THE ARCHITECTURAL PROFESSION ACT ( 44 OF 2000)

 It is Compulsory to REGISTER with SACAP in order to practice as an architectural professional.

 The architectural profession is founded on two pillars of legislation:
o The architectural profession Act (44 of 2000)
o National Building Regulations and building standards Act (103 of 1977)
 Functions of the Architectural Professions Act (44 of 2000):
o To provide for the establishment of a Juristic person to be known as SOUTH AFRICAN COUNCIL FOR
THE ARCHITECTURAL PROFESSION (SACAP).
o To provide for the registration of professionals, candidates, and specified categories in the
Architectural Profession.
o To provide for the regulation of relationships between the SACAP and COUNCIL FOR THE BUILT
ENVIRONMNENT (CBE)
o To provide for matters connected therewith.
 In the eyes of SACAP – and as an architectural Professional – the only competence you have is your:
REGISTERED COMPETENCE

9 PRIMARY FUNCTIONS OF SACAP

1. Protect the Public

2. Register professionals that are men=members of the architectural profession and maintain this register.
3. Supervise and accredit South African Education in South Africa.
4. To Prepare and publish the code of professional Conduct and to prosecute offenders of this code.
5. Develop and update a recommended and Tarif of fees.
6. Liaise with the Council of the built environment and all its constituent members.
7. Develop and implement the identification of work process, currently under view (What professions can
develop what typologies of architecture). (Code of conduct Rule 2)
8. Amend Legislation if necessary.
9. Ensure that the public and registered persons are kept informed of developments within the sector (by
facilitating and auditing the continuous professional development (CPD) process).

THE CODE OF PROFESIONAL CONDUCT

The most important obligation is: In carrying out professional work a registered person is expected to act
COMPETENTLY and with INTEGRITY.

1. Consider these items when considering a letter of offer

1. Scope of the project
2. Scope of your services
3. Limits to responsibilities
4. Fees: How calculated + payable
5. Budget or cost limit
6. Provisions for termination
7. Details for PI insurances
8. Provision for dispute resolution

CONTINUING PROFESSIONAL DEVELOPMENT - CPD

 Continuous professional development = The process of TRACKING + DOCUMENTING the skills knowledge +
experience that you gain formally + informally as you work.
 Purpose = Point to the need for life-long learning to maintain, enhance + increase the Knowledge + skills
necessary for the proper execution of professional duties.
 CPD period – your professional registration with SACAP Expires every 5 years. Only if you comply with the
CPD rules will you be able to renew your registration.
VOLUNTARY ASSOCIATIONS
 Engaging + actively participating in VA’s will not only contribute to your career but also to the strength and
vitality of your profession.

LAWS OF CONTRACT + AGENCY AND PROPERTY LAW

 “Ignorance of the law excuses no one”
 The third party can sue the agent for fraud if he has been fraudulently misrepresenting his authority. (hence
the importance of a Client architect agreement – giving you the authority)

TYPES OF BUSINESS ENTITIES

1. (It is vital that partners have a harmonious relationship as liabilities and decision-making are shared.)
2. (When forming the partnerships, a written and signed partnership agreement is advisable)

PROFIT SHARING – Partners share profits equally– This can become an issue, particularly if the partners do not
contribute equally.

3. PERSONAL LIABILITY COMPANY (INC.) (INCORPERATED)

 LEGAL REQUIREMENTS – Many legal requirements + regulations, Can also be an advantage at it
creates certainty.

BUSINESS ADMINISTRATION
 Business administration = A proactive view of the performance of business operations and decision making.
 POLICIES AND OBJECTIVES determined by the co-founding partners of the business – the Principles.
 Time spent on admin does not produce income. Therefore, when admin tasks are repetitive, the best is to
develop standardise systems to follow (Pro Forma – Documents, checklists, forms, and procedures) That
assist with repetitive tasks and ensure that minimum requirements are met.
 OFFICE
o Structured office environment to ensure that all the administrative activities within the office run
efficiently.
 INFORMATION MANAGEMENT- Establish a register to record all issued documentation – Determine the
PROTOCALS for referencing and Filing all documents. (How information can be traced.)
 When storing information, you should consider HOW IT CAN BE TRACED BY SOMEONE WHO IS NOT
INTIMATLY ONVOLVED IN A PROJECT
 FINANCIAL – (Efficient monitoring of income and expenditure) + Monitor PROFITABILIT
o FINANCIAL CONTROL – Continuity of the practice is based on the regular influx of fee generating
work. – Budgets for each project (Per work stage) based on fees. Monitored against time sheets and
progress. Expenditure must be authorised by a principal in the business. – Overtime should be
preauthorised. – Targets for profitability must be set – Bank balances must be checked regularly.

HUMAN RESOURCE MANAGEMENT

 Most important with people is COMMUNICATION. Keeping members of staff well briefed and informed
about their projects and work (as well as aims, ambitions, and developments of the practice) is key to
keeping the team MOTIVATED + PRODUCTIVE
1. RECRUITMENT OF PERSONAL
 Assess the Projected cashflow to project the amount of staff that can be supported within the
Practice

AGREEMENTS + POLICIES

 Which must be agreed IN WRITING stating all TERMS and CONDITIONS.

TERMS AND CONDITIONS STATE THE FOLLOWING:
 o Commencement Date
o Provisional period of employment (3months – then permanent)
o Starting salary + salary review period.
o Policies regarding employment
o Training policies (CPD)
o Job description
o Office hours
o Overtime
o Annual +sick leave
o Copyright, confidentiality of information
2. It is important when you are signing an agreement to work for a practice or setting out the document for a
new employee.

FINANCIAL MANAGEMENT
 Accounting standards have been developed to present the TAXABLE amount and DO NOT clearly represent
the REAL-WORLD financial situation – From a business point of view.
 Cashflow is probably the most immediate indicator of an impending problem!

RISK MANAGEMENT + INSURANCE

o KEY QUESTION TO ASK: Do we have the TIME, RESOURCES + CAPABILITIES to properly respond to the
project requirements and the client’s expectations?
o PROFESSIONAL INDEMNITY INSURANCE.
o Without any form of insurance, you will have to pay for:
 Your own legal defence costs
 Plus, damages arising from your negligence or breach
 Professional indemnity (PI) Insurance provides PROTECTION
o A liability may either be Contractual of Delictual (The differences between)
 Contractual Liability = You can limit the period of your contractual liability by signing a
Professional Service Agreement.
 Delictual liability = a civil wrong consisting of an Intentional or negligent breach of duty of
care that inflicts loss or hard on another, in most cases, the remedy will take form of
damages claimed.
 You cannot contract out of a delict – only your PI insurance will protect you.
 PI insurance will only cover you for activities carried out as part of your NORMAL
professional duties.

SCOPE OF PROFESIONAL SERVICES

SUMMARY OF 6 STAGES

1. INCEPTION
 Clients Brief, needs + aspirations + priorities + constraints
2. CONCEPT VIABILITY
 Scope + scale + character form + function + viability
3. DESIGN DEVELEOPMET
 Finalise design, construction systems + components + services + performance
4. DOCUMENTATION
 Approval submission + Procurement Strategies + Contract documentation
5. PRINCIPAL AGENT
 Administer + Monitor + inspect for conformity + certification of the works
6. COLSE -OUT
 Completion certificates + Final Handover
FEES FOR PROFESIONAL SERVICES
A. PROJECT COST-BASED
o If any material changes are made in the following categories, the fees must be adjusted.
 Scope of services + Project Program + Cost of Project
B. FEES FOR LEVEL OF SERVICES
Where the services EXCLUDES that of the Principle agent, The FEE for that work stage (5+6) can be
reduced by a MAXIMUM OF 10%.

PROFESSIONAL RESPONSIBILITIES
Consider these items when considering a letter of offer

 Scope of the project

 Scope of your services
 Limits to responsibilities
 Fees: How calculated + payable
 Budget or cost limit
 Provisions for termination
 Details for PI insurances
 Provision for dispute resolution

The architect accepts the appointment to exercise REASONABLE (DEFINITION: the service must be comparable to
what another architectural professional would provide under the same circumstances during the same period of
time.) SKILL & CARE & DILIGENCE

In the performance of the OBLIGATIONS accepted in terms of the agreement. For a fee as set out in the agreement

Reasons for using a STANDARD FORM PSA.

 Ensure Fair & reasonable Contractual Arrangement

 Facilitate the UNDERSTANDING between you and your client
 Formalise the BUSINESS ARRANGEMENT between the client and the architect.

Without a PSA, Common Law will apply

 Payment for services will only when the completed project is handed over.
 No changes to the agreed scope of the service nor able extend the project scope.
 All disputes must be resolved in courts through litigation.

RISKS in a letter or a BESPOKE agreement

 May require Lengthy and costly negotiations between the parties

 May not make provision for all circumstances
 Are not supported by a history of case law
 May unintentionally increase the obligations of the architect beyond the norm.

ESTABLISH THE BUSINESS ARRANGEMENTS between you and the client

- Set out the STANDARD scope of services

- Grants AUTHORITY to an architect
- Provide for INTERIM payments
- Provide for DISPUTE resolution
- Limit the LIABILITY of the architect