contrast, failing
to notify your insurers in good time may result in a later claim being rejected.
Do not wait until a foreseeable complaint has materialised or, worse still,
correspondence has been exchanged about the issue with the complainant and
formal proceedings commenced, as this might void your insurance cover.
Declaring on your future insurance renewal form that you have had a claim
rejected for not complying with PII notification procedures will make insurers
cautious and definitely affect your ongoing insurance premiums.

Be fully aware of the notification procedures and guidance for your PII policy
and follow these meticulously. Be accurate, but also careful, in the wording of
any notification. Identify each notification as a separate potential claim. If
there are several notifications on the same project, they should be defined as
part of one combined claim, not separate issues, otherwise separate excess
charges and administration costs will be incurred when the claim is settled.

There are differences between the policy wordings of different PII insurers,
particularly in what needs to be notified and how a circumstance is defined.
Some policies refer to matters that are 'likely to give rise to a claim', whereas
others are wider in scope and refer to matters that 'may', 'might' or 'could'
give rise to a claim. The 'likely' wording is generally viewed as relating to
matters that have a 50% or more chance of becoming a claim, whereas the
alternative wordings are much broader.

When making any notification of a potential claim to your insurer, do

describe your notification using the same language as that in your policy. For
example, say issue 'X' has arisen and that we believe it 'may/might/could' oris
'likely to' lead to a claim being made against us. If in doubt, seek the advice of
your insurer broker, and when doing so speak to their claims handling team,
which may be different to your normal contact.
Some policies will have time limits on notifications. This is particularly the
case if adjudication is to take place. Because of the timescales involved, it is
common for there to be a time stipulation. This is often two working days, in
respect of the notification of a 'notice to adjudicate'. Usually with
adjudications, there will be a specific contact named in your PII policy who
requires direct notification (your insurer's representative, usually a solicitor),
rather than the notification being through your broker. Direct notification to
an insurer's representative may apply in other situations as well, particularly
when the policy wording is the insurer's own. If you are notifying direct to an
insurer's representative, do remember to copy your insurance broker into the
notification.

Dealing with claims

Even though it is not fee-earning work, you must give priority to dealing with
current claims. Not being diligent with this can put your insurance cover at
risk. Remember, it is the insurer who handles claims, not you. Once a formal
claim has been made, do not deal directly with the complainant, or their
representatives, without your insurer's approval and, if possible, presence. All
you have to do is provide the information and responses your insurer and
their legal team require of you to process, negotiate and settle the claim on
your behalf.

It is very important that you do not start by admitting liability, which is no

different to any other type of insurance claim you may be familiar with, such
as a car accident or personal injury. All discussions and documentation should
be clearly noted as being done 'without prejudice'. Be careful with any written
or printed documentation, particularly emails, texts and social media, as they
may be disclosable to other parties as evidence against you. Documents
between you and your solicitor remain privileged and do not need to be
disclosed, but should still be marked 'private and confidential'.
Always be professional, polite and accurate, without suppositions. Do not
write or say anything derogatory or defamatory, as it may incriminate you
later. Continue to keep comprehensive records of correspondence, telephone
conversations and meeting discussions relating to an ongoing claim.

Working internationally
Any international work done by a UK-based practice also needs to be
adequately covered by PII, in accordance with the ARB and RIBA
requirements.

The insurance system, contractual obligations and legal framework can be

very different in different countries. For example, Europe predominantly has a
civil code based legal system, with 'decennial liability' or 'inherent defect'
insurance requirements for construction projects, which is different from the
UK's case law based legal system, with 'duty of care' negligence obligations
and contractual liability periods or six or 12 years. Many countries have a
strict liability, or warranty, for buildings for 10 years after completion, which
is generally insured by the contractor. This is a strict liability ('fitness for
purpose' obligation) as it does not require any proof of fault or negligence. It
covers the integrity of the structure and suitability of the accommodation to
fulfil its intended purpose. It is roughly equivalent to project-based insurance
schemes in the UK. It costs about 1.5% of the structural construction value and
requires technical inspections during construction by the insurer's inspectors.
It costs far more than the usual PII systems in the UK, which generally cost
only about 0.1% to 0.25% of the construction cost, but provides less certain and
finite insurance cover.

In Europe, professionals usually have to certify that a building complies with

all the statutory planning and technical codes, which is covered in the UK by
planning and building control approvals, certified by local authorities. To be
able to do this certification, European building designers generally need to be
registered and regulated by their relevant professional body and have relevant
PII.

Contract law, for appointment and construction contracts, also varies

significantly between different countries. As this is separate from local
legislation, it is possible to have your international contracts under UK
contract law jurisdiction, even if the client or the project they relate to is
located elsewhere in the world. This needs to be specifically stated in the
contract. UK standard forms of appointment and construction contracts
usually do include a provision that states which jurisdiction applies, with UK
as the default, which can be altered to a different national jurisdiction for the
contract.

If you are working on a project abroad, consult your broker about what
insurance cover you need and whether your UK PII policy would be sufficient.
It is highly likely that you will need a specific extension to your PII policy or
an additional form of insurance. Another solution would be to partner with an
architect based in the other country, relying on their locally complaint
insurance cover and registration.

UK PII policies will have limitations on their territorial limits and applicable
legal jurisdictions. Most policies will exclude projects in the USA and Canada,
or claims brought under their legal systems, unless specifically agreed
otherwise. This is due to the compensation-driven legal system and the scale
of damages awarded in North America. Similar to travel insurance, where PII
cover is provided for North America, it will be on a more restrictive basis than
for the rest of the world. The insurance limit in the USA is usually restricted
to an aggregate basis and generally additional exclusions are applied, to
ensure that the punitive damages that are common in US claim settlements
are not covered under the UK-based PII.

When working internationally, another consideration is whether the country

in which the project is located is subject to any international sanctions. If
sanctions apply, then insurers would not be able to pay a claim that breaches
them. As insurers are generally international groups, it is common for policies
to mention the sanctions imposed by the United Nations, European Union,
UK, USA and Australia, but there could be other, more local issues involved as
well.

Run-off cover
Due to the 'claims made' basis of PII, cover is needed not when an incident
occurred, but rather when a claim is made, which can be long after you have
retired or ceased to work in the insured practice. 'Run-off' cover can be
obtained after the closure of a practice or by an individual leaving or retiring
from a practice, to cover the risks of claims for work previously undertaken. It
is recommended that run- off cover is maintained for a minimum of six years
(the usual limit of liability for contracts). The level of cover should be an
amount similar to the highest level of cover of PII you had for the last three
years of practice, which could gradually taper off to lower amounts for the
remaining period, as the risk of claims recedes. However, insurers do have
minimum premium levels for any given insurance limit and once that has
been reached the premiums will not reduce further. In hard market conditions,
it is possible that run-off premiums may increase, if the insurers adjust their
minimum premium levels upwards, during the run-off period.

Run-off cover may need to be maintained for more than six years, to cover
appointment contracts executed as deeds (which have a liability period of 12
years) and to cover latent defects and personal injury claims. Run-off cover
can be necessary for up to 15 years, particularly for retired directors and
partners, to deal with deed contracts (12 years) plus latent defects (three
years). The law in this area is complex, and some of these policies contain
'retroactive date' clauses that limit the cover, so you should take legal advice
before arranging your cover.

Insurance brokers used to offer a single policy that covered the complete
runoff period, but sadly that is no longer the case due to the increased
volatility of the PII market. Therefore, like all other forms of PII, run-off cover
needs to be renewed annually. You will have to allow for this in your ongoing
expenses, or include for the total likely cost of the premiums for your six to 15
years of run-off cover in your employment termination payment. Some
practices provide run-off cover as part of an employment termination
agreement.

Practice closure

If you are voluntarily closing your practice, you are expected to ensure that
adequate run-off insurance is put in place to cover ongoing liabilities. You
should allow for this expense in the winding-up costs.

Should your practice unfortunately become insolvent, the decision to continue

with PII may be taken by the administrator or receiver. You can still take steps
to protect the interests of your former clients and your own professional
interests. You should inform your present and previous clients of the position.

Run-off cover can be put in place to cover the previous liabilities of the now
defunct practice, which is more likely and useful for a partnership than for a
limited company or LLP that has been wound up. The issue is that the legal
entity of a company or LLP no longer exists, therefore there is nothing to
make a claim against or for the insurers to insure. If the defunct practice has
been taken over, or its assets bought, by another practice, then the new
owners often have to take on the liabilities of the previous practice and have a
PII policy to cover these liabilities.

Other types of business insurance

A range of non -PII insurances are available and advisable for architecture
practices, as outlined in this section. Non-PII insurances can be bundled
together into tailored packages for a practice. They can often be provided by
the same broker who provides the practice's PII cover, so a single composite
insurance plan can be managed by a single broker. This may be more
convenient and often a bit cheaper than separately sourcing each type of
insurance separately.

Public liability

Like every business, an architecture practice has contact with customers and
members of the public and so should have public liability cover. This covers
the practice for claims from anyone for personal injury or damage to their
property and possessions that resulted from your business activity, whether
on your business premises or at another location. Although the costs and pay-
outs for successful public liability claims can be high, the probability of these
risks is relatively low and therefore this insurance is inexpensive.

Employers' liability

Employers' liability cover protects the practice from claims for compensation
by employees who have suffered an illness or injury as a result of their work
for the practice. The definition of an 'employee' can include a volunteer, a
family member or a temporary contract worker, so goes beyond those on your
payroll. This insurance is relatively inexpensive and widely available.

Business content and equipment

This provides cover for replacing or repairing office furnishings, fixtures and
fittings, office equipment, such as computers, printers and telephones, and
also documents and drawings. It also covers portable items (laptops, mobile
phones, surveying equipment and personal protective equipment) that are
taken outside of the office. These are all assets that your business depends on
to function and can be costly and disruptive to replace if they are lost, stolen
or broken, but can be insured relatively easily and cheaply.

Cyber crime

All businesses are increasingly dependent upon technology, software, digital

data and online access. Cyber crime, online fraud, hacking and digital data
breaches are increasingly frequent and insidious risks. As well as having a
direct impact on the practice, such crimes or data breaches may have impacts
on your customers, employees and contacts, which can lead to them making a
claim against you. Specific insurance policies are available to cover these risks.

Terrorism

Acts of terrorism very rarely directly damage businesses and their staff, but
when they do occur, they can cause significant business interruption and
stress. Insurance cover is available for losses and business interruption arising
from acts of terrorism.

Business interruption

An event that causes business interruption can impair a practice's ability to

trade normally, leading to loss of revenue, unexpected costs and claims for
delayed work. Cover for this can provide the practice with help to recover
quickly and minimise further disruption.

Legal protection

Claims can be made against your practice by anyone to whom you have a
contractual obligation or duty of care, which includes clients, contractors,
suppliers, co-consultants and employees. Legal protection can provide cover
for the cost of legal advice and representation if you or your practice is faced
with such a claim. It is normally provided as part of a PII policy for any
professional negligence claims, but there are other types of claims that can be
covered by a legal protection policy.

Directors and officers

Directors, partners and senior officers of a practice are more prone to having
claims, allegations and disputes aimed personally against them due to their
prominent profile within a practice and because they are the individuals in
overall control of projects and responsible for the staff and operations of their
practice. Such claims put personal assets and reputations at risk, but are also
incredibly distracting and damaging for the practice. Directors' and officers'
insurance can protect not only the senior individuals, but also all the people
within your practice from compensation claims and associated defence costs.

Personal accident

Personal accident insurance provides compensation for lost income (to the
individual, their dependants and the practice) and medical costs in the event
of an accident, injury or death affecting a member of the practice while
carrying out their work. A group policy is usually taken out for a practice,
which is inexpensive due to the relatively low probability of these risks.

Medical

Absence through illness is not only disruptive and costly for the practice, it
also affects all of the team, as the rest of the team have to cover the work of
their absent colleagues. Private medical insurance is a valued and attractive
employment benefit to the individual and can be extended to their close
family members. It can also reduce the impact of illness absence on the
practice, by reducing waiting times for treatment and speeding up recovery. It
can be expensive to provide, but costs can be shared with employees,
particularly if they wish to extend it to cover their family members.

Conclusion

Protection against risks and liabilities incurred in your professional practice

needs to be in place in the interests of both you and your clients. It is a
requirement of the ARB and the RIBA for all registered architects and
Chartered Practices in the UK. Allegations of professional negligence often
involve complex and detailed issues, and litigation may be expensive and
traumatic. PII, or other appropriate insurance cover, is therefore essential to
protect you and your business against such claims.

You should always seek advice from an appropriate expert adviser in relation
to the insurance cover you intend to obtain, including, for example, on any
exclusions from cover and the limit of indemnity. Remember, complaints and
negligence claims can be avoided, or certainly mitigated, by careful practice
and risk management.

Endnotes
1 ARB. The Architects Code: Standards of Professional Conduct and Practice (London: ARB, 2017).
Available at: [Link]/architect-information/architects-code-standards-of-conduct-and-
practice/ [accessed 23 August 2021].

2 RIBA. RIBA Code of Practice (London: RIBA, 2021). Available at: [Link]/knowledge-
and-resources/resources-landing-page/code-of-practice-for-chartered-practices [accessed 23 August
 2021].

3 ARB. 'PII Guidance' (London: ARB, 2020). Available at: [Link]/architect-information/

professional-indemnity-insurance/pii-guidance/ [accessed 23 August 2021].

4 Cabi net Office. The Integrated Project Insurance (IPI) Model: Project Procurement and Delivery
Guidance (London: HMSO, 2014). Available at: [Link]/government/publications/integrated-
project-insurance [accessed 23 August 2021].

5 Ministry of Housing, Communities and Local Government. Building Safety Bill (Bill 139 EN),
introduced in the House of Commons on 5 July 2021 (London: HMSO, 2021).

6 RIBA. RIBA Standard Professional Services Contract 2020 (London: RIBA, 2020).
9
Professionalism at work with
professional conduct
DOI: 10.4324/9781003231462-9

Your conduct is the clearest proof of your

professionalism

Professionalism is defined by ethical behaviour and social purpose. The

quickening pace and increasing impact of environmental, economic, political
and social change and increased focus on personal wellbeing have moved the
ethical aspects of professionalism to the fore. Both the ARB and the RIBA
have recently reinforced their ethics obligations in updated codes of conduct
and are improving the requirements for professional competencies on these
issues, through the RIBA's Way Ahead review1 and the ARB's Engagement
Group.

There is a complex interplay between a professional's duty to themself, their

profession, their work colleagues, their clients, the users of their services and
wider society and the environment.

A professional's duty of care implies that the public interest should take
precedence and that this should be applied with integrity, impartiality and
independence. Professional ethics require all professional work and
judgements to be undertaken competently and with relevant knowledge,
awareness, reflection, scrutiny, evaluation and imagination.
Codes of conduct

A defining attribute of any profession is having a code of ethical behaviour

and conduct, which is usually maintained and administered by a professional
body and, in some cases, by a statutory regulator.

Built environment professions, including engineers, surveyors, planners,

architectural technologists and architects, have professional bodies that
administer their own codes of conduct, which vary in format and content but
cover similar issues of integrity and competency.

Unique among the UK's built environment professions, architects have added
statutory regulation under the Architects Act 1997, which protects by law the
use of the title 'architect' in the UK, and use of the term 'chartered architect' is
controlled by the RIBA. Architects in the UK are regulated by both the ARB
(statutory regulator) and the RIBA (professional body), both of which have
codes of professional conduct for their registrants and members to adhere to.

The requirements for architects in the UK and Ireland are as follows:

All 'architects' in the UK have to be registered with the Architects

Registration Board (ARB) and comply with the ARB's Architects Code:
Standards of Professional Conduct and Practice to be able to practise
using the title 'architect'.
'Chartered Architect' members of the Royal Institute of British
Architects (RIBA), in the UK and internationally, are required to
comply with the RIBA Code of Professional Conduct.
'Chartered Architect' members of the Royal Incorporation of
Architects in Scotland (RIAS) are required to also be registered with
the ARB, which provides the professional conduct function for the
RIAS.
'Chartered Architect' members of the Royal Society of Architects in
Wales (RSAW) and the Royal Society of Ulster Architects (RSUA) in
 Northern Ireland must also be members of the RIBA and follow the
RIBA code and professional conduct system.
'Chartered Practice' business members of the RIBA are required to
comply with the RIBA Code of Practice for Chartered Practices.
The Royal Institute of the Architects of Ireland (RIAI) acts as a
combined professional body and statutory regulator for professional
conduct for members in Ireland.

The purpose of a code of conduct is to set the standards of integrity and

competency and the level of respect for the environment and society expected
of a professional. This is primarily for the public interest, but is also to benefit
the reputation of professionals. Codes also provide guidance for professionals
on good practice. Such codes enable the public and clients to expect and
receive a high standard of behaviour and independent expertise from their
qualified professionals. Professionals are expected to comply with the spirit of
the codes, not just their specific terms.

Codes tend not to repeat the obligations of general law, and they do not deal
with criminal or civil offences, or even proving negligence, as these are
matters for the courts and alternative forms of dispute resolution. However,
serious criminal convictions can automatically lead to a disciplinary sanction,
including expulsion, by a professional body or regulator, even if the criminal
offence was not directly related to your professional activity. An offence of
this severity is considered a breach of the values of professional behaviour and
damaging to the reputation of the profession.

Criteria for qualification as an architect (ARB and RIBA) include all the
attributes covered by their codes of professional conduct, including evidence
of:

overall competence and the ability to behave with integrity, in the

ethical and professional manner appropriate to the role of architect
the skills necessary to communicate and work effectively, to carry out
the duties and provide the services expected of a professional architect
 a clear understanding of the architect's obligation to society, the
environment and the profession
a sufficient awareness of the limits of their competence and
professional experience to ensure they are unlikely to bring the
profession into disrepute.

ARB and RIBA coordination

Many members of the RIBA are also registered with the ARB and are
therefore bound by both sets of codes and procedures for professional
conduct. This similarly applies to members of the RIAS, RSAW and RSUA
who are also registered with the ARB. To avoid confusion and inconsistency,
as well as double jeopardy, the ARB and the RIBA work in liaison with each
other in handling any professional conduct complaints about their joint
registrants and members.

Where a complaint is made to the RIBA, but the RIBA finds the same or a
related complaint has also been made to the ARB, the RIBA registers the
complaint but suspends its further investigation until the ARB reaches a
decision. If the ARB decides to take no action, the RIBA's appraisal team
considers the complaint and the member's response and follows its
procedures, with the knowledge of the ARB's decision. If the ARB upholds the
case and applies a sanction, for unacceptable professional conduct or serious
professional incompetence, then the RIBA contacts the member concerned and
requires them to make a written plea in mitigation to the RIBA's appraisal
team within 28 days. The RIBA's appraisal and (if required) hearings
procedures then take place.

Any RIBA professional conduct complaint application and decision about a

member who is also ARB registered is similarly referred to the ARB. Although
the ARB and RIBA codes and professional conduct procedures are different
and independent of each other, it is very unusual for the ARB and the RIBA to
come to different conclusions about a complaint.

ARB Architects Code

Figure 9.1: The Architects Code

The ARB's Architects Code: Standards of Professional Conduct and Practice

and guidance on the procedures for making and processing a complaint are
published on the ARB website.2

The ARB's code has 12 standards that an architect is expected to follow.

ARB ARCHITECTS CODE - THE STANDARDS

1. Be honest and act with integrity
2. Be competent
3. Promote your services honestly and responsibly
4. Manage your business competently
 5. Consider the wider impact of your work
6. Carry out your work faithfully and conscientiously
7. Be trustworthy and look after your clients' money properly
8. Have appropriate insurance arrangements
9. Maintain the reputation of architects
10. Deal with disputes or complaints appropriately
11. Co-operate with regulatory requirements and investigations
12. Have respect for others

RIBA Code of Professional Conduct

Figure 9.2: RIBA Code of Professional Conduct

The RIBA's Code of Professional Conduct for its members covers similar
issues to the ARB's Architects Code, but it has a different format, based
around three principles: integrity, competence and relationships. This code,
along with useful information and guidance on professional conduct
procedures, is published on the RIBA's website.3
 RIBA CODE OF PROFESSIONAL CONDUCT -
THE PRINCIPLES

Principle 1: Integrity

Members shall behave with integrity and shall strive to safeguard and
improve the standing, reputation and dignity of the Institute and its
Members in all their professional activities. Members shall consistently
promote and protect the public interest and social purpose, taking into
account future generations.

Principle 2: Competence

Members should continuously strive to improve their professional

knowledge and skill. Members should persistently seek to raise the
standards of architectural education, life-long learning, research,
training, and practice for the benefit of the public interest, those
commissioning services, the profession and themselves. Members should
strive to protect and enhance heritage and the natural environment.

Principle 3: Relationships

Members shall respect and seek to uphold the relevant rights and
interests of others. Members shall treat people with respect and shall
strive to be inclusive, ethical, and collaborative in all they do. Members
shall seek and promote social justice.
RIBA Code of Practice

The RIBA also has a Code of Practice for its Chartered Practices. As well as
the personal professional conduct obligations of the code for individual
members, the Code of Practice includes additional ethical issues relating to
running a business and providing architectural services. This code, with useful
information and guidance, is available on the RIBA's website.4

The Code of Practice has the same three principles format as the RIBA's code
for individual members.

RIBA CODE OF PRACTICE - THE PRINCIPLES

Principle 1: Integrity

Chartered Practices shall behave with integrity and shall strive to

safeguard and improve the standing, reputation and dignity of the
Institute and its membership in all their professional activities.
Chartered Practices shall consistently promote and protect the public
interest and social purpose, taking into account future generations.

Principle 2: Competence

Chartered Practices should continuously strive to improve their

professional knowledge and skill. Chartered Practices should persistently
seek to raise the standards of architectural education, life-long learning,
research, training, and practice for the benefit of the public interest,
those commissioning services, the profession and themselves. Chartered
Practices should strive to protect and enhance heritage and the natural
environment.
 Principle 3: Relationships

Chartered Practices shall respect and seek to uphold the relevant rights
and interests of others. Chartered Practices shall treat people with
respect and shall strive to be inclusive, ethical, and collaborative in all
they do. Chartered Practices shall seek and promote social justice.

Chartered Practices should also ensure that their clients are aware of the risks
to their project and have been advised on relevant insurances, such as project
insurance. Chartered Practices should also provide each client with a specific
client contact, who need not be directly connected to the project but is
available to assist in disputes or complaints that have not been able to be
resolved through the normal practice procedures.

Integrity
The first and most important standard in both the ARB and RIBA codes is to
act with integrity and honesty. This is the cornerstone of all regulated
professions and the guiding principle for all the other professional standards.
It is important because it is the basis for the trust and confidence placed in
professions by the general public, as well as clients and work colleagues. The
public must feel able to trust architects with their homes, properties,
investments, finances and, even, personal safety.

The expectation to act with honesty and integrity extends beyond an

architect's professional duties. The ARB and RIBA codes make clear that this
is expected 'at all times'. Any breach of this first principle or standard is
considered the most likely to seriously undermine the reputation of the
profession and harm public confidence in the profession. Integrity
encompasses ethical issues such as honesty, impartiality, confidentiality and
compliance with the law.
Honesty

Honesty for professionals is expected, and defined by the courts, to be of a

higher standard than that expected for general society. A professional must be
completely truthful and candid, and not act deceitfully by omission or
implication. A breach of integrity does not require an intentional act of
dishonesty. It can occur whenever conduct is considered questionable and
falling short of the higher standard expected of a professional, such as placing
personal interests above those of clients or misleading a planning authority
about the facts of a planning application.

The ARB is particularly concerned about the compliant use of the regulated
title 'architect' in the UK. It must only be used for those who are suitably
qualified and currently on the ARB register. Any partially qualified person
(not yet passed their Part 3), even if an associate or student member of the
RIBA or with many years of experience, must not describe themselves or
allow themselves to be described as an 'architect'. The plural use of'Architects'
in a practice name is only permitted if there is more than one ARB-registered
architect in the practice. The ARB also insists that all architectural work in an
'architects' practice' is under the control of an architect and that the client
knows the name of that architect. The RIBA also requires this for Chartered
Practices.

The accurate and honest advertising and promotion of practices and services
is an area of concern for both the ARB and the RIBA. It is the main reason
behind a significant number of professional conduct complaints by the public,
fellow professionals and clients. Expectations of professional integrity go
beyond simple compliance with general advertising standards - it is expected
that clients know the names of the architects managing their project and the
procedures for handling complaints. In their marketing material and
promotion, practices must not state, or even imply, that their skills, experience
or resources are different or greater than the reality.
The handling of clients' money and acceptance of financial incentives or
commissions are also areas covered by the ARB and RIBA codes. Clients'
money, whether for a project or as prepayment for services, should be held in
a separate account and any interest paid to the client.

The requirements and expectations regarding incentives go beyond statutory

compliance with the Bribery Act 2010. Architects should not accept incentives
or commissions from suppliers or contractors they recommend or specify. Any
discounts should be openly declared and passed on to the client. The exception
is in interior design and fit-out contracts, where it is common practice for
designers/specifiers to receive a commission from suppliers where this is the
case, the commission must be openly declared to the client.

Impartiality

A common area of complaint is the declaration and management of conflicts

of interest. Any potential or perceived conflict of interest should be declared
in writing to the client and contractor. It is also recommended that written
confirmation is obtained from the affected parties, acknowledging the fact and
agreeing that you should continue to act.

This issue can arise if you have a pre-existing commercial or personal

relationship with the contractor or another member of the project team.
Design and build contracts can create conflicts of interest, as you may be
acting for the contractor but have some reporting or design compliance
responsibilities to the client. Such conflicts should be avoided, ideally by
having a separate appointment contract with no concurrent duties, or at least
by using a robust form of novation agreement, such as the CIC Novation
Agreement 2018.5

Impartiality is expected in any professional judgements. You should make

sure that you have all the relevant information and knowledge that is required
before reaching any decisions, and that you fairly balance the interests
(sometimes conflicting) of the various stakeholders, including the client, users
and the community.

These wider duties can cause real ethical dilemmas for architects. For
example, architects have to consider, in an impartial way, how to balance the
environmental impact of initial embedded carbon and energy with that of
ongoing carbon generation and energy usage, or the project's initial capital
costs and construction budget with its in-use running costs and whole-of-life
costs. It is best to record the basis and assessment process for any such
important decisions and to inform the client of the trade-offs and the
reasoning behind your decisions. This may be used as evidence should any
dispute or complaint arise regarding your professional judgement.

Confidentiality and privacy

Professionals are expected to respect and safeguard the confidentiality of their

clients and their projects scrupulously. This relates primarily to the use of
personal data, but the requirements go well beyond compliance with the Data
Protection Act 2018. Any information provided by the client or about the
project should only be used and imparted for its expressed use. This means it
could be shared as necessary among the project team, or as part of a planning
or building control application, but its confidentiality must be clearly stated.

The practice should have office procedures and requirements for all their staff
(through their employment contracts) to ensure all data is appropriately stored
and handled, to maintain confidentiality. Appropriate procedures must be in
place and implemented and should be checked regularly. Any breach or non-
compliance should be identified and acted upon promptly (through remedial
action), and reported to the client and, as necessary, to any statutory body.

Observance of confidentiality and privacy also applies to a professional's

interpersonal relationships with colleagues, in how they use and share
personal information.
Competence

Competence relates to the knowledge, skill and ability of a professional and,

more importantly, how the professional applies them in the services they
provide. Clients rely on this competence, as they expect and trust their
architects and other professionals to properly deliver and effectively manage
their services, from project inception to project completion.

Both the ARB and RIBA codes of professional conduct cover the practical
issues of competence from the business management of professional practice,
to standards of service delivery and maintaining up-to-date knowledge.
Competence has recently been expanded to include issues of environmental
sustainability, community responsibility, respecting heritage assets and health
and safety.

Competence is never static - it is an evolving standard. The knowledge and

skills, working practices and technology necessary to fulfil your professional
obligations are constantly developing and changing, as are the legal context,
regulatory requirements and expectations. Both the ARB and the RIBA
require all their registrants and members to maintain their competence (keep
it up to date) by regularly undertaking systematic continuing professional
development (CPD). These include new RIBA mandatory competencies for
health and life safety, climate literacy, research and learning, ethics and social
purpose.

It is up to each individual professional to undertake their own CPD, tailored to

cover the relevant current knowledge and skills they need to do their job
properly. The RIBA requires all chartered members to complete a minimum of
35 hours of CPD each year, where at least 50% is structured learning and at
least 20% relates directly to the RIBA's core curriculum.

Practices can help to facilitate and provide CPD for their staff, which is a
specific requirement for Chartered Practices and is included in ARB and RIBA
guidelines. The RIBA provides CPD programmes and CPD recording services
via the RIBA Academy,6 which the ARB relies on for evidence of maintaining
competence. Nevertheless, it still a personal responsibility of every
professional architect to maintain their competencies through planned and
recorded CPD, and a wide array of CPD providers, courses, workshops and
publications are available. Evidence of CPD is nearly always asked for by the
ARB and the RIBA when investigating any professional conduct complaint.

Working diligently
The ARB and RIBA codes require work to be carried out conscientiously and
without undue delay. Unexpected problems and changes may cause delays or
require work to be redone. Errors or omissions may be discovered and need to
be rectified. All of these may affect the programme, cost and quality of a
project. It is essential that you keep the client informed, in writing, about
these issues, their likely impact on the project and your proposed actions to
deal with them. Despite all your efforts, mistakes and adverse consequences
may still occur. If you have, and can prove you have, taken appropriate
actions to overcome them and acted professionally, this will not be seen as a
disciplinary matter or due to professional misconduct.

You are expected to have appropriate arrangements in place to enable your

professional work to be kept going should your practice suffer bankruptcy, or
in the event of your or a key colleague's incapacity, long-term absence or,
even, death. Every practice should have some form of crisis management or
disaster recovery plan and should carry out succession planning. If you are a
sole practitioner or run a single-principal or small practice, you should have
an agreement in place with a nominated practice or practitioner, so that they
would take on your workload in case of such a catastrophe. This can be a
reciprocal arrangement, include provisions for your dependants, and even be a
regular collaboration agreement.
Communication

Many problematic issues can arise from a misunderstanding or a lack of

communication between parties. These are common causes of professional
conduct complaints. Good communication with all the parties involved in a
project, particularly the client, is crucial to being a competent professional. As
part of their qualification criteria and continuing CPD, all architects are
expected to have and use effective communication skills, to be able to
discharge their professional responsibilities.

Implementing good communication, in a proactive and systematic way, can

prevent and significantly reduce the risk of disputes and complaints arising.

Every practice should have a communication plan, tailored and applied to

each project. This can include regular client, design team and site meetings,
with key information and decisions recorded in writing, circulated to all
relevant parties, and monitored for follow-up actions and progress.

Managing your business

The most prevalent areas of client complaint relate to business management
and service delivery issues. Half of the professional conduct cases considered
by ARB's Professional Conduct Committee (PCC) between 2018 and 2020
related to a breach of the ARB Code's Standard 4: 'Competent management of
your business'.

ARB Standards 4.1 and 4.2 require the systems, resources, monitoring and
supervision you have in place to be appropriate and ensure a good service to
clients throughout the life of each project.

You are expected to be competent to carry out the professional work you
undertake to do. If you engage others to do that work they should also be
competent and adequately supervised, which includes having the technical
resources and knowledge required to undertake and deliver the agreed project.

If you employ staff, you must make sure they are suitably qualified and are
properly supervised and managed. A complaint to the ARB or the RIBA may
initially be about a member of staff who is not ARB registered or a RIBA
member, but this is not beyond the ARB's or RIBA's control. If an ARB/RIBA
architect was responsible for the member of staff that failed to deliver a
competent service, or the project they were working on, the architect could be
investigated by the ARB or the RIBA. The architect in control could be asked
to provide evidence of adequate supervision, and the management of the
practice could be investigated. It is therefore important to retain documents
related to supervisory and management procedures, such as internal notes of
supervisory meetings, employee appraisals, CPD records, correspondence
about the work, and sign -off procedures for drawings.

Criminal conviction
An architect who receives a criminal conviction of any kind must report it to
the ARB within 28 days and to the RIBA within 30 days. The ARB or RIBA
will then decide whether the offence is serious enough to warrant an
investigation into a breach of its professional code of conduct. If found guilty
of a serious offence that has a custodial sentence of 12 months or more (even
if your sentence is shorter), you would automatically be expelled from RIBA
membership and the ARB register.

Appointment contracts
Most professional conduct complaints can be traced back to an inadequacy or
omission in the terms of engagement at the start of the project. It is a
requirement of the ARB Architects Code and RIBA Code of Practice to have a
written appointment agreement covering all the key issues - such as scope of
services, responsibilities and fees - in place before any architectural work is
commenced. This is regardless of the scale of the project or extent of the
services.

Contractual terms must also be updated if the brief or instructions change

during the project. Failure to do this is an obvious breach of the professional
conduct codes and could incur a hefty sanction. It is often difficult to know
the scope of the project or your services and to agree your terms with the
client at the very start of any project. In these cases there should, at the very
least, be some form of written agreement to commence the services, with the
intention to complete a more comprehensive appointment agreement as soon
as it is possible.

Professional conduct complaints

Anyone can make a complaint to the ARB or the RIBA, or both, about an
architect's alleged transgression of the codes. Complaints are mostly received
from disgruntled clients, but they can also be from the public, building users,
co-professionals and even the ARB or RIBA itself.

Complaints to the ARB are divided into two distinct categories, as laid out in
the Architects Act 1997:

unacceptable professional conduct

serious professional incompetence.

If a complaint regarding a professional is upheld, neither the client nor the

complainant will be given compensation. Professional conduct cases only
examine the standard of professionalism of the professional in question,
investigating whether there has been a breach of the values expressed in the
relevant code of professional conduct. Damages to the complainant are not
assessed in the process, but if a professional conduct complaint is upheld, it
can be used as evidence to gain recompense for any loss or damages via
dispute resolution or the courts.

A complaint or dispute concerning a professional's contractual performance is

very different from a complaint about their professional conduct or
competence. A complaint about contractual performance should preferably be
resolved by the practice's own complaints procedure or one of the alternative
dispute resolution processes - or as a last resort by legal action.

Each case is judged on its facts, and there may be circumstances in which
unacceptable professional conduct or serious professional incompetence is
found even where there has been no clear breach of the express terms of the
code.

In the unlikely event that you have to deal with a professional conduct
complaint from the ARB or the RIBA, the best thing to do is to is to respond to
it positively and promptly. The key things you need to do are as follows:

Cooperate with the ARB or the RIBA and follow the instructions you
are given and respond to any requests fully and compliantly.
Accept your error or mistake or wrongdoing if the complaint is true,
and give an explanation.
If the complaint is untrue, refute it in a calm and professional manner
through the appropriate channels.
Provide all the evidence, as requested, to substantiate your case. Being
able to provide comprehensive records and a full response can help
demonstrate your professionalism.
If there is a degree of fault on your part, you should apologise and
express contrition, but this will depend on your professional indemnity
insurer's advice.
Explain how any legitimate mistake or wrongdoing came about, that it
was not intentional, what remedial actions you took (or can now take)
 and how you attempted to deal directly with the complaint and the
complainant.
Show insight by demonstrating you have learnt how avoid a repetition
of the error in the future.
Turn up in person to any hearing panel or professional conduct
committee and be open to and cooperative in their interrogations.

A proactive and constructive approach will help to mitigate and temper any
sanctions that the ARB or the RIBA decides are due.

Sanctions

The purpose of professional conduct sanctions is to protect members of the

public and to uphold the proper standards of conduct and competence of the
profession. Sanctions are not imposed to provide recompense to the client or
punishment to the professional, but they may have a punitive effect.

PRACTICE INSIGHTS

View from the RIBA

By Carys Reynolds, RIBA's Head of Professional Standards

The RIBA receives around 40 to 45 new professional conduct complaints

each year. The vast majority of these complaints come from clients,
although we do receive complaints from co-professionals and members
of the general public.

Many of the complaints received are avoidable and often involve absent
or inadequate written terms of engagement and/or poor communication
between architect and client. Very few of the complaints dealt with by
 the RIBA are to do with technical professional competency as an
architect. Our members on the whole have strong technical skills;
however, failures to have accurate and comprehensive written contracts
in place are fairly common, as are failures to keep the client informed
and failures to appropriately deal with client complaints.

In recent years we have also begun to see a rise in complaints

concerning inappropriate publicly expressed views and opinions of
RIBA members, particularly on social media platforms. While members
may believe that their personal views, even publicly expressed, have
nothing to do with their professional status, they should remember that
the duties and responsibilities of a professional do extend beyond the
strict boundaries of their professional life - all professionals have a duty,
including in their personal life, to avoid acting in ways which may bring
their profession into disrepute, including by making inappropriate
comments on social media or by transgressing the law.

The RIBA Codes are intended to be tools to support best practice. They
are instruments to hold members to account, but we hope that they are
referred to daily and relied on by members to ensure they are practising
in line with high standards. Going forward, the Codes will be examined
and reviewed every two years to ensure they remain fit for purpose in a
fast-changing industry.

Sanctions depend on the degree of transgression, its impact, any remedial

actions, the quality of communication between the parties and the previous
record of the professional. If it was a one-off mistake, or a matter caused by a
failing of the professional's employer or exacerbated by the actions of the
complainant, these issues will be taken into consideration in assessing the
sanction.

The ARB and the RIBA have different purposes, codes, disciplinary processes
and forms of sanction. The primary duty of the ARB is to protect the interests
of consumers, by regulating those who can use the title 'architect' in the UK.
The primary purpose of the RIBA, as a professional body rather than a
regulator, is to promote architecture and ensure society can rely on RIBA-
qualified architects to act professionally and competently.

The Architects Act 1997 enables the ARB, as a statutory regulator, to

reprimand (privately or publicly), fine, suspend or expel (known as 'erasure')
an architect from the register. As a professional body, the RIBA can privately
caution, publicly reprimand, suspend or expel an RIBA member.

The ARB only has jurisdiction for architects practising in the UK. Its role is to
maintain a register of people qualified to use the title 'architect' (including
recognised qualifications of EU architects). It also sets the educational
standards for professional practice, prosecutes unregistered people who
illegally use the title 'architect', and can discipline registered architects found
guilty of unprofessional conduct or serious professional incompetence or who
have received a criminal conviction.

Prevalence of complaints

There are relatively few professional conduct complaints about architects.

Most of these are from individual consumers and novice clients for residential
projects, as commercial and experienced clients tend to use dispute resolution
or litigation to get compensation. On average, each year 50 valid complaints
are made to the ARB and 40 to the RIBA (Figure 9.3). Over 90% of these are
upheld and about 50% are related to competence. This affects about 1 in 2,500
architects or 0.04% of the profession, which is a lower ratio than for other UK
professions, such as solicitors and general practice doctors.

The ARB also handles about 750 investigations each year into the misuse of
the title 'architect' by those not on the ARB register. This results in about 20
prosecution a year for title misuse.
It is an encouraging statistic that only 1 in 2,500 UK architects are found
guilty of professional misconduct each year. Although your chances of being
subjected to professional conduct investigations are very low, it is still best to
avoid it happening by being conscientiously professional and well prepared
for any complaints, with documentary evidence of your integrity and
competence. The most obvious things that you can do to head off any formal
complaints about your professionalism are to be close to your clients and
aware of their feelings about your services, and to keep an eye out for any
emerging problems and deal promptly with them as they arise.

Figure 9.3: RIBA professional conduct cases and their outcomes

PRACTICE INSIGHTS

Typical professional conduct complaints to the RIBA

By Tzena James, FRIBA, member of RIBA Standards Committee

All complaints are cited as breaches of the relevant Principle (P1/P2/P3)

of the RIBA's Code of Professional Conduct (CPC). Here is a list of the
most common complaints:

The architect failed to set out adequate terms of engagement

properly in writing (CPC/P2).
The architect did not carry out work in accordance with the
terms of engagement (CPC/P2).
The architect did not deal with the complaint and the dispute
appropriately (CPC/P3).
The client was not kept informed by the architect during the
progress of the project and there was a general lack of
communication between the architect and the client (CPC/P2).
The architect took far longer than originally programmed from
the initial meeting to submission of the scheme for full planning
permission (CPC/P2).
The architect did not quote a fee for the design work at the
beginning of the project (CPC/P2).
The architect subcontracted CAD drawings to another architect
and a virtual artist without the client's knowledge.
The full planning permission set out conditions which the
architect did not discuss with the client (CPC/P2).
The architect accepted a commission to work on a project,
whereby the previous appointment had not been properly
determined (outstanding fee dispute existing) and there were
outstanding contractual matters with the previous architect. The
architect used information prepared by the previous architect,
without checking, for which the client was withheld a licence
(CPC/P3).
The architect submitted a planning application to the planning
department that was refused on the grounds that it did not meet
the local authority's guidelines and statutory requirements
(CPC/P2).
The architect did not conduct any pre-submission research with
 the neighbourhood and the planning authority (CPC/P2).
The architect did not take due care, attention and time to prepare
a report with regard to a building dispute for which they were
engaged (CPC/P2).
The architect, a RIBA Chartered Practice, did not pay for work
carried out by a student, then treated and dismissed the student
unfairly (CPC/P3).
Copyright dispute over the ownership, or extent of usage, of the
information produced by the architect (CPC/P3).

Professional conduct complaints procedures

The ARB and the RIBA work in liaison with each other in dealing with
professional conduct complaints against their joint members, both following
similar three-stage processes that differ only in their detailed procedures. The
first stage is a review by the professional conduct administrators of the
complaint to assess if it is an eligible potential breach of their codes. Often the
initial enquiry or complaint relates to a concern or misunderstanding of the
client that is not covered by the codes. If this issue is not eligible, the client
and the architect or practice concerned are encouraged to work it out together
or are referred to a dispute resolution service.

When an eligible complaint is confirmed, the architect is informed and invited

to respond, with their defence evidence, to the allegations. Subsequently, the
second investigation or appraisal stage starts with an investigation of the
complaint, based on the information submitted by the complainant and the
architect. The ARB does this stage with a three-person investigation panel,
consisting of a registered architect and two lay persons, while the RIBA uses a
three-person appraisal team, consisting of two RIBA members and a lay
person. Panel members are selected from lists of experienced assessors kept by
the ARB and the RIBA.
The investigation or assessment panel can ask for additional information and
then either dismiss the case, issue a private caution or refer a potential
significant breach of the code to a hearing panel. The professional conduct
administrators then prepare a formal charge, which the architect is invited to
respond to in writing, and the complainant is invited to submit any additional
information. The response is referred to a three-person hearing panel for
consideration and decision.

All parties, including the complainant, with their legal advisers are invited to
attend a hearing and can call witnesses to give evidence to the hearing panel.
An ARB hearing panel consists of a registered architect and two lay members,
one of whom is legally qualified. A RIBA hearing panel similarly consists of a
chartered architect and two lay people, but not necessarily with any legal
qualifications. Hearing panels are supported by a legal adviser and staff from
the professional standards team. The hearing panel can question the parties
and the witnesses and ask for additional information before making their
decision. A majority decision is made on the basis of the balance of
probabilities. The panel can decide to either dismiss the case, reprimand
(privately or publicly) or fine (ARB only), or suspend or erase/expel the
architect from the ARB register or RIBA membership. The ARB and the RIBA
place public notifications of any public sanctions on their websites for a
prescribed length of time, depending on the severity of the sanction.

There are appeal processes (about the decision process, not the decision) for
the architect and the complainant if either feels the process has not been
properly conducted. These are described in detail on the ARB and RIBA
websites, along with their code and useful guidance.

Conclusion
Professionalism is defined by ethical behaviour and social purpose. This is
described, maintained and enforced by professional codes of conduct. Acting
with integrity and competence is an essential aspect of professionalism - it
enables public trust and is an asset, not a burden, to professionals. It is the best
way of achieving a successful, trouble-free and fulfilling professional career.

Endnotes
1 RIBA. The Way Ahead (London: 2020, RIBA). Available at: [Link]/-/media/
GatherContent/Social-Value-Toolkit-for-Architecture/Additional-Documents/The-Way-Ahead-
[Link] [accessed 23 August 2021].

2 ARB. The Architects Code: Standards of Professional Conduct and Practice (London: ARB, 2017).
Available at: [Link]/architect-information/architects-code-standards-of-conduct-and-
practice/ [accessed 23 August 2021].

3 RIBA. RIBA Code of Professional Conduct (London: RIBA, 2021). Available at: [Link].
com/knowledge-and-resources/resources-landing-page/code-of-professional-conduct [accessed 23
August 2021].

4 RIBA. RIBA Code of Practice (London: RIBA, 2021). Available at: [Link]/knowledge-
and-resources/resources-landing-page/code-of-practice-for-chartered-practices [accessed 23 August
2021].

5 Construction Industry Council. Novation Agreement - ab initio (London: CIC, 2018).

6 [Link] [accessed 23 August 2021].

INDEX
additional work 58-59, 109
adjudication 86
advertising 184
aftercare 112, 113, 151
appointment contracts 26-34, 79-80
compatibility 99
insurance issues 160, 164
other consultants' 51, 99
requirement for 189
termination 59
updating 189
see also Professional Services Contract (RIBA)
arbitration 86
'architect' (title) 5, 178, 184
architect's instructions 104, 108
Architects Registration Board (ARB) 5, 7
Architects Code 26, 154, 178, 180-181, 189
asbestos 163
assignment (transfer) 31

bankruptcy 115, 187

bespoke appointment contracts 29-31
BIM/CAD model ownership 99
break clauses 59
budget (project) 23, 93, 96
building insurance 114
building performance 45, 113, 150-151
Building Safety Bill 82, 159-160, 164
building surveys 97
building warranties 79
business content insurance 173
business interruption insurance 173
business management 188

cash flow 52, 53, 60-61, 62

certificates (payment) 108-109, 112-113
change management 58-59, 91-92, 105, 109, 187, 189
change of client 55
'chartered architect' 178
client, change of 55
client brief 91-97
client checks 22-23, 24, 52, 97
client communication 34-35, 187-188
client complaints 36-37, 189-195
client feedback 16-18, 35, 78, 113-114
client perspective 15-25
client relationship 24-25
client representative 98
client satisfaction 17-18
client selection 20-24
clients' money 184
clients' wish lists 18-20
Climate Change Challenge 149
codes of conduct 145-146, 177-187
collaborative working 17, 18-19
collateral warranties 30, 71, 75-76, 79
commission 185
commissioning 112
communication skills 125-127, 187-188
communication with clients 34-35, 187-188
community benefit 148-149
Community Infrastructure Levy 64
companies 66
competence 186-187
complaints 36-37, 189-195
confidentiality 185-186
conflicts of interest 37, 55, 185
consents 81
consequential loss liability 31
conservation areas 81
Construction (Design and Management) (CDM) Regulations 2015 82, 106
construction contractors 105
construction contracts 103-105, 107-108
Construction Industry Council (CIC)
novation agreement 55
Scope of Services 99
construction information 104-105, 107
construction programme 106-107
constructive dismissal 141
consumer clients 93, 104, 165
consumer protection 6, 80, 93
continuing professional development (CPD) 7-8, 186-187
contract administration 104, 106-107, 108, 109, 110, 111, 113
contract documentation 104-105
contractors, recommending 105
contracts of appointment see appointment contracts
copyright ownership 30, 33, 76-77
core competencies 8, 186
cost calculations 47-49
cost constraints see budget (project)
cost control 98, 108
criminal charges 80
criminal conviction 188
crisis management 187
cultural intelligence 131-133
cybercrime 173

data protection 185-186

defect liability 74, 79, 164
defective work 108, 111, 112
defects liability period (DLP) 79, 111-112
delayed projects 54, 107, 111
see also extension of time
design and build contracts 55, 74, 102, 105, 185
design changes 58-59, 109
see also change management
design coordination 105
design development 100
design management 100-101
design responsibility 99
see also defect liability
design team 98-99
directors' insurance 174
disaster recovery 187
disciplinary procedures 141
dispute resolution 51, 85-86
diversity issues 129-130
documentation 104-105, 169
see also record keeping
due diligence 22-23, 24, 52, 97
duty of care 30, 70-72, 154
duty to inform 36

early completion 111

early start 107-108
economic loss liability 31
emotional intelligence 118-119
employee ownership trust (EOT) 66
employers' liability insurance 173
employing people 128, 135-142, 188
employment contracts 77-78, 138-140
employment law 136-137
employment termination 140
employment tribunals 142
environmental challenge 149-150
equipment insurance 173
equity issues 129
ethical practice 146-148, 151
expenses recovery 49
extension of time 110

fee agreement 50-51, 53-54

fee basis 42-44
fee bidding 49-50
fee calculation 46-50
fee disputes 51
fee invoicing schedule 52
fee levels 39-41
fee payments 22-23, 25-26, 52-54, 97-98
late 54, 61, 115
schedule 98, 108
feedback 16-17, 35, 78, 113-114
final account 112
final payment certificate 112-113
financial incentives 184
financial management 16, 49, 52-53, 55-56, 184
see also cost control; payment systems
financial performance indicators 59-61
financial risk 56-57
fire safety 160, 164
fitness for purpose 30, 74-75
forms of practice 65-66
future of professionalism 7-11

grants 64-65

handover 112
hazards liabilities 31
health and safety 81, 106
Health and Safety at Work etc. Act 1974 82
historical perspective 2-7, 42
Housing Grants, Construction and Regeneration Act (HGCRA) 1996 80

Influence Model of Change 133-135

information supply schedule 105, 107
insolvency 172
inspections 109-110, 157
instructions to the contractor 104, 108
insurance
claims 69-70, 168-169
other types 172-174
protection schemes 158-159
risk register 165-166
interest on late payments 54
interim payment certificates 108-109
international work 170-171
in-use stage 113-114, 150-151
invoicing 52, 53, 54
see also payment schedule

key attributes of professionals 11-12

key performance indicators 59-61
knowledge and skills 11-12, 186-187

late completion 111

late payments 54, 61, 115
latent defects 79, 171
leadership 17, 18, 122-124
legal jurisdiction 31
legal matters 69-87
legal obligations 71
see also duty of care; fitness for purpose
legal protection 174
legislation 80
consumer protection 6, 93
employment 136-137
health and safety 82, 106
planning 80-81
letters of intent 31-32, 107, 108
liabilities 30-31, 65-66
see also defect liability
liability periods 31
licences 76
limited liability companies 66
limited liability partnerships (LLP) 66
liquidated and ascertained damages (LADs) 111-112
listed buildings 81

making good defects 112, 161

marketing 184
mediation 85
medical insurance 174
metrics 45, 91, 113, 150

negligence claims 69-70, 74-75, 78-79, 80

net zero carbon 149
novation 31, 55, 185
occupation of building 112, 113
officers' insurance 174
off-site components and materials 109
operational feedback 113-114
overseas work 170-171
owner's protective professional indemnity (OPPI) 158

part possession 114

partnerships 65
part-time working 40
payment certificates 108, 111, 112-113
payment schedule 98, 108
see also fee payments
payment systems 53
people skills 117-118
performance guarantees 72
performance measures
building 45, 113, 150-151
financial 59-61
project 91
performance warranties 30, 74-75
personal accident insurance 174
personal injury claims 79, 171
personality types 119-120
planning approval 55, 80
planning legislation 80-81
post-occupancy evaluation 114, 150-151
practical completion 111
practice closure 172
practice management 188
presentation skills 125-127
Principal Designer 106
privacy 185-186
procurement route 102-103
professional dilemmas 151
professional indemnity insurance (PII) 31, 154-157, 159-165
claims 69-70, 168-170
international work 170-171
nets and caps 164-165
run-off cover 171-172
starting or renewing 166-168
professional integrity 183-186
professional negligence 66, 71, 75
professional organisation 4-6
Professional Services Contract (RIBA) 27-29
copyright ownership 76
duty of care 71-72
late payments 54
other consultants 51
schedule of services 99
subconsultant version 99
professional skills 11-12, 186-187
profit margin 60
programme plan 98, 106-107
project brief 91-97
project budget 23, 93, 96
project delays 54, 107, 111
see also extension of time
project execution plan (PEP) 92
project funding 97-98
project implementation plan (PIP) 92
project information 97
project management 89-114, 100-101
project meetings 35, 93, 188
project outcomes 45, 94-95
see also building performance
project performance 91
project plans 90-114
project programme 98, 106-107
project quality plan (PQP) 92
project risks 82-84
project roles and relationships 99
project team 98-99
project timescale 95-96
project viability 97, 98
project-based insurance 157-158
public interest 145
public liability insurance 172-173

record keeping 35, 49, 55-56, 110, 188

redundancy 142
registration 5
request for information (RFI) schedule 105, 107
Responsibility Matrix 99
risk management 82-84
risk registers 83-84, 165-166
Royal Institute of British Architects (RIBA) 4, 6, 7
Climate Change Challenge 149
Code of Practice 182-183
Code of Professional Conduct 26, 145-146, 181-182
RIBA for Clients initiative 15-18
RIBA Plan of Work 90-114
What Clients Think of Architects (2016) 17
see also Professional Services Contract (RIBA) run-off cover 171-172

salaries 39-41
schedule of services 50, 99
severance fee 55
site constraints 95, 97
site inspections 109-110, 157
site notes, photos and videos 110
site surveys 97
site visits 109-110
social inclusion 130, 131-135
social responsibility 145
social value 148-149
Soft Landings 112
speculative work 56-58
standard appointment contracts 27-29
statutory obligations 80
subconsultants 30-31, 36
appointment contracts 51, 99
succession planning 187
surveys (site) 97
suspension of services 59, 114-115
sustainability issues 149-150

taxation 63-65
teamwork 120
technical design 103-106
tender/negotiation documentation 104
termination of services 59, 114-115
terrorism 173
third party rights 79
third party warranties 75-76
time constraints 95-96
time costs 47-48
time of the essence 111
tree protection 81

Unfair Contract Terms Act 1977 80

unfair dismissal 140-141
unsafe structures 82
urgent works 81
use monitoring 114
USP (unique selling proposition) 50

valuations 108-109
value added fees 45-46
value engineering 101-102
variations 58-59, 109
VAT 50, 64

warranties 72
building 74, 79
third party 75-76
see also collateral warranties
wellbeing 127-128
wrongful dismissal 141