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FAQ
Questions
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Answers
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Are you really a sole trader?
There is some confusion about the definition of sole trader. The intent of the Architects Act is that the public always know who is responsible for the provision of architectural services. Hence the requirements for individual architects to provide their registration number in all business correspondence and advertising, and the requirement for architect corporations and firms to have nominated at least one architect to be responsible for the provision of architectural services. Corporations and firms may comprise one architect or many.
Sole traders are currently not required under the Act to list a nominated architect with the Board. Some architects refer to themselves as sole practitioners – and some believe that this term has the same legal meaning as sole trader. However, architects who practice through a company registered with ASIC trough a partnership or association of persons are not sole traders. For the purposes of the Architects Act they are corporations and firms and as such must list their nominated architect with the Board if they wish to provide architectural services.
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Can architects include attendance at courses and activities run by non-architectural organisations?
Architects will access both formal and informal CPD from a range of providers – employers, professional and business associations, universities, TAFE and private providers of training. If an architect undertakes an activity relevant to the practice of architecture as part of an industry-licensing requirement, then this activity may be included as part of the architect’s CPD commitments for the purpose of registration as an architect.
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Do architects who give advice to community groups, churches, schools etc on a pro bono basis need insurance cover?
Regardless of whether a professional person provides advice at no charge, or for an exchange of services or other benefit – they still have the same duty of care to their client and are exposed to the same liabilities and can be sued for negligence. Architects in this situation should seek advice from an insurance broker.
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Do I have to show clients a copy of my professional indemnity insurance policy?
The NSW Architects Code of Professional Conduct requires an architect to …provide each client of the architect with information relating to the insurance maintained by the architect for the architectural services to be provided to the client. The extent of the information an architect provides to their client regarding the details of cover would be negotiated between the parties.
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Do I have to show the Board a copy of my professional indemnity insurance policy?
Architects have to declare at annual renewal that they have appropriate professional indemnity insurance cover unless they have been granted an exemption from this provision. Currently, the Board does not require architects to provide a copy of their policy. However, where a complaint against the architect’s professional conduct has been made, evidence of cover may be required by the Board.
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Do I need professional indemnity insurance cover for private jobs outside my employment?
Yes, your employer’s insurance not cover you for work carried out on your own behalf. If you provide architectural services on your own behalf you need to seek appropriate cover.
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Have you listed your nominated architect yet?
Under the Architects Act an architect corporation or firm must ensure that at all times there is at least one nominated architect listed with the Board who is responsible for the provision of architectural services. The one off listing fee is $60, and to be included in the List of Architect Corporations or Firms which will be available on the Board’s website an additional annual fee of $120 is payable.
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How do architects decide what is appropriate CPD?
Each year architects are encouraged to develop a CPD plan which addresses the maintenance, development and enhancement of their own professional knowledge and skills. Activities should relate to practice as an architect and be in addition to activities already undertaken in the normal course of the architect’s practice or employment. Activities in each year should relate to a minimum of two units in the National Architecture Competency Standards – Design, Documentation, Practice Management and Project Management. The Standards can be downloaded from the Architects Accreditation Council of Australia (AACA) website www.aaca.org.au.
When deciding which courses or activities are appropriate to their needs architects need to exercise professional judgement. They should assess the published information about the activity, the reputation of the provider, the quality of the product and the relevance of the subject matter to determine if a particular activity is appropriate to individual needs. The Institute of Architects provides information for their members about CPD as well as providing a listing of formal and informal activities available. The Association of Consulting Architects also provides advice to their members on these matters.
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How do I change my registration status from practising architect to non-practising architect?
Architects who have been on the NSW Register of Architects at any time may choose to change their status to non-practising. This category will include architects who may have retired from practice or those who are not practising architecture nor will be for the foreseeable future. Individuals who have removed their name from the Register may apply to be restored in this category by applying to the Board and paying an annual fee of $40. See the Forms section of the Board's website to download the application form or contact the Board on 02 9241 4033.
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How do I choose an insurance provider?
The terms and conditions of professional indemnity insurance policies differ and an architect should satisfy himself/herself that the policy on offer matches all their requirements. Issues to consider include the limits of indemnity to be selected, levels of excess, exclusions, definitions, the insurer’s attitude to alternative dispute resolution, how the insurer handles claims and their track record in honouring obligations to policy holders.
The Board does not recommend any particular broker but is aware of a number active in the market.
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How will the Board assess whether an architect has “taken all reasonable steps” to undertake appropriate CPD?
At annual renewal of registration architects must declare that they have undertaken a minimum of 20 hours of CPD, of which 10 hours must be formal.
Exemptions may be granted based on exceptional circumstances faced by an individual architect, or where an architect has been on parental leave or overseas ifor the registration year. Pro rate obligations apply where the circumstances apply for only part of the registration year.
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If I work in an architectural firm, but not registered as an architect, what title can I use?
Only a person who is on the NSW Register of architects may use the title architect. Graduates of architecture may describe themselves as holding that qualification but cannot use any term such as graduate architect that may infer that they are an architect registered in NSW. An employee of an architect may use the title or description of architectural assistant, architectural technician or architectural drafter. No restriction applies to a person using the word architectural to describe the business of supplying goods in connection with architecture. Landscape architect, naval architect or computer systems architect are also exempted terms.
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Is compliance with the NSW Architects Code of Professional Conduct compulsory?
Legal advice has confirmed that adherence to the Code is a requirement of registration as an architect in NSW. The Code is included in the Regulations and failure to comply with the Code will constitute unsatisfactory professional conduct and may also constitute professional misconduct for the purposes of the Act, and may be grounds for disciplinary action under Part 4 Complaints and disciplinary proceedings of the Act.
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Is there a minimum professional indemnity insurance level stipulated by the Board?
The Board does not stipulate a minimum indemnity level of professional indemnity insurance. Architects should maintain sufficient cover to enable them to meet claims arising from their professional practice.
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What are informal activities in CPD?
An informal activity relates to practice as an architect and is in addition to activities already undertaken in the normal course of practice or employment but does not include any form of assessment. To determine whether activity qualifies as being informal CPD an architect should check that:
• learning outcomes can be identified
• the activity is intended to be educational, and is not part of normal employment practices
• new knowledge and skills are being acquired or being shared with peers
• consideration has been given to how this new knowledge may be applied to practice.
Examples include but are not limited to:
• self directed study of practice notes, technical magazines
• talks and presentations by peers
• structured visits to buildings and exhibitions
• design workshops, lectures and seminars
• authorship of published articles/books/papers etc
• conferences
• involvement in mentoring programs
• participation in professional practice committees and advisory groups - through professional associations, regulatory authorities, government bodies such as Standards Australia
• raising awareness of architecture in primary and secondary schools.
A maximum of two hours only may be allocated to any one activity at a time in the Informal category.
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What happens if an architect does not have professional indemnity insurance?
If an architect does not have professional indemnity insurance cover appropriate to the level of services provided, nor is eligible for an exemption they are in breach of the NSW Architects Code of Professional Conduct. Breaches of the Code must be dealt with under the disciplinery provisions of the Architects Act.
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What is professional indemnity insurance?
Professional indemnity insurance is intended to protect a professional against financial loss resultant from legal liability for breach of their professional duty by reason of negligent act, error or omission. Professional indemnity insurance also protects a professional where the claim proves incorrect – that is where there was no negligence or mistake.
A professional indemnity policy is claims made and notified policy which means that generally the policy that will respond to any notification or claim is the policy in place at the time the claim is made against the insured. Retroactive cover varies but where continuity of professional indemnity insurance has been maintained it is usually provided without additional premium.
Architects have a professional duty to many including their clients; contractors and consultants; current and subsequent owners and occupiers of the building and adjoining properties; and the general public. Depending upon the particular circumstances and contractual arrangements, architects may be held responsible for the actions of themselves, their employees, partners and sub-consultants.
Claims that commonly arise in professional indemnity matters include those involving cost of remedial work or disputes regarding additional cost of construction; bodily injury claims both during construction and post completion; third party property claims from adjoining premises; consequential claims – eg delayed completion; and contribution claims from other participants in the project.
Professional indemnity insurance is sold on an annual basis not on a project basis. Premiums are determined taking into account a number of factors including gross annual fees, the architectural services provided, the type and size of work from which fees were earned. For advice relating to individual circumstances contact an insurance broker.
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What is the annual renewal timetable?
Under the Architects Act 2003, registration as an architect must be renewed by 31 March each year. Renewal notices are generally sent out in January/February each year and must be paid by the 31 March. Architects who do not pay their annual renewal by that date will have their names removed from the Register.
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What kind of contract or written agreement do I have to have with my client?
From the 30 June 2004 architects should have in place a written agreement with their clients concerning the provision of any new architectural service. The Board does not specify the type of written agreement that must be used, however, Part 3, Section 7 of the NSW Architects Code of Professional Conduct outlines the inclusions that should be in any agreement between architects and their clients. The Board has not developed any model client agreements.
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What records of continuing professional development should be kept?
Records of CPDE activities should be kept for at least five years and should include date, activity, location, category of activity - formal or informal - and hours claimed. The Board provides a template for architects to use which will is available for download from the Board’s website.
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What type of activities fall under the category of formal CPD?
Continuing professional development activities in the formal category must have stated learning outcomes that are formally assessed or have significant interaction between the presenter and the learner. They should be conducted by presenters with appropriate academic, technical or practical expertise. They may be internet based.
Accredited courses relating to any aspect of the practice of architecture conducted by TAFE, universities or Registered Training Organisations are formal activities.
Short courses offered by professional associations, architect networks, employers etc that relate to the practice of architecture, that have stated learning outcomes and are formally assessed are included in the formal category. Assessment may be in a variety of forms, for example a test, self-check questions and answers, a paper submitted at the end of the activity.
Other activities that do not include formal assessment but involve significant interaction between the presenter and the learner may also be included in the formal category.
Significant interaction in any relevant activity is where there is direct communication between the presenter and learner, requiring the learner to actively participate in exercises, case studies, workshops, role-plays, discussions and so on. Typical examples of activities with significant interaction include:
? small groups undertaking case studies and/or written exercises with feedback from the presenter
? a web-based tool or CD Rom that requires learner interaction and input, for example, the completion of a set activity
? participation in formalised group discussions involving a case study relevant to architecture or industry practices - see Architects Learning Groups
? ‘in house’ training where the learner is required to complete specified tasks or activities.
Architects are also able to claim CPD hours for a range of professional activities. For example, preparation and presentation of CPD activities relating to architecture; architects authoring published articles/books/papers are also able to claim hours in the formal CPD category - up to 3 hours may be claimed for authorship of published journals, up to 5 hours for preparing and presenting a CPD activity or lecture on architectural matters, and up to 5 hours for part time lecturing in a relevant program at tertiary level.
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Where will I display my registration number?
When dealing with the public in the course of their architectural practice, architects and architect corporations and firms must include their registration number on any stationery, sign boards, construction documents, public notices or advertisements used or placed by the architect, or in the case of an architect corporation or firm must include the name and number of the nominated architect. This is to ensure that consumers of architectural services know when they are dealing with an architect.
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Who is eligible for exemption from maintaining professional indemnity insurance?
The overwhelming majority of architects in NSW already have appropriate professional indemnity cover, or are employed by an architect corporation or firm. Exemptions from the requirement to maintain appropriate professional indemnity insurance cover have been granted to architects who have recently commenced practice and in exceptional cases where the Board considers that the particular circumstances warrants an exemption.
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Why do I need to maintain professional indemnity insurance when I only undertake small jobs?
The widening of contractual liability in recent years means that even a small job can give rise to a significant claim. There is not necessarily a link between the level of gross fee income and the potential size of the claim. The key issue is the extent of the loss that might result from any mistake. Brokers will advise on the realistic minimum levels of indemnity relevant to particular situations.
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Will architect corporations and firms be registered by the Board?
The NSW Architects Registration Board will not register architectural practices or firms. However, under the Architects Act 2003 architect corporations or firms are required to ensure that at all times there is at least one architect nominated by the corporation or firm who is responsible for the provision of architectural services across the organisation as a whole. This person will be known as the nominated architect or the nominated responsible architect. An architect can only be nominated if the architect is a director or member of the governing body of the corporation or firm, is a partner in the firm or is otherwise concerned in the management of the corporation or firm, or is an employee of the corporation or firm. The nominated architect is responsible for the provision of architectural services across the firm, and is not necessarily the project architect. While all business correspondence from an architect corporation or firm must include the name or names of the nominated architects, other directors or employees of the organisation may sign correspondence with clients, including their registration number if the signatory is a registered architect.
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