Committee Reports > List of Committees > Dáil > 1985 > Committee on Public Expenditure > Report - Control of Capital Projects

APPENDIX 11

RIAI

Conditions of Engagement and Scale of Minimum Charges

The Architect is employed subject to the following conditions and his fees shall not be less than those set out in the Scale of Minimum Charges hereinafter stated.

Inspection and Supervision

a The Architect will give to the work such periodical inspection by him or his deputy as he may consider necessary. Constant superintendence of the work does not form part of the duties undertaken by the Architect and is not covered by the Scale of Minimum Charges as set out hereunder.

b In all cases in which the Architect or Client considers that frequent or constant inspection is required, a Clerk of Works shall be employed for that purpose. He shall be nominated or approved by the Architect and appointed and paid by the Client. He shall act under the Architect’s direction but the Architect shall not be held responsible for any negligence on the part of the Clerk of Works.

c Where the need for constant supervision of the works is agreed, a resident architect or engineer shall be appointed and paid by the Architect, who shall be reimbursed by the Client.

Certificates

d The issue of a Certificate by the Architect for a payment to the Contractor indicates that in the Architect’s opinion payment is due at the date of the certificate to the value stated thereon, in accordance with the contract or order.

Emergencies

e The Architect has authority to give such orders on behalf of the Client as in the Architect’s opinion may be necessary to meet constructional emergencies.

Variations

f The Architect is empowered to make such changes, alterations, additions and omissions as he may reasonably consider desirable in the Client’s interests in carrying out the works provided that no substantial addition to the cost of the contract is caused thereby.

Consultants

g Where a Consultant is retained for any part of the work the Client shall pay his fee. The Consultant shall be appointed on the recommendation or with the concurrence of the Architect, from whom he shall take instructions and his appointment shall not affect the authority of the Architect under the Contract.

Quantity Surveyor

h Where a Quantity Surveyor is retained for any part of the work, the Client shall pay his fee. The Consultant shall be appointed on the recommendation or with the concurrence of the Architect from whom he shall take instructions.

Specialist Sub-Contractors and Suppliers

i The Architect may recommend that Specialist Sub-Contractors and Suppliers should design and execute any part of the work. He shall be responsible for the direction and co-ordination of their design and for general inspection of their work in accordance with these conditions but not for the detail design or performance of the work entrusted to them.

General Contractor

j The Architect shall not be responsible for the Contractor’s operational methods, techniques, sequences of procedures, nor for safety precautions in connection with the work, nor shall he be responsible for any failure by the Contractor to carry out and complete the work in accordance with the terms of the building contract between the client and the contractor.

Payment

k The Architect is entitled to payment when his work reaches any of the several stages hereinafter defined and his remuneration for inspection and certification is payable in appropriate instalments as the work proceeds.

If the engagement between the Architect and the client is terminated or abandoned, the Architect shall be entitled to the appropriate proportion of the full percentage fee for the services provided; these fees shall be calculated on the total estimated or construction costs at the time of payment of the fee. The engagement or commission shall be deemed to be abandoned if instructions necessary for the Architect to continue the work are not received from the client within six months after such instructions were requested. If a commission which has been abandoned is resumed without substantial alterations within two years, any fees paid shall be deemed to be payments on account towards the total fees payable on the execution of the work and calculated on their total construction cost.

Copyright

l The copyright in all drawings, specifications and documents prepared by the Architect remains his property.

Interpretation

m Any question arising out of these Conditions of Engagement and Scale of Minimum Charges may be referred by the Architect or the Client to the President of the R.I.A.I. or his nominee for advice, provided always that any difference or dispute between them shall be determined in accordance with the following Clause n.

Disputes

n Any differences or disputes arising out of the interpretation of these conditions may by agreement between the parties be referred to the President of the RIAI or his nominee for a ruling provided always that such a ruling is sought on a joint statement of undisputed facts and the parties undertake to accept the ruling as final.

Where any difference or dispute cannot be determined in accordance with the above paragraphs, it shall be referred to the arbitration of a person to be agreed between the parties or, failing agreement, within 14 days after either party has given the other a written request to concur in the appointment of an arbitrator, a person to be nominated at the request of either party by the President of the Royal Institute of the Architects of Ireland.

Scale of Minimum Charges

Charges on New Works

Clause 1 In the case of ordinary building works, the minimum charge is a percentage of the cost as set out below. Percentage fees are based on the estimated cost of the work, or as ascertained by tender, and on the issue of the final certificate shall be recalculated on the actual total construction cost.

a Where the cost of the work as estimated, ascertained by tender, or calculated on actual construction cost amounts to £15,000.00 or more the fee shall be six per cent on the amount thereof subject to the minimum fee set out below.

b Where the cost of the work as estimated, ascertained by tender, or calculated on actual construction costs does not amount to £15,000.00 the fee shall be a percentage of the amount thereof graduated as follows:

Mode and Time of Payment

Preliminary Services. Preliminary Professional Services shall be charged on a time basis but in the case of a single study these may be absorbed in the total fee percentage. Such services include taking client’s instructions; agreeing requirements; outlining possible courses of action; advising on the need for consultants; undertaking a preliminary appraisal of a project and its costing sufficient to enable the client to decide whether and in what form to proceed. Such an appraisal may include an approximation of the cost of meeting requirements, an outline timetable and a suggested procedure.

Stage 1.—For taking Client’s instructions and preparing preliminary sketch plans to illustrate the possibilities of a site or cost of a scheme, the charge shall be not less than one-eighth of the total charges payable under Clause 1a or b above.

Stage 2.—For the foregoing and for taking client’s instructions, preparing developed design sufficient to indicate the Architect’s interpretation of the Client’s instructions (but not in detail adequate to enable quantities to be prepared or tenders obtained) and making approximate estimates of cost, the charge shall be not less than one-quarter of the total charges payable under Clause 1a or b above.

Stage 3.—For the foregoing and for preparing working drawings and specification and such details as are necessary to enable quantities to be prepared or tenders obtained, the charge shall be three-quarters of the total charges payable under Clause 1a or b above.

Stage 4.—For arranging Contract, for general inspection as defined in the Conditions of Engagement and issuing Certificates for payment, one-quarter of the total charges payable under Clause 1a or b above in appropriate instalments from time to time as the work proceeds. When an architect is commissioned to undertake the duties of Stage 4 only, the fee shall be one-third of the total charges payable under Clause 1a or b above, in appropriate instalments from time to time as the work proceeds.

Higher Charges for Alterations and Additions

Clause 2 In the case of alterations to existing buildings, the foregoing charges shall be increased by not less than one-fourth. A similar increased fee shall be charged in respect of any addition to an existing building where the cost of such addition does not exceed £10,000.

Special Charges for Fittings, Decorations, etc.

Clause 3 Where works in which designs for fittings, appointments, services, decorations, furniture or complex detail or construction are instructed by the client and prepared by the Architect, special charges are payable according to the amount of work and skill involved and not less than those in Clause 9.

Charges on Omitted Work

Clause 4 The Architect shall charge a fee in accordance with Clause 1, Stage 3 in respect of all work included in the tender or estimated cost but not executed.

Separate Trades Contract

Clause 5 Where there are contracts for separate trades, the minimum percentage fee shown in Clause 1 shall be increased by an additional one per cent in respect of such contracts.

Charges when Work is Executed with Old Materials, etc.

Clause 6 In all cases were work is executed wholly or in part with old materials or where material labour or carriage is provided by the Client, the percentage shall be calculated as if the work had been executed throughout by a Contractor and with new material.

Repetition of Distinct Buildings

Clause 7 When several distinct buildings other than housing, being in all respects repetitions of one design, are erected at the same time from a single specification and one set of drawings and under one contract, a fee, not less than that set out in Clause 1, Stage 3, shall be based on the cost of one such building; the charges for each repetition being one-fifth of the charges under a or b of the said clause. There shall be no rebate for services provided in Stage 4.

The fee in respect of Stage 2 shall normally be not less than that specified in Clause 1, but in cases where a Client instructs the Architect to base a scheme on the design of a prototype building and its multiples, the minimum fee may be calculated as set out in the previous paragraph.

In the case of housing the appropriate fee scale shall be the fee scale agreed between the Department of Local Government and the Institute, for Local Authority housing.

Travelling Time

Clause 8 Where work is being charged on a time basis, travelling time shall be charged. Where work charged on a percentage fee is at such a distance that an exceptional amount of time is spent in travelling, additional charges may be made by agreement.

Time Charges

Clause 9 For principals the minimum hourly rate shall be that currently prescribed by the RIAI or shall be calculated in accordance with the method set out in the next paragraph of this Clause, in which case the gross annual salary for the principal shall be agreed between the Client and the Architect. For architectural and other operational staff including resident architects and clerks of works not appointed and paid direct by the Client, the minimum hourly rate shall be 15p per hour for each £100 of gross annual salary which shall include bonus payments and the employer’s share of other overheads such as national insurance and occupational pension schemes.

Expenses

Clause 10: In all cases, out-of-pocket expenses necessarily incurred shall be added to the above charges.

Development Plans and Estate Layout

Clause 11 For preparing development plans which will be carried out over a number of years for any large building or complex of buildings, the fee shall be in accordance with Clause 9.

For preparing estate layouts only or a layout for a greater area than that which is to be developed immediately, the fee shall be in accordance with Clause 9.

Services Not Included in the Percentage

Clause 12 Additional charges shall be made for the following services, and for any other services not covered by any payment herein defined in accordance with Clause 9.

a Advising as to the selection and suitability of sites.

b Negotiations relating to the site or buildings.

c Surveying sites or buildings, taking levels, arranging for trial holes and trial bores, making surveys, measurements and development plans of existing buildings.

d Preparing maps and plans for attachment to or endorsement on leases.

e The preparation of further sketch designs necessitated by a material alteration in, or addition to, the Client’s instructions, or altering the working drawings and specification in consequence thereof prior to the commencement of the works.

f Altering drawings or preparing new drawings and other services involved in consequence of variations or additions desired by the Client after the commencement of the works.

g Providing copies of drawings and specifications for Client’s or Contractor’s use.

h Making drawings for and negotiations with ground landlords, adjoining owners, public authorities or others.

i Making application for licences, grants and consents and all matters concerned with Town Planning Applications.

j Making arrangements in respect of party walls and rights of light and other easements, reservations or restrictions.

k Services consequent upon or resulting from the death or bankruptcy of Contractors or the failure or neglect of Contractors from any cause whatever to carry out the works in accordance with the Contract or order, or consequent upon the negligence of the Clerk of Works.

l Services in connection with fire, flood, or tempest affecting the works during their execution.

m Measurement and valuation of work and/or variations and preparation of interim and final statements of accounts. Where in the opinion of the Architect the services of a Quantity Surveyor are required for the purpose of preparing interim and/or final accounts the cost of such services shall, by prior agreement, be borne by the client.

n Advising on the selection and suitability of loose furniture, fittings and soft furnishings, commissioning or selection of works of art and obtaining tenders and supervising installation.

Litigation and Arbitration

Clause 13 For qualifying to give evidence, settling proofs, conferences with Solicitors and Counsel, attendance in Courts or before Arbitrators or other tribunals, and for other services in connection with litigation and arbitration, the Charges are in accordance with Clause 9.

For acting as Arbitrator the charge shall be at the hourly rate and minimum fee currently prescribed by the Royal Institute of the Architects of Ireland.

Land Surveying and Levelling

Clause 14 For surveying and making a plan of a town, village, street or road, estate or grounds, or any part thereof, for taking levels, setting out streets or roads, and for other services in connection with land not otherwise specifically provided for, the charges are in accordance with Clause 9, or may be an agreed sum based on the size of the area in question and the nature of the survey required.

Structural and/or Sanitary Surveys

Clause 15 For inspecting, reporting and advising on the structural and/or sanitary conditions of premises, the charges shall be in accordance with Clause 9.

Dilapidations

Clause 16 For estimating dilapidations and furnishings or checking a schedule of the same and for negotiating settlements of claims and for other services, the charges shall be in accordance with Clause 9.

Insurance Claims

Clause 17 For inspecting, reporting and advising on damages and for preparing and negotiating settlement of claims in connection with or arising out of any Policy of Insurance, the charges shall be in accordance with Clause 9 and shall be in addition to any charges in connection with building or repair works which may be involved.

RIAI

Local Authority Housing

Conditions of Engagement and Scale of Charges

Part 1: General Conditions

1.00

This part deals with general conditions of engagement and will apply irrespective of the nature or extent of services to be provided and the level of percentage fees or time charges which are applicable.

Responsibilities

1.01

Members of the Royal Institute of the Architects of Ireland are governed by the Memorandum, Articles of Association, Bylaws and Code of Professional Conduct of the Royal Institute, which determine their relationships with the public and their professional colleagues.

1.02

The work of an Architect is to advise the Local Authority, study its needs, to prepare, direct and co-ordinate design and unless otherwise agreed, to supervise works executed under a building contract.

1.03

Where a Consultant is retained for any part of the work the Local Authority shall pay his fees. He shall be appointed by the Local Authority on the recommendation or with the concurrence of the Architect from whom he shall take instructions. The appointment of Consultants shall not affect the authority of the Architect who shall be responsible for the direction and integration of their work. Consultants shall be responsible for the detailed design and supervision of the work entrusted to them.

1.04

The Architect may also nominate specialist sub-contractors for the design and execution of any part of the work. He shall be responsible for the direction and integration of their design, and for supervision of their works in accordance with Clause 1.08.

1.05

The normal service provided by an Architect in fulfilment of these responsibilities is described in Part 3 of these conditions. Additional and Special services are described in Part 5 of these Conditions.

1.06

The Architect shall not initiate or proceed with any Stage of his duties without the authority of the Local Authority. He shall not make any material deviation, alteration, addition to or omission from the approved design without the knowledge and consent of the Local Authority except as provided in Clause 1.07. He shall inform the Local Authority if the total authorised expenditure is likely to be exceeded and if the contract period is likely to be varied.

1.07

Notwithstanding the provision of Clause 1.06 the Architect may authorise material changes in design if they are urgently necessary for constructional reasons, provided that the Local Authority is informed without delay.

1.08

Where supervision is required by these Conditions the Architect shall give such periodic supervision and inspection as may be necessary to ensure that the works are being executed in general accordance with the contract; constant supervision does not form part of his normal duties

1.09

Where more frequent or constant inspection is required a Clerk of Works should be employed. He shall be nominated or approved by the Architect with the concurrence of the Local Authority, and be under the Architect’s direction and control. He shall be appointed, and paid by the Local Authority, within such limits as may be approved by the Minister for Local Government.

1.10

Where the employment of a resident architect is agreed between the Local Authority and the Architect he shall be employed by the Architect who shall be reimbursed by the Local Authority at a rate which is not in excess of the approved rate which would be paid by the Local Authority to a resident architect of equivalent grade in their own employment.

Remuneration

1.11

The employment of the Architect shall be in accordance with these Conditions and fees and charges herein shall apply unless higher fees and charges are agreed with the consent of the Minister for Local Government between the Architect and the Local Authority when the former is commissioned.

1.12

The fees for the normal service do not include any renumeration for work normally performed by Consultant Civil, Structural, Mechanical, Electrical or Heating and Ventilating Engineers and by Landscape Architects for any other work performed by consultants.

1.13

Where work done by a Local Authority results in the omission of part of the normal service described in Part 3 of these conditions, a commensurate reduction in fees may be made by prior written agreement, provided such agreement schedules in detail the work to be done by the Local Authority which would otherwise have formed part of the normal service by the Architect.

1.14

The fees for the normal service do not include any remuneration for quantity surveying. A Quantity Surveyor may be appointed by the Local Authority on the recommendation or with the concurrence of the Architect. He shall be paid by the Local Authority, within such limits as may be approved by the Minister for Local Government.

1.15

The fees for the normal service do not include any remuneration for services in connection with litigation, arbitration or statutory enquiries. Any such services shall be charged for in accordance with the Scale of Minimum Charges of the Royal Institute of the Architects of Ireland.

1.16

Where the services of more than one profession are provided by a single firm or consortium fees shall be the same as if such services were provided independently. Any consolidated fees shall therefore be the sum of the appropriate fees for the individual professional services rendered.

Termination of Engagement

1.17

An engagement entered into between the Architect and the Local Authority may be terminated at any time by either party on the expiry of reasonable notice, being not less than one month, when the Architects shal be entitled to remuneration in accordance with Clauses 2.13 to 2.18 of these Conditions.

Copyright

1.18

In accordance with the law relating to Copyright, copyright in all drawings and in the work executed from them will remain the property of the Architects.

Interpretation

1.19

Any questions arising out of these Conditions of Engagement and Scale of Professional Fees and Charges may be referred by the Architect or Local Authority to the RIAI for advice at any time provided always that any difference or dispute between them shall be determined in accordance with Clauses 1.20 or 1.21.

Disputes

1.20

Any differences or disputes may by agreement between the parties be referred to the RIAI for a ruling, provided always that such a ruling is sought on a joint statement of undisputed facts and the parties undertake to accept it as final.

Arbitration

1.21

Where any difference or dispute arising out of the Conditions of Engagement and Scale of Professional Fees and Charges cannot be determined in accordance with Clause 1.20 it shall be referred to the arbitration of a person to be agreed between the parties or, failing agreement within fourteen days after either party has given to the other a written request to concur in the appointment of an Arbitrator, a person to be nominated jointly by the Chief Engineering Adviser of the Department of Local Government and the President of the Royal Institute of the Architects of Ireland, at the request of either party.

Part 2: Calculation of Fees and Charges

2.00

Parts 2 to 7 of these Conditions set out in detail how fees and charges are to be calculated. This particular Part defines the scope of fees and charges, the total construction cost on which percentage fees must be based, and abandoned and resumed works. It also deals with the mode and time of payment and fees for partial service. Other Parts indicate how fees for additioial and special services and reductions for repetitive work are to be assessed.

Scope of Fees and Charges

2.01

The Architect’s fees and charges fall into three categories

“The Normal Service”

fees for work common to all building projects, which is described in Part 3 of these Conditions and hereinafter referred to as the normal service. Such fees are a percentage of the total construction cost of the work as hereinafter defined. As described in Part 4 of these Conditions the percentage may vary according to the nature of the works.

“Additional and Special Services” fees for work which although common to many building projects does not necessarily arise in all, or which is so variable that it could not reasonably be charged on the normal percentage basis. Such work is described in Part 5 of these Conditions and hereinafter is referred to as additional and special services. Where the Architect’s fees for this work are on a time basis they should be calculated in accordance with Part 6 of these Conditions.

“Out of Pocket Expenses” the cost of all prints and other reproductions of all drawings and documents, travelling and hotel expenses, and other reasonable disbursements which are specifically incurred in connection with the commission, which shall be charged in accordance with Part 7 of these Conditions.

Total Construction Costs

2.02

The total construction cost, whether based on new works or on alterations to existing schemes or buildings, shall be based on the cost of all works, including development and site works, carried out under the Architect’s design or direction.

2.03

The total construction cost shall not include nominated sub-contractor’s design fees for work on which consultants would otherwise have been employed. Where such fees are not known the Architect shall estimate a reduction from the total construction cost.

2.04

The total construction cost shall include the cost of built-in furniture and equipment. Where the cost of any special equipment or works or art is excluded from the total construction costs the Architect will charge for work in connection with such items under Part 5 of these Conditions or on a time basis.

2.05

Where old materials are specified or used, with the consent of the Local Authority, in lieu of new materials, the cost of old materials will be calculated as if they were new.

2.06

Where any material, labour or carriage is supplied by the Local Authority the cost shall be estimated by the Architect as if it were supplied by the Contractor and included in the total construction cost.

2.07

Where houses are built by direct labour the Local Authority’s final account of cost, including allowances for overheads, as approved by the Minister for Local Government, may be used in calculating the total construction cost.

The Normal Service

2.08

The work described in Part 3 of these Conditions is required for any building project and unless the Architect is specifically informed to the contrary he may assume the local Authority intends the execution of any works he is commissioned to design and that normal services will be required.

2.09

The normal service is divided into five stages described in Part 3 of these Conditions. Subject to the provision of Clauses 2.13 to 2.18 percentage fees on the total construction cost of the works shall be charged for services provided in each of Stages B to E.

Mode and Time of Payment

2.10

On completion of each Stage of the normal service described in Part 3 of these Conditions the appropriate percentage fee on the estimated construction cost of the works subject to any variations in accordance with Part 4 of these Conditions, plus any other fees and out of pocket expenses which have accrued, shall be due for payment.

2.11

Fees and Charges in respect of Stages D and E shall be paid by instalments proportionate to the drawings completed or value of the work certified from time to time.

2.12

On the issue of the final certificate all percentage fees must be recalculated on the total construction cost. The final instalment of all fees and other charges must then be paid.

Partial Services

2.13

Where for any reason the Architect provides only part of the service described in Part 3 of these Conditions he shall be entitled to commensurate remuneration as follows, in addition to any out of pocket expenses.

2.14

Where an Architect completes the work described in any of Stages B to D he shall be entitled to the appropriate percentage fee of the estimated construction cost of the works.

2.15

Where an Architect is commissioned to undertake only the work described in Stage E whether in whole or part, fees shall be on a time basis, provided always that where the Architect does only part of the work described in Stage E in respect of his own design he shall be entitled to not less than the percentage fee otherwise due to him under Clause 2.11.

2.16

Where an Architect provides only part of of the service described in any of the Stages B to D fees shall be on a time basis, except by prior written agreement in accordance with Clause 1.13.

2.17

All percentage fees for partial service shall be based on the Architect’s current estimate of the total construction cost of the work. ‘Such estimates may be based on an accepted tender, or, subject to Clause 2.18, on the lowest of unaccepted tenders.

2.18

In no case where partial service is provided in respect of works for which the executed cost is not known and no tender has been accepted should the Architect’s percentage fees be based on an estimated total construction cost which exceeds the most recent cost limit agreed with the Local Authority.

Abandoned Works

2.19

Where the construction of works is cancelled or postponed for a period exceeding two years or the Architect is instructed to stop work indefinitely at any time they shall be deemed to be abandoned and fees for partial service will be due.

2.20

If, however, instructions necessary for the Architect to continue works are not received from the Local Authority, the works shall be deemed to have been abandoned after six months have elapsed from the time such instructions were requested.

2.21

Where works are abandoned or any part of them is omitted at any time before completion, fees for partial service in respect of the whole or part of the works shall be charged for all work done with due authority, in accordance with Clauses 2.13 to 2.18 of these Conditions.

Resumed Works

2.22

If works which have been abandoned are resumed without substantial alteration within two years any fees paid under Clause 2.19 to 2.21 above shall rank solely as payments on account towards the total fee payable on the execution of such works and calculated on their total construction cost.

2.23

Where works which have been abandoned are resumed after two years any fees paid under Clauses 2.19 to 2.21 above shall be regarded as final payment for the service originally rendered. The resumed works shall be deemed a new commission for which payment shall be due in accordance with Part 3 and Clauses 2.13 to 2.18 of these Conditions.

2.24

All additional work arising out of resumed works shall be charged on a time basis.

Part 3 : Normal Service

3.00

The minimum fee for normal service is 6% for new works and 7½% for works to existing buildings. Higher percentages scheduled in Clauses 4.01 to 4.07 apply to works costing less than £5,000. The normal service is divided into Stages which mark the progress of the Architect’s work. On completion of each Stage an instalment of the fee is payable, in accordance with Clauses 2.10 to 2.12 of these Conditions.