Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 29
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Guide to RIBA Professional Services Contracts 2018
Sample cancellation letter
Dear [Architect/Consultant’s name or name of business]
Notice of Cancellation
The Client [Client’s name] hereby gives notice that the RIBA Domestic
Professional Services Contract 2018 entered into with the Architect/Consultant
[Architect/Consultant’s name or name of business] on [date stated at end of
Contract section] is cancelled.
Yours sincerely,
[Client’s signature]
[Date]
If the Contract is cancelled by the Consumer within the cooling-off period then the
Architect/Consultant can only recover payment for any services supplied prior to
the cancellation ONLY if the Consumer gave their consent in writing to the supplier
commencing work before the expiry of the cooling-off period. In cases where the
Consumer’s written consent is not obtained, the Architect/Contractor will not be able
to recover any costs from the Consumer which may have been incurred during the
cooling-off period.
Checking out the Client
In an ideal world, all Architects and Consultants would get on with all their Clients,
who would pay promptly at the appropriate time. Unfortunately, this is not always the
case in reality, but there are steps that the Architect/Consultant can take to reduce
their exposure to risk before agreeing to, and signing, a Contract. The Architect/
Consultant should have a system of carrying out their own checks on the Client from
the outset. Points to consider include:
• Identify and check the status and authority of the Client or any representative.
• Does the person the Architect/Consultant is dealing with have the ultimate
authority?
• Is there a parent company?
• Check that the company name, address and registration number are correct.
If the Architect/Consultant bills the ‘Client’ and they are not the paymasters, they
could refuse to pay as the Contract is not with the right company.
• In a family who has the authority?
• Check the experience of the Client. The legal duty can relate to the known
experience, or inexperience of the Client.
• Check if the Client is financially sound. Carry out discrete enquiries about their
business prospects, financial status and payment records.
• What have they been like to work with on previous projects?
The extent and cost of the investigation should relate to the potential value of that
client as there is little point in spending all of the potential profit on finding out
whether the Client is likely to pay. As well as financial checks it can be useful to
check social media to glean information about the company culture and whether
the two companies may be a ‘good fit’. For these clients a policy of rejecting or
accepting such risks as a matter of course may be more prudent.
The Construction (Design and Management) Regulations 2015
The Construction (Design and Management) Regulations 2015 (CDM Regulations
2015) relate to the design, construction, maintenance, cleaning, repair and
demolition of buildings and structures. The Regulations seek to eliminate potential
hazards and, where they cannot be eliminated, minimise them by careful design and
management.
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