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Question 1:
Name the seven conditions for a contract to be legal and binding.
7 marks
Question 2:
8 marks
Dispute resolution. Most building disputes relate to variations in time or money. One option for resolution of a dispute is to pursue the matter through the courts, which is an expensive process, and is non-consensual. That is, one party doesnt want to be there. Alternate means of dispute resolution are: negotiation, conciliation, mediation, arbitration and expert determination. Describe the process of mediation where a dispute has occurred between the owner and contractor which cannot be resolved through negotiation. List the people involved and briefly describe the process and the role of the mediator. Who makes the decision? mediation could be used for example where the contractor is seeking an account for extras that were verbally agreed to by the owner but not formally accepted in writing, the owner does not dispute that the work was completed or agreed to, just to the extent of the work they agreed to be completed. the contractor is seeking $5000 but is willing to accept $2000 to cover materials. the owner thinks he should only pay for what he agreed to in the amount of $1000 but is willing to go up to $3000. there is a window of opportunity and the mediator may act as an independant neutral third party in order to resolve the disagreement. the meditor may employ several methods to settle the dispute but his main role is to open up a dialogue between the parties and somewhat chair the meeting. the mediator themselves do not give judgement yet in there chairing the meeting they may expose flaws or legalalites that prove one party may have a stronger case than the other. the parties may come to a resolution themselves, yet if they cant then they may elect to have their case heard by the courts and a judgement served mind you at a lot more time and cost than a mediation .
Question 3:
20 marks
Under our legal system there is a duty of care that architects are required to take. This relates to standards of skill normally expected from a professional. List three types of duty of care that an architect has and illustrate each with an example from the development industry. 1. In contract and in tort. In contract: ensure working drawings are correct, materials selected are fit for their intended use etc. In tort: ensuring building is safe, eg balconies, slippery surfaces.
2. To third parties. Safety of building owners guests or members of the public eg non slip surfaces in wet areas.
3. Negligent advice causing financial loss. Not to give misleading advice or advice outside area of competence. Negligent misstatement. Insurance advice. Valuations. Does not depend on a contract between parties a professional can be held liable even if advice was given free.
Question 4
5 marks
A relative asks your advice on the plans she intend to submit to Council. They have been prepared by Arktech design Inc. You check that Arktech is not on the Register of Architects. Is it legal for them to lodge plans with the council?
Question 5
10 Marks
A builder prepares his quote for a building contract and posts it to the architects office to arrive the following day. That night he realises that he has underquoted by $24,000 and the next day rings the architect to say that he will send the correct price by courier to arrive by the closing time. Which price should the architect present to the building owner? Briefly explain the reasons for your answer.