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Who manages cost for the client

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By , construction economist

Information verified on 7 min read

What you will learn How the roles around the budget are shared between the client, the architect, the consulting engineer, the cost consultant and the project manager, what each one signs and guarantees, the freedom to negotiate fees, and the two articles in this branch.

Several people talk about cost, but only one commits to it. In Luxembourg, the client, known locally as the maître d'ouvrage, decides and signs; the others design, price, check or organise, each within the limits of a written brief. Client-side cost management in Luxembourg starts with knowing who does what, and putting it in writing before the first drawing.

One signature, several roles

The budget belongs to whoever pays for it. Client-side assistance (assistance au maître d'ouvrage) prepares the decision; it does not take it.

Party What they do on cost Basis What they do not do
Client sets the budget envelope, makes the trade-offs, signs contracts and amendments the contracts it enters into delegate its decision without a written, limited mandate
Architect designs within the brief and the budget, assists in choosing contractors Grand-Ducal Regulation of 17 June 1992, Art. 8, 9 and 13 guarantee a contractor's price
Consulting engineer same professional obligations for its share of the design same regulation commit the client
Cost consultant estimates, prepares counter-estimates, checks bills of quantities, tenders and final accounts its appointment agreement no specific legal status identified
Project manager organises, schedules, prepares decisions, reports its appointment agreement no specific legal status identified

The client decides

Every new item of expenditure goes through the client. In a private contract, the client authorises a change in writing and accepts its price; in a public contract, the contracting authority (pouvoir adjudicateur) signs the amendment (avenant) and, for a municipality, goes back to the municipal council (conseil communal) when the approved project changes significantly.

The client also chooses the level of support. A private individual often relies on the architect alone; a developer or a municipality frequently adds an independent cost check. The right level depends on the size of the project and on the client's in-house capacity to check a figure.

The architect and the consulting engineer design within the budget

Their budget obligation is written into their code of professional conduct. The Grand-Ducal Regulation (règlement grand-ducal) of 17 June 1992 requires a written, signed agreement "at the latest when the brief has been defined" (Art. 8, unofficial translation), and requires them to submit designs "which remain within the limits of the programme set in the brief and of the budget that follows from it"; any significant change to the programme calls for an additional agreement stating its financial impact (Art. 9).

They also assist the client in choosing contractors, "with a view to carrying out the project on the best terms of price and quality" (Art. 13). Their independence is protected: practising on an independent basis is incompatible with the profession of building contractor (Art. 4 and 5). Independence is not accuracy: an estimate still needs checking.

The cost consultant and the project manager: roles, not statuses

In the texts reviewed, neither the cost consultant (économiste de la construction) nor the project manager (gestionnaire de projet) has a specific legal status. They are therefore defined by their contract: scope, deliverables, dates, limits of the mandate, independence from contractors. What the law does not provide for, the appointment agreement must spell out.

The cost consultant prices and checks: estimate at each stage, counter-estimate, check of the bill of quantities before tender, tender analysis, monitoring of the forecast final cost, preparation of the final account. The project manager organises: programme, flow of decisions, cost dashboard, meeting reports.

Who answers for what

Fees are freely negotiated. By its decision No 2024-E-01 of 25 March 2024, the Competition Authority (Autorité de la concurrence) made binding commitments given by the OAI, the order of architects and consulting engineers: an end to the circulation of the documents setting remuneration, and a reminder to members that they are free to negotiate their hourly rates and fees with public-sector clients. The amounts charged in practice are covered in the article on design fees.

Liability follows the brief. The ten-year liability of architects and contractors bound to the client by a contract for works (louage d'ouvrage) (Civil Code, Art. 1792) says nothing about keeping to the budget, which is a matter for the agreement. Insurance questions are covered in the article on insurance and liability. A practical principle follows from this: a single cost dashboard, kept by a named party and approved by the client at each stage.

The articles in this branch

This article sets out the rules as they stood on the date of checking and is intended as professional guidance. It is not a substitute for legal advice or for an examination of your particular case.

Frequently asked questions

The architect must submit designs that stay within the limits of the programme and budget set by the agreement (Art. 9 of the 1992 regulation). Their liability is assessed against what was written down, hence the importance of a dated budget in the agreement.

It is not a legal requirement. An independent cost check is justified for a large project, where there is no in-house capacity to check figures, or before a decision that is hard to reverse.

Only with a written mandate that sets its scope and a ceiling. Without that mandate, the project manager prepares and recommends; the signature stays with the client.

No binding fee scale has been identified. Decision No 2024-E-01 ended the OAI's circulation of fee calculation methods and guideline rates, and confirmed that fees are freely negotiated, including with public-sector clients.

Explore the articles in this guide

← The client's construction budget in Luxembourg: setting it, checking it, holding it