Construction costs, material price escalations, supply chains and labour market conditions are impacting the architectural community, prompting RAIC_IRAC to issue a cautionary note warning members to be vigilant when it comes to dealing with clients.
The special advisory notice and recommendation, titled Extraordinary Market Conditions or other Factors not Reasonably Foreseeable, advised members to exercise caution with respect to contract definitions, terms, conditions and clauses related to construction budgets, costs and estimates.
“That’s the best advice that we can give them and to look carefully at the terms and conditions of the contract. We have heard from some members that their clients are refusing to acknowledge the term extraordinary market conditions etc. That’s going to lead to legal disputes.
“Architectural firms are struggling to find replacements now for workers that are retiring and they are struggling to find interns,” MacNeil said. “With a larger population in their 50s and 60s that population had to compete for jobs and wages, so effectively, by their volume, they drove down their wages.
In terms of contracts, when using or executing the RAIC Document Six Canadian Standard Form of Contract for Architectural Services the RAIC is strongly recommending that close attention is paid to A19, GC 4.4, GC 4.5 and GC 4.
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