ACA WA feedback on proposed changes
The Department of Building and Energy has sought feedback on proposed amendments to the Architects Regulations 2005 that would introduce new requirements for corporation licensing. The ACA has reviewed the legislation and provided detailed feedback.
Currently, the Architects Board of Western Australia faces challenges when licensing “non-traditional corporations” (NTCs) – companies where architectural services are only a minor or secondary part of their business (such as building, drafting, or multi-disciplinary service companies). The existing legislation lacks guidance on how to assess whether these corporations provide proper “direct control and supervision” of architectural work. This creates potential consumer protection risks, as clients may assume all services from a licensed corporation are architectural services when they may not be.
PROPOSED CHANGES
The amendment would introduce new requirements for corporation licensing based on South Australian legislation.
For corporations to be licensed, their governing body must have:
- Even number of board members: At least half must be registered architects
- Odd number of board members: A majority must be registered architects
PURPOSE
This change aims to:
- Ensure only corporations where architecture is a primary business focus can be licensed
- Strengthen consumer protection
- Provide clearer guidance for the Board when assessing licensing applications
- Address issues identified in the 2018 Statutory Review of the Architects Act 2004
WHAT THIS MEANS
The proposed change would effectively limit corporate licensing to companies where registered architects have significant control over the corporation’s governance and decision-making, ensuring architectural services remain the primary focus rather than a secondary offering.
For more detailed information, refer to pages 60–63 of the Statutory Review available here.
ACA’s POSITION ON THE PROPOSED CHANGES
The ACA WA Branch supports the proposed amendment.
Our committee members recognise the current system’s inadequacy, and most traditional architectural corporations already have at least one registered architect on their governing bodies.
Our support is based on the following key considerations:
Consumer Protection is Paramount
The ACA agrees that the current legislation requiring all architectural work in a licensed corporation to be done under “direct control and supervision” of a registered architect who is “an officer or employee” lacks the specificity needed to adequately protect consumers. This deficiency affects both non-traditional corporations (NTCs) and traditional licensed corporations.
We concur that there is significant consumer risk when clients mistakenly believe all services offered by an NTC are regulated architectural services when they are not. This confusion undermines consumer protection and the integrity of the profession.
Current Oversight Provisions are Inadequate
The ACA has identified that oversight by simply “an officer or employee” is inadequate, particularly in large corporations where the employee architect tasked with professional oversight may be limited by:
- Lack of professional experience to ensure appropriate consumer protection
- Insufficient meaningful hours to provide proper supervision
The current system allows for token architect appointments that fail to provide genuine professional oversight. NTCs with token oversight are currently able to register alongside TCs with appropriate supervision, which muddies the waters for the consumer. The proposed legislation will provide much-needed clarity for the consumer.
Evidence from Practice
Larger ACA member practices in WA have witnessed procurement processes for complex building projects by local governments where NTCs have been selected primarily based on fee considerations. These projects are often poorly executed by NTCs that lack the qualifications, oversight or skills required to deliver competent architectural services. Clients remain unaware that these corporations may not have appropriate oversight by registered architects, creating significant consumer risk and negatively impacting the profession.
Addressing Inequity in the Current System
The ACA represents numerous small practices that have expressed concerns about the inequity in current legislation that puts consumers at risk. The current arrangement lacks clarity for consumers who may not understand that a large NTC with multiple built environment professionals may have significantly less architectural oversight than a smaller, traditional architectural corporation.
SUGGESTED IMPLEMENTATION STRATEGY
Further Engagement & Transition Period Required
The ACA represents several architectural businesses exploring alternative practice models that include multi-disciplinary governing bodies. These corporations have expressed concerns about potential unintended consequences for businesses currently registered as traditional practices that may no longer comply with the new requirements. We request the opportunity to:
- Better understand the impact of the legislation changes on member practices, through surveys and forums
- Ensure the majority of our members can adapt their businesses to the proposed legislation
- Enable members to provide feedback to the Board on the proposed requirements for registered architect representation on governing bodies under the new legislation
- Ensure that legislative changes do not unnecessarily restrict existing registered corporations’ ability to maintain diverse skill sets on their governing boards.
We also strongly recommend a 12-month transition period to allow existing registered architectural businesses to make necessary changes to their governing structures. During this period, affected businesses could:
- Encourage suitably experienced staff to register and join the governing body
- Recruit suitably qualified registered architects to join the governing body
This transition period would also be available to NTCs with appropriate levels of registered architects in their governing body who wish to register under the new framework.
Ongoing Collaboration
ACA WA is committed to working collaboratively with the Board to ensure no other unintended consequences arise from this legislation. As the representative body for architectural employers, we are well-positioned to serve as a conduit between the Board and the profession, facilitating ongoing dialogue and feedback. We would be pleased to survey our members during the implementation phase to identify any emerging issues and work proactively with the Board to address them. This collaborative approach will help ensure the legislation achieves its consumer protection objectives while supporting the continued viability and growth of the architectural profession in Western Australia.
IN CONCLUSION
ACA WA advocates that the proposed legislation represents a necessary improvement to corporate registration requirements. The amendment will:
- Provide certainty and protection for consumers
- Help reduce potential disparity between NTCs and TCs to provide clarity to the consumer
- Encourage businesses to improve architectural oversight at the governance level
- Ensure only corporations with a genuine architectural focus can be licensed by the Board
The ACA WA Branch fully supports the implementation of this amendment with an appropriate transition period and the opportunity to engage with existing registered corporations to mitigate the impact of unintended consequences on architectural businesses.