MODULE 11: Consultant engagement
11.1 Module outline
Aim
To familiarise students with consultant engagement for an architectural practice.
Objectives
On completion of this learning module students should be able to:
...
MODULE 11: Consultant engagement
11.1 Module outline
Aim
To familiarise students with consultant engagement for an architectural practice.
Objectives
On completion of this learning module students should be able to:
• discuss the primary strategies used to procure construction projects
• explain the essential elements of a client and architect agreement, and
• describe the primary methods used to engage specialist consultants.
Syllabus
Alternative strategies for procuring construction projects and managing risk.
Primary, secondary and sub-consultants. Client and architect agreements.
Architect and specialist consultant agreements.
References
The following sources have been used in the development of this learning module:
• Ashworth, A and Perera, S (2018) Contractual Procedures in the
Construction Industry. Routledge: London.
• AIA (nd) Acumen Practice Notes at: https://acumen.architecture.com.au/
• AIA (2019) 2019 Client Architect Agreement (CAA2019). Melbourne: AIA.
• AIA (2019) 2019 Client Architect Agreement User Guide. Melbourne: AIA.
• AIA (2017) 2017 Architect and Specialist Consultant Agreement
(ASCA2017). Melbourne: AIA.
• AIA (2017) 2017 Architect and Specialist Consultant Agreement User Guide.
Melbourne: AIA.
• AIA (2017) Code of Professional Conduct. at:
https://www.architecture.com.au/wp-content/uploads/Institute-Code-ofProfessional-Conduct.pdf
• Bailey, J (2016) Construction Law. Abingdon: Informa Law from Routledge.
• Barron, M (2013) Fundamentals of Business Law. North Ryde: McGraw-Hill.
• Board of Architects of Queensland (BOAQ) (2019) Code of Practice at:
https://www.boaq.qld.gov.au/images/Documents/COP/Code%20of%20Practi
ce.pdf
• Graw, S (2017) An introduction to the Law of Contract. Sydney: Thomson
Reuters.11.2 – MODULE 11: Consultant engagement ARCH7031 Architectural Practice: Business Management
• Hughes, W, Champion, R and Murdoch, J (2015) Construction Contracts:
Law and Management. Abingdon: Routledge.
• Masterman, J (2002) Introduction to Building Procurement Systems. London:
Taylor & Francis.
• Queensland Department of Housing and Public Works at:
http://www.hpw.qld.gov.au/Pages/home.aspx
• RIBA (2010) Architects Handbook of Practice Management. London: RIBA.
• Sharkey, J, Bell, M, Jocic, W and Marginean, R (2014) Standard Forms of
Contract in the Australian Construction Industry: Research Report.
Melbourne: The University of Melbourne.
• Shepherd, D (2017) BIM Management Handbook. Newcastle upon Tyne:
RIBA Publishing.
• The Office of the Victorian Government Architect (2013) Government as
‘Smart Client’. Accessed 06 August 2014 at:
https://www.ovga.vic.gov.au/government-smart-client
• Victorian Government (2020) Buying for Victoria at:
https://www.buyingfor.vic.gov.au/
• Walker, D and Rowlinson, S (Eds.) (2019) Procurement Systems: A Guide to
Best Practice in Construction. London: CRC Press.
• Walker, D and Rowlinson, S (Eds.) (2008) Procurement Systems: A CrossIndustry Project Management Perspective. Oxford: Blackwell.ARCH7031 Architectural Practice: Business Management MODULE 11: Consultant engagement – 11.3
11.2 Procurement strategies
Architects can be employed by building owners, contractors or other design consultants,
such as project managers. Whoever an architect is employed by may call upon them to
give advice on the different approaches to procuring a project. Architects, therefore,
need to understand the characteristics of a variety of procurement strategies, and be able
to discuss the advantages and disadvantages associated with each one. Additionally,
architects need to understand how alternative procurement strategies affect their own
contractual obligations and risks.
Procurement theory has traditionally been dominated by traditional project management
experiences in the construction and engineering sectors. This is still evident in the
Queensland Procurement Policy (DHPW 2019:14) definition of procurement as:
. . . the whole process of obtaining goods and services. Beginning with
the identification of needs, procurement can include the functions of
planning, design, standards determination, specification writing,
selection of suppliers, financing, contract management, disposals and
other related functions.
More recently, however, procurement has broadened to address a range of project types,
from buildings and bridges through to more intangible projects such as the introduction of
new information and communications technology (ICT) systems. While still focussing on
procurement in construction, Walker and Rowlinson (2019:51) reflect this project variance
when they suggest that the traditional concentration on ‘organisational form or contract
strategy’ has led to important variables being omitted from the procurement system
selection and performance analysis process.
The procurement process typically commences with a definition of the expected project
outcomes and project scope, a design is then commissioned to achieve the identified
outcomes and the means to deliver those outcomes are assembled. Since the mid-
1990s, following several UK reports criticising traditional procurement approaches,
alternative methods have been promoted within the construction industry (see, for
example, Latham Report 1994; Egan Report 1998). In 2002, Masterman examined
commonly used procurement systems and proposed a set of selection principles based
on client objectives. These remain influential and relevant today. Six years later,
however, Walker and Rowlinson (2008) argued that a one-size-fits-all approach to
procurement was still being adopted when strategising a best-fit choice would contribute
to improved project outcomes. Walker and Rowlinson also noted that the core issues
identified by critics of project delivery systems continued to be the need for increased
value-for-money for clients and improved relationship quality between team members.11.4 – MODULE 11: Consultant engagement ARCH7031 Architectural Practice: Business Management
These issues are reflected in the current Queensland Procurement Policy (DHPW 2019),
and recent developments in the UK and USA where expectations for improved team
collaboration and client value-for-money are driving the implementation of comprehensive
building information modelling requirements on government projects (Shepherd 2017).
The following considers some of these issues further and provides an introduction to the
major procurement strategies in use in Australia. Procurement and project management
is dealt with further in Architectural Practice: Project Management.
Factors influencing procurement strategy selection
The primary aim of a procurement strategy is to achieve the best possible valuefor-money. Typically, this involves comparing alternatives for the supply of a good
or service to get the best mix of quality and effectiveness for the lowest cost.
However, assessing value-for-money should involve more than a consideration of
price alone. Whole-of-life cost factors and non-cost factors such as fitness for
purpose, service quality and the environmental and social benefit offered should
also be considered. For example, the Queensland Procurement Policy (2019)
advises that value-for-money ‘must also advance the government’s economic,
environmental and social objectives for the long-term wellbeing of our community.’
Likewise, the following Victorian Government Guiding Principles (Construction
Guidance 1.2) describes principles for construction procurement that include:
(a) value-for-money, taking into account:
– benefits and costs over the life of the goods, services or works procured
– environmental, social and economic factors, and
– any risk related to the procurement.
(b) accountability for procurement commensurate with appropriate levels of
authority and responsibility
(c) probity through the application of integrity, ethical behaviour, fairness and
transparency in the conduct of procurement processes
(d) scalability so that procurement governance policies and processes are
appropriate and efficient, taking into account the capability of available
resources and the complexity of the procurement undertaken
Various strategies that might contribute to value-for-money outcomes include:
• optimising risk allocation between the parties
• using performance specifications to encourage innovation
• ensuring flexibility to secure scope changes at a reasonable cost
• using incentives to reward better than usual outcomes
• setting an appropriate contract period
• ensuring participants have the necessary skills and capabilities, and
• adopting a procurement strategy appropriate to the project complexity.ARCH7031 Architectural Practice: Business Management MODULE 11: Consultant engagement – 11.5
Having regard to what contributes value-for-money, the most suitable procurement
strategy can be determined by identifying the following:
a) Objectives and constraints
Key objectives generally relate to the project scope, cost, time and quality.
Other objectives might relate to sustainability, innovation, stakeholder
expectations, the advancement of client priorities and encouraging better
than usual performance. Constraints are aspects of the project that restrict
or impact on project objectives in some manner. These generally relate to
time, budget, physical or human resources constraints, participant skills and
capabilities, market or industrial conditions and policy requirements.
b) Risks
Risks are events that might occur during the delivery of a project and which
will adversely affect the project outcomes. The nature of the risks, and their
impact on outcomes should they occur, are generally determined by the
project objectives and constraints. For example, delays to the construction
program are a significant risk for a project with a tight timeframe.
Responsibility for managing or mitigating particular risks is broadly
determined by the procurement strategy adopted for the project. Therefore,
where a tight timeframe is adopted, one way to mitigate risk is to use
incentives to complete the project on time or to fast track construction.
c) Complexity
The complexity of a project is determined by a combination of factors
including the following:
• the size of the project
• the duration of the project
• the scope of the project
• the number of stakeholders involved
• the level of technology to be incorporated into the project
• the degree of innovation required by the client, and
• market conditions
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