ARCHITECT CONTRACTS FOR CONSTRUCTION & RENOVATION PROJECTS

(NOTE:  The word “Architect” used in this Section can also be read to include Engineers, Surveyors, Construction and Project Managers and Applied Science Technologists)

The Ministry has established specific insurance guidelines for these types of projects as set out in this Section of the manual.

In addition, the Ministry has developed specific contract clauses, which are to be used in all agreements with architects and other design consultants.

These wordings, for projects under Fifty Thousand Dollars ($50,000.00), and Fifty Thousand Dollars ($50,000.00) or greater, follow.

Your legal advisor and architects should be provided with copies of the clauses for all future projects.

CLIENT/ARCHITECT CONTRACTS FOR PROJECTS UNDER $50,000.00

Insurance

1.	All the insurance policies which the architect is required to obtain shall provide that the insurance shall not be cancelled, or materially changed in any way, without the Insurer giving at least thirty days (30)’ prior written notice to the client.

2.	All insurance which the architect is required to obtain in accordance with this agreement shall be with Insurers registered in and licensed to underwrite such insurance in the Province of British Columbia.  All such insurance shall be at no expense to the client.

3.	The architect may take out such additional insurance as he may consider necessary and desirable.  All such additional insurance shall be at no expense to the client.

4.	The architect, during the term of this agreement, shall provide, maintain and pay for the following insurance which shall be placed with such company or companies and in such form and amounts and with such deductibles as may be acceptable to the client:

a	Commercial General Liability Insurance protecting the client, the architect, his subconsultant(s) and their respective servant(s), agent(s), or employee(s) against damages arising from personal injury (including death) and claims for property damage which may arise out of the operations of the architect, his subconsultant(s) and their respective servant(s), agent(s), or employee(s) under this agreement.  Such insurance shall be for an adequate amount acceptable to the client and shall, in any event, be not less than One Million Dollars ($1,000,000.00) inclusive of any one occurrence, and shall include a standard form of cross-liability clause.

b	Such policy(s) of insurance as are required herein shall, without limitation, cover all liability arising out of completed operations, non-owned automobile liability, contingent employer’s liability and liability assumed by the architect in connection with and applicable to this agreement.

c	Automobile Liability Insurance on all licensed vehicles owned by or leased to the architect, protecting against damages arising from bodily injury (including death) and from claims for property damage arising out of their use in the operations of the architect, his subconsultant(s) and their respective servant(s), agent(s) or employee(s) under this agreement.  Such insurance shall be for an adequate amount acceptable to the client, and shall in any event not be less than One Million Dollars ($1,000,000.00) inclusive of any one claim.

d	Professional Errors and Omissions Liability Insurance protecting the Architect, his insurable Sub-Consultant(s) and their respective servant(s), agent(s) or employee(s) against any loss or damages arising out the professional services rendered by the Architect, his Sub-Consultant(s), and their respective servant(s), agent(s) or  employee(s) under this Agreement.  Such insurance shall be for an adequate amount acceptable to the Client, and shall in any event be not less than Two Hundred Fifty Thousand ($250,000.00) inclusive of any one claim.

The Architect shall ascertain that all Sub-Consultants employed by him carry insurance in the form and limits specified in (a), (b), (c) and (d) above.

5.	Evidence of insurance in such form as may be required shall be lodged with the client prior to the commencement of any of the architect’s services.

Indemnity

NEW SLIDING SCALE OF INSURANCE REQUIRMENTS
Architect Contracts

*** Structural, Mechanical, Electrical and Civil Sub Consultants
Insurance coverage to be based on the value of their scope of work

Note:  All other specialty consultants to carry a minimum of $250,000 Errors and Omissions Insurance despite the value of their scope of work.

Notwithstanding the provision of insurance coverage by the client, the architect/engineer hereby agrees to indemnify and save harmless the client, its successor(s), assign(s) and authorized representative(s) and each of them from and against losses, claims, damages, actions and causes of action (collectively referred to as “claims”) that the client may sustain, incur, suffer or be put to at any time either before or after the expiration or termination of this Agreement, that arise out of errors, omissions or negligent acts of the architect/engineer or their subconsultant(s), servant(s), agent(s) or employee(s) under this agreement, excepting always that this indemnity does not apply to the extent, if any, to which the claims are caused by errors, omissions or the negligent acts of the client, its other consultant(s), assign(s) and authorized representative(s) or any other person.

CLIENT/ARCHITECT CONTRACTS FOR PROJECTS $50,000.00 OR GREATER

Insurance

1.	All the insurance policies which the architect is required to obtain shall provide that the insurance shall not be cancelled, or materially changed in any way without the Insurer giving at least thirty days (30) prior written notice to the client.

2.	All insurance which the architect is required to obtain in accordance with this agreement shall be with Insurers registered in and licensed to underwrite such insurance in the Province of British Columbia.  All such insurance shall be at no expense to the client.

3.	The architect may take out such additional insurance as he may consider necessary and desirable.  All such additional insurance shall be at no expense to the client.

4.	The architect, during the term of this agreement, shall provide, maintain and pay for the following insurance which shall be placed with such company or companies and in such form and amounts and with such deductibles as may be acceptable to the client:

a	Automobile Liability Insurance on all licensed vehicles owned by or leased to the architect, protecting against damages arising from bodily injury (including death) and from claims for property damage arising out of their use in the operations of the architect, his subconsultant(s) and their respective servant(s), agent(s) or employee(s) under this agreement.  Such insurance shall be for an adequate amount acceptable to the client and shall in any event be not less than One Million Dollars ($1,000,000.00) inclusive of any one accident.

b	Professional Errors and Omissions Liability Insurance protecting the architect, his insurable Sub-Consultant(s) and their respective servant(s), agent(s), or employee(s) against any loss or damages arising out of the professional services rendered by the Architect, his Sub-Consultant(s), and their respective servant(s), agent(s) or employee(s) under this Agreement.  Such insurance shall be for an adequate amount acceptable to the Client, and shall in any event be not less than [INSERT FROM NEW SLIDING SCALE] inclusive of any one claim.

The architect shall ascertain that all Sub-Consultants employed by him carry insurance in the form and limits specified in (a) and (b) above.

5.	Evidence of insurance in such form as may be required shall be lodged with the client prior to the commencement of any of the architect’s services.

6.	The client will provide for its own benefit, as well as for the benefit of the architect and his subconsultants:

a	Commercial General Liability Insurance protecting the client, the architect, his subconsultant(s) and their respective servant(s), agent(s) or employee(s) against damages arising from personal injury (including death) and claims for property damage which may arise out of the operations of the architect, his subconsultant(s), and their respective servant(s), agent(s) or employee(s) under this agreement.  Such insurance shall be for an amount of Ten Million Dollars ($10,000,000.00) inclusive of any one occurrence, and shall include a standard form of cross-liability clause.  The client, the architect and his subconsultants shall observe and cause to be observed the terms, conditions and exclusions of such policy(s) and be responsible for any failure to do so.  Completed operations coverage will be maintained by the client for a period of not less than twenty-four (24) months after the performance of the work.

b	All Risks Coverage covering all property of every description to be used in the construction of the project including structures, equipment furnishing, temporary works, and all other property to be installed in or supplied to or purchased for the work while at the place of work or elsewhere in Canada or the continental United States of America or in storage or in transit within and between these places (excluding ocean marine transit) and until erection, testing and the work of any portion thereof is completed and finally accepted by the client.  The contractor, his subcontractors, the architect and his subconsultants shall observe and cause to be observed, the terms, conditions and exclusions of such policy(s) and be responsible for any failure to do so.  This insurance will not cover any tools or equipment owned or rented by the architect.

c	In the event of loss, the architect shall immediately notify the client with full details of the incident.  The architect shall act in the best interests of the client and any adjustment of the loss with Insurers and repairs shall be carried out subject to the instructions of the client.  The architect shall be entitled to such reasonable extension of time for completion of his services as the client may decide.

d	Certificates evidencing such insurance may be obtained upon request to the client.

e	Any liability of the architect under this agreement shall not be affected by the provisions of this article.

Indemnity

Notwithstanding the provision of insurance coverage by the client, the architect/engineer hereby agrees to indemnify and save harmless the client, its successor(s), assign(s) and authorized representative(s) and each of them from and against losses, claims, damages, actions and causes of action (collectively referred to as “claims”) that the client may sustain, incur, suffer or be put to at any time either before or after the expiration or termination of this Agreement, that arise out of errors, omissions or negligent acts of the architect/engineer or their subconsultant(s), servant(s), agent(s) or employee(s) under this agreement, excepting always that this indemnity does not apply to the extent, if any, to which the claims are caused by errors, omissions or the negligent acts of the client, its other consultant(s), assign(s) and authorized representative(s) or any other person.

NEW SLIDING SCALE OF INSURANCE REQUIRMENTS
Architect Contracts

Value of Construction	Coverage per Claim (Architects and Sub Consultants)	
	PE & O	
		
Under $250,000	$250,000***	
$250,000 - $2,500,000	$250,000***	
$2,500,000 - $7,500,000	$500,000***	
$7,500,000 - $15,000,000	$1,000,000***	
Over $15,000,000	$negotiated***	

*** Structural, Mechanical, Electrical and Civil Sub Consultants
Insurance coverage to be based on the value of their scope of work.

Note:  All other specialty consultants to carry a minimum of $250,000 Errors and Omissions Insurance despite the value of their scope of work.