The Rias provides guidance on the use of architects certificates as a replcaement for building insurance, such as NHBC or Zurich cover. In short the advice is "do not use architects certificates as a replacement for building insurance"
Guide to architects certificates available here click on left border to dowload pdf
Certificates for Building Societies and Lenders issued by architects and others.
These are intended for reliance upon by the Banks and Building Societies when lending to small developers and self-builders, as evidence that the works have been satisfactorily completed before release of funds.
The RIAS has, for several years, published a standard form of ‘Architects Certificate for Building Societies’. Currently RIAS produce a pro forma required by the Council of Mortgage Lenders (CML). The CML is the watchdog body for the mortgage industry. The new CML form extends the architect’s liability to subsequent owners for a limited number of years.
Unfortunately, many legal and selling agents do not understand the limitations of these architects’ certificates and assume that they are a form of defect guarantee or insurance relating to the builders work similar to the NHBC defect liability insurance.
The RIAS has reproduced the CML form (by permission). It should be stressed that
1 The wording of this form is that of the Council of Mortgage Lenders (CML), extracted from the “CML Lenders Handbook for Solicitors and Independent Qualified Conveyancers Scotland (2002)”
2 Architects are recommended to check that their insurers will provide extension of Professional Indemnity cover in the terms of the form, prior to provision of the service.
3 This form should not be regarded as a substitute for defects liability insurance such as that provided by NHBC, Premier Guarantee, Zurich Insurance or similar. The RIAS recommends that developers make appropriate arrangements for that cover.
4 Developers, sellers and seller’s agents should not promote this form as providing that cover.
5 This certificate is not a design certificate such as might be issued by a structural or other engineer
6 This certificate is not a certificate of work completed and due for payment as would be required under a standard form of construction contract
7 This is not a certificate of compliance with the Building Standards Regulations.
8 It should not be assumed that architects have a duty to sign this form as part of their normal service.
9 Provision of this form should be subject to specific agreement between architects and clients before commencement of the service.
10 A suitable fee and expenses should be agreed.
The forms can be purchased from the RIAS Bookshops at
15 Rutland Square, Edinburgh EH1 2BE - Tel 0131 229 7545
and are available as free downloads for Practice Service Subscribers.
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