- The Client is a ‘consumer’ as defined under the Consumer Rights Act 2015. The Architect/Consultant should read through the terms of the Contract with the Client and explain each term in the context of the Client’s rights as a consumer.
- A contract with a consumer client is subject to the Consumer Rights Act 2015. The Act requires that all contracts for services must provide for the following:
・the trader must perform the service with reasonable care and skill
・information which is said or written is binding where the consumer relies on it
・where the price is not agreed beforehand, the service must be provided for a reasonable price
・the service must be carried out within a reasonable time.
- While the RIBA Domestic Professional Services Contract is designed as an entity and provides remedies for the Client in the event of default by the Architect/Consultant, e.g. the requirement to maintain professional indemnity insurance and the options for dispute resolution, some of the terms may need careful explanation:
・Payment & Payment Notices (see clauses 5.10 to 5.24)
・The Limitation of Liability (see clauses 7.1 to 7.3)
・Professional Indemnity Insurance (see clause 8.1)
・Dispute Resolution (see clause 10)
- If the Client comprises a married couple or joint residential occupiers, all the Client parties are consumers, but the Client should identify one of their number as their representative with full authority to act on behalf of the parties.
- For work to the Client’s home or to a second home, the Client will be exempt from any statutory duties arising under:
・the Housing Grants, Construction and Regeneration Act 1996 as amended by Part 8 of the Local Democracy, Economic Development and Construction Act 2009, as a ‘residential occupier’
・the Late Payment of Commercial Debts (Interest) Regulations 2002.
However, if the Client’s second home is to be let at any time as a holiday rental or to other tenants, the Client will be deemed to be a business Client and the exemptions will not apply, thus this Contract is unsuitable and the RIBA Concise Professional Services Contract would be the appropriate choice.