ᐅ Architect, contract under HOAI 2013 – refusal to perform services
Created on: 15 May 2019 10:00
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stephan.l
Hello! I am new to this forum and could use some help. I have a contract with an architect based on HOAI 2013 covering phases 1 to 8. His fee is VERY high at 18.5% of the total costs. He is also the construction manager. The architect was already 72 years old when hired and recommended himself based on a successful project for a neighbor.
The architect has already invoiced 75% of the total fee as progress payments, but so far not even the basement of the house (basement, ground floor, sleeping floor) is finished (the contractor’s share of costs so far is 24% of the total construction costs). Other trades have barely been (documentedly) worked on, the schedule is missing, and the detailed execution plans for the upper floors are incomplete. On-site, he shows up at most once a month for one hour, which has led to misunderstandings in the construction process due to lack of supervision.
Now the architect has issued another invoice, which would bring the total paid to 86% of the entire fee. I explained the situation to him and referred to a progress payment appropriate to the construction progress, asking him to please submit the invoice at a later date.
In response, the architect started quarrelling intensely with the contractor and stated that he cannot continue working due to the contractor’s insufficient quality and that he would not continue until his fully justified claim is paid. Construction is at a standstill because the plans for the ground floor are missing.
My question is: can the architect demand arbitrarily high progress payments under HOAI without corresponding progress and service delivery?
Thank you very much if anyone has experience with this.
The architect has already invoiced 75% of the total fee as progress payments, but so far not even the basement of the house (basement, ground floor, sleeping floor) is finished (the contractor’s share of costs so far is 24% of the total construction costs). Other trades have barely been (documentedly) worked on, the schedule is missing, and the detailed execution plans for the upper floors are incomplete. On-site, he shows up at most once a month for one hour, which has led to misunderstandings in the construction process due to lack of supervision.
Now the architect has issued another invoice, which would bring the total paid to 86% of the entire fee. I explained the situation to him and referred to a progress payment appropriate to the construction progress, asking him to please submit the invoice at a later date.
In response, the architect started quarrelling intensely with the contractor and stated that he cannot continue working due to the contractor’s insufficient quality and that he would not continue until his fully justified claim is paid. Construction is at a standstill because the plans for the ground floor are missing.
My question is: can the architect demand arbitrarily high progress payments under HOAI without corresponding progress and service delivery?
Thank you very much if anyone has experience with this.
S
stephan.l16 May 2019 18:06@hampshire:
All explanation texts for the invoices below are complete and unabridged. I dare say this alone makes them unverifiable? The dates are correct, the process was delayed—thanks to the building authority—and the amounts include VAT.
1. Invoice, 10/2016, €6,200
“Planning services rendered so far, preliminary design”
2. Architect invoice, 11/2016, €10,000
“Design planning, building permit planning”
3. Invoice 01/2018, €10,000
“Planning services rendered so far, half of the detailed design”
4. Architect invoice, 03/2018, €9,000
“Structural engineering (static calculations)” (according to HOAI 2013 contract, this was explicitly not to be commissioned through him, but directly by me)
5. Architect invoice, 05/2018, €9,200
“Project planning part 3, building and interiors”
6. Architect invoice, 05/2018, €10,000
“Structural engineering (static calculations), including execution planning”
“Technical building services (heating, ventilation, sanitary), including execution planning” (I have received no documents for the latter point, nothing)
Construction halt 06/2018 – 12/2018, legal fees for me €21,000
7. Architect invoice, 04/2019, €10,000 – unpaid
“Architect services under contract 2.1.1 – 2.1.9 prorated” (funny, phase 9 is not even commissioned according to the contract)
“Travel costs under contract 6.2 prorated” (also funny, he orally promised me zero and listed zero in his cost estimate)
Yes, at point 7 I pulled the plug. Until the construction halt (clearly the architect’s responsibility, though not straightforwardly legally accountable) I was probably somewhat trusting. After that, no longer. The reference related to the fact that this was a very, very difficult building authority and he supposedly handled it well. Now they no longer communicate with him.
All explanation texts for the invoices below are complete and unabridged. I dare say this alone makes them unverifiable? The dates are correct, the process was delayed—thanks to the building authority—and the amounts include VAT.
1. Invoice, 10/2016, €6,200
“Planning services rendered so far, preliminary design”
2. Architect invoice, 11/2016, €10,000
“Design planning, building permit planning”
3. Invoice 01/2018, €10,000
“Planning services rendered so far, half of the detailed design”
4. Architect invoice, 03/2018, €9,000
“Structural engineering (static calculations)” (according to HOAI 2013 contract, this was explicitly not to be commissioned through him, but directly by me)
5. Architect invoice, 05/2018, €9,200
“Project planning part 3, building and interiors”
6. Architect invoice, 05/2018, €10,000
“Structural engineering (static calculations), including execution planning”
“Technical building services (heating, ventilation, sanitary), including execution planning” (I have received no documents for the latter point, nothing)
Construction halt 06/2018 – 12/2018, legal fees for me €21,000
7. Architect invoice, 04/2019, €10,000 – unpaid
“Architect services under contract 2.1.1 – 2.1.9 prorated” (funny, phase 9 is not even commissioned according to the contract)
“Travel costs under contract 6.2 prorated” (also funny, he orally promised me zero and listed zero in his cost estimate)
Yes, at point 7 I pulled the plug. Until the construction halt (clearly the architect’s responsibility, though not straightforwardly legally accountable) I was probably somewhat trusting. After that, no longer. The reference related to the fact that this was a very, very difficult building authority and he supposedly handled it well. Now they no longer communicate with him.
S
stephan.l16 May 2019 18:15Mottenhausen – that is a VERY good tip! Thank you. At first, I didn’t intend to deal with HOAI at all. Beginner’s mistake...
Uh... what are the eligible costs for the construction project? I can’t make any sense of the invoices. So far, you have 55,000€ only for planning costs. That doesn’t include the tendering phase or construction supervision. And 20,000€ for the structural engineering? I paid 1,900€ for the structural engineering in my invoice.
If your place doesn’t cost at least 1 million euros, then tell me on what basis you are paying that much money.
If I weren’t so polite, I would ask if you are [???]! Didn’t you familiarize yourself with the fee regulations and the division of the service phases (LP) at the beginning?
This really makes me angry, and it’s not even my money.
If your place doesn’t cost at least 1 million euros, then tell me on what basis you are paying that much money.
If I weren’t so polite, I would ask if you are [???]! Didn’t you familiarize yourself with the fee regulations and the division of the service phases (LP) at the beginning?
This really makes me angry, and it’s not even my money.
S
stephan.l16 May 2019 21:42Okay, now you’re probably thinking I’m crazy.
It’s a weekend house with 42 sqm (450 sq ft)... Below that, a new basement with 63 sqm (678 sq ft) and a tiny sleeping loft under a rafter roof. He estimates the cost at 400k. Plus his fee of 74k including VAT.
Structural engineering: so far, 12.5k euros have been charged for this (subtotals). That’s 3%.
In defense: the exterior area and at best repainting wallpaper is allowed. Normally.
It’s a weekend house with 42 sqm (450 sq ft)... Below that, a new basement with 63 sqm (678 sq ft) and a tiny sleeping loft under a rafter roof. He estimates the cost at 400k. Plus his fee of 74k including VAT.
Structural engineering: so far, 12.5k euros have been charged for this (subtotals). That’s 3%.
In defense: the exterior area and at best repainting wallpaper is allowed. Normally.
Stephan.l schrieb:
400k. Plus his fee of 74k including VAT. You would need to break that down in more detail for people to comment on it. At first glance, it seems unbelievable. With a gross construction sum of 400k, the eligible costs come to around 300k or less. He would have to apply Zone III, the maximum rate, with at least a 35% surcharge for remodeling in order to reach that fee in the end.
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