76. Credit Control and Debt Recovery Procedure
76.1. The purpose of this procedure is to ensure that client invoices are paid promptly, to reduce the risk of bad debt, and to provide employees with a clear process for managing overdue accounts in line with statutory rights and contractual terms.
76.2. This procedure applies to all employees responsible for issuing invoices, monitoring payments, and following up on outstanding debts.
76.3. Architecture North Ltd operates on a Payment Due on Receipt basis.
76.3.1. All invoices clearly state the due dates for payment.
76.3.2. If invoices remain unpaid by the due date, the Company reserves the right to:
76.3.2.1. Charge default missed payment fees.
76.3.2.2. Apply statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998.
76.3.2.3. Apply charges as set out in the RIBA Contract agreed with the client.
76.4. Invoices must be issued promptly and accurately.
76.4.1. Each invoice must state the payment due date.
76.4.2. Copies of invoices must be saved in the secure accounts folder.
76.4.3. Any overdue invoices must be flagged and followed up immediately.
76.5. If payment is not made by the due date, Architecture North Ltd reserves the right to:
76.5.1. Charge statutory interest at a rate of 8% per annum above the Bank of England base rate, calculated from the date the invoice was issued.
76.5.2. Apply a default missed payment charge in line with the RIBA Contract.
76.5.3. Charge an administration fee for each reminder letter sent.
76.6. Management may approve:
76.6.1. Negotiated repayment plans.
76.6.2. Suspension of ongoing services until payment is made.
76.6.3. Referral to a debt collection agency or legal proceedings.
76.7. If recovery through legal means is required, all correspondence and evidence must be supplied to the Company’s legal representative.
76.8. Accounting Staff are responsible for issuing invoices, monitoring payments, applying charges, and sending reminders.
76.8.1. Directors are responsible for approving repayment plans, service suspensions, and escalation to legal recovery.
76.9. All payment reminders, applied charges, correspondence, and recovery actions must be documented.
76.9.1. Records must be stored securely in the client’s financial and project files.
76.10. This procedure will be reviewed annually to ensure compliance with statutory regulations, RIBA requirements, and company practices.