PC2:8 - Invoicing, payment of fees and financial management Question Title * 1. What did the 'Housing Grants, Construction and Regeneration Act 1996' put in place with regards to interim payments? (Required.) It allowed clients to delay payments indefinitely without penalties It required all construction contracts to have a fixed payment schedule It introduced a statutory right to interim payments in certain contracts It eliminated the need for written contracts in payment agreements Question Title * 2. Why is charging fees at the completion of each stage when providing services under a RIBA Professional Services Contract considered bad practice in terms of cashflow? (Required.) It reduces financial security by delaying revenue and increasing risk It allows architects to negotiate a higher final payment It makes it easier to track expenses across multiple projects It aligns payments more closely with contractor billing cycles Question Title * 3. What is best practice for the follow-up of unpaid invoices and their respective timeframes? (Required.) Wait six months before chasing unpaid invoices to give the client flexibility Send a legal notice immediately when payment is overdue Allow the client to decide when they can pay Send a reminder immediately after the due date, then escalate if unpaid within 14–28 days Question Title * 4. Under Clause 5.10 of the RIBA Professional Services Contract, when would you issue Payment Notices to the Client? (Required.) Whenever the client requests a cost breakdown After each invoice is issued, to confirm the amount due and payment timeline Only at the end of the project when final payment is required Only if the client disputes an invoice Question Title * 5. When might the Client decide to issue a Pay Less Notice to the Architect? (Required.) If they believe part of the work has not been completed satisfactorily If they want to delay payment to manage their own cashflow If they have fully approved and agreed to the invoice If they want to negotiate a lower contract fee Done