PROFESSIONAL PRACTICE & ETHICS

Unit 1- Part 1
UNIT I: INTRODUCTION TO ARCHITECTURAL PROFESSION CODE OF
CONDUCT AND ETHICS
Importance of Architectural Profession – Role of Architects in Society – Registration of Architects
– Architect’s office and its management – Location, organisational structure - Infrastructure
requirement, skills required, elementary accounts – Tax liabilities.
Role of Indian Institute of Architects – Architects Act 1972 (intent, objectives, provisions with
regard to architectural practice) – Council of Architecture (role and functions) – Importance of
ethics in professional practice – Code of conduct for architects, punitive action for professional
misconduct of an architect.
 Who is a Professional?
• His works requires skill, taste, technical learning ability along with business
acumen

• Architect is an active member of the family of professional brotherhood in

general and does not belong to the trade or business circle, in spite of the fact that
the profession of an architect is the meeting point of art and business without
which the creative ideas of an architect will remain on papers, as commercial
enterprises and financial expenditures open the doors to the creative instincts of
an Architect

• If one were to analyze the definition of Architecture and Architect it will be clear
that the profession of an architect differs widely from trade or business

• Architect is also liable for Income Tax just like other professional.
 DIFFERENCE BETWEEN A ‘BUSINESS’ AND ‘PROFESSION’

Business Profession
Objective Earning profit Earning profit through
rendering service
Qualification Not necessary, any Specialized knowledge
qualification
Establishment Decision and fulfillment of Membership of the
legal formalities professional body and
certificate to practice
Code of conduct Nothing prescribed Prescribed by regulatory
body, Needs to be followed
Advertisement To increase sale Strictly prohibited
Reward Profit Professional fee
Risk factor Always present Not always present
Transfer of Interest Possible Not possible
Capital Required based on the size Limited capital is required
and nature of the business
Role of an Architect in society

Link
Awareness between the
creator Client & the
Advisor
contractors

Role of an Arbitrator/
Educator Architect Umpire

Manager

Supervisor Designer
Importance of Architectural Profession

• The development and progress of a country requires buildings and

infrastructure

• Obviously Architectural profession, which goes hand in hand with building

industry is also enjoying its fruits. No wonder that now a days there is a
growing demand for Architectural training from all the nooks and corners of
India.

• Simply by joining Architecture and completing the training of five years in

the four walls of the classroom is not enough or sufficient to become a
successful architect.

• Experience teaches you everything

 Definition of Architecture and Architect
• Architecture has been defined as an art or science of design, construction, style,
appearance of any structure with aesthetic character. In a restricted sense, it may be
termed as a fine art, a method of erecting an edifice characterized by peculiarities of
ornamentation and design especially pleasing to the eyes.
• An Architect has been defined as one who possesses, with due regard to aesthetics as
well as practical considerations, adequate skill and the knowledge to enable him
• to originate
• to design and plan
• to arrange for and supervise the erection of such buildings or otherwise calling for
skill and design in planning as he might in the course of his business, reasonably be
asked to carry out or in respect of which he offers his services as a specialist
• A comparative analysis of all the above will reveal to what extent the architects
profession is noble creative profession and not a trade or business.
Architectural Profession
 Architecture Profession is regulated by

• Council of Architecture

• Indian Institute of Architects

Council of Architecture (COA)
It is a statutory regulating body
Established to regulate the architectural
profession and protect against malpractices
Follows Architect’s Act 1972
As per Architect’s Act 1972, it is unlawful for any
person , not registered under COA, to designate
himself/herself as an architect
An architect has to be registered with the COA
after completion of the degree to practice or be
in academics
Indian Institute of Architects (IIA)
It is an organisation, an association of architects
To unite architects in our country and to promote
architectural profession in the country
Aim is to encourage architectural education in
India
To prescribe syllabus and to hold examinations for
those who have missed formal education in
architecture
To bring changes in law related to architectural
practice
To organize architects’ meet by organizing
conferences, workshops, etc on subjects related
to architectural education
To promote improvement of quality of life and
awareness about architectural profession in the
society
Functional Structure of COA
Functional Structure of IIA
Architects act 1972
Background
• The first meeting was held in December 1946, of Architects and Engineers,
convened by C H Bhabha, the then minister of Public Works, to discuss the Bill.

• Owing to several conflicts the bill didn’t get prepared

• In 1967, a conference of Commonwealth Association of Architects was held in

New Delhi.
• The conference passed a strongly worded resolution urging the Government
of India and stressing the need of Architects Act, to protect the public, which is
unable to recognize the genuine Architect and also to propose a code of
conduct for the Architects.

• The process was once again accelerated and ultimately the bill was passed in
both the houses of parliament in the present form.

• The Act came into force on 1st September 1972. Credit goes to the persistent
efforts of the Indian Institute of Architects and particularly Ar. Piloo Mody who
was the member of Lok Sabha at that time.
Need of the Architect’s act

• After Independence and with the implementation of Five Year Plans, the
building construction activity in our country has expanded
• A large variety of buildings of complex nature and big magnitude were
being constructed each year. Many unqualified persons, calling themselves
architects were taking advantage of the situation.
• For this reason, various organizations including the Indian Institute of
Architects have repeatedly asked for a statutory regulation to protect the
general public from unqualified persons working as architects.
• In September 1972, the Architects Act came into being. With the passing
of this legislation, it is unlawful for any person to designate himself as
‘Architect’ unless he has the required qualifications and experience and is
registered under the act.
 - Investment done by individual
- Sole decision making authority
PROPRIETARY INDIVIDUAL - Single person responsible for
CONCERN OWNERSHIP both profit and loss

- Investment done by partners

- Partnership clauses based on Indian
Partnership Act 1932
OWNERSHIP IS
PARTNERSHIP SHARED BY TWO - Sharing of profit can be equal or
FIRM OR MORE unequal as per the partnership
ARCHITECTURAL PARTNERS agreement
PRACTICE - Architect’s Act 1972 states, ‘in an
architectural firm, all partners should
be registered architect’.

- Company has to be registered

SIZE OF PARTNERSHIP with REGISTRAR OF COMPANIES as
FIRM INCREASES AND
ANNUAL INCOME OF
PRIVATE LTD.
FIRM GOES UP (For Tax
COMPANY Benefits, the firm is
converted to PVT. LTD
Company)
per Companies Act 1956
- If non-architects were one of the
member of the company, then the
company will be registered as
business firm and NOT AS
PROFESSIONAL FIRM
- The company can offer variety of
services under one single roof
Assignment 2

What are the highlights of Architect’s Act 1972?

•Download the Architect’s Act 1972 from the link below and review it.
• The submission has to be done on individual basis in a notebook.
•Please maintain a notebook for the subject

https://www.coa.gov.in/index1.php?lang=1&level=1&sublinkid=116&lid=131
PROFESSIONAL PRACTICE & ETHICS
Unit 1 – Part 2
UNIT I: INTRODUCTION TO ARCHITECTURAL PROFESSION CODE OF
CONDUCT AND ETHICS
Importance of Architectural Profession – Role of Architects in Society – Registration of Architects
– Architect’s office and its management – Location, organisational structure - Infrastructure
requirement, skills required, elementary accounts – Tax liabilities.
Role of Indian Institute of Architects – Architects Act 1972 (intent, objectives, provisions with
regard to architectural practice) – Council of Architecture (role and functions) – Importance of
ethics in professional practice – Code of conduct for architects, punitive action for professional
misconduct of an architect.
 - Investment done by individual
- Sole decision making authority
PROPRIETARY INDIVIDUAL - Single person responsible for
CONCERN OWNERSHIP both profit and loss

- Investment done by partners

- Partnership clauses based on Indian
Partnership Act 1932
OWNERSHIP IS
PARTNERSHIP SHARED BY TWO - Sharing of profit can be equal or
FIRM OR MORE unequal as per the partnership
ARCHITECTURAL PARTNERS agreement
PRACTICE - Architect’s Act 1972 states, ‘in an
architectural firm, all partners should
be registered architect’.

- Company has to be registered

SIZE OF PARTNERSHIP with REGISTRAR OF COMPANIES as
FIRM INCREASES AND
ANNUAL INCOME OF
PRIVATE LTD.
FIRM GOES UP (For Tax
COMPANY Benefits, the firm is
converted to PVT. LTD
Company)
per Companies Act 1956
- If non-architects were one of the
member of the company, then the
company will be registered as
business firm and NOT AS
PROFESSIONAL FIRM
- The company can offer variety of
services under one single roof
 Principal Architect

Drawing/Design Structural/survey Administration

dept. dept

FUNCTION FUNCTION
FUNCTION
- Structural design - Office correspondence
- Development of design concept
- Inputs - Book keeping
- Scheme drawing
- Land survey - Accounts
- Municipal drawing
- Quantity survey - Observation of govt. tax, rules
- Working drawing
- Specifications - Stationery purchase
- Presentation drawings
- Estimation - Maintenance of office equipment
- Site handling
- Preparation of contract papers - House keeping
- Bill checking & checking of item rates
POSTS etc.
- Senior Architects POSTS
- Project architect - Manager/secretary
POSTS
- Assistant architect - Accounts clerk
- Structural designer
- Junior architect - Clerk/typist
- Quantity surveyor
- Draftsman - Receptionist
- Civil engineer
- Trainee - Peon
- Draftsman
 Architectural practice – Setting up the office
• Office as an Entity
• Capital invested for office – Loan to office
• Office should pay the money back in the form of profit with interest

All office expenses

Open a fresh bank
Start a from this account
account, capital to be
proprietary
deposited in this
firm
account

Fees is deposited in
this account
Detailed
Office account is
documentation: pay-
usually Current
in-slip book (with
Account, so no need
cheque book) with
to keep huge
proper bill no.
amounts, no interest
is given
https://www.indiafilings.com/learn/start-architecture-firm/
Architectural practice – Finance Management
Elementary Account keeping
Book of accounts need to be maintained for office as per rules of income tax act

Following documents to be maintained: Ledger

• Cash book Transactions recorded in cash book
• Journal and journal are recorded in this under
• Carbon copies of machine numbered bills ‘different head of accounts’
• Bills, receipts and vouchers The heads of accounts could be:
1. Office rent, and other charges like common
• Ledger
services charges
2. Stationery & printing
Cash book 3. Postage
Record of All Transactions (income and 4. Electricity bills
5. Telephone bills
expenditure in cash) 6. Salary bill paid
Each expenditure supported by either a 7. Fees paid to consultants, surveyors
receipt or a Voucher 8. Interest paid to loan amount
If no cash transactions, no need of this 9. Membership fees, registration charges in
professional bodies/clubs, expenses for
attending professional seminars, conventions,
Petty Cash book workshops, meetings, etc
Record of All day to day expenditure (tea, 10. Purchase of books, periodicals, magazines,
coffee, stationery) newspapers, etc
11. Traveling expenses
12. Entertainment
Architectural practice – Finance Management
Income Tax & Liabilities
Income Tax: Central Govt. tax on Individual as well as company/business

Gross Income – Allowable Expenses = Net Income

Net Income is considered for taxation
Expenditure under the ‘Heads explained Under Ledger’ up to certain proportion is
‘Allowable Expense’

Ways to save money and taxes:

• Life Insurance
• PPF (Public Provident Fund)
• National Savings Schemes
• Mutual Funds (Tax saving)
• Loan from bank
• Hand loan when returned is not deductible from the gross income
• Money if borrowed from any bank, the loan and the interest paid will be deductible from the gross
income. It is convenient to borrow money for the development of office
Architectural practice – Acts to be followed
When an architect employs more than 10 employees then it is NOT considered as ‘small
office’
In such case following provisions are to be made:
• Payment of Gratuity Act:
A person who has completed minimum 5 years of service in a company is eligible to get
gratuity at the time of his/her termination of service.
•Payment of Bonus Act:
Applicable to an establishment where 20 or more people employed
Under this act employer has to pay 8.33% of annual salary (one month salary) and
maximum up to 20%

• Employees Provident Fund Act:

Applicable to an establishment where 20 or more people employed
Under this act, it is a legal responsibility of an employer to deduct from the salary of
an employee. ‘A certain amount will be paid to the government treasury along with
employer’s contribution’.

• T.D.S (Tax Deduction at Source):

Payment of Income tax and Professional tax is an individual’s responsibility
If the office grows big, this responsibility is taken care of by the employer
Income and professional tax will be deducted and paid to the government treasury
by the employer
Code of Professional Conduct 1989
Under the Architect’s Act 1972
• Ensure that his professional activities do not conflict with his general responsibility to contribute to the

quality of the environment and future welfare of society

• Apply his skill for creative, responsible and economic development of the country

• Provide professional services of a high standard, to the best of his ability

• If in private practice, inform the client of the conditions of engagement and scale of charges and agree

that these conditions would form the basis of the appointment

• He will not pass the work to other architect without prior consent or agreement of the client

• Will not engage in giving or taking any discounts or commissions, gifts or other practices for getting work

• Will be fair and impartial when working on the contract

• Maintain a high standard of integrity

• Promote advancement of architecture, standards of architectural education, research, training and

practice
Code of Professional Conduct 1989
Under the Architect’s Act 1972
• Conduct himself in a manner which is not derogatory to his profession

• Compete fairly with other architects

• Observe and uphold the Council’s conditions of engagement and scale of charges

• Not supplant or attempt to supplant another architect

• Not prepare design free of charge or for a reduced fee, but can participate in the competition approved by

Council

• Must not accept a project which he knows has been given to another architect, before making sure that

the previous appointment has been properly terminated and his duties has been settled. He must notify the

previous architect before accepting the project.

• Comply with Council’s guidelines for architectural competitions and inform the Council of his appointment as

assessor for an architectural competition

 Code of Professional Conduct 1989
Under the Architect’s Act 1972
• When working in other countries, observe the requirements of codes of conduct applicable to the particular

place

• Not have or take as partner in his firm any person who is disqualified for registration by reason of the fact that

his name has been removed from the register under the section 29 or 30 of Architect’s Act 1972

• Provide their employees & associates with suitable working environment, compensate them fairly and

facilitate their professional development

• Recognise and respect the professional contribution of his employees & associates

• Recognise and respect the professional contribution of the consultants

• Enter into agreement with them defining their scope of work, responsibilities, functions, fees and mode of

payment

http://architectureideas.info/2008/09/coa-professional-misconduct/
Code of Professional Conduct 1989
Under the Architect’s Act 1972
• Shall not advertise his professional services nor shall he allow his name to be included in advertisements or

to be used for publicity purposes except the following conditions:

• A notice of change of address may be published on 3 occasions and correspondents may be informed

by post

•Architect may exhibit his name outside his office and on a building, either under construction or

completed, for which he is or was an architect, provided the lettering does not exceed 10cm in height

•Advertisements including the name and address of an architect may be published in connection with

calling of tenders, staff requirements and similar matters

• May allow his name to be associated with illustrations and descriptions of his work in the press or

other public media but he shall not give or accept any consideration for such appearances
Code of Professional Conduct 1989
Under the Architect’s Act 1972
• Shall not advertise his professional services nor shall he allow his name to be included in advertisements

or to be used for publicity purposes except the following conditions:

•May allow his name to appear in advertisements inserted in the press by suppliers or manufacturers

of materials used in a building he has designed, provided his name is included in an unostentatious

manner and he does not accept any consideration for its use

• May allow his name to appear in brochure prepared by clients for the purpose of advertising or

promoting projects for which he has been commissioned

•May produce or publish brochures, pamphlets describing his experience and capabilities for

distribution to those potential clients whom he can identify by name and position

• May allow his name to appear in the classified columns of the trade/professional directory and/or

telephone directory/website
 GENERAL ACCOUNTING REQUIREMENTS
Balance sheet It is a sheet of balance which ought to show a true and fair view of the state
affairs of a business. It has got two columns, i.e. assets and liabilities.

Assets a) Fixed assets (Tangible assets): Land , building , plants and machineries,
furniture's and fittings , vehicle, etc.
b) Intangible assets: Goodwill, patents and trade mark. The assets are long-term
use of funds or benefits which are spread over a long period of time.

Liabilities It shows the obligations of an enterprise to various parties including to owners

who have financed the project. The obligations may be actual or potential, may
be compulsory or voluntary, may be foreseen or unforeseen, may be recurring or
non-recurring.

Profit & Loss account It shows the result of operations of an enterprise at the end of every financial
year. It has also two columns , viz, Debit and Credit . A well known rule given
hereunder will be helpful for reading of the profit and loss
account.
i) Credit what comes in and debit what goes out.
ii) Credit the receiver and debit the giver
iii) Debit all expenses and losses and credit all incomes and gains
As per the amendments in the in the Income Tax Act of 1961, the architects and
engineers are required to maintain the proper book of Accounts, the chief
of same being i, ii and iii.
 GENERAL ACCOUNTING REQUIREMENTS

Petty cash book Records of cash Transactions of small value. The account clerk is
usually given a small sum of Rs 2000 to Rs 3000 p.m and he
will spend the same as directed on petty purchases, e.g.
purchase of “ D.C. Rule Book” or binding charges of a book,
cost of stamps , etc.
Cash book It records all transactions of income as well as expenses done
in the cash mode
Ledger It contains a summary of all the items of the cash book and
other books if any.

In the above connection the architects and engineers are well advised to consult their
Experts on the explicabilities and extents of explicabilities of the following acts as the
extents of explicabilities change from time to time.

1) The Indian Income Tax Act, 1961

2) Service Tax, From 1-7-1994
3) The Payment of Bonus Act 1965
4) The Employees “ Provident Fund And Miscellaneous Provision Act 1952
5) The Payment of Gratuity Act, 1972
6) The Maharashtra State Tax on Professions, Trades , Callings and Employment Act
1975