ᐅ Disagreements with Architect Regarding Construction Costs and Invoice

Hello everyone,
my wife and I are planning to convert a former agricultural barn into living space. The barn dates back to around the 1920s. The farm has been deregistered for about 20 years, so the building has only been rented out as parking space for motorhomes, etc. After the farm was deregistered, a reinforced concrete slab was installed across the entire area, the exterior was sandblasted and re-pointed, and since the interior has never been damp, the structural engineer who inspected the building confirmed that the roof frame is in very good condition.

In mid-2017, I started the initial planning work myself. I took measurements including heights and all dimensions, contacted the building authority (building permit / planning permission office), created a complete design, and then submitted a preliminary building inquiry. In November 2017, I received approval from the district, so in December I began looking for an architect needed for design phase 4. Since I work as a draftsman, I provided him immediately during our first contact with my finished design (2D ground floor, upper floor including all existing plans), so he could get a clear idea of the project.
Friends and relatives recommended an architect who lives just 1.5 km (1 mile) from the site and is said to do good work. After initial discussions, he started working and by April gave me his first promise that he would complete the documents the following week and forward them to the building authority. He adopted my design almost entirely in 3D, except for minor adjustments such as moving windows, and expanded the drawings with elevations and sections.
Until December 2018, there were countless excuses and apologies after I complained, with promises that the documents would be ready the next week, periods where he stopped responding entirely, until he finally completed the documents and requested a final meeting. Unfortunately, even after multiple requests, he was unable or unwilling to provide an estimated construction cost before that meeting, which would have allowed us to adjust the concept according to our own budget expectations (I believe this should be part of design phase 3).

At the meeting, he unfolded his completed plan, described the project again, and then presented his estimated construction costs. However, before we even got to the costs and after he had explained everything, I noticed that he had not followed some agreements, mainly related to the construction costs. For example, he calculated using Poroton S9 blocks instead of cavity wall insulation and sand-lime brick. He also included the conversion of an attic above the existing in-building garage, which according to clear prior agreement would be done, if at all, only in 25 to 30 years, along with the garage itself. He added that his estimate assumes that all work will be contracted out and none will be done privately. This is obviously invented. The agreement was that only the shell structure and necessary roof work would be subcontracted.

From his invoice, I saw that he applied a fee rate of about 10.84% of the estimated nearly 465,000 (not considering the above agreements), which would amount to roughly 51,000 for all design phases. In addition to the 3% from design phase 4, he charged another 12% from design phase 3, which in my opinion is absolutely not justified. I expected a fee rate of about 5-7%, since he only had to incorporate my design and make minor changes, but 12% corresponds to 80% of the maximum 15% fee allowed, and he definitely did not perform that level of work in phase 3. Overall, he is now adding extra costs for printing, “site plan,” and so on, amounting to over 10,000.
Of course, I disputed his invoice before Christmas. My question now is, do I have the right to request a revised cost estimate and architect’s invoice, and do architects usually calculate construction costs by m², m³, or similar to maximize their fees?

Thank you very much and best regards,
A.H.

Is there any written documentation from the "initial discussions" when the contract was made, such as emails or meeting minutes? The delay of eight months alone could potentially justify a claim for damages, for example due to increased material and labor costs during that period. In any case, the work has now been completed, and you are obliged to pay for it.

Was the contract actually limited to the shell construction project with shell construction costs of €XY, or was the planning up to the finished, ready-to-move-in stage also discussed and commissioned? I mean, whether or not owner-provided work is included, the project volume remains as it is, although owner-provided work represents equity capital; in the end, there will be a house worth €465,000 (about $465,000) there, and the architect’s fee is based on that.

What total amount are you expecting? Who will handle the communication after the application? I would be cautious about falling out with the architect.

Mottenhausen schrieb:
I mean, whether own labor is included or not, the total project volume remains the same; own labor just counts as equity. But in the end, there will be a house costing 465,000 euros, and the architect’s fee is based on that.

That statement is completely correct. Own labor unfortunately does not play a role here.

Do you have a written preliminary contract? Architects often begin work in advance. However, usually a cost estimate is provided by stage 2 of the service phases—not only at stages 3 or 4. It is very unusual to base the costs only on the submission planning. Normally, this stage refines the initial cost estimate, which the fee is based on.

The problem now is that you have already commissioned the work, even if only verbally, by handing over plans and asking the architect to create the submission planning. This should only be done once the first cost estimate is available. Even without anything in writing, the verbal agreement counts in this case as the commission.

So, you will have to pay for the work carried out so far. The fact that your plans were largely finished beforehand is irrelevant if no explicit agreement was made to that effect.

We also presented our architect with a finished floor plan that needed little improvement. Still, you pay the set fee for the official documents and drawings prepared during that phase.

And even if the architect invoiced under the fee agreement, you should be cautious, as fees could still be claimed afterwards through legal action.

Best regards