Regular invoicing for architects
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.
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:
- 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 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.
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.
Suppliers of services have a number of statutory rights as well as those provided by contract:
- 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.
See Remedies for late payment for more information.
[edit] Related articles on Designing Buildings Wiki
- Architect.
- Architecture.
- Architects fees.
- Architectural styles.
- Architectural training.
- Concept architectural design.
- Construction invoice fraud.
- Construction supply chain payment charter.
- Fees.
- Invoice.
- Professional Indemnity Insurance.
- Remedies for late payment.
- Resource allocation in design and construction.
- Scope of services.
- The architectural profession.
Featured articles and news
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.