Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 53
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Guide to RIBA Professional Services Contracts 2018
Payment frequency
Traditionally, Architects and Consultants were paid at the end of RIBA Plan of Work
Stages but in these more commercial times, fees are normally invoiced in interim
instalments to assist with cash flow. The new RIBA Professional Services Contracts
2018 still allow for this to happen. Invoices for instalments of fees, time charges and
expenses can be issued in a number of ways, which should be assessed according
to the specific project and scope of services.
On a small project, interim instalments may simply be issued on a monthly basis
followed by a fee at the end of the Plan of Work Stage calculated according to the
terms of the Contract less the total of the interim payments.
Larger projects, and those with multiple disciplines, will often base their interim
fees on a payment or draw-down schedule related to predefined stages reached
or related to time based on anticipated resources. If this is the preferred route, the
schedule should be pre-agreed with the Client, dated and referenced with the details
inserted in item I of the Contract.
Requests for payment
At the frequency stated in item I of the Contract, the Architect/Consultant should, in
accordance with the HGRA, issue their account as a Payment Notice. Each Payment
Notice should show the basis of the calculation of the Architect/Consultant’s
account, setting out any instalments of the fee that have been issued or paid, and
any other amounts due including any expenses and disbursements. The total is
known as the ‘Notified Sum’ with the payment due being the date of the Payment
Notice. Any instalments should be calculated on a reasonable estimate of the
percentage of completion of the Services or as stated in any draw-down schedule.
On commercial projects, to ensure that the Architect/Consultant’s accounts issued
to the Client are effective as Payment Notices, each invoice issued by the Architect/
Consultant should incorporate the following wording:
This is the amount due in respect of the Services provided, calculated as set
out in this account and in accordance with the Fees and Expenses agreed in
our Professional Services Contract dated
. This invoice
constitutes a Payment Notice complying with section 110A(3) of the Housing
Grants, Construction and Regeneration Act 1996 as amended by the Local
Democracy, Economic Development and Construction Act 2009. The payment
due date is the date of this Payment Notice.
Although domestic projects are not subject to the HGRA, the accounts issued to the
Client can be less formal but to be effective as Payment Notices each invoice issued
by the Architect/Consultant should incorporate the following wording:
This is the amount due in respect of the Services provided, calculated as set
out in this invoice and in accordance with the Fees and Expenses agreed in our
Professional Services Contract dated
.
However, the Architect/Consultant should make the Client fully aware of the payment
procedures in the Contract.
Once the Payment Notice is issued, and if that Notice is correctly issued, the sum
due under the Contract and payable by the Final Date for Payment is that sum set out
in that Notice, i.e. the Client must pay by this date which is 14 days after the issue of
the Payment Notice. The exception to this is if the Architect/Consultant has become
insolvent or the Client issues a Pay Less Notice. Otherwise the Client must pay the
amount due and cannot delay payment of any undisputed part of the Notified Sum.
At the end of the project a final Payment Notice should be submitted for fees and
any other amounts due when the Architect/Consultant reasonably considers the
Services have been completed.
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