Hello everyone,
I have a serious problem: I hired an architect for the renovation of a single-family house. The contract was to prepare the submission documents and handle the entire process with the authorities.
The contract date was, believe it or not, seven (7!!!!) months ago. During this time, I received two drafts that did not meet my requirements, and otherwise only empty promises. The originally agreed submission deadline was the end of May. If the now communicated submission around mid-October is met, that would mean a delay of four and a half months. Since we have already made a down payment and I don’t want to hire a new architect because of the entire process, I’m at a loss and am turning to you in the hope of getting some advice.
Throughout the project phase, no deadlines were met, let alone was I informed when deadlines could not be met. There were an incredible 21 missed or postponed appointments during this period. I was promised 3D plans of the exterior and interior at the beginning of September, even though the floor plan data was already finalized, but they still have not been delivered. Since I intend to rent out the property and expect rental income of 1500-2000€/m (around $1,600-$2,100 per month), I am now facing a loss of nearly €10,000 (around $11,000) from lost rental income alone. Due to the inability to apply for a loan and rising interest costs, the total financial impact of the delay likely amounts to a six-figure sum for us.
Is there anything that can be done here? As mentioned, I cannot hire a new architect now, as that would mean starting the whole process over again. Unfortunately, I should have pulled the plug on this three months ago....
Thank you in advance for your responses.
Best regards,
nico333
I have a serious problem: I hired an architect for the renovation of a single-family house. The contract was to prepare the submission documents and handle the entire process with the authorities.
The contract date was, believe it or not, seven (7!!!!) months ago. During this time, I received two drafts that did not meet my requirements, and otherwise only empty promises. The originally agreed submission deadline was the end of May. If the now communicated submission around mid-October is met, that would mean a delay of four and a half months. Since we have already made a down payment and I don’t want to hire a new architect because of the entire process, I’m at a loss and am turning to you in the hope of getting some advice.
Throughout the project phase, no deadlines were met, let alone was I informed when deadlines could not be met. There were an incredible 21 missed or postponed appointments during this period. I was promised 3D plans of the exterior and interior at the beginning of September, even though the floor plan data was already finalized, but they still have not been delivered. Since I intend to rent out the property and expect rental income of 1500-2000€/m (around $1,600-$2,100 per month), I am now facing a loss of nearly €10,000 (around $11,000) from lost rental income alone. Due to the inability to apply for a loan and rising interest costs, the total financial impact of the delay likely amounts to a six-figure sum for us.
Is there anything that can be done here? As mentioned, I cannot hire a new architect now, as that would mean starting the whole process over again. Unfortunately, I should have pulled the plug on this three months ago....
Thank you in advance for your responses.
Best regards,
nico333
Tassimat schrieb:
It’s like raising children: you can only threaten consequences or penalties if you are also willing to follow through. For your architect, that means cutting ties once the deadline has passed. Otherwise, you make yourself a complete laughingstock, and six months later, nothing will have changed. But you’ll still receive a full invoice because they know they can get away with it (to put it bluntly).
How about this:
“Thank you for the draft so far. I have the following change requests; please incorporate these by October 10 so that the submission to the city can take place on [date]. Any further delays are unacceptable and will be considered immediate termination of the contract on your part as the contractor. In this case, we also reserve the right to claim damages for breach of contract.” Forget it. The original poster apparently
nico333 schrieb:
There were so many appointments simply because there were constant postponements. So, in total, there were 3 meetings scheduled for which 21 appointments were made. was taken for a ride no fewer than eighteen times without any warning or threat of consequences due to refusal to work or recognizing non-fulfillment. That loss of face is irreparable. Trying to retroactively amend a contract seemingly drafted “informally, without notice, and without effect,” setting deadlines for compliance, and so on, strikes me as utterly hopeless. Since theoretically the contract could be fulfilled at some indefinite point in the future, the architect will demand payment according to the fee schedule for their efforts and most likely succeed in doing so. Termination of the contract is possible but would result in a total loss of all invested costs.
However, until proven otherwise, I do not believe that this much miscommunication can be attributed solely to one-sided communication failures.
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xMisterDx28 Sep 2022 23:34If you issue a formal notice with a deadline or the situation has escalated to the point where you have to do so, you should have a lawyer draft it.
Honestly, statements like "I am setting a deadline until X, after which I will terminate the contract" just make the architect laugh. They always have a lawyer who will find a way to claim that the services provided, lost profits, and compensation are due in such cases.
In my view, this is a common misconception... The client usually goes through the process once in their life, the lawyer maybe ten times. The contractor’s or architect’s lawyer handles these cases hundreds of times a year. You will not win against them, especially not quickly...
Honestly, statements like "I am setting a deadline until X, after which I will terminate the contract" just make the architect laugh. They always have a lawyer who will find a way to claim that the services provided, lost profits, and compensation are due in such cases.
In my view, this is a common misconception... The client usually goes through the process once in their life, the lawyer maybe ten times. The contractor’s or architect’s lawyer handles these cases hundreds of times a year. You will not win against them, especially not quickly...
xMisterDx schrieb:
When you send a formal letter with a deadline, or the situation has escalated to the point where you have to do so... it’s best to have a lawyer draft it... The original poster intends to continue working with the architect anyway, so you can try setting the first deadline without a lawyer. A lawyer won’t do much more, but will charge for an initial consultation (€226) plus about an hour for writing the letter (€120).
If you want to get out of the situation as quickly as possible and don’t feel confident handling it yourself, then see a lawyer. But even then, it’s best to first try ending the contract by mutual agreement, following the motto: “Keep the deposit and we’re square.” We have no idea about the amounts involved here.
xMisterDx schrieb:
The architect will laugh at that. He definitely has a lawyer who will find a way to claim payment for the services rendered, downtime, and compensation in such a case. The services already provided will be paid anyway—the money is already gone with the deposit. The downtime fee will be at most the agreed amount. Probably something in between, since the architect has done nothing. Question: How many euros are still outstanding and can be additionally invoiced?
What damage has the architect actually suffered that he could claim? None!
In the end, you have to weigh who you want to pay the learning fee to: the architect or the lawyer. The maximum costs for the architect should be known; the lawyer could end up being even more expensive.
Thank you all for your help.
First of all, I have to say, this is a great forum. I didn’t expect so much input.
Secondly, I took your advice seriously and drafted a letter (reviewed by a lawyer friend) including deadlines (very short ones, by the way) and sent it out. And lo and behold: three days later, the submission plan was ready. (Although it is not yet fully aligned with my needs and the authorities.)
Whether this is a coincidence and the architect had already started working or was prompted into action by the letter, I can’t say. In any case, a clarifying conversation took place with new deadlines, which, if not met, will lead to termination. Whether these deadlines can be met or if there will be another delay remains to be seen.
Thanks and best regards, Nico
First of all, I have to say, this is a great forum. I didn’t expect so much input.
Secondly, I took your advice seriously and drafted a letter (reviewed by a lawyer friend) including deadlines (very short ones, by the way) and sent it out. And lo and behold: three days later, the submission plan was ready. (Although it is not yet fully aligned with my needs and the authorities.)
Whether this is a coincidence and the architect had already started working or was prompted into action by the letter, I can’t say. In any case, a clarifying conversation took place with new deadlines, which, if not met, will lead to termination. Whether these deadlines can be met or if there will be another delay remains to be seen.
Thanks and best regards, Nico
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