Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 69
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Guide to RIBA Professional Services Contracts 2018
Immediate termination
In addition to the contractual obligations to give notice to suspend or terminate, the
Contract can be immediately terminated by notice from either party should the other
party:
•
•
•
•
•
•
become bankrupt
be subject to a receiving or administration order
go into liquidation
become insolvent
make any arrangements with creditors
become unable to perform its obligations through death or incapacity.
Termination in such cases is not automatic and will only take effect on receipt of a
notice, which must be in writing, but no notice period is stated, unlike with the other
conditions. This effectively gives the affected party more time to analyse the impact
of the action, take advice and agree the best way forward.
Key watchpoints
• The suspension might be being used by the Client as ‘breathing space’.
• Check that the timescale is reasonable.
• Be sure of your rights as suspending or terminating a Contract has risks
attached.
• Ensure that your reasons for suspending the Contract are contractually valid.
• Consider the possible reaction of the client and whether the situation can be
remedied in any other way.
• Organise the documents such that it will be easier to restart.
• Consider whether you are going to suspend the copyright licence.
• Do not underestimate the impact of even a short suspension on the practice.
• Ensure that you are paid up to date plus any other costs.
• Consider the full impact of restarting a suspended project and whether
anything has changed.
4.12 Dispute resolution
Unfortunately, not all projects run smoothly, and disputes can arise, taking many
hours of time and incurring cost. This section looks at the Alternative Dispute
Resolution (ADR) options open to both parties as a means of resolving their disputes.
If a problem arises the parties to a dispute should perhaps, before embarking on
a dispute resolution route, consider the advice of Robert Akenhead QC, writing in
Building Magazine6 in 2000, where he said that ‘the best bet may yet be for the
disputing parties to buy each other a drink in the pub and settle there.’
In all of the Contracts, the Client can refer a complaint to the appropriate professional
body if the Architect/Consultant’s conduct or competence appears to fall short of the
standards in the relevant Code(s) of Professional Conduct. Therefore, the first clause
in this section is to note that the Architect/Consultant, and most other construction
professionals, are expected to operate in-house procedures to handle complaints
and disputes relating to specific project or performance matters promptly. Architects
and other professionals are also subject to the disciplinary sanction of the Code
of Conduct of their professional body in relation to complaints of unacceptable
professional conduct or serious professional incompetence. The Architect/
Consultant must make available a copy of these written procedures to the Client.
Negotiation will always be the most effective way of resolving a dispute, with savings
in costs and, equally important, time. Before embarking on a detailed attack or
[6]‘Do you fancy a beer?’ Building Magazine 1 December 2000.
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