Key points
- The new Regulations require client agreements to contain the information set out in the Code of Conduct.
- Victorian architects should take steps to review their client agreements and risk management procedures to check compliance with the new framework.
- Architects should have a clear complaint-handling procedure in place considering the new obligation that requires architects to inform their clients of the process to make a complaint to the Board.
The new Architects Regulations 2026 (“Regulations”) commenced in Victoria on 25 April 2026, replacing the 2015 regulations. The reforms provide an opportunity for Victorian architects to review their internal systems and risk management procedures to confirm they meet the requirements set out in the new Regulations.
Some of the key changes are summarised below however the focus of this article is the framework now in place regarding client agreements and the implications for professional indemnity insurance.
What’s new?
- Renewal: both practising and non-practising architects, companies and partnerships, must renew their registration by 30 June each year. Architects must provide proof of their professional indemnity insurance (“PI”) when submitting their request for renewal. Although this does not appear in the Regulations, we understand that ARBV is now requiring that PI have an expiry date between 1 October and 30 June – meaning that PI that expires in the three months immediately following the 30 June registration date will not be accepted for registration.
- CPD Requirements: each formal learning CPD activity must now be linked to two performance criteria (formerly one was sufficient). Listed in Schedule 3 of the regulations, the performance criteria are very closely based on the AACA National Standard of Competency for Architects, which have governed CPD mapping since 2021, but with some minor changes in wording.
- Complaint Handling Procedures: architects must have a clear complaint-handling process in place and provide information about how a client can make a complaint to the the Architects Registration Board of Victoria (“Board”) regarding the professional conduct or fitness to practice of an architect.
- Code of Professional Conduct: some other changes include strengthening the requirement to act honestly and with integrity when dealing with all parties involved in a project, obligations to keep your client informed, the proper supervision of staff as well as giving due consideration to the natural environment and conservation of cultural heritage, including Aboriginal heritage.
Requirements for client agreements
Schedule 1 of the Regulations sets out the new Victorian Architects Code of Professional Conduct (“Code”). The previous version of the Code (“2015 Code”) already set out a list of matters that must be covered in every client agreement. The notable changes and inclusions in the new Code regarding client agreements are as follows:
- An architect is not permitted to provide services or collect any fee unless they have a written and signed agreement with the client.
- The agreement must be provided to the client at least 7 business days prior to requesting signature by the client.
- The agreement is prohibited from including terms which apply retrospectively to services provided prior to the agreement being signed.
- The 2015 Code already called for information about how the architect’s fees and costs will be calculated and paid, as well as disbursements. The changes add that method of calculation must be “clear and unambiguous”, and the client agreement must also cover the circumstances which may cause the architect’s fees or costs to escalate.
- Clear terms must be included about who owns the copyright in any intellectual property as well as the terms and limits of any licences provided by the architect to the client.
- Architects must provide a copy of the “Working with an Architect Checklist” for class 1 and 10 projects which is available on the Board’s website.
- Architects must provide the details of their current professional indemnity insurance policy to prove they have adequate coverage for the work covered by the agreement. The Code does not clarify exactly which details need to be provided.
The equivalent provisions that govern mandatory inclusions in client agreements in NSW only apply “if the agreement is prepared by or on behalf of the architect”. The Victorian Code contains no such restriction so, although we would speculate that class 1 projects are more likely to come under ARBV’s scrutiny, technically the Code requirements appear to apply to contracts with commercial or government clients as well.
Risk Management considerations
Many claims against architects arise from issues other than non-compliant or defective designs. Inadequately detailed scopes of services, vague variations and undocumented approvals and instructions, coupled with a lack of regular updates often contribute to client dissatisfaction and resulting claims to the Board or your insurer. Another common factor contributing to Board complains is disputes about architects’ fees on class 1 projects.
Architects can take steps to limit any claims by:
- 1. Carefully reviewing their client agreements to check compliance with the new Regulations and Code. Architects should consider reviewing their agreement terms as well as their scope of services and fee structure.
- 2. Revise their internal processes so there is a clear complaint management process in place as well as taking steps to ensure that their contract administration procedures for issuing variations (particularly if they cause a cost escalation) comply with the new Regulations.
- 3. Maintaining comprehensive records of not only client instructions and approvals but also details of their own design processes which now include giving due consideration to the natural environment and culture heritage when designing a project.
- 4. Providing regular updates to clients and others involved in a project, particularly in terms of changes to fees and program dates with a view to minimising potential disputes and formal complaints.
- 5. Make the client agreement as clear as possible regarding calculation of fees, invest time in explaining this (especially to class 1 clients), and reconsider whether a fee structure that is based on construction cost, and that therefore magnifies the detriment for clients when project costs increase, is the best approach.
It’s time to review
For the most part, the new Regulations reiterate requirements already in place in architectural practice. However, the introduction of the strengthened Code around client agreements requires careful consideration and review by architects to ensure their current agreement does not fall short of meeting the new requirements. Architects should take this opportunity to conduct a review of their documents and processes and seek legal and professional advice where required.
The ARBV website provides more information about the Code https://www.arbv.vic.gov.au/victorian-architects-code-professional-conduct
Filomena Maffi
Risk Manager
This article is only general advice in respect of risk management. It is not tailored to your individual needs or those of your business, nor is it intended to be relied upon as legal or insurance advice. For such assistance you should approach your legal and/or insurance advisors.
