How exciting, you are ready to begin building! After deciding on which builder to proceed with, you have a choice between an Architect Administered Contract or a Builders Contract, but you are not sure which one is best. This guide will help you understand each contract type, with the main difference between the two being the level of involvement from your architect.
Architect Administered Contract.
Architect Administered Contracts allow the Architect to do exactly that, administer the contract. They are the first point of contact for both the builder and the client. The Architect is there to answer everyone’s questions, ensure the projects runs as smoothly as possible and keeps all the paperwork up to date relating to the contract. The Architect acts as an unbiased expert, ensuring that the contract is followed accurately and fairly by both parties.
Builders Contract.
Alternatively, a Builders Contract means that the Architect has no authority during the construction stage, with the owner dealing with the builder directly and needing to be available to clarify and answer any questions they might have. These contracts are generally worded in the builder’s favour and don’t offer the same protections to the owner as an architect administered contract.
So, what are some of the tangible advantages of going with an Architect Administered contract?
Time Saving:
The owner doesn’t have to answer builder’s questions or spend time researching anything. Any concerns are discussed between the builder and architect before a solution is proposed to the owner.
Cost Saving:
On site, items included in the contract documentation can accidently be overlooked, having an architect administer the contract ensures you get what you pay for. Equally, the architect checks every progress claim and confirms the payment is reasonable, ensuring that you only pay for work that has been done. The architect can also identify cost savings throughout the build if necessary.
Quality Control:
One fear lots of owners have, is what happens if the builder does a bad job? In an administered contract it’s up to the architects to sign off on the builders work. If it’s not up to standard the builder will need to rectify the work.
Expert Solutions:
Issues can occur in every build, and having an architect there means you have an expert on hand to come up with the most effective solution. This can result in time and cost savings as well as having someone there to clearly explain what is occurring.
Better Outcome and Finishes:
No building can have every inch of the building detailed in the documentation. Having an administered contract means a Builder can clarify design intent and details, which always results in a higher quality outcome.
Security:
The Architect reviews every price variation and adjustment of time. The architect then decides if it’s reasonable and if the claim will be approved, rather than the owner having to gauge if the claim is fair.
Understanding Complex Contractual Procedures:
The building process can be complex and overwhelming. Your Architect is there to walk you through it and explain exactly what your rights are, the process and answer any questions that arise throughout the build.
Fairness:
Architect Administered contracts are written to protect both the owner and the builder with standard clauses such as the 12-month defects liability period. Builders Contracts generally don’t offer these same protections.
The benefits of an Architect Administered Contract can greatly impact the final outcome of the build resulting in a higher quality finished house. This is due to the extensive product knowledge, construction standards and architectural and technical details that architects bring to the construction process. Get in touch with us today, if you would like to know more about this process and how we can help bring your vision to life.
Useful Links:
If you would like additional information on Architect Administered contracts, you can find it here.