FAQ.15

Question:

Can you please tell me who is allowed to sign Change Orders, Contingency Allowance Change Orders, Certificates for Payment, etc. in an architectural firm? Can it only be an architect/engineer or are others allowed if they have the owner’s permission?

Answer:

Such authorizations could be included in the client/architect contract or the construction contract. Standard contract language does not include varying authorities. CCDC 2-2020, GC 2.2.3 notes - “... The duties, responsibilities and limitations of authority of such project representatives [Consultant’s] shall be as set forth in writing to the Contractor.”, but this is commonly not done.

Failing something in writing in contracts or otherwise, it would be the architect’s firm that determines who can sign documents. The basic legal concept we are told (with many other considerations) is that the ‘receiver’ of a document is not responsible to determine if the person who signed it has the authority to do so – the company issuing the document is responsible for who signs.

Some architectural practices have a protocol that only partners or principles can sign documents with financial implications (e.g. contracts, change orders, certificates for payment). Other practices delegate that authority to a responsible and suitably experienced staff person. It would be up to the firm to establish rules and enforce them. Corporations may have authority for signing as part of their Articles of Incorporation or by-laws.

The architectural practice (Certificate of Practice Holder) is responsible for the actions and any failure to act on the part of their employees. The practice should be familiar with and act in accordance with the contents of OAA Regulatory Notice R.8, Personal Supervision and Direction Related to Contract Administration (General Review).

References:

CCDC 2-2020 Stipulated Price Contract

OAA Regulatory Notice R.8, Personal Supervision and Direction Related to Contract Administration (General Review).