AIBC Publications
Hot Corner

Hot Corner 64.
by Michael Ernest MAIBC
AIBC Executive Director

For questions or comments, he can be reached at mernest@aibc.ca or at (604) 683-8588, #304.

In this issue:

Professional Liability Insurance Tips
Documents Update
From the Department of Architectural Redundancy
CCDC News Flash
Competitive Streak
UBC Client/Architect Agreement
Overheard and Architecturally Comprehended

A 'column' in architectural terms can 'speak' to its function, often rising from a profound base to exalted capital pursuits in fluted tones. A "column" in journalistic terms also has a voice. This one is singing, "will you still need me, will you still feed me?" Happily, the answer is 'yes' but in a different context. By the time you read this, most of you will have already received edition 63, electronically, or have spotted it on the AIBC web site, which is its new home and where it will appear with greater frequency (and currency) than in our quarterly magazine. Its numerical sequence will continue for easy reference alongside its updated table of contents and keyword index. For those who remain in an e-free zone, let us know who you are and how we might best reach you (fax number will do) in order that you don't miss an edition. It might even come to pass that the magazine will include summary references. So, please continue to "send me a postcard, drop me a line, stating point of view" in whatever medium suits you. That feedback is important. Good communication needs to be received, not just sent.

Professional Liability Insurance (PLI) Tips

Precious few of these are repeatable in genteel company, but here's a pair that have been tested successfully in the crucible of practice. They are increasingly appropriate given the rises in premium rates (not contemplated by the AIBC Tariff's recommended professional fees for architectural services) along with the demands by clients and municipalities for coverage on specific projects that are greater still than those that your firm generally carries.

Tip #1: Spread your annual general PLI policy's costs over your projects and claim them as reimbursables on a pro-rated basis.

Tip #2: Bill any project-specific PLI costs (including premium differentials, which may apply both to projects with higher coverage demands directly and to the impact of that demand across your practice-policy premium) to those projects as reimbursables.

What a concept! If you think it's radical within our industry, just ask any builder which parties ultimately bear their project-related construction liability insurance costs.

Document Update

AIBC Practice Note 10: Errors & Omissions Insurance and Related Issues has been withdrawn from official circulation. Notwithstanding some persistently interesting and applicable content, it became increasingly obsolete within the current volatile insurance marketplace. Our Liability Insurance Committee (per Simon Richards, MAIBC) is developing a replacement version.

From the Department of Architectural Redundancy

Overheard in our nation's capital at the Canadian Construction Documents Committee (CCDC) table: "So, let's imagine that alongside the project site there is an empty vacant lot."

CCDC News Flashes

One of the (oddly) best-kept secrets is www.ccdc.org, a veritable goldmine of helpful materials including a set of free downloadable bulletins that offer information on topics ranging from statutory declarations to warrantees. Note the withdrawal of Bulletin 20 (Additional Named Insureds) and the introduction of Bulletins 24 (Insurance Specification) and 25 (Indemnification). Most significantly, there is a brand new industry-endorsed CCDC-23: 2005, "A Guide to Bidding and Contract Award." Given the 'sea changes' in this area of practice in recent years, this publication is a 'must-have' for every member. The old version (1982) needs to be deep-sixed immediately. Further bonus: the principles and court precedents therein also have meaningful application to consultant-selection processes.

As well, in the interest of keeping one's library up-to-date, CCDC-40: Rules for Mediation and Arbitration of Construction Disputes (cross-referenced in not only CCDC contracts but also in RAIC-6, our profession's national standard client/architect contract) has had some small word forms tweaked.

COMPETITIVE STREAK

If you wish to enter an architectural competition which is being run outside British Columbia, make sure you check with the applicable jurisdiction as to their rules. Otherwise, you run the risks of ruining your eligibility there (and losing your investment); running afoul of licensing regulations there (with attendant prosecution); and unprofessional conduct charges here (for being in contravention of licensing regulations in other jurisdictions). The same holds true, naturally, for non-MAIBCs who seek to enter architectural competitions in BC. For example, any non-MAIBC submitting an expression of interest or qualifications must first file a letter of intent with the AIBC and, prior to competing, must become either registered (with a Certificate of Practice) or a temporary licence holder (in collaboration with a BC architect). The latter process was laid out and enforced in connection with UBC's New Town Centre competition. Our compliments to Walter Francl, MAIBC (professional advisor) and Linda Moore, AIBC Associate (UBC Planning) for their cooperation and clear documentation. For further guidance, see AIBC Bulletin 22.

UBC CLIENT/ARCHITECT AGREEMENT

One potential long-range benefit of the above-noted competition should flow from the productive negotiations regarding acceptable terms of engagement … without which the competition would not have received AIBC approval. Simply put, the university's standard form of agreement was found by the AIBC to include some problematic terminology and conditions which were either (e.g.) obsolete within the industry; impractical; uninsurable; unduly onerous; or otherwise professionally unsupportable. The contract which emerged for the competition (to be signed by the winner) contains, naturally, clauses which arise from the competition process and are project-specific; requires the architectural firm to review it carefully and make some informed business decisions; but is sufficiently consistent with RAIC-6 (June 2002) and Bulletin 90: Minimum Acceptable Scope of Architectural Services to pass muster, in keeping with Bylaw 28. In that regard, our appreciation is extended to UBC's Dennis Pavlich (Vice-President … Cindy, we need his exact title here) and Hubert Lai (University Counsel) for their understanding and accommodation. The corollary, of course, to quote someone's Scottish antecedent, is that there is to be "nae backsliding, laddie". To our firms who do business with UBC: take note and keep this corner posted.

OVERHEARD AND ARCHITECTURALLY COMPREHENDED

Issued from a consulting engineering perspective, being yet again inveigled to function as client's financier: "I'll have to threaten to move my overdraught to another bank."

Avail yourself of relevant 'business portfolio' offerings at the Architecture Centre; the upcoming annual conference (in Vancouver 28, 29 30 April 2004); and from our network of external continuing education providers. In keeping with Robert E. Lee's thinking for battle, "the more formidable a foe you are facing, the more you have to attack."

And, given that this column is being writ as we head into the season of contemplation, allow me to close with a Rev. Jesse Jackson quotation from his October 1972 eulogy to Jackie Robinson. "A life is marked by two dates with a dash in between. It is in that dash … where we live. For everyone, there's a dash of possibility, to choose the high road or the low road, to make things better or worse."

Andale!