ᐅ Construction budget/planning significantly exceeded—who is liable?
Created on: 28 May 2013 14:20
M
maike321
Hello everyone,
We have been planning our renovation for over a year now. It is a two-family house from the early 1960s, where my parents live in the ground floor unit and my husband and I live in the top floor unit. We now want to combine our top floor unit with the attic and partially extend it. In addition, the construction of a double garage and full insulation of the entire house was planned.
The plans were completed by the architect and approved by us. Then a cost estimate was made (using these tables that calculate average values per unit/trade; unfortunately, I can’t remember the name right now). We calculated planned costs of 220,000 euros without architect fees. With this plan, we went to our bank and got an offer for 250,000 euros (including equity) as a precaution, because in a renovation you’re sure to find unexpected expenses. Also, the garage (around 25,000 euros) and the full insulation (around 20,000 euros) do not have to be built right away, so that money was also set aside as a buffer. After the bank approved, it was clear to us that we wanted to move forward with the project. The building permit/planning permission has since been granted, the apartment has been transferred from my parents to us, and the loan has been applied for, so we could start.
Now all the offers are in, and we’re almost in shock: without the garage and full insulation, construction costs are currently around 225,000 euros, and that’s without any contingency! If I consider our original plan (175,000 euros for purely the renovation), this is already a cost overrun of more than 28%. Canceling the plan is no longer feasible for us without significant financial losses (initial architect and structural engineer fees already paid, ownership transferred, early repayment penalties would apply).
Now my question: Can I hold the architect liable for such a miscalculation in any way? Had we known about these high costs beforehand, we would have completely abandoned the renovation.
I know legal advice cannot be given here, but a hint in the right direction would be appreciated.
Thank you very much,
Best regards, maike321
We have been planning our renovation for over a year now. It is a two-family house from the early 1960s, where my parents live in the ground floor unit and my husband and I live in the top floor unit. We now want to combine our top floor unit with the attic and partially extend it. In addition, the construction of a double garage and full insulation of the entire house was planned.
The plans were completed by the architect and approved by us. Then a cost estimate was made (using these tables that calculate average values per unit/trade; unfortunately, I can’t remember the name right now). We calculated planned costs of 220,000 euros without architect fees. With this plan, we went to our bank and got an offer for 250,000 euros (including equity) as a precaution, because in a renovation you’re sure to find unexpected expenses. Also, the garage (around 25,000 euros) and the full insulation (around 20,000 euros) do not have to be built right away, so that money was also set aside as a buffer. After the bank approved, it was clear to us that we wanted to move forward with the project. The building permit/planning permission has since been granted, the apartment has been transferred from my parents to us, and the loan has been applied for, so we could start.
Now all the offers are in, and we’re almost in shock: without the garage and full insulation, construction costs are currently around 225,000 euros, and that’s without any contingency! If I consider our original plan (175,000 euros for purely the renovation), this is already a cost overrun of more than 28%. Canceling the plan is no longer feasible for us without significant financial losses (initial architect and structural engineer fees already paid, ownership transferred, early repayment penalties would apply).
Now my question: Can I hold the architect liable for such a miscalculation in any way? Had we known about these high costs beforehand, we would have completely abandoned the renovation.
I know legal advice cannot be given here, but a hint in the right direction would be appreciated.
Thank you very much,
Best regards, maike321
G
Goldbeere5 Jun 2013 09:32Bauqualle schrieb:
.. and why is the architect’s construction cost estimate being significantly exceeded when you initially calculated 250,000 + 30,000 = 280,000 euros? @Bauqualle, maybe I’m misunderstanding, but Maike actually explained everything quite clearly?!
"Planned costs €220,000 (pure interior finishing €175,000 + new garage €25,000 + full insulation €20,000)"
Recorded €250,000 including a €30,000 buffer.
But now, THE INTERIOR FINISHING alone has been offered at €225,000. This estimate is off by €50,000! Isn’t that a “significant exceedance”? Plus garage and insulation (values as above) = already €270,000! The buffer is gone before work has even started... And Maike wrote that there isn’t even an offer yet for garage and insulation. So the situation is still open...
Goldbeere
B
Bauexperte5 Jun 2013 14:38Hello,
Best regards, Bauexperte
maike321 schrieb:Before you invest a lot of money – no one here knows the exact terms you agreed on with your architect – go to the architects’ board that your architect is registered with and get advice there; they have dedicated staff for this purpose. But please take the contract you signed with your architect with you.
... and if he is not cooperative in some way, we should get advice from an expert in construction law.
Best regards, Bauexperte
Similar topics