Understanding the Role of Broker Contract Carrier Agreements in Architecture

As anyone in the construction and design field can attest to, there’s more to delivery of a building project than planning and physical construction. From managing the interest of clients – to coordinating with public infrastructure and bystanders, design professionals must be aware of how all facets of the building process fit together as a single cohesive unit. And for architects, integrating these various elements seamlessly can be the difference between a dream project realized and a dream project delayed.

A recent study into the use of couriers on architectural projects published on Michael Fitzpatrick Architects has highlighted how comprehensive broker contract carrier agreements can affect the timeframe of project goals, and how they can influence various external and internal factors that may put the construction process at risk. Knowledge of the way that brokers operate is crucial to ensuring a project runs smoothly from logistics to time and costs. Understanding how to best plan for these variables can help professionals in the design industry build highly functioning and successful projects.

As discussed on Michael Fitzpatrick Architects, these are an essential part of the architecture industry. This legally binding contract puts the service provider (the Broker) and the company requiring courier services (the Client) into a legal business relationship. This agreement will clearly define the terms of this relationship, including compensation, obligations, and penalties for failure to deliver or complete a job properly.

In short, broker contract carrier agreements help define and structure the business relationship between outside services and architecture projects. It gives clearly defined measures for success, as well as guides the responsibilities of the harbouring party. This directly influences the strategies architects can use to minimize risk, delay, and other external factors which can result in a project cost-overrun or stalled timeline.

The influence of corporations is written throughout the design field – whether it’s in their choice of building materials (with regard to sustainability) or how they decide to cut costs for a project. In the case of brokers, knowing the Company’s incentives can further serve as a guide when attempting to minimize risk, maximize the potential of quality products and services. For example, if a broker specializes in overnight or day delivery, ensuring clients are well aware that scheduling delivery at a time that conflicts with the courier’s schedule could result in delays, giving them an incentive to ensure complete transparency with their timelines.

Due to the financial pressures of deadlines imposed on by architect’s clients, having full awareness of where those deadlines come from can help identify an avenue to minimize these pressures. While many clients prioritize the most cost-effective option for a part of the building project, knowing how brokers operate – down to when and where they charge for overtime or missed deliveries – can help structure the construction process in a way that attempts to offset these costs.

To reiterate the previous example: if a courier requires 24 hours in advance notice to schedule a pickup (or they charge additional fees), not informing your client of this scheduling could be a costly mistake. In contrast, if brokers charge significantly higher fees for weekends, ensuring your schedule correlates with their labour calendar could save your build time and money. In either circumstance, knowledge of brokers incentives can help put your expertise as an architect to good use.

As with all corporate contracts, using clear and concise language will promote better coverage and understanding of the responsibilities and limitations of each party to the agreement. This is especially important when scheduling certain parts of the construction process, which pertain to architects. For example, if coordination is required with other moving parts of the construction (such as contractors, the City, or other architects), this must be clearly defined in the contract.

For clients, having clear definitions of what is expected of brokers is useful for setting reasonable expectations. However, if a client does not have knowledge of how brokers work, they may have unreasonable expectations that could result in conflict. Further, if these expectations are not explicitly stated within the contract, they cannot be used as leverage (or reference for penalties).

While not every area of architecture is dependent on brokers, their incorporation into business contracts plays an increasingly significant role in the development of a project. This includes how they are managed and implemented into the logistics of the project.

With the benefits of having clear expectations during the logistics and planning stages taken into account, integration of brokers into architecture contracts can also provide greater clarity when needing to educate clients. In the strenuous process of planning and delivery, how do you explain to a client that the reason for delays is that brokers do not operate on Sunday?

Having all details related to the courier’s strategies in writing and accessible to architects, clients can more readily understand why delays occur, or why costs presented are the amount they are, among other factors. This allows projects to maintain their timelines while educating clients on external aspects of their projects they otherwise wouldn’t even be aware of. In short: brokers help architects maintain a working relationship with their client-owned and corporation-managed projects.

When dealing with other professionals involved with architecture projects, all parties have to compromise in order to create a coherent building site, and work towards a single goal. Just like anything else, this does not stop once the architect goes to contract negotiations – but instead carries onto the construction site.

Thanks to the many assessments into how brokers affect the modern architecture industry, education into brokers has been streamlined, so architects can easily apply knowledge of brokers to their contracts, and further provide greater quality of service to builders.