Regular invoicing for architects - Revision history

Editor at 16:41, 18 January 2021

2021-01-18T16:41:26Z

← Older revision		Revision as of 16:41, 18 January 2021
Line 56:		Line 56:
	* Professional Indemnity Insurance.		* Professional Indemnity Insurance.
	* Remedies for late payment.		* Remedies for late payment.
		+	* Resource allocation in design and construction.
	* Scope of services.		* Scope of services.
	* The architectural profession.		* The architectural profession.

	[[Category:Articles_needing_more_work]] [[Category:DCN_Guidance]]		[[Category:Articles_needing_more_work]] [[Category:DCN_Guidance]]

Designing Buildings at 05:17, 22 October 2020

2020-10-22T05:17:46Z

← Older revision		Revision as of 05:17, 22 October 2020
Line 59:		Line 59:
	* The architectural profession.		* The architectural profession.

−	[[Category:Articles_needing_more_work]]	+	[[Category:Articles_needing_more_work]] [[Category:DCN_Guidance]]

Designing Buildings at 15:34, 20 March 2019

2019-03-20T15:34:43Z

← Older revision		Revision as of 15:34, 20 March 2019
Line 16:		Line 16:
	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment and that communication about billing and payments is clear and open.		However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment and that communication about billing and payments is clear and open.

−	RIBA ~~[http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq~~ Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’	+	RIBA Guidance Note 4 in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’

	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than as an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However, it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.		Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than as an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However, it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.
Line 42:		Line 42:
	See Remedies for late payment for more information.		See Remedies for late payment for more information.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Architect.		* Architect.
Line 51:		Line 49:
	* Architectural styles.		* Architectural styles.
	* Architectural training.		* Architectural training.
−	* [[Appointments\|Appointment]].
	* Concept architectural design.		* Concept architectural design.
	* Construction invoice fraud.		* Construction invoice fraud.

Editor at 12:23, 28 March 2018

2018-03-28T12:23:10Z

← Older revision		Revision as of 12:23, 28 March 2018
Line 51:		Line 51:
	* Architectural styles.		* Architectural styles.
	* Architectural training.		* Architectural training.
−	* Appointment.	+	* [[Appointments\|Appointment]].
	* Concept architectural design.		* Concept architectural design.
	* Construction invoice fraud.		* Construction invoice fraud.

Editor at 12:22, 28 March 2018

2018-03-28T12:22:46Z

← Older revision		Revision as of 12:22, 28 March 2018
Line 2:		Line 2:

	-----		-----
−	Invoicing and collecting payments is a key element in the architect-client relationship, but one which is often overlooked or avoided, particularly by small firms serving private residential clients. Architects can feel embarrassed to be asking for money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. ~~Architect's~~ have even been known to hold off on invoicing until the client is completely committed to the project and then send an unexpectedly large invoice, which can damage the relationship with the client.	+	Invoicing and collecting payments is a key element in the architect-client relationship, but one which is often overlooked or avoided, particularly by small firms serving private residential clients. Architects can feel embarrassed to be asking for money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services.
		+
		+	Architects have even been known to hold off on invoicing until the client is completely committed to the project and then send an unexpectedly large invoice, which can damage the relationship with the client.

	There are many different ways architects charge for their professional services, such as:		There are many different ways architects charge for their professional services, such as:
Line 16:		Line 18:
	RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’		RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’

−	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than as an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.	+	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than as an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However, it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.

	The invoicing process can be automated or outsourced if this is not the strength of the practice. Automated systems can assist with:		The invoicing process can be automated or outsourced if this is not the strength of the practice. Automated systems can assist with:
Line 54:		Line 56:
	* Construction supply chain payment charter.		* Construction supply chain payment charter.
	* Fees.		* Fees.
		+	* Invoice.
	* Professional Indemnity Insurance.		* Professional Indemnity Insurance.
	* Remedies for late payment.		* Remedies for late payment.

Editor at 09:08, 26 April 2016

2016-04-26T09:08:20Z

← Older revision		Revision as of 09:08, 26 April 2016
Line 1:		Line 1:
−
	This article needs more work. To help develop this article, click 'Edit this article' above.		This article needs more work. To help develop this article, click 'Edit this article' above.

−	----	+	-----
−		+	Invoicing and collecting payments is a key element in the architect-client relationship, but one which is often overlooked or avoided, particularly by small firms serving private residential clients. Architects can feel embarrassed to be asking for money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then send an unexpectedly large invoice, which can damage the relationship with the client.
−	Invoicing and collecting payments is a key element in the architect-client relationship, but one which is often overlooked or avoided, particularly by small firms serving private residential clients. Architects can feel embarrassed to be asking for money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then send an unexpectedly large invoice, which can damage the relationship with the client.~~<br/>~~	+

	There are many different ways architects charge for their professional services, such as:		There are many different ways architects charge for their professional services, such as:
−	*Time charges.
−	*A percentage of the construction cost.
−	*Stage payments.
−	*A lump sum.<br/>
−	*Some combination of these.

−	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment and that communication about billing and payments is clear and open.~~<br/>~~	+	* Time charges.
		+	* A percentage of the construction cost.
		+	* Stage payments.
		+	* A lump sum.
		+	* Some combination of these.
		+
		+	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment and that communication about billing and payments is clear and open.

	RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’		RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’

−	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than as an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.~~<br/>~~	+	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than as an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.

−	The invoicing process can be automated or outsourced if this is not the strength of the practice. Automated systems can assist with:~~<br/>~~	+	The invoicing process can be automated or outsourced if this is not the strength of the practice. Automated systems can assist with:
−	*Compiling timesheets and expenses.	+
−	*Assessing progress against the budget.	+
−	*Resource allocation.	+
−	*Project tracking.	+
−	*Pricing for future projects.	+
−	*Tracking payments.	+
−	*Assessing the profitability of jobs, work stages, clients, staff members, business units and so on.	+

−	~~Late payment of invoices is a problem for most suppliers of goods~~ and ~~services~~. ~~In tough economic times~~ the ~~problem gets worse as cash retention becomes a greater priority~~. ~~It is frequently the largest and most powerful client groups who are the worst culprits~~. ~~When considering whether to accept a new client therefore~~, ~~it may be prudent to assess their financial status~~ and ~~their approach to payment~~.~~<br/>~~	+	* Compiling timesheets and expenses.
		+	* Assessing progress against the budget.
		+	* Resource allocation.
		+	* Project tracking.
		+	* Pricing for future projects.
		+	* Tracking payments.
		+	* Assessing the profitability of jobs, work stages, clients, staff members, business units and so on.

−	Suppliers of services have a number of statutory rights as well as those provided by contract:~~<br/>~~	+	Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits. When considering whether to accept a new client therefore, it may be prudent to assess their financial status and their approach to payment.
−	*The Late Payment of Commercial Debts (Interest) Act.	+
−	*The Late Payment of Commercial Debts Regulations.	+	Suppliers of services have a number of statutory rights as well as those provided by contract:
−	*The Housing Grants, Construction and Regeneration Act.	+
		+	* The Late Payment of Commercial Debts (Interest) Act.
		+	* The Late Payment of Commercial Debts Regulations.
		+	* The Housing Grants, Construction and Regeneration Act.

	Ultimately, the architect can suspend services, or if non-payment continues, can terminate the appointment. Debts can be recovered through court proceedings, through the small claims court for debts of less than £5,000, or by alternative dispute resolution.		Ultimately, the architect can suspend services, or if non-payment continues, can terminate the appointment. Debts can be recovered through court proceedings, through the small claims court for debts of less than £5,000, or by alternative dispute resolution.

−	See Remedies for late payment for more information.~~<br/>~~	+	See Remedies for late payment for more information.

	= Find out more =		= Find out more =

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Architect.	+
−	*Architecture.	+	* Architect.
−	*Architects fees.	+	* Architecture.
−	*Architectural styles.	+	* Architects fees.
−	*Architectural training.	+	* Architectural styles.
−	*Appointment.	+	* Architectural training.
−	*Concept architectural design.	+	* Appointment.
−	*Construction supply chain payment charter.	+	* Concept architectural design.
−	*Fees.	+	* Construction invoice fraud.
−	*Professional Indemnity Insurance.	+	* Construction supply chain payment charter.
−	*Remedies for late payment.	+	* Fees.
−	*Scope of services.	+	* Professional Indemnity Insurance.
−	*The architectural profession.	+	* Remedies for late payment.
		+	* Scope of services.
		+	* The architectural profession.

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Designing Buildings at 13:12, 29 April 2014

2014-04-29T13:12:17Z

← Older revision		Revision as of 13:12, 29 April 2014
Line 13:		Line 13:
	*Some combination of these.		*Some combination of these.

−	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment and that communication about billing and payments is clear and open. <br/>	+	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment and that communication about billing and payments is clear and open.<br/>

	RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’		RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’
Line 31:		Line 31:

	Suppliers of services have a number of statutory rights as well as those provided by contract:<br/>		Suppliers of services have a number of statutory rights as well as those provided by contract:<br/>
−	#The Late Payment of Commercial Debts (Interest) Act.	+	*The Late Payment of Commercial Debts (Interest) Act.
−	#The Late Payment of Commercial Debts Regulations.	+	*The Late Payment of Commercial Debts Regulations.
−	#The Housing Grants, Construction and Regeneration Act.	+	*The Housing Grants, Construction and Regeneration Act.

	Ultimately, the architect can suspend services, or if non-payment continues, can terminate the appointment. Debts can be recovered through court proceedings, through the small claims court for debts of less than £5,000, or by alternative dispute resolution.		Ultimately, the architect can suspend services, or if non-payment continues, can terminate the appointment. Debts can be recovered through court proceedings, through the small claims court for debts of less than £5,000, or by alternative dispute resolution.

−	See Remedies for late payment for more information. <br/>	+	See Remedies for late payment for more information.<br/>

	= Find out more =		= Find out more =

Designing Buildings at 13:11, 29 April 2014

2014-04-29T13:11:14Z

← Older revision		Revision as of 13:11, 29 April 2014
Line 4:		Line 4:
	----		----

−	Invoicing and collecting payments is a key element in the architect-client relationship, but one which is often overlooked, particularly by small firms serving private residential clients. Architects can feel embarrassed to be asking for money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then send an unexpectedly large invoice, which can damage the relationship with the client.<br/>	+	Invoicing and collecting payments is a key element in the architect-client relationship, but one which is often overlooked or avoided, particularly by small firms serving private residential clients. Architects can feel embarrassed to be asking for money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then send an unexpectedly large invoice, which can damage the relationship with the client.<br/>

	There are many different ways architects charge for their professional services, such as:		There are many different ways architects charge for their professional services, such as:
Line 13:		Line 13:
	*Some combination of these.		*Some combination of these.

−	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment.<br/>	+	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment and that communication about billing and payments is clear and open. <br/>

	RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’		RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’

−	It is ~~vital~~ that ~~communication about billing and payments~~ is ~~clear~~ and ~~open~~.	+	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than as an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.<br/>

−	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.<br/>	+	The invoicing process can be automated or outsourced if this is not the strength of the practice. Automated systems can assist with:<br/>
−		+	*Compiling timesheets and expenses.
−	The process can be automated or outsourced, if this is not the strength of the practice. Automated systems can ~~also~~ assist with:<br/>	+	*Assessing progress against the budget.
−	*Compiling timesheets and expenses	+
−	*Assessing progress against the budget.	+
	*Resource allocation.		*Resource allocation.
	*Project tracking.		*Project tracking.
Line 30:		Line 28:
	*Assessing the profitability of jobs, work stages, clients, staff members, business units and so on.		*Assessing the profitability of jobs, work stages, clients, staff members, business units and so on.

−	Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits. When considering whether to accept a new client, it may be prudent to assess their financial status and their approach to payment. <br/>	+	Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits. When considering whether to accept a new client therefore, it may be prudent to assess their financial status and their approach to payment.<br/>

−	~~However all suppliers~~ of services have statutory rights as well as those provided by contract:<br/>	+	Suppliers of services have a number of statutory rights as well as those provided by contract:<br/>
	#The Late Payment of Commercial Debts (Interest) Act.		#The Late Payment of Commercial Debts (Interest) Act.
	#The Late Payment of Commercial Debts Regulations.		#The Late Payment of Commercial Debts Regulations.
	#The Housing Grants, Construction and Regeneration Act.		#The Housing Grants, Construction and Regeneration Act.
−	~~#Court proceedings.~~
−	~~#The small claims court for debts of less than £5,000.~~
−	~~#Alternative dispute resolution.~~

−	~~See Remedies for late~~ payment for ~~more information~~.	+	Ultimately, the architect can suspend services, or if non-payment continues, can terminate the appointment. Debts can be recovered through court proceedings, through the small claims court for debts of less than £5,000, or by alternative dispute resolution.

−	~~Ultimately, the architect can suspend services, or if non-~~payment ~~continues, can terminate the appointment~~.	+	See Remedies for late payment for more information. <br/>

	= Find out more =		= Find out more =

Designing Buildings at 13:06, 29 April 2014

2014-04-29T13:06:06Z

← Older revision		Revision as of 13:06, 29 April 2014
Line 4:		Line 4:
	----		----

−	Invoicing and collecting payments is a key element in the ~~designer~~-client relationship, but one which is often overlooked, particularly by small firms serving private residential clients. Architects can feel embarrassed to be ~~demanding~~ money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then ~~they~~ send an unexpectedly large invoice, which can damage the relationship with the client.<br/>	+	Invoicing and collecting payments is a key element in the architect-client relationship, but one which is often overlooked, particularly by small firms serving private residential clients. Architects can feel embarrassed to be asking for money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then send an unexpectedly large invoice, which can damage the relationship with the client.<br/>

	There are many different ways architects charge for their professional services, such as:		There are many different ways architects charge for their professional services, such as:
Line 15:		Line 15:
	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment.<br/>		However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment.<br/>

−	~~Billing should be treated as one~~ of the ~~fundamental business practices~~ of ~~small and large firms alike~~, ~~rather than an afterthought~~. ~~Invoicing~~ should ~~be carried out regularly, and can even be automated or outsourced, if this is not~~ the ~~strength~~ of the ~~practice. This ensures~~ that ~~payments are due in small~~, ~~regular amounts that the client~~ will ~~have the cash flow~~ to ~~pay and~~ that ~~keeps~~ the ~~cash flowing through the practice~~.~~<br/>~~	+	RIBA [http://www.architecture.com/TheRIBA/AboutUs/Ourstructure/Constitution/CodeOfConduct.aspx#.U1-hjFfiiSq Guidance Note 4] in support of the RIBA Code of Professional Conduct states that ‘ When invited to quote for architectural or other services, members should ensure that they have sufficient information about the commission for the calculation of their fee. Any fee quotation should clearly indicate the type and extent of the services (a defined scope of works) to be undertaken for that fee, and will also enable any subsequent changes to be identified. Members should ensure that they have adequate and appropriate financial and technical resources and professional expertise to deliver the services offered.’

−	Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits.<br/>	+	It is vital that communication about billing and payments is clear and open.
		+
		+	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than an afterthought. Invoicing can be very time consuming, particularly when a practice has a large number of clients or projects. However it is important that it is carried out regularly to ensure that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. It can also be useful to seek confirmation that invoices have been received.<br/>
		+
		+	The process can be automated or outsourced, if this is not the strength of the practice. Automated systems can also assist with:<br/>
		+	*Compiling timesheets and expenses
		+	*Assessing progress against the budget.
		+	*Resource allocation.
		+	*Project tracking.
		+	*Pricing for future projects.
		+	*Tracking payments.
		+	*Assessing the profitability of jobs, work stages, clients, staff members, business units and so on.
		+
		+	Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits. When considering whether to accept a new client, it may be prudent to assess their financial status and their approach to payment. <br/>

	However all suppliers of services have statutory rights as well as those provided by contract:<br/>		However all suppliers of services have statutory rights as well as those provided by contract:<br/>
Line 23:		Line 36:
	#The Late Payment of Commercial Debts Regulations.		#The Late Payment of Commercial Debts Regulations.
	#The Housing Grants, Construction and Regeneration Act.		#The Housing Grants, Construction and Regeneration Act.
		+	#Court proceedings.
	#The small claims court for debts of less than £5,000.		#The small claims court for debts of less than £5,000.
		+	#Alternative dispute resolution.

	See Remedies for late payment for more information.		See Remedies for late payment for more information.
		+
		+	Ultimately, the architect can suspend services, or if non-payment continues, can terminate the appointment.

	= Find out more =		= Find out more =
Line 40:		Line 57:
	*Fees.		*Fees.
	*Professional Indemnity Insurance.		*Professional Indemnity Insurance.
		+	*Remedies for late payment.
	*Scope of services.		*Scope of services.
	*The architectural profession.		*The architectural profession.

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Designing Buildings at 12:33, 29 April 2014

2014-04-29T12:33:18Z

← Older revision		Revision as of 12:33, 29 April 2014
Line 4:		Line 4:
	----		----

−	Invoicing and collecting payments is a key element in the designer-client relationship, but one which is often overlooked, particularly by small firms serving private residential clients. Architects can feel embarrassed to be demanding money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then they send an unexpectedly large invoice, which can damage the relationship with the client. <br/>	+	Invoicing and collecting payments is a key element in the designer-client relationship, but one which is often overlooked, particularly by small firms serving private residential clients. Architects can feel embarrassed to be demanding money from their clients, and are often poor at managing scope creep or recognising when items should be billed as additional services. Architect's have even been known to hold off on invoicing until the client is completely committed to the project and then they send an unexpectedly large invoice, which can damage the relationship with the client.<br/>

	There are many different ways architects charge for their professional services, such as:		There are many different ways architects charge for their professional services, such as:
Line 15:		Line 15:
	However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment.<br/>		However, there are often complications and misunderstandings, particularly in relation to the clear definition of what is and is not included in the fee. It is very important therefore that this is set out clearly in the appointment agreement, along with the invoicing period and the terms for payment.<br/>

−	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than an afterthought. Invoicing should be carried out regularly, and can even be automated or outsourced, if this is not the strength of the practice. This ensures that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice. <br/>	+	Billing should be treated as one of the fundamental business practices of small and large firms alike, rather than an afterthought. Invoicing should be carried out regularly, and can even be automated or outsourced, if this is not the strength of the practice. This ensures that payments are due in small, regular amounts that the client will have the cash flow to pay and that keeps the cash flowing through the practice.<br/>

−	Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits. <br/>	+	Late payment of invoices is a problem for most suppliers of goods and services. In tough economic times the problem gets worse as cash retention becomes a greater priority. It is frequently the largest and most powerful client groups who are the worst culprits.<br/>

	However all suppliers of services have statutory rights as well as those provided by contract:<br/>		However all suppliers of services have statutory rights as well as those provided by contract:<br/>
	#The Late Payment of Commercial Debts (Interest) Act.		#The Late Payment of Commercial Debts (Interest) Act.
	#The Late Payment of Commercial Debts Regulations.		#The Late Payment of Commercial Debts Regulations.
−	#The Housing Grants, Construction and Regeneration Act.	+	#The Housing Grants, Construction and Regeneration Act.
	#The small claims court for debts of less than £5,000.		#The small claims court for debts of less than £5,000.

Line 42:		Line 42:
	*Scope of services.		*Scope of services.
	*The architectural profession.		*The architectural profession.
		+
		+	[[Category:Articles_needing_more_work]]