Practice Management Practice Management Practice Structure There are

Practice Management

Practice Management Practice Structure There are no formal restrictions under the Act to the structure under which architects carry on their practices. Architects are permitted to practice as: 1) Sole Traders 2) Partnerships 3) Limited Companies 4) Unlimited Companies This is provided that the business is under the control and management of a registered Architect.

Practice Management Sole Trader A sole trader business structure is a person trading as the individual legally responsible for all aspects of the business. Partnerships A partnership is a form of contract. It is prudent to create a formal, written agreement which is executed under seal or written articles of partnership. It can include more than two registered architectural professionals.

Practice Management Limited Companies A limited company is its own legal identity, so as a shareholder your liability is limited. As a separate legal entity a company can own and alienate property, sue and be sued, and enter into contracts in its own right. It is owned by its shareholders and governed by its Directors often through its management. In cases of fraud, all the above can be personally held liable.

Practice Management Unlimited Companies A unlimited company is also its own legal identity, but as a shareholder your liability is unlimited. As a separate legal entity a company can own and alienate property, sue and be sued, and enter into contracts in its own right. It is owned by its shareholders and governed by its Directors often through its management. However, its shareholders and directors are personally liable for all its debts and obligations.

Practice Management Formation of Companies Establishment of its activities through a Memorandum of Association. Articles of Association describe in detail how the company’s activities will be carried out. A statement of initial nominal capital. Establishment of the Company Directors Location of the registered office Registration with the Registrar of Companies

Practice Management Employee An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties. Employers are obliged under a general duty of care to protect employees in the course of their employment. Employment Contract – Governed by the Employment Act of Botswana 1982. Defines Duties/Responsibilities; Remuneration; Leave Days; Hours of Work; Termination; Employer’s Responsibilities; Benefits. Insurance – Company Assets; Workman’s Compensation; Professional Indemnity;

Practice Management Practice Administration Cost of Service Delivery Cost of Premises Cost of Staff Cost of Equipment & Licences Cost of Utilities, Security, Communications Cost of Insurance Cost of Tax, Accounting & Legal

Practice Management Practice Administration Financial Administration Tax Pension and Saving Budgeting for no income

Practice Management Client/Architect Agreement The Client appoints the Architectural Professional to provide architectural services for a project in terms of the Consultancy Services Agreement (The Agreement) between the parties. Standard agreements developed or sanctioned by the Council shall, where available, be used for this purpose. The Architectural Professional accepts the appointment to exercise reasonable professional skill, care and diligence in the performance of the duties, for a fee, as defined in the written Agreement and in which the rights and obligations of the parties to one another, the terms and conditions of service and fee basis are clearly recorded.

Practice Management Client Architect Agreement In the Agreement the following shall be adequately provided for; (a) Particulars of the project and its scope; (b) The services to be rendered including the frequency of site inspections and meetings held on site to ascertain the progress of the works and conformity with technical and/or construction documentation; (c) Aspects of the Framework that, by necessity and mutual agreement, have been varied or omitted; (d) Obligations and rights of the parties upon change to the scope of the works.

Practice Management Client Architect Agreement (e) Agreement of the parties to fix the Fee, if applicable, (f) Negotiated fees in respect of Additional Services, (g) Architectural Professional’s firm, practice, partnership or body corporate, (h) Authority of the Principal Agent (The Agent), (i) The share or ownership of intellectual property or copyright, (j) Limits to the responsibilities and authority of the parties

Practice Management Client Architect Agreement (l) Maximum period of liability from the date of practical completion of the Works excluding common law liability, of the Architectural Professional for patent or latent defects, which period shall not exceed five (5) years; (m) Indemnification of the parties and limit of cover of professional indemnity insurance, if above the minimum set by the Council from time to time; (n) Submission and due date of payment of invoices; (o) Circumstances and conditions under which payment of fees or reimbursable expenses may be withheld or the provision of architectural services suspended;

Practice Management Client Architect Agreement (p) Interest on overdue invoices, (q) Disputed invoices, suspension or deferment; (r) Termination of the Agreement; (s) Action and responsibilities in terms of security and upon damage to or destruction of the Works; (t) Rights and obligations of the parties in the event of Force Majeure (Acts of God) (u) Dispute resolution process.

Practice Management Client Architect Agreement (4) The Architectural Professional is, in terms of the Framework, authorized to act for the Client when providing an architectural service. For the construction stage of the project, standard forms of contracts as sanctioned by the Council are to be employed. For this stage, the relationship between the Client, Building Contractor and Architectural Professional as Principal Consultant and/or Principal agent is to be defined in the Building Contract.

Practice Management Client Architect Agreement The Tariff of Fees is deemed to provide a fair and reasonable remuneration to the Architectural Professional in order to render an appropriate quality of service. Deviation from the Tariff of Fees Table for a Cost Based Fee and the Framework is permitted only for projects commissioned on the basis of a fee bid in accordance with the Public Procurement and Asset Disposal Act or in accordance with the formal invitation to tender issued by the Client.

Practice Management Client Architect Agreement The Framework sets-out rules for the architectural professional, forms part of the Agreement between the parties and provides for matters not explicitly stated or prescribed in the Framework or varied by mutual agreement of the parties. In the event of any discrepancy between the Agreement and the Framework, the Agreement shall take precedence.

Practice Management Roles of Consultants Roles of Other Project Consultants Role of Civil and Structural Engineer Role Electrical and Mechanical Engineer Role of Quantity Surveyor Role of Interior Designers & Landscape Architects Role of Project Manager

Practice Management Role of Civil and Structural Engineer The role of the structural engineer is a key component in the construction process. Part of the wider discipline of civil engineering, structural engineering is concerned with the design and physical integrity of buildings and other large structures. Design Stage Documentation Construction

Practice Management Role Electrical and Mechanical Engineer The specific projects that electrical and mechanical engineers may be involved in vary from industry to industry. In building and construction projects electrical and mechanical engineers will typically be involved with the design, installation, and maintenance of ventilation, heating, and lighting systems, lifts and escalators.

Practice Management Role of Quantity Surveyor A quantity surveyor manages all costs relating to building and civil engineering projects, from the initial calculations to the final figures. They seek to minimise the costs of a project and enhance value for money, while still achieving the required standards and quality.

Practice Management Role of Interior Designers & Landscape Architects Interior designers work closely with architects, structural engineers, mechanical engineers, and builders to determine how interior spaces will function, look, and be furnished. Landscape architects design attractive and functional exterior spaces such as public parks, gardens, playgrounds, residential areas, college campuses, and public spaces. They also plan the locations of roads, walkways, flowers, shrubs, and trees within these environments.

Practice Management Role of Project Manager A project manager is a person who has the overall responsibility for the successful initiation, planning, design, execution, monitoring, controlling and closure of a project. . The project manager should make sure they control risk and minimise uncertainty.

Practice Management Role of Clerk of Works A Clerk of Works is appointed by the Client to inspect the works during construction. He or She is not the Architect’s agent and should not give instructions as it will be a source of disputes if he or she purports to do so.