An Overview of the ACE Professional Services Agreement 2017
The ACE Professional Services Agreement 2017 (ACE PSA) is a commonly used form of contract in the construction industry. It is predominantly used for the appointment of professional services, such as architects, engineers, and project managers, and is designed to provide a framework for the relationship between the client and the consultant.
The ACE PSA is a comprehensive document that covers all aspects of the consultant`s appointment, from the scope of services to the payment terms. It is designed to be flexible and can be adapted to suit the specific requirements of each project. The agreement is based on the ACE Agreements, which are widely recognized as the standard form of contract for the appointment of consultants in the UK.
Key Features of the ACE PSA 2017
The ACE PSA 2017 is divided into several sections, each covering a different aspect of the consultant`s appointment. Some of the key features of the agreement include:
Scope of Services: The agreement sets out a detailed description of the services that the consultant is expected to provide. This includes details on the deliverables, timescales, and performance standards.
Fees and Payment: The agreement specifies the fee basis and payment terms for the consultant`s services. It includes a detailed breakdown of the fee structure, which can be either a lump-sum or a time-based fee.
Intellectual Property: The agreement clarifies ownership of intellectual property created by the consultant during the course of the project. It sets out the rights of both parties to use and license the intellectual property.
Liability and Insurance: The agreement outlines the consultant`s liability for any losses or damages arising from their services. It also specifies the minimum level of professional indemnity insurance that the consultant is required to hold.
Termination: The agreement provides for the termination of the consultant`s appointment in certain circumstances, such as non-performance or breach of contract. It specifies the procedure for termination and the consequences of termination.
Benefits of Using the ACE PSA 2017
Using the ACE PSA 2017 offers several benefits to both clients and consultants. Some of the key benefits include:
Standardization: The agreement provides a standardized framework for the appointment of consultants, which can help to streamline the appointment process and reduce costs.
Flexibility: The agreement can be adapted to suit the specific requirements of each project, making it suitable for a wide range of projects.
Clarity: The agreement provides clarity on the scope of services, fees, and payment terms, which can help to avoid disputes and misunderstandings.
Risk Management: The agreement includes provisions for managing risk, such as liability and insurance, which can help to protect both parties in the event of a loss or damage.
Conclusion
The ACE PSA 2017 is a comprehensive and flexible agreement for the appointment of consultants in the construction industry. It provides a standardized framework for the appointment process, which can help to reduce costs and streamline the process. It also provides clarity on the scope of services, fees, and payment terms, which can help to avoid disputes and misunderstandings. Using the ACE PSA 2017 can help to manage risk and protect both parties in the event of a loss or damage.