Instructions: B162™–2002, Abbreviated Standard Form of Agreement Between Client and Consultant for use where the Project is located outside the United States

Summary:

Instructions for B162™ – 2002, Abbreviated Standard Form of Agreement Between Client and Consultant for use where the Project is located outside the United States is an abbreviated version of B161™–2002. It assists U.S. architects in foreign projects, clarifying roles, responsibilities, and obligations, and providing a clear narrative of services to strengthen contractual relationships.

Synopsis. 

AIA Document B162–2002 is an abbreviated version of B161™–2002, Standard Form of Agreement between Client and Consultant. The document is designed to assist U.S. architects involved in projects based in foreign countries where the U.S. architect is hired on a consulting basis for design services and a local architect will be retained. The document is intended to clarify the assumptions, roles, responsibilities, and obligations of the parties; to provide a clear, narrative description of services; and to facilitate, strengthen, and maintain the working and contractual relationship between the parties. Because of foreign practices, the term “owner” has been replaced with “client” throughout the document. Also, since it is assumed that the U.S. architect is not licensed to practice architecture in the foreign country where the project is located, the term “consultant” is used throughout the document to refer to the U.S. architect. For all document details and a record of changes, see the summary »

 

Using B162–2002.

Cover Page.

Date. The date represents the date the Agreement becomes effective. It may be the date that an oral agreement was reached, the date the Agreement was originally submitted to the other party, the date authorizing action was taken or the date of actual execution of the document. Professional services should not be performed prior to the effective date of the Agreement.

Parties. Parties to this Agreement should be identified using the full legal names under which the Agreement will be executed.

Project. The proposed Project should be described in sufficient detail to identify (1) the official name or title of the facility; (2) the location of the site, if known; (3) the proposed building type and usage; and (4) the size, capacity or scope of the Project, if known.

Article 1 – Responsibilities of the Parties

The Client’s and Consultant’s responsibilities have been combined into this one article. A provision has been included concerning the parties’ relationship with each other and with others involved with the Project.

Article 2 – Description of Services

This Article describes services included in the Agreement and should contain provisions defining and describing design services that are included in the Agreement.

Article 4 – Payment

Payment is one of the most difficult issues in international work. It is recommended that a retainer equivalent to the Consultant’s projected fees for the first three to four months of the contract be established to cover the Consultant until the first payment has been received and to provide protection for payment of the final invoice. Further, a mechanism should be established for the transfer of funds. Currency fluctuation and exchange issues can be avoided by requesting that payments be made in United States dollars.

§ 4.2 The Consultant should obtain advice regarding the effect of foreign taxes and other monetary exchange and interest issues on the Consultant’s fees; the importation of the Consultant’s Instruments of Service into a foreign country; and the effect of overseas income on the Consultant’s local tax liability.

Article 5 – Instruments of Service

The Berne Convention Treaty in most, but not all, countries governs international copyright law.

Article 8 – Miscellaneous Provisions

Insert provisions, if any, on Additional Services, special compensation arrangements, the employment of other consultants, or choice of dispute resolution method or insurance.

 

Executing the agreement.

The persons executing AIA Document B162–2002 should indicate the capacity in which they are acting (i.e., president, secretary, partner, etc.) and the authority under which they are executing the Agreement. Where appropriate, a copy of the resolution authorizing the individual to act on behalf of the firm or entity should be attached.

 

Important.

Modifications. Particularly with respect to professional or contractor licensing laws, building codes, taxes, monetary and interest charges, arbitration, indemnification, format and font size, AIA Contract Documents may require modification to comply with state or local laws. Users are encouraged to consult an attorney before completing or modifying a document.

Reproductions. This document is a copyrighted work and may not be reproduced or excerpted from without the express written permission of the AIA. There is no implied permission to reproduce this document, nor does membership in The American Institute of Architects confer any further rights to reproduce this document. For more information, see the document footer and the AIA Contract Documents® Terms of Service.

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