Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 52
Contract terms
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on the total cost of expenses and making a lump sum figure for all the expenses.
Alternatively, some Architect/Consultants may wish to set their expenses as a
percentage of the Basic Fee. The percentage can be inserted in to the appropriate box
and should be a figure calculated by the Architect/Consultant. Experience shows that
this could range from 3-8%, although some practices can charge more or less. If there
are any specific expenses these should be specified and itemised under ‘other’.
Other expenses, including disbursements, such as payments to the Local Authority
for planning and Building Regulations submissions, can be charged at net cost plus
the stated percentage of net cost.
If travelling expenses are to be charged for the use of a car the rate per mile should
be stated. However, if travel is by air, rail or by other means then the basis of the
expense should be stated under ‘other’.
A matrix covering the cost of printing and copying paper copies of all information,
drawings and documents, where applicable to the Contract, can be filled in to cover
the size and type of prints. However, as many copy shops do, some may wish to
reduce the print cost for bulk printing for which the matrix may not be comprehensive
enough. If this is the case, then reference can be made to another document or the
actual costs can be pasted in.
VAT, if charged, should be added to all claims for expenses.
Key watchpoints
• Make clear what is included and, more importantly, what is excluded from the
fee.
• Explain how the fee has been calculated.
• Have a procedure for monitoring changes to justify any additional fees to be
charged.
• Specify frequency of meetings and visits to ensure that they have been
budgeted for and additional meetings can be charged for.
• State what expenses are included in the fee and what is to be charged.
4.7Payment
Although a percentage or lump sum fee may have been agreed for the project the
Architect/Consultant should agree the basis upon which payments are to be made
and the frequency. This section covers the payment procedures and Client actions if
they do not agree to pay.
Under the Housing Grants, Construction and Regeneration Act 1996 (HGRA), the
Architect/Consultant has the right to be paid in interim, periodic or stage payments
if the project period is more than 45 days and to be informed of the amount due, or
any amounts to be withheld. Equally performance of the services can be suspended
as a result of non-payment of fees.
A further requirement of the Act is that ‘Pay when Paid’ clauses are not allowed
which should be of consideration to the Architect/Consultant when dealing with
Sub-consultants. Originally, the purpose of a ‘pay when paid’ clause as used in
the construction industry was to absolve, usually a contractor, from liability to pay
the Sub-contractor until it had been paid by the Employer. The effect of such a
clause was to allow the Contractor to pass the risk of default by the Employer to its
Subcontractors further down the construction chain.
However, a consumer client is exempt from the provisions of the HGRA and the Late
Payment of Debt (Interest) Regulations.
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