Architect and budget limit... insurance? possibilities

Hello everyone! One question that just won't leave me alone is the matter of the budget. It's simply the case that you plan with an approximate sum. Since we are about to build with an architect, I regularly get shocked when I read, for example, "Budget has increased from 400k to 800k"??! I ask myself, doesn't that mean ruin for some people? You calculate with a sum that you finance, and if that sum then virtually doubles, doesn't the whole financing collapse?! Well, I mean an overrun of 10%, that's still manageable, but doubling it? Therefore, my question: What options are there actually to cap the budget? Put it down in a contract? Not choose an architect at all but a general contractor instead? Or what else is there. For me, it is just somehow incomprehensible when, as described above, a professional misjudges the construction costs so massively – then I do wonder if that person shouldn't have chosen another profession? Thanks in advance for your opinions on this.

Hi,

Don’t choose an architect at all but a general contractor?

Yep, that’s basically the only option if you really want security.

The cases of budget doubling are probably the exception, but unfortunately you only find that out afterwards when you go with an architect.

Best regards,

Andreas

Well, going from 400k to 800k seems a bit extreme to me...

You can shift the risk by paying someone else to bear it. You already mentioned GU. You can also combine architect and GU, you don't necessarily have to work with individual contracts (although precisely there might be potential savings in construction with an architect).
By the way, an architect can also be liable. Google that - links are not allowed here.
You can also agree on cost guarantees with architects. But probably not everyone does that.

Otherwise, every calculation will come back to bite you if you scale up or intentionally exceed the set budget. If you calculate with hardware store materials beforehand and end up with gold faucets with Swarovski embellishments in the place, the budget will probably have grown with the requirements.

But there are also a few unknowns that carry surprising cost potential. Earthworks or higher foundation effort are often mentioned. A soil survey can reduce this surprise (but it can’t turn a swamp into prime building land).

I agree, have building land and contracts from surveyors/experts checked, and budget generously for incidental building costs. Calculate realistically, not with the attitude "a friend will do it for me," or "15€ laminate is enough for me."

Even with the general contractor, you can have a nasty awakening. Although a good general contractor will also calculate solidly. Individual contracts are not always good, and the disadvantage is that there is currently a boom.

I have experienced that everyone in my circle of acquaintances who built an architect-designed house wanted something special. Almost everyone then struggled because of the additional costs or coordination, and later I somehow found the houses to be kind of cookie-cutter :p

It feels like the general contractor builders had fewer worries

First of all, I have to say that the plot is a parcel in a new development area which is already about 70% built - so I don’t assume it’s swamp land :-) rather more rocky terrain on a slope.
A soil survey costs around 1000 euros (from what I have found out) and I would of course still do it – especially since a drilling for geothermal energy is planned….
Topic additional construction costs … this also includes the architect’s budget. I tend to always calculate too low – meaning worst case. But there are some factors I cannot calculate like earth removal etc., I have no idea about that.
However, I have recorded it based on a model calculation and must correct it when I find someone who can tell me.

We have already communicated our budget to the architect, whereupon he more or less gulped but said well, you have to make cuts.
The fact is that we don’t want to pay endless tides on the house and we also place great value on other things in life, so the budget is somewhere in the range of 320,000 to 380,000 including incidental costs and including the architect. (The plot is already paid for and not included in this.)
The house should also not be huge – rather smaller and higher quality since it will only be for two of us and basically no children planned.
So these are the facts on the table – we told the architect about the 320 and I explicitly said that this is simply fixed for us.
As incidental costs I have budgeted:

Soil survey 900.00 €
Surveying 2,600.00 €
Building permit 800.00 €
Costs for membership in the Bauherren-Schutzbund 184.00 €
Costs for construction supervision 2,808.00 €
Architect costs 45,000.00 €
Excavation for basement or floor slab 6,000.00 €
Earth removal 5,000.00 €

… totals approx. 65,000 – to what extent I still need a structural engineer is not entirely clear to me so far if I have the architect carry out service phases 1-9...
I still have to budget costs for the energy consultant.
That’s roughly how the incidental costs look for now. The size of the house should be about 140 m² living space with a shed roof and since it is on a slope, basically only on one level with a basement / utility cellar.
KFW 55 or 40 should be achieved but it still has to be calculated whether it’s worth it with KFW.

What do you think about that?

Regarding the general contractor, I think somewhat similarly to a developer – they clearly want to save everywhere for me, so I simply have reservations about building with a general contractor / developer and there is still one level in between that adds profit...