Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 67
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Guide to RIBA Professional Services Contracts 2018
What happens when a project is suspended?
When a project is suspended, and after the end of the notice period, the Architect/
Consultant must stop work in an orderly and economical manner. The processes
should be controlled rather than just ‘downing tools’ so that the project can be
restarted in an organised manner by the Design Team, particularly as there is no
guarantee that the same personnel would be working on the project. To assist in
this, it would be of great help to the future of the project if the Architect/Consultant,
and indeed any other members of the team, could prepare a schedule showing the
status of the documents and any issues that were under consideration at the time
of the suspension. Most important is that the filing is up to date, whether in hard
copy or electronic form, all drawings and documents completed to a suitable point
and referenced, each with a note of their status and any matters that were under
discussion.
However, the Architect/Consultant should not underestimate the impact caused
to the practice by a Client who temporarily suspends a project as this can be
substantial and far-reaching. Having to stop and start services one or more times on
a project is almost guaranteed to bring added expenses. Design staff will have to be
rescheduled. That can add to staff costs and inevitably affects the scheduling and
staffing of other projects. The project programme will need to be revised, probably
extending the completion date by the length of the suspension or more.
Project suspensions that go beyond 30 days usually result in a loss of continuity
among all parties and require additional meetings between the Client, Contractor
and Design Team to ensure everyone is still on the same page. Where Services
are suspended by either party and not resumed within 6 months, the Architect/
Consultant can, under the terms of the Contract, take the decision to assume that
the project has come to an end by giving at least 7 days’ further written notice to
the Client. However, this should not be done without further meeting the Client to
enquire of the current status of the project and the likelihood of it starting in the near
future to assist in making the decision to give notice to terminate.
Despite the impact caused to the practice, it is not unusual for the Client to expect
that the Architect/Consultant can pick things up just where they left off when the
suspension began. Clients often expect that such delays can be made up over the
life of the project and that project fees remain the same, so the Architect/Consultant
will need to fully assess the impact of any suspension.
What happens after termination?
In extreme cases, a Client facing long-term financial or other issues may go beyond
a suspension and terminate the project altogether. In such cases, an Architect/
Consultant can not only lose substantial income from the terminated services, but
there can be sizable costs associated with shutting down their work on the project.
It is likely that costs have been incurred for physical resources such as equipment
and software as well as staff. The aim of the Architect/Consultant should be to
ensure that they are paid for all the services carried out leading up to the termination
and to recover costs associated with the termination itself.
One of the most common reasons for the potential termination of a Contract by
professionals is non-payment of fees by the Client. Given that termination is a drastic
solution, it may be advisable for the Architect/Consultant to first temporarily suspend
their services, giving reasonable written notice to the Client, rather than terminating
the Contract fully. This will keep the Contract in force while giving the Client time to
settle the fees due.
Once the project is terminated and the Services and any other obligations are
complete, a copy of any information, drawings and documents not previously
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