Architecture today more than a fine art.—

Effect of modern business conditions on the

practice of the profession.-Necessity of plac-

ing conduct of architectural office on business

basis. Practice of profession on business basis

consistent with its standing as a fine art.-

Practical to deal with client on business basis.

-The importance of being definite.

The contract determines the rights of the

parties. Importance of written contract.—

Necessity of clear understanding.-Various

forms of contract. Their respective advan-

tages and disadvantages.-The long form.—

The short form. The intermediate form.-

The Standard form of the American Institute.

-Implied agreements.-Their disadvantages.

-Advantages of express contracts.-Provi-

sions with respect to compensation. The com-

putation of the commission.-Not ordinarily

chargeable on cost of land.-Proof of value of

services.-Right to commission on furnishings

and decorating and landscape work. The ac-

ceptance of allowances or commissions on pur-

chase of furnishings and fixtures.-Relations

between architect and decorators, landscape

architects and consulting architects.-Advisa-

bility of agreement between them.-Importance

of centralization of authority.-Payment of fee

in corporate stock.-Cautions to be observed.

-Liability to creditors on stock not fully

paid. Income tax considerations.-Protection

against insolvency of corporation.

27

CHAPTER

III.

IV.

THE CONTRACT BETWEEN OWNER AND CON-

TRACTOR

The architect's interest in the contract.—

The standard form of the American Institute.

-Consideration of its terms.-Advantages and

disadvantages.-Payment to contractor should

be contingent on performance.-What law

should govern the contract.-Deviations by

contractor from contract terms should be

clearly restricted. The authorization of

changes.-The ownership of drawings and

models. Status of the architect and scope of

his authority.-Tendency to restrict his power

and discretion.-Disadvantages of this course.

-Decision of disputes by arbitration.-Advan-

tages and disadvantages.-Right of the con-

tractor to act in emergencies.-Preferable to

vest emergency authority in architect.-Im-

portance of submission by contractor of sched-

ule of values covering component parts of the

work.-Protection of owner against mechanic's

liens. Owner should have right to withhold

payment of any instalment until existing liens

have been satisfied.-Standard Contract provi-

sion with respect to patents, unfair to con-

tractor.-Desirable for architect to have his

own contract form.-A meeting of the minds

essential to any contract.-Contract must have

mutuality.-Offer alone does not constitute

contract.-Necessity of acceptance.-Right to

withdraw offer prior to acceptance.-Mistakes

in bids as affecting contractor's liability.-

Supplemental or additional agreements.-Ne-

cessity for reducing them to writing.-Written

agreement cannot be changed by oral agree-

ment.-Collateral agreements an exception to

rule. All supplemental agreements should be

in written form.-Disregard of this caution is

dangerous.

Danger to architect of representations or

guarantees with respect to cost.-Importance

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70

CHAPTER

V.

VI.

of clear understanding on this point.-Duty of

architect to make clear to client probability of

extras and impossibility of foretelling cost.-

Suggested contract provision for protection of

architect.

ACTING AS CONTRACTOR OR PRINCIPAL

PAGE

75

Architect should not become involved as

contractor or principal.-Dangerous to act for

undisclosed principal.

SKETCHES AND PLANS

Payment for preliminary sketches.-Impor-

tant to provide basis upon which fee therefor

may be computed.-Agreement on estimated

cost.-Payment for sketches where work sus-

pended or abandoned.-Payment for successive

sets of sketches.-Payment for plans and draw-

ings.-Right to charge for successive sets of

plans and for changes.-Importance of fixing

percentage to be charged.-Popular miscon-

ception of effect of American Institute mini-

mum charge schedule. The delivery of the

plans.-Failure to deliver as affecting archi-

tect's right to recover.-What constitutes de-

livery.-Delivery as distinguished from ac-

ceptance. Changes in plans and specifications

after approval.-Cautions to the architect.-

Changes made necessary by mistakes of the

architect, as distinguished from those due to

directions by owner.-Payment for extra serv-

ices and expenses due to changes by client.—

Payment for such changes as distinguished

from additional basic fee received on added

cost.-Insistence of client on changes artis-

tically or structurally wrong.-Action to be

taken by architect under such conditions.-

Danger of agreement by architect to changes

affecting safety of structure.-Liability for

injury to the public.-Right to special com-

pensation for work of special character, such

as cabinet work.-Importance of office organ-

ization in avoiding misunderstandings and

placing work on a definite and business basis.

80

CHAPTER

VII.

THE TITLE TO THE PLANS

General misconception of architect's rights
in the plans. In absence of agreement, plans
belong to the client.-Architect should be pro-
tected by contract provision.-Rights of third
parties in the plans.-Protection of the plans
by patent or copyright.-Design patents.

VIII. SUPERVISION

IX.

Similarity of architectural and legal pro-
fessions. Responsibility of architect for rea-
sonable skill and diligence.-Distinction be-
tween supervision and superintendence.-Em-
ployment of a "clerk of the works."-What
constitutes supervision.-Architect's right to
delegate authority.-Supervision and other
services may be rendered by clerks.-Final re-
sponsibility and general direction must rest
upon the architect.-Danger of authorizing
changes without proper authority.-The issu-
ance of certificates.-Necessity for care and
proper checking.-Advisability of securing
statement of quantities and unit prices on com-
ponent parts of work.-Submission by con-
tractor of monthly statements of quantities
and prices.-Investigation of current market
prices by architect.-Responsibility of architect
for negligence in checking requisitions or issu-
ing certificates.-Neglect in over-certification.
-Neglect in passing estimates or requisitions
carrying improper distribution of profits.-
Issuance of certificates as condition precedent
to recovery by contractor.-Failure to issue
will not necessarily defeat recovery.-Danger
of owner giving instructions to contractor
direct.-Effect on rights and liability of archi-
tect. Quasi-judicial status of architect.-His
duties and rights as arbitrator.-He must have
no concealed interest in contract.-Good faith
requisite.

COMPETITIONS

Increase in competitions in recent years.-
Dangers of competitive work.-Lack of definite

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101

105

131

CHAPTER

X.

XI.

XII.

contracts.-Ambiguity and uncertainty of pub-

lished terms as basis of contract.-Danger of

terms leaving fee to be determined later.-

Competitions for public work.-Contracts with

federal, state or municipal governments.-

Cautions to be observed in this connection.

PAGE

135

Corporation managed by its board of di-

rectors.-Necessity of approval by board of

directors of acts of officers.-Contract executed

by officer without authority of directors not

binding upon the corporation.-Formalities

necessary to insure proper execution of con-

tract and protection of architect.-Techni-
cality of governmental contracts.-Services for
corporations not yet actually in existence.-
Distinction between selection of competitive
design, for use if building is erected, and defi-
nite agreement to pay for design whether the
work be proceeded with or not.

THE LIEN OF THE ARCHITECT

Importance of lien protection.-The devel-

opment of the Lien Law.-Effectiveness of
architect's lien in forcing payment of fees.-
Right to lien for work done for tenant of office
building.-Necessity of approval of work by
owner. What approval is required.-Impor-
tance of having approval definite.-Care neces-
sary where title to property is in the name of
some one other than the client.-Lien Law
purely statutory.-Lien legislation in the dif-
ferent states.-Legal requirements must be
strictly complied with.-Necessary to consider
laws of state where lien is to be filed.-Legal
advice should be secured.

Registration statutes a recent development.

-Merits of registration legislation.-Right of

architect registered in one state to prepare

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150