THE Royal Incorporation of Architects in Scotland (RIAS) has submitted its response to the UK Government’s consultation on tackling poor payment practices, urging for reforms that protect suppliers without destabilising construction contracts.
In recognition of ongoing issues surrounding the late release and ‘unjust’ withholding of payment caused by retention clauses, the RIAS said it supports the need for change to improve payment fairness. However, the organisation cautions against a blanket prohibition of these clauses and warns that such a move could introduce new, unintended consequences for architects and SME contractors.
Instead, RIAS advocates for retention protection as a ‘realistic alternative’. The organisation argues that mechanisms such as segregated accounts and certified completion-based release, alongside stronger digital reporting, would help to ensure both performance assurance and payment security.
Sector-specific guidance and training should play an essential role here too, the RIAS added, both in terms of raising awareness among SMEs of their rights and obligations, and supporting architects with contract administration, and their expanded responsibilities when it comes to these measures. The RIAS also calls for reforms to include professional services contracts, which are often overlooked in payment policy debates.
Karen Anderson, president of the RIAS, said, “Architects want to see fairer payment practices across the industry, but reforms must be proportionate and practical. If we rush into prohibiting retentions without viable alternatives, we risk creating new problems for the very professionals and clients that we’re trying to protect.”
