Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 49
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Guide to RIBA Professional Services Contracts 2018
small. Note, however, that, unlike the print versions, if the PSC is to be completed
online the free-form box will be flexible enough to type or paste more text than the
box in the print version.
How the Architect/Consultant chooses to calculate the fee is outside the scope of
this Guide and will be dependent on the normal procedures and preferences of
the Architect/Consultant, and to suit the specific project. Clause 5.2 of the Contract
Conditions sets out the various methods by which the Architect/Consultant can
calculate the Basic Fee for the performance of the services to be specified in item F
of the Contract Details:
• As a specified percentage or percentages applied to the Construction Cost.
This may be set out as a total percentage and/or split down into separate
percentages for each Work Stage applied to the approved cost of the building
work at the end of the previous stage. Until the actual cost of the building work
is known, the percentages should be applied to the target construction cost, the
latest approved estimate of cost for the building works until the actual Building
Contract sum is known.
• On the basis of a fixed lump sum or sums calculated on the basis of an estimate
of the likely time to carry out the work multiplied by an hourly rate, or rates. The
lump sum refers to a single aggregate price for the Architect/Consultant to
undertake the work to cover all risks accepted by the Architect/Consultant under
the Contract.
• Some aspects of the Services to be undertaken may not be quantifiable, for
which time-based fees may be more appropriate. Time charges are calculated by
multiplying the time reasonably spent in the performance of the Services by the
specified hourly or daily rate for the relevant personnel. Time ‘reasonably spent’
should include the time spent in connection with the performance of the Services
and in travelling from and returning to the Architect/Consultant’s office. However,
where sites are at a distance from the office, the travel time could be limited to
(say) an hour each way or expenses only.
• The Contract also allows for the fees to be calculated by any other agreed method.
When the project is, or substantial parts of it, are plainly repetitive, fees may be
agreed on a unit price, for example on the number of hotel rooms, or per house,
etc. The unit price is effectively a form of lump sum. It may also be the basis for
a royalty payment for the licence to copy a design on other sites. The repetitive
element, which will occur primarily in RIBA Plan of Work Stages 3 and 4, might
be acknowledged in setting the fee for those stages at a level that recognises the
reduced resources required by the Architect/Consultant.
Although many Architect/Consultants still use percentages as the basis for their fees,
the RIBA is moving towards resource-based fee calculation.
Fees should be quoted to exclude VAT (if charged), expenses and disbursements,
although on some projects the Architect/Consultant may choose to include some or
all of their expenses within the quoted fee.
Adjusting the Basic Fee
On any project circumstances inevitably arise where the Architect/Consultant may
wish to reconsider or adjust the quoted and agreed fee. The RIBA Professional
Services Contracts 2018 set down the circumstances in which the Architect/
Consultant can reasonably amend the fee.
Should the Client, for whatever reason, make changes to the Brief, the cost estimate
or programme resulting in additional work for the Architect/Consultant and it is
beyond their reasonable control, they can be entitled to additional fees, including an
allowance for any loss and/or expense, calculated on a time basis at the rate(s) set
out in the Contract Details unless otherwise agreed.
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