Unpaid Architect Fees forces firm to close down

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unpaid architect fees forces firm to close

Well established Gareth Hoskins Architects has announced a shock decision to cease their UK operations as a result of unpaid architect fees.

In a statement, the practice cited an ‘outstanding six-figure debt’ for precipitating the decision amidst a difficult trading environment contributing to multiple project delays.

In a trading update, the practice wrote: “Hoskins Architects Group Limited is sorry to announce that the directors of its UK trading subsidiary Gareth Hoskins Architects Limited have been forced to take the decision to cease trading, and are in the process of appointing a liquidator.

This situation has come about as a result of project delays combined with the illiquidity of a major client and the significant outstanding six-figure debt owed to Gareth Hoskins Architects Limited by that party.”

Liquidation comes two years after a restructuring exercise that saw the business establish a new German company alongside its transition to an employee ownership trust.

The German arm of the company is unaffected by events in the UK as is Hoskins Architects Group Ltd, the parent company which was the sole owner of Gareth Hoskins Architects Limited and Hoskins Planungs GmbH.

The practice added: “Hoskins Architects Group Limited is not affected by these developments and its German subsidiary, Hoskins Planungs GmbH, will continue to focus on projects in German-speaking countries. It will continue to concentrate on the delivery of public cultural and museum projects in listed buildings, the preparation of studies and master plans for cultural and social facilities, and providing process support for complex public cultural building projects.”

Gareth Hoskins Architects closed for the last time on 28 June, eight years on from the sudden death of founder Gareth Hoskins, a period which delivered key projects including Aberdeen Art Gallery, the Love Loan development at George Square as well as a planned skyscraper at Washington Street in what could be the tallest building in the country.

Earlier this year Carson & Partners were forced into liquidation after encountering similar financial difficulties.

Dealing with Unpaid Architect Fees

This situation highlights the importance of dealing with unpaid architect fees effectively.  In the fast-paced world of architecture and design, it is not uncommon for clients to fall behind on payments or refuse to pay altogether.

However, it is crucial for architects and firms to understand their legal rights and take appropriate action in order to protect their business.

The first step in dealing with unpaid architect fees is to have a clear contract in place that outlines payment terms and conditions. This will serve as a reference point if any disputes arise and can help avoid confusion or misunderstandings. It should also include provisions for late payment penalties or interest charges.

If a client falls behind on payments, it is important to communicate with them early on and try to resolve the issue amicably. Sometimes there may be valid reasons for delay, such as unexpected financial difficulties or  project delays. In these cases, it may be possible to negotiate a payment plan or adjust the scope of work to accommodate for the client’s situation.

However, if the client consistently fails to make payments or ignores attempts at communication, it may be necessary to a professional debt collection for architects fees service.

It is important for architects and firms to have proper documentation and evidence of their work in order to support their case and claim for unpaid architect fees.

 

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