Architect Cost Estimation and Scheduling - Experiences

Good evening everyone,

I am trying to briefly summarize our current situation and would appreciate opinions and tips.

Last year we started planning with the architect and successfully completed it by November, including the loan funds necessary for construction.
The cost estimate was in place, the plot was purchased, and on 14/01 the building permit was granted, so we were optimistic to begin construction as planned on 21/05.

Then came the structural engineering (which took 6 weeks) and execution planning, meaning all service phases 1-8 were commissioned with the architect.
This all dragged on forever, and the tenders were sent out at the beginning of May. For us as laypeople it was already questionable whether we would get reasonable contractor offers given the current market situation.

And that’s how it turned out. Shell construction prices are already skyrocketing, but he should have known that in his scheduling, right?
Now parts are being planned more simply, the start of construction postponed to early September, etc...
We don’t have a big problem with that, but the commitment interest starts in November.

How should one behave best? It is still a very early phase but I now have to pull the reins a bit.

1. Can commitment interest incurred later be invoiced as costs?
2. The only cost estimate was the sheet for the bank; must the architect submit a detailed estimate again according to HOAI?
3. What further services are due to us from the service phases?
4. Up to what amount may he exceed the sum stated in the architect contract? What happens then?

We can also handle additional costs but I would prefer not to have to part with my condominium due to the misestimate and poor scheduling.

Perhaps you have some tips to get the situation back on track without escalating it directly.

Best regards,

Jan

I would almost say that this falls under general risk when building with architects. It wasn’t any different for us.

When which cost estimates/updates are “due” should be stated in the HOAI. I vaguely remember that the deviation between cost estimate (LPH 1) and cost determination (LPH 8?) may be 20%. In between comes the cost calculation based on the execution planning. That is then below the 20%, I think around 10%, but at least it is tiered. It is also always interesting here what is considered as “special services,” which are NOT relevant for the deviations of 20% from the initial estimate.

Whether and to what extent one can derive claims for damages from the timeline, I don’t know. Do you have any deadlines for the different LPH specified in your architect contract? If not, I could imagine that it might be difficult to create a “case” from that. It’s not uncommon for the period from commissioning to moving in to take two years when building with architects.

Not to be misunderstood. This annoys me too, but I have come to terms with it. I think the smartest thing would have been to arrange the financing with the bank only at the start of the tenders, to make the best use of the loan period. But we didn’t do that either—due to lack of experience. Or to have that included in the architect contract as to when the preliminary design, execution planning, sending out of the tender documents, and awarding should be completed. Whether architects would agree to that, I would put a big question mark on. Partly understandable because there are dependencies on approval authorities or such, which influence the timeline. Structural engineers and energy consultants are also always a cause of delays, so it’s understandable to me that an architect hesitates to give binding timeframes. What is he supposed to do if the structural engineer or energy consultant, commissioned by the client, does not deliver on schedule?

I will definitely follow this with interest here, maybe it will open up some approaches—even for me. [emoji4]

Yes, it's annoying, but mostly you get through the provisioning phase, not only with the architect but also with the general contractor. A buffer should be planned for the interest. I do hope you have it. You cannot deduct the incurred costs.

Regarding the timing, you should set the termination of the apartment lease just shortly before the deadline. With architect-led construction, a lot more time can be added, as well as with structured general contractor construction, including own contributions.

You should set the termination date for the apartment lease only shortly before the deadline.

Our architect said as a guideline that you can expect to move in about 10 weeks after the screed has been laid. Realistic from your experience?

By then, all trades should have been assigned and agreements regarding start/end and compensation regulations should be in place. Although that only helps to a limited extent if you have given notice and have to move out.

However, we are planning one or half a month of overlap anyway to ease the whole moving process.

At the same time, the demand for rental apartments here, as well as elsewhere, is very high, meaning finding a new tenant should be quite easy... and with the last neighbors who moved out because of new construction, there was a line of interested parties. That additionally speaks in favor of waiting until shortly before the end [emoji4]

Hi everyone,

at least the experiences are already going in the same direction. It doesn’t make things better at the moment, but it is somewhat reassuring to still be within the usual process here.

Provision interest and additional costs have already been generously factored in, so there is no need to get nervous now. In the end, I still tell myself that by deciding to build with an architect, one has also chosen the hope of gaining transparency.

At the moment, this is not really given to me regarding the control of the architect’s work. I find it difficult to accept that a tendering phase has been ongoing since January and a construction schedule from February is long overdue.
HOAI as a book is purchased, but how does one, as a layperson, derive from it what one can specifically demand from the architect without immediately destroying the common basis for cooperation?!

Professionally, as an IT project manager, I owe this transparency regarding time and budget to my clients, perhaps hence a certain expectation of the architect.

Best regards

HOAI as a book has been bought, but how does a layperson deduce from it what they can concretely claim from the architect without immediately destroying the common working basis?!

I think you could have saved your money [emoji6] I would rather ask an expert to clarify HOAI-specific questions. It’s quite law-like.

The question you’re asking is exactly the crux. My impression is that among many architects, understanding, ability to accept criticism, and self-reflection are not exactly their most pronounced traits.

Professionally, as an IT project manager, I owe my clients this transparency regarding time and budget, perhaps that's why I have a certain expectation of the architect.

Welcome to the club. Anyone with solid project management training would probably go crazy when experiencing the practices in construction. But it doesn’t help, you can either drive yourself crazy or just accept it. You will probably change very little.

Meeting deadlines, transparency, (proactive) communication, or even just accepting that clients have a certain (increased) need for information, are not exactly core competencies in construction. It’s simply a different world...