Payment arrangements under SIA 102 / 103

The SIA orders 102 / 103 have only a few terms and conditions on payment terms and compensation offsetting:

Instalment payment claim

Payment demand

  • Under article 1.4.4 of SIA orders 102 / 103 the planner has the right to instalment payments from the principal on the precondition that the planner has already provided services.

Quantitative

  • The planner may demand instalment payments of at least (!) 90% (article 1.4.4 of SIA orders 102 / 103).

Effective date

  • The SIA orders clearly establish when the planner may demand interim payments; therefore, the principle of good faith applies.

Due date

  • The planner may bring about the discounted debt concerned through a unilateral statement.
  • The discounted debt claim is due upon the principal’s receipt of the payment demand.

Payment term

  • 30 days
  • The end of the payment period is considered the due date (cf. OR 102 paragraph 2), which is why the principal who doesn’t pay on time is automatically in arrears.

Guarantee and advanced payment

  • Besides instalment payments, the planner may demand
    • Fee guarantees
    • appropriate advanced payments
  • Article 1.4.4 SIA orders 102 / 103 provides the basis for the contractual right to a guarantee

Final settlement result

Payment demand

  • The final invoice contains a payment request with the final accounting result.

Quantitative

  • Total fee less instalment payments

Effective date

  • Principle
    • After the end of the planner contract, the planner may present his final invoice to the principle.
  • Guarantee support reservation
    • Since the direction of guarantee work (before the expiration of the 2-year notice of defects period) is part of the basic services of the planner according to the description of services (1.5% of the overall service), this partial service is only due after it is actually provided (article 1.5.1 of SIA orders 102 / 103)

Due date

  • Expiration of the due date wit the arrival of the final invoice at the principle (article 1.4.1 SIA orders 102 / 103)
  • The planner has the possibility to enforce a due date with the delivery of the final invoice

Payment term

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