What the designer owes in each work phase
Annex 10 of the HOAI (Honorarordnung für Architekten und Ingenieure, the fee regulations for architects and engineers) sets out, for buildings and interiors, the points at which costs are determined and compared. Each of these Grundleistungen (basic services) is also a checkpoint for the client. Quotations from the HOAI and the BGB in this article are unofficial translations.
| Work phase | Basic service on cost (Annex 10 HOAI) | What the client does with it |
|---|---|---|
| LPH 1 | none; the economic feasibility study is a Besondere Leistung (additional service) | state the budget in writing |
| LPH 2 | g) "cost estimate under DIN 276, comparison with the financial parameters" | check whether the estimate fits the budget |
| LPH 3 | e) "cost calculation under DIN 276 and comparison with the cost estimate" | have variances explained, then approve or change course |
| LPH 6 | d) costs based on priced bills of quantities; e) cost control by comparison with the cost calculation | decide before the tender documents are sent out |
| LPH 7 | g) "comparing the tender results with the bills of quantities priced by the designer or with the cost calculation" | decide on award, negotiation or cancellation |
| LPH 8 | i) cost control of the contractors' invoicing against the contract prices; j) final cost statement | have the forecast kept up to date |
The first figure often appears before any basic service. As long as essential design and supervision objectives have not been agreed, section 650p(2) of the BGB (Bürgerliches Gesetzbuch, the German Civil Code) requires a planning basis with a "cost assessment for the project" for the approval of the Besteller (the client, in the wording of the BGB). This Kosteneinschätzung (cost assessment) is neither a stage of DIN 276 nor a basic service under the HOAI, which contains no cost service in LPH (Leistungsphase, work phase) 1. How the stages of cost determination build on each other as a method is explained in the article on the stages of cost determination under DIN 276; the content of the first phases is covered in the article on work phases 1 to 3.
The client's four questions
A cost determination can only be compared with the budget if both measure the same thing. The client therefore puts the same four questions to every new figure before discussing the amount:
- Same scope: Which Kostengruppen (cost groups) are included, and is the figure gross or net? A cost calculation without external works is not cheaper than a cost estimate with external works; it is simply smaller.
- Same price base: To which date do the prices refer? A budget from the spring and a cost calculation from the autumn already differ because of the time between them.
- Same quantity base: Which floor areas, which level of design detail and which stage of work underlie the figure? If the reference area has changed, that must be visible.
- Variances explained: Every change against the previous determination should be assigned to a cause: programme, standard, quantity or price. A variance without a cause is not a result but an open question. The technique of this comparison is described in the article on the target-actual comparison of cost estimates.
Approving means deciding
Approving a cost determination is a decision by the client, not an acknowledgement. The approval should record in writing which version was checked, which price base applies, which variances are accepted and which requirements apply to the next phase.
According to BGH case law, the architect must clear up doubts about the scope of the cost framework (judgment of 21.03.2013, VII ZR 230/11, according to a published summary). The client makes this easier by restating the budget, with its scope and price base, at every approval. Without a written trail, it is hard to show later which cost expectation applied at which point.
Approval is also the moment for requested changes. Whatever the client changes in the programme after an approval alters the basis of the next determination and may affect the fee. Every programme change, with its date, therefore belongs in the same document.
The articles in this branch
- The target-finding phase: the planning basis and the cost assessment under section 650p(2) BGB, the client's approval and the special right of termination under section 650r BGB.
- When the architect exceeds the cost limit: which rights published case law grants the client when an agreed Baukostenobergrenze (construction cost cap) is not kept to.
- The cost calculation exceeds the budget: the decisions to be taken before tendering, up to the decision paper in which the client weighs the savings options in writing.
- The independent third-party cost review: when a second determination on the same documents makes sense and what it can achieve.
This article reflects the state of the rules and of case law at the date of checking and is intended for professional guidance. It does not replace legal advice or an examination of the individual case.