Link Overview:

Section 1
Ethical Considerations...

Section 2
Terms of Engagement...

Section 3
Terms of Payment...

Section 4
Other Considerations...

Appendix A

Appendix B
Client/Prime Consultant/
Agreements ...
Section 3
Terms of Payment



The payment of Subconsultant's accounts by Prime Consultants must reflect the mutual trust accorded to each other by virtue of the Code of Ethics.


1. Funds received by the Prime Consultant for services provided by a Subconsultant are received on behalf of the Subconsultant and should be disbursed without delay.

2. When the Client withholds a portion of the Prime consultant's fees due to deficiencies in services performed by a Subconsultant, the Prime Consultant is entitled to withhold a commensurate proportion of the Subconsultant's fees. Any withholding of fees in compliance with legal or statutory requirements shall be applied equitably by the Prime Consultant to all Subconsultants.

3. The Prime Consultant is justified in withholding funds received on behalf of a Subconsultant if the services of the Subconsultant are found to be deficient after the Prime Consultant invoice, including the deficient services, has been submitted. The amount of funds withheld should reflect the cost of correcting the deficiency in the services provided by the Subconsultant.

4. When the Prime Consultant has been paid by the Client but withholds fees from the Subconsultant, due either to deficiences in services or to statutory requirements, these funds should be held separately from the Prime Consultant's normal operating capital.

5. Their terms of payment included in the Prime Consultant's agreement with the Client should correspond with good business practice and form the basis for the agreements between the Prime Consultant and Subconsultant. The details of the arrangements, including any variations in payment due dates and interest on overdue accounts, should be included in the agreement.

6. In circumstances where the Prime Consultant has assigned all receivables, or where the funds might otherwise be intercepted, the Subconsultants who may be affected should be advised at the time of their engagement, or subsequently if circumstances change during an assignment.



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