Communique May 1997
Reviewed June 2009; Largely re-written Feb 2017Limited services are often those where the scope of work is uncertain and the fees are lower than may be required to attend to the work and cover the increased risks arising from the loss of control over aspects of the project beyond the architect.Typically the designer will play no part in the formation of the building contract nor administration and observation of it. This presents the opportunity for “gaps” between what the designer has produced, the contractors (or TA’s) expectations of the required documentation, and the owners expectations of the completed project.Issues become even more risky for alteration projects. Inevitably you have to make assumptions about hidden construction or services. Your client should be aware of your assumptions as soon as you can explain them. Your knowledge of the existing building will evolve as the design evolves, but the existing level of compliance is best sorted before the scope of work is nailed down. If, on opening up the work in the absence of your ongoing attendances, your reasonable assumptions are proven wrong, there is the prospect of a claim for the unexpected costs.NZACS firmly endorses the standard terms of engagement promoted by NZIA. There are other standard terms perhaps adopted and which may be suitable. But in addition, Limited Services require careful consideration of how those terms may be applied (or understood) in the particular circumstances of the project.The key to the risk management of Limited Service projects is the definition of the scope of work, and the restriction (or waiver) of liability exposure to match that scope. When describing the scope of works versus who is responsible for the outcomes, it might be more important to describe what you won’t do than what you will do. Clients who “cut corners” are a hazard to all. Even more so when the design and contract documentation is – in their opinion – lacking, or their meagre budget exceeded.Your responsibility should be limited to what you have control over. Your clients need to understand that if they are managing the design process, you are dependent on them. That includes time and cost issues – including your fees - associated with late changes or co-ordination failure. If they are in control of the building process, they may under-estimate the extent of management and be over-reliant on the documentation.But it is often the case that such projects require a very flexible view of the scope of attendances by the designer, and/or it may not be possible to establish that scope ahead of time. Needless to say, such arrangements should be agreed, in writing.NZACS has taken legal advice on these issues, and suggests that terms of engagement for such project should – in addition to the standard terms – include provisos such as the following:You have commissioned us to prepare only drawings sufficient to obtain a building consent and not to observe the contractor carrying out and completing the project. As a consequence, we will not be liable to you (in contract, tort or otherwise) for any claim, damage, liability, loss or expense incurred by you arising in any way in relation to the Contractor not carrying out or completing the contract works as required by you or stated in your project’s construction contract.
As you have commissioned us to only:
we will not be observing the contract or carrying out or completion inspections.As a consequence of this limited service we will not be liable to you (in contract, tort or otherwise) for any claim, damage, liability, loss or expense incurred by you arising in any way in relation to the Contractor not carrying out or completing the contract works as required by you or stated in your projects construction contract.