ARE 5.0 Handbook PjM Section 4 Sample Item 10



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    Nick NCARB

    Hey Lance,

    This is a great question, and hopefully I can provide some clarity.

    You are correct, the architect doesn't have control over the market, however, if you read 6.7 in the contract it mentions that the architect isn't responsible for market conditions the architect couldn't reasonably anticipate

    As an example, look at the question in the Handbook. Imagine that the architect is completing this initial budget review for a five-home subdivision knowing that the owners sq. ft. budget for the homes is substantially lower than comparable past projects the architect had recently completed. The architect could choose to ignore the fact that you can't build a home for the budgeted cost based on the current conditions of the market, however, making this decision could come back to hurt them following bidding and negotiating. Per the contract, the architect would need to revise the drawings free of compensation.

    In short, yes, the architect can't control market conditions but ignoring them completely could financially impact them later in the project. 


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    Lance Smith

    Hey Nick, thanks very much for the informative and helpful response- makes sense!

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