Architect Agreement (New Zealand)

An Architect Agreement in New Zealand records the architectural services to be provided, the fees, the service standards, and each party's obligations between the provider and the client under the Companies Act 1993.

The Registered Architects Act 2005 established the Architects Registration Board (New Zealand) (ARBNZ) and introduced a statutory registration scheme for architects in New Zealand. Only persons registered under the Registered Architects Act 2005 may use the title 'registered architect'. Registered architects must comply with the ARBNZ Code of Ethics, which sets out the professional and ethical standards expected of registered architects, including the duty to act in the client's best interests, to maintain professional competence, and to hold adequate professional indemnity insurance.

The Building Act 2004 sets out the regulatory framework for building work in New Zealand, including the building consent process and the requirements for the New Zealand Building Code. Architects play a central role in the building consent process by preparing architectural drawings and specifications that demonstrate compliance with the Building Code. Where building work is restricted building work under the Building Act 2004, the architect must hold a Licensed Building Practitioner (LBP) licence in the Design class to sign off on the building consent application.

The Contract and Commercial Law Act 2017 governs the general contractual rights and obligations of the parties to an architect agreement, including implied terms about the quality of services, cancellation rights, and remedies for breach. Where the architect agreement includes provision for the administration of a construction contract, the Construction Contracts Act 2002 may also apply to payment disputes between the architect and the client.

A well-drafted architect agreement provides both the client and the architect with certainty about the scope of services, the fee, the programme, the copyright arrangements, and the process for resolving disputes. It also establishes the framework for the architect's key obligations under the Registered Architects Act 2005 and the Building Act 2004. An Architect Agreement in New Zealand is distinct from a simple service agreement because it must address the overlap between the Registered Architects Act 2005 and the Building Act 2004, including the architect's dual role as designer and LBP licence holder. The ARBNZ Code of Ethics requires registered architects to disclose any conflicts of interest and to maintain professional competence through continuing professional development.

A written Architect Agreement should be put in place before any architectural services commence in New Zealand. There are numerous situations in which a formal agreement is particularly important.

For residential new-build projects — where a client engages an architect to design a new home — a written agreement is essential to define the scope of architectural services (from concept design through to building consent documentation and contract administration), the fee structure, the programme, and the copyright arrangements. The agreement should also address the architect's obligations in relation to the building consent application and the Code Compliance Certificate process.

For residential renovation and extension projects, an architect agreement is needed to define the scope of architectural services and to distinguish clearly between the architect's design services and the builder's construction obligations. For significant renovations, the architect may also be engaged to provide contract administration services during the construction phase.

For commercial and industrial building projects, a written architect agreement is essential to manage the more complex design and consenting requirements. Commercial projects may involve multiple consultants (structural and civil engineers, quantity surveyors, services engineers), and the agreement should clarify the architect's role as lead designer and the coordination responsibilities.

For urban design and master planning projects, an architect agreement is needed to define the scope of strategic planning and design services that may precede any specific building design. These services are often fee-based on an hourly rate or a lump sum, and the agreement should clearly define the deliverables and the review and approval process.

In all cases, a written architect agreement protects both the client and the architect by clearly defining what services will be provided, for what fee, and within what programme, and by establishing a clear framework for copyright, insurance, and dispute resolution.

A thorough Architect Agreement for New Zealand should include the following key provisions.

The parties clause should identify the client and the architect by their full legal names and should include the architect's ARBNZ registration number. Clients should verify the architect's registration on the ARBNZ register before signing the agreement.

The project clause should describe the project clearly and identify the site address, as this defines the context and scope of all architectural services to be provided.

The scope of services clause is the most important provision in the agreement. It should describe each stage of architectural services to be provided (such as concept design, developed design, building consent documentation, and contract administration), the deliverables for each stage, and the services expressly excluded from the agreement. A clear scope of services prevents disputes about whether additional fees are payable for services not originally included.

The fees and payment clause should specify the fee basis (lump sum, percentage, or hourly rate), the fee amount, the GST treatment, the invoicing frequency and payment terms, the arrangements for reimbursement of disbursements, and the process for agreeing additional fees for variations to the scope.

The professional indemnity insurance clause should confirm the architect's PI insurance details and the obligation to maintain insurance for the duration of the project and for a minimum period after completion. The copyright clause should specify whether copyright is retained by the architect (with a licence to the client) or transferred to the client on full payment, as this has significant implications if the project is sold or if the client changes architect.

The liability clause should address the extent and limitations of the architect's liability to the client. The programme clause should set out the anticipated timeframes for each stage. The dispute resolution clause should specify the process for resolving disputes, which may include AMINZ mediation and CCA 2002 adjudication for payment disputes. Finally, the termination clause should set out the procedure and financial consequences if either party terminates the agreement. The forms-legal.com Architect Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements. Additional provisions specific to New Zealand architect agreements include: a clause acknowledging the Construction Contracts Act 2002 applies to any payment disputes arising from construction administration services; confirmation of ARBNZ registration number and PI insurance policy number; a programme clause linked to the building consent timeline under the Building Act 2004; and a variation clause providing for written approval of additional fees where the scope changes. The Weathertight Homes Resolution Services Act 2006 is relevant for residential projects involving exterior cladding, and architects should ensure design documentation addresses relevant NZBC clauses E2 and E3.