Summary of findings, implications and recommendations

	Summary of main issues and findings			Entity		Implications and recommendations
The market for Architectural Services
1		Architects face intensifying competition in the market for architectural services, which could challenge their compliance with professional standards. Disputes have become endemic in the sector, which could also undermine architects’ ability to discharge their professional obligations. Disruptive trends are also likely to fundamentally affect the provision of architectural services and could exacerbate current market dynamics. Compliance with the regulatory framework applicable to architects will enable them to overcome these challenges. Prioritisation of compliance with professional standards obligations will help to ensure that the quality of architectural services is maintained, the reputation of the profession is preserved, and the interests of clients and end-users are protected. There is a role for regulators and industry bodies to support architects in light of challenging market conditions. In addition, architects will themselves play a critical role in navigating the challenges arising from current market conditions.		The ARBV and NSW ARB		Where necessary, existing regulatory initiatives undertaken by the ARBV and NSW ARB to support architects to comply with their regulatory obligations will be informed by current market dynamics.
2				Architects		Architects should take stock of the various market forces at play, identify how professional standards can be maintained notwithstanding those forces by focusing on the factors that are within architects’ control, and adjust operations and practices accordingly.
3				Industry bodies		Industry bodies should provide support to architects to enable them to better understand how to effectively mitigate risk in light of current market conditions.
4				Industry bodies		Industry bodies should invest in initiatives to better inform clients and end-users about the differences between architects and building designers.
Procurement models
5		The D&C procurement model can lead to adverse outcomes for architects, including increased exposure to legal risk. D&C contracts are typically bespoke and may include unfair contractual terms for architects that could limit the availability of professional indemnity insurance. The D&C procurement model has also led to a perception among some clients that architects do not have the technical skills to provide project management services, even though this is a core skill under the NSCA.	The ARBV and NSW ARB		The ARBV and NSW ARB will continue to provide architects with support and guidance regarding their non-negotiable professional conduct obligations, which apply regardless of the procurement model that has been employed.
6			Architects		Architects must take active steps to assert themselves in a D&C context and ensure that their rights, interests and regulatory obligations are effectively represented and protected throughout the negotiation and implementation of a D&C contract.
7			Industry bodies		Industry bodies could support architects in navigating the challenges associated with D&C procurement, particularly to address unfair risk exposure and allocation of risk under D&C contracts.
8			Education and training providers		Providers of education and training should ensure that their programs educate architects about the pros and cons of procurement models, particularly the risk exposure for architects under these models.
Client-Architect relationships and agreements
9		Clients are diverse so architects’ relationships with different types of clients are likely to differ. The client-architect relationship can be affected by various factors, including factors that are outside an architect’s control, particularly in the context of large-scale projects where a D&C procurement model is employed. Poor communication can compromise client-architect relationships, and is a problem that is not uncommon. Non-compliant client-architect agreements, and the absence of such agreements, can adversely affect client-architect relationships. The approach to project costing and fees can also have an adverse impact on client-architect relationships and can lead the client to perceive that a cost blowout has occurred. Clients’ access to recourse may be limited under current regulatory arrangements, which may deter clients from raising concerns about unprofessional conduct.	The ARBV and NSW ARB		The ARBV and NSW ARB will place increased emphasis on educating architects about their various obligations to clients, particularly in relation to communicating meaningfully with clients and establishing useful and effective client-architect agreements.
10			Architects		Architects must invest in better relationships with their clients, through a service-oriented approach that is focused on good communication and engagement.
11			Industry bodies		Industry bodies should encourage architects to use model client-architect agreements and assist architects to better understand the meaning and implications of key terms of client-architect agreements.
12			Industry bodies		Industry bodies could explore alternative methods for determining architects’ fees that reduce uncertainty for clients and concurrently protect architects’ interests.
13			Education and training providers		Given the apparent difficulties faced by architects in estimating construction costs, including to establish architects’ fees that are based on these costs, relevant aspects of education and training programs should be revisited.
14			Government and regulators		Government, in conjunction with industry bodies and regulators (including, but not limited to the Boards), are urged to engage in activities to raise the profile of the ARBV and NSW ARB to encourage clients to reach out to the Boards and alert them to issues regarding the compliance by architects with their professional standards obligations
Building defects, professional standards and compliance culture
15		In light of the rise of building defects, it is incumbent on governments, industry bodies and regulators to identify core risk factors and entities responsible for building defects. There is evidence indicating that some building defects may be linked to design issues, but the specific design services and practitioners that may be responsible for these defects need to be clarified. Common factors that could cause building defects include time and cost pressure, as well as unreasonable client demands and expectations, which are prevalent in the context of D&C contracts suggesting that the D&C context should be a focus of attention. There is evidence that there may be a poor culture of regulatory compliance among limited pockets of practitioners, but there is no evidence of a general disinclination to comply within the sector. The NCC may not be as user-friendly and accessible as intended, making it challenging for some practitioners to comply.	The ARBV and NSW ARB		In educating and engaging with architects about their obligations to act with reasonable care when providing architectural services, the ARBV and NSW ARB will emphasise the importance of good quality design and design documentation.
16			The ARBV and NSW ARB		CPD requirements will be revisited to determine whether they effectively address relevant aspects of the NCC.
17			Co-regulators		Co-regulators in the construction sector should act in tandem to ensure that the core risk factors and entities responsible for building defects are clearly identified and targeted in a proportionate way so as to minimise the likelihood of defects materialising in practice.
18			Education and training providers		A stocktake of the education and training of graduates and architects on the NCC as they progress through their careers should be undertaken to determine whether there are any gaps and areas for improvement and enhancement of knowledge.
Risk, liability and insurance
19		Architects face a range of risks in the context of construction projects and the scope of the duty of care owed to clients in providing architectural services is broad. The unfair allocation of risk under D&C contracts could increase architects’ exposure to liability and, in turn, reduce protection for clients. Efforts by industry bodies to tackle the imposition of unfair contract terms on architects, which heighten their exposure to risk, need to be ongoing. Further initiatives to entrench the use of standard form contracts, such as AS4122, are also needed, particularly in the context of D&C procurement. The availability of insurance to help architects manage risk may be affected by increased insurance costs and limitations on coverage. Education and support to assist architects to manage risk would be useful, especially for smaller practices. Compliance with professional standards and insurance obligations and investment in sound risk management practices will help architects manage risk.	The ARBV and NSW ARB		The ARBV and NSW ARB will continue to support architects to comply with their professional standards and insurance obligations as this will assist architects to manage risk.
20			Industry bodies		Industry bodies should invest in ongoing initiatives to address the prevalence of unfair contract terms, particularly in the D&C context, and seek to entrench the use of standard form contracts, such as AS4122.
21			Education and training providers		Education and training providers could focus more heavily on risk management, particularly for smaller practices. CPD requirements should also cover risk management.
Climate change, sustainability and the transition to net zero
22		Architects are driving sustainable design in buildings and have the capacity to further benefit from the green building revolution that is underway. Architects who choose to embrace the opportunities that the transition to net zero, adaptation to climate change and the push for sustainable outcomes create, will also face risk. In particular, architects could be exposed to liability if they fail to explain the meaning and implications of sustainable design to their clients, the intended outcomes of sustainable design are not properly documented, risky untested designs and materials are relied upon, and architects providing the relevant services lack adequate expertise and experience. However, failure to invest in green architectural services could result in non-compliance with burgeoning regulation to facilitate mitigation and adaptation to climate change risks. Compliance with professional standards obligations in this context will assist architects in overcoming challenges and managing risk.	The ARBV and NSW ARB		The ARBV and NSW ARB will continue to support architects to understand their professional standards obligations , which will assist them to manage risks arising from the regulatory and practical changes associated with climate change, sustainability and net zero developments.
23			Industry bodies		Industry bodies should provide support to architects in the form of education and engagement to raise awareness of the opportunities and risks arising from climate change and associated drivers.
24			Education and training providers		Education and training providers should assess their respective programs to determine how effectively they address the challenges and opportunities arising from climate change, sustainability and net zero developments. CPD requirements should cover these areas.
Automation, digitalisation and innovation
25		There are a range of technological changes that could disrupt the provision of architectural services. Automation, digitalisation and increasing demand for building information modelling creates risks, but also opportunities for architects. There are various factors that may compromise architects’ capacity to respond to these disruptive forces, including lags in building standards and disincentives arising from procurement models and processes. There is more work to be done in understanding the specific impacts of technological developments on the delivery of architectural services and the risks to compliance with professional standards that could arise.	The ARBV and NSW ARB		The ARBV and NSW ARB will continue to support architects to understand and comply with their professional standards obligations in light of disruptive technological change.
26			Industry bodies		Industry bodies should provide support to architects in the form of education and engagement to raise awareness of the opportunities and risks arising from disruptive technological forces.
27			Education and training providers		Education and training providers should review their respective programs to ensure that they are effective in preparing architects for technological change.
Education, training and continuing professional development
25		University curricula and training programs for architects need to be responsive to recent and future disruptive changes to ensure that architects are ready to realise opportunities, overcome challenges and mitigate risks. The adequacy of education and training for architects is being questioned in light of these changes. Compliance with CPD requirements needs to improve to ensure that practitioners are well-positioned to respond to the changes.	The ARBV and NSW ARB		The ARBV and NSW ARB will continue to monitor CPD compliance.
26			Education and training providers		Relevant education, training and standard-setting bodies should revisit their education and training programs to ensure that they adequately prepare and support architects in the face of disruptive change.

Updated 20 December 2022