You should be aware of several do’s and don’ts for managing your money for your project.

Before you draw up the written agreement, do settle on the total amount of money (including contingency funds) you are willing to pay for the design and construction of your project, the number of payments you will make to your architect, and the amounts and schedule for these payments. Do make sure this fee schedule is recorded accurately in the written agreement, and that you make each payment to the architect on time. If you have obtained a loan for your project, do ensure that it covers both the cost of your architect's services and the construction cost.

Don't pay an excessive retainer fee before work has begun on your project. Don't make the final payment until the project is complete in accordance with your agreement and you are satisfied with the services your architect has provided you. Careful planning and discussion with your architect, as well as accurate record keeping, should prevent you and your architect from having a fee dispute.

If you intend to use a contractor, it is important for you to ensure that the construction documents (building plans and specifications) you receive from the architect are complete enough for you to obtain bids from one or more contractor(s), as well as complete enough for the contractor to construct your project. Do not assume that the plans your architect gives you are sufficient for the building contractor simply because you were able to obtain a building permit. Discuss the plans with your architect and your contractor to ensure that they are suitable for bidding and construction purposes.

Some architects offer construction administration of a construction contract. This service includes the interpretation of the drawings and specifications, the establishment of standards of acceptable workmanship and the periodic observation of construction to determine its consistency with the general intent of the construction documents.

Make sure that all necessary inspections have taken place and a certificate of occupancy has been issued for the completed project.

The NMBEA recommends that you have a written agreement for design services with the architect. Many architects prepare their own agreements or have them prepared by an attorney. The American Institute of Architects (AIA) publishes and distributes a "Standard Form of Agreement Between the Owner and the Architect" and an "Agreement Form Between the Owner and Contractor for Construction services," as well as many agreement forms for special types of projects.The AIA forms may be modified to suit the needs of the parties. Consult the link section for a list of AIA NM chapters.

The agreement for design services is a legal document that binds you and the architect to certain obligations for the life of the project and, in some cases, beyond project completion. It should include the specific services you and your architect have agreed upon and the conditions under which these services are to be rendered. Otherwise, issues could arise that may be both expensive and time-consuming to resolve. Review the agreement carefully; you have the right to question and change the terms of the agreement before signing it.

Because it is a binding legal document, you may wish to have your legal counsel review the agreement before you sign it. You, the owner, should insist on retaining an original copy of the signed agreement. It is both your responsibility and the architect's to understand and follow the agreement. You should not make agreements with other parties regarding your project without first notifying the architect with whom you have the primary agreement.

The following are standard items usually found in contracts for design services:

1. A description of services to be provided by the architect to the client.


2. A description of any basis of compensation applicable to the contract and method of payment agreed upon by both parties.


3. The name, address, and license number of the architect and the name and address of the client.


4. A description of the procedure that the architect and the client will use to accommodate additional services.


5. A description of the procedure to be used by either party to terminate the contract.

The following are additional items often included in contracts for design services:

• the title and address of the project;


• at what phases of the architect's work your approval must be given before he or she proceeds to the next phase;


• the time frame in which the design work must be completed;


• the construction budget and what items it includes;


• an itemized listing of the architect’s basic services;


• the maximum fee for these basic services;


• a clarification of who pays the consultant fees if consultants are required, and the disciplines of these consultants (i.e., engineering, geotechnic, landscape, etc.);


• a clarification of the reimbursable costs that are not included in the basic fee;


• a clarification of what services constitute additional costs;


• a clarification of whose approval is required before these additional costs are incurred;


• date of anticipated start of construction;


• a recognition of cost escalation or contingencies for delay of construction or changes in work during construction;


• a schedule of when and in what amounts payments are due;


• whether construction observation services are included;


• the amount of the retainer fee and how/when/where it will be applied;


• how final payment is computed if the agreement is terminated;


• a procedure for handling disputes between the parties should the need arise (for example, arbitration or mediation);


• a clarification of who owns the project documents; and


• a clarification of who is responsible for keeping project account records and when they may be reviewed.

The written agreement is not the only document you should keep. You should also keep a written record of all verbal communication with your architect that relates to the project. Do not assume your architect will interpret everything you discuss with him or her the same way you do. When you have a meeting or discussion with the architect about your project, write the architect a memo confirming your understanding of that meeting or discussion. These memos can help to prevent misunderstandings from occurring and may prove invaluable should a problem or dispute occur. Include the date and time of your conversation in the memo, as well as the date you write it.

You may also want to write memos or notes to yourself about the progress of the project. Photographs taken at regular intervals (with notes as to the dates that the photos are taken) can be very useful in establishing a historical record of the project. Carefully evaluate each phase of the work. Make sure your architect knows your written approval is necessary before proceeding to the next phase of work. Ask the architect for detailed invoices. Keep records of the date and amount of each payment you make. Require the architect to obtain your written approval before additional costs are incurred.

Make sure that you receive a copy of all documents you sign, and keep a copy of all documents you give to your architect.