End cooperation with the architect

Hello everyone,

I have a question. We got in touch with an architect through an acquaintance, but we are not really satisfied with the process and the work. Therefore, we want to part ways with the architect after realizing that we don’t really get along.

There is no contract that we signed. When I addressed costs in the first meeting, he said he would charge the minimum rate according to HOAI and would first create a draft. When I asked what would happen if we didn’t agree, he said we shouldn’t worry and that such a thing wouldn’t happen.
Now, it has come to this, and the question is how to best proceed and what the architect can demand for his services?

What has been done so far: In the first meeting, we said that we want a house with 160 m² and a maximum all-inclusive budget of 260,000 T€. I explicitly asked if that was feasible, and he said we could manage it.
After the presentation of the first draft, the costs were at 320,000 €. I said that although it was a nice draft, the costs didn’t fit, and we needed to reduce them. We thought about the draft and gave the architect changes, as he had forgotten a room. Of course, we told him to reduce costs. Our changes were implemented, but at the appointment, there was no new cost estimate. Our architect said that the costs would still be around 320,000 €. He had not included the blinds and underfloor heating in the first cost calculation. Regarding the stated budget of 260 T€ from the first meeting, he suddenly said that he had considered the amount without his architectural fee, but I had expressly said that it was the amount including his fee.
Well, we asked for an alternative floor plan for the next appointment, as the previous floor plan was a split-level house because we have a hillside plot. He then presented us with this alternative draft (I think it was some existing floor plan from his drawer), but without a cost breakdown; he said it wouldn’t be cheaper than the first draft.
So we keep going in circles and nothing really happens to reduce the costs.
We then gave changes to the first floor plan again. The architect finally reduced some volume, and now the sum is 300 T€. Proudly, he mentioned in his letter that we had now reached our budget if we deducted our planned own work from the construction sum. I have to say, after the second draft, we raised the budget to max 280 T€.
Now, it is that we no longer like the floor plan because of all the cuts (access to the utility room via the guest WC) and somehow the trust relationship is no longer really there (caused by repeatedly pointing out the budget, drawing a masonry fireplace (which has still not been considered) etc. etc.)
The fact is that to this day, our budget has not been reached, and we will not reach it without continuously getting smaller. That has little to do with our 160 m² and 260 T€ - 280 T€ budget.

Now my question is how to best end this misunderstanding and what the architect can demand from us. He should not have done it for free, but I also don’t want him to come with an exaggerated invoice. Honestly, I don’t know in which performance phase we are. We have half done Phase 1 basic evaluation, so to speak, and what is the difference between Phase 2 and 3? In my opinion, we are in Phase 2 - preliminary planning + cost estimation. So far, we have always received colorful prints with exterior views + sometimes his cost estimate, but is that already design planning?

I am grateful for your help on how to best proceed.