Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 26
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Contract terms
For all the PSC types, the Contract Details, Contract Conditions and Schedule of
Services follow the same order and format. This section of the Guide looks in more
detail at the various parts of the Contracts to explain the implications of the clauses
and to include key points that the Architect/Consultant should be aware of, and
should look out for, when completing the documents.
4.1 Client details
This section covers matters the Architect/Consultant needs to consider when setting
up the appointment relating to the Client’s obligations and authority relevant to the
Architect/Consultant’s services.
The Client is the person, company, etc. wishing to undertake the project that seeks
the advice of the Architect/Consultant. The nature of the Client and the type of
project will dictate the definition of their status, their role and the appropriate type of
PSC to be used.
Business clients
Unless a Client is undertaking works to their own home, in their own name, the Client
will be a business client. These include commercial companies, public authorities as
well as charities, religious organisations and not-for-profit bodies.
In such cases PSCs are deemed to be construction contracts governed by the
Housing Grants, Construction and Regeneration Act 1996 as amended by Part 8
of the Local Democracy, Economic Development and Construction Act 2009. This
is also known as the Construction Act and the Late Payment of Commercial Debts
(Interest) Regulations 2002.
The Housing Grants, Construction and Regeneration Act 1996
The Housing Grants, Construction and Regeneration Act 1996 (HGRA), also
known as the Construction Act, is intended to ensure that payments are made
promptly throughout the supply chain and that disputes are resolved swiftly.
Provisions within the Act include:
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The right to be paid in interim, periodic or stage payments.
The right to be informed of the amount due, or any amounts to be withheld.
The right to suspend performance for non-payment.
Disallowing pay when paid clauses.
The right to adjudication.
The Act applies to all contracts for ‘construction operations’ (including construction
contracts and the appointment of consultants). If any contract fails to comply
with the Act, then the Scheme for Construction Contracts will apply. The Scheme
for Construction Contracts (England and Wales) Regulations 1998 applies
when construction contracts do not comply with the HGRA. The Scheme either
supplements the provisions of the contract where it has deficiencies relative to
the requirements of the HGRA, or replaces the contract where it is non-compliant.
This allows construction contracts to remain in force, whilst allowing regulatory
control over their provisions.
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