CHAPTER

nominee.-Necessity that all inheritance
taxes chargeable against property have
been paid. Conveyance of personal prop-
erty and household articles by bill of sale.
-Advisibility of securing old deeds and
title papers.--Investigation with respect
to electric light poles, pipe lines and the
like. Importance of securing revocable.
licenses with respect to same.

VII. THE SELECTION OF THE ARCHITECT

Undertaking to build without services of

architect ordinarily inadvisable.-Impor-

tance of supervision in addition to prepara-

tion of plans.-The home should be ar-

tistic as well as utilitarian.-The effect

on capital and resale values of proper ar-

chitecture.-Economy in use of space

available.-Classification of architects and

the choice of the one best qualified for

the particular work proposed.-Architect

selected should have appreciation of busi-

ness elements involved in his services and

practical good sense.-Combination of ar-

tistic and business ability the ideal to be

sought.

VIII. CONTRACT WITH THE ARCHITECT

Importance of written contract.-Charges

of architect in absence of contract.-Clas-

sification of architect's services.-The pre-

liminary studies.-Working drawings and

detailed drawings.-The supervision of the

work.-Importance of written contract es-

pecially under modern building and trade

conditions.-Written contract a protec-

tion to architect and owner alike.-Archi-

tect's fee usually a percentage of building

cost. The Schedule of Minimum Charges

of the American Institute of Architects.

-Recovery by architect of "reasonable

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value" of work done in absence of agree-

ment.-"Basic rate" of architect's charges

and his additional compensation for addi-

tional studies, plans and services.—Addi-

tional compensation for letting of work un-

der separate contracts.-Employment of

consulting architects and landscape archi-

tects.-Desirability of concentrating autho-

rity in one architect so far as possible.-

Important that duties of architect and land-

scape architect be defined by contract.-

Employment of interior decorators.-Con-

fusion between their duties and those of

architect must be avoided.-Fee of architect

on cost of furnishings purchased under his

direction.-Commission allowed to archi-

tect by dealer on purchase of furnishings

and allowance of same by architect to

owner. The Standard Form of Agree-

ment, between Architect and Owner, of

the American Institute of Architects.-Its

terms discussed.-Services of "Clerk of the

Works" as distinguished from ordinary

architectural supervision.-Provisions of

Standard Contract with respect to addi-

tional compensation of architect.-Specific

agreement between architect and client

will take precedence of all professional

custom.-Importance to owner of avoiding

changes and making first directions to ar-

chitect as complete as possible.-Employ-

ment of architect under contract calling

for the payment of cost plus a fixed fee.-

Advantages and disadvantages of this plan.

-Right of owner to suspend or abandon

the building operation and terminate the

employment of the architect.-Rights of

the architect in such events.-Contract

should provide for such contingency.-Its

terms in this connection discussed.-Death

of architect, employed as an individual,

terminates employment.-Death of a mem-

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ber of a firm should not terminate em-

ployment if firm was employed as such.-

Effect of death of architect on contract be-

tween owner and builder.-Contract provi-

sions with respect to owner's right to des-

ignate new architect.-The title to the

plans as between architect and owner.-In

absence of agreement, title is in the owner

upon his making payment for them.-Un-

der usual professional custom and con-

tracts title remains in the architect.-Use

of plans after discharge of architect or sus-

pension of work.-The rights of the archi-

tect in this connection.-Representations

by the architect with respect to cost.

Statements by architect as to cost should

ordinarily be taken as estimates and not

as guarantees.-Contract provisions with

respect to consideration of plans by owner

and with respect to surveys.-Meaning of

"total cost" of the work.-The supervision

of the job.-The architect's supervisory

duties. What "supervision" means.-Del-

egation of authority by the architect. The

employment of a "clerk of the works."-

Owner should not deal with builder direct

and in conflict with authority and direc-

tions of architect.-Contract provisions

with respect to arbitration-their advan-

tages and disadvantages.

IX. THE CONSTRUCTION CONTRACT AND

BUILDING OPERATION

Importance of contract between owner and

builder.-Bid does not become a contract

until accepted.-Lump sum and cost plus

contracts.-The lump sum contract ordina-

rily more advantageous to the owner.-

The cost plus contract with upset price.—

The Standard forms of building contracts

of the American Institute of Architects.-

Owner should have contract passed upon

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owner

by his attorney.-Drawings and specifica-

tions should "co-operate."-Importance to

owner of provisions with respect to "ex-

tras."-Liability of owner for extras

should be limited to those authorized and

approved by him and by architect in writ-

ing.-Owner should not authorize changes

direct.-Importance of strengthening ar-

chitect's authority as arbitrator and di-

recting head of the work.—Provisions with

respect to emergency action.-Mechanic's

liens.-Contract provisions for the protec-

tion of the owner with respect thereto.-

Retention of percentage of contract price

until completion.-Contractor should hold

harmless from liens.-Architect

should check work done, before issuing

certificates.-Effect of architect's certifi-

cate on owner's rights and liabilities.-

The mechanic lien rights of the architect.

-The "stop notice."-Mechanic's liens as

affected by the recording of the contract.

-Nature of lien rights of the sub-

contractor.-Importance of provision that

contractor shall submit schedules giving

values of the component parts of the work.

-Fire and liability insurance during the

progress of the work.-Contract provisions

with respect thereto. The provisions of

the "Standard Form" of contract with

respect to insurance, discussed.-Con-

tractor should agree to protect owner

against claims for damages caused to ad-

joining properties.-Payments to con-

tractor should be made only on certificate

of architect.-Liability of contractor for

defective work.-Provisions of construc-

tion contracts on this point.-Right of

owner to demand that contractor make

good defects.-The period of contract

guarantee with respect to defective work

and materials.-The doctrine of latent de-

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CHAPTER

fects. Contract provisions will control.-

Importance of final examination of com-

pleted building by owner and architect.—

Contractor should agree to observe all laws

and municipal regulations.-Time is of the

"essence of the contract."-Contract provi-

sions for "liquidated damages."—"Liqui-

dated damages" and "Penalties" distin-

guished. Importance to owner of proper

liquidated damage clause.-Contract provi-

sions with respect to the removal of refuse

and materials by contractor on completion

of work.-Methods of financing the build-

ing operation.-Payment for the work in

cash.-Purchase money mortgage. The

building loan mortgage.-The building and

loan association mortgage.-Building and

loan associations discussed.-Their history,

character and advantages.-The securing

of mortgage funds from individuals and

corporations.-Loans by trust companies

and national banks.

X. CONCLUSION

PAGE

Summary and general cautions and sugges-

tions.

FORMS.

195