On the facts, it was decided that the standard short form agreement had not been included in the contract. The architect had hired the engineering office on behalf of the client. Although the standard short form agreement was presented at different locations, the invoices were issued by the engineering office and were paid for by the client, it was found that in fact it was not part of the contract. Nor is there sufficient management, so the conditions can be considered applicable in the current circumstances. While the architect and engineer had worked together several times, the owner was not subject to the same arrangement. There was also the added complexity of the integrated architecture office in this period. There is, however, another important point. The abbreviated form agreement, which is used regularly, contains a limitation of liability clauses. For example, liability may be limited to 5 times the tax, with a maximum limit of $500,000.
Liability may be limited to claims filed within 6 years. Loss of profits, indirect and consequential damages are excluded. Proportionate liability clauses to limit the damages to be paid, although others are also liable. As a general rule, professional liability insurance is only required for the amount of the liability limit. Clients should ensure that they take this into account from the outset against the risk profile for their project, procurement plan and other business needs. These terms can be negotiated with the consulting team to ensure that they are correct for the project. While the lessons learned here are not new, they are worth repeating. The safest and safest route is always a contract signed with all conditions.