Guide letters provide advice about matters architects should consider when composing letters to the parties involved in architectural projects.
1. When and how?
1.1 It is recommended that secondary consultants' accounts (tax invoices/payment claims) be addressed to the client, care of the architect. If invoices are sent in your name, send them back and request that they be corrected, otherwise you may become liable for their non-payment by the client.
1.2 Check the claim against the fee agreement, stages of services completed and projected fee cash flow (refer Guide letter 3 and Guide letter 5).
1.3 The recommendation for payment of fees letter written on behalf of your client under 1.1 and 1.2 above should be sent in accordance with an agreed program for payment.
2. Content
Refer to:
- secondary consultants' fee agreement (guide letters 3 and 5); and
- secondary consultants' tax invoice/payment claim.
Confirm:
- that the tax invoice/payment claim complies with agreement.
Recommend:
- payment of the tax invoice/payment claim (refer relevant Security of Payments legislation if applicable) and terms of payment agreed.
3. Action
3.1 This letter must be written within the time limits imposed by the agreement and any relevant building and construction industry Security of Payments legislation. If no time limits have been set, you must deal with a claim for fees promptly and advise the client that the account is due. If a Payment Claim has been received you must process the account well within the default time limits set under any applicable Security of Payments legislation, and your client must respond within strict time limits.
4. What happens next?
4.1 If the client does not pay and you receive a tax invoice rendered this must be forwarded promptly to the client.
5. Are there other possibilities?
5.1 Refer 1.1 above.
6. What can happen if you don't?
6.1 If you fail to forward a due account to the client you may cause cash flow difficulties and sour the relationship between the client and other specialist consultants. The client may also become liable for the full tax invoice/payment claim under relevant Security of Payments legislation if a timely response is not made in the form of a Payment Schedule/Statement should the amount recommended for payment be less than the amount invoiced for any reason.
7. Copies
7.1 Architect's file
7.2 Consultant
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