Architect / Builder Contract

[busybeaver]

Hello thank you for allowing me to join.

I have a couple of questions regarding a contract between myself and a builder which was drawn up by an Architect (using a RIBA Domestic Building Contract 2018). I am trying to resolve some issues with mediation.

1. The completion date was specified as a fixed date. The work over-ran by several months. One section says it is the Contractor's Obligation to finish by the completion date. There is a section about liquidated damages that mentions I can claim the amount mentioned in a box in section L. The box in section L is blank so I assume I cannot claim any money?

2. Other than liquidated damages there does not seem to be much I can do regarding the over run. Does it matter that the builder breached the contract? The delay has cost me money as the property was to be rented out as a holiday let.

3. Under Contract Price there are two tick boxes: "Calculated in accordance with the pricing documents listed under item D" and "Specified Below" with the latter being checked and an amount listed beneath it. There is mention of a Schedule of Works in item D and the estimate in that document is higher than the one "Specified Below" but should I regard the one "Specified Below" as being the price to work to?

4. The architect has been listing "Additional Items" in a spreadsheet and adding them to the bill. For example: I additionally asked for some new windows. In total should I pay the "Specified Below" Contract Price + Additional Items + VAT and nothing more to the builder?

5. In the contract definitions it says this: "Contract price: The amount that the Client shall pay to the Contractor for carrying out and completing the Works, calculated in accordance with clause 7 of the Contract. Note: The Contract price may increase (or decrease) as a result of instructions given by the Architect/Contract Administrator" - does this really mean the Architect can just change the Contract Price however he wishes? I am more inclined to think this means the price can change when the architect requests a change to the original specification etc?

6. The architect has sent me 4 Interim Payment Certificates and each has a section called "Amount of any adjustments required in accordance with the Contract" and all are blank. Is this where any change to the Contract Price mentioned above should be listed or is that for something else?

Sorry for the long post and thank you very much in advance for any replies.

[Pezza54]

Hi

1. As the liquidated damages figure has been left blank you can't claim damages for the contractor finishing late. A building contract usually states the contract period eg 6 months from the start on site date/

2. The builder hasn't breached the contract The contract probably allows for the contract period to be extended, which requires the architect's approval. Extensions of time may be granted for additional work, exceptionally bad weather, delays caused by the client (such as restricting access)

3. It sounds as if the figures should be the same. Ask the architect if there is a reason why the figures differ.

4. Again, ask the architect if he or she has inserted estimated figures for variations, or whether amounts have been agreed with the contractor.

5. You are right in your assumption. The architect can't just change the contract sum on a whim.

6. If the architect has issued variations to the contractor and these changes have been built, fully or partially, the value of these variations should be included in interim payments. If the architect is of the opinion that 50% of the variation has been built then the contractor should be paid 50% of the value of the variation, Another query for the architect to answer.

[atticus]

This contract needs to be looked at in full detail. That is the main thing, but I have one further observation: just because the liquidated damages figure has been left blank does not mean that no damages can be recovered. "Liquidated" merely means a specified and agreed amount.

[busybeaver]

Thank you both for taking the time to reply.

My disputes with the architect & contractor are extremely complicated. My biggest dispute is that I think I have been overcharged. I will keep this as short as I can:

Before we signed the Contract the Builder provided a Tender spreadsheet with a total price of £97,600. Unknown to any of the parties, three cells in the spreadsheet had not been added to the total price of £97,600 as the cells contained letters as well as numbers so could not be added up in the total. for example a cell might contain: "PC 5250" rather than just "5250". Had the rogue cells been included in the total then the quote would have increased by a further £17,000.

The Contract was drawn up and signed with a Contract Price of £87,660 as mentioned in my original query part 3 above. The works should have only taken 4 months and the Completion Date was end of October 2022.

The architect used the erroneous spreadsheet as the basis for calculating the Interim Payment Certificates up until December 2022 which was 6 weeks after the agreed Completion Date. At this stage he realised there was a mistake in the spreadsheet and added £17,000 to my bill.

I do not think the architect has any right to do this? I have already paid for these works as part of the Contract Price in the Contract so he can't suddenly charge me for works I have already paid for because of an error in a Tender that was copied across and became part of his calculations?

With the benefit of this information please could you look at my question 4 above again? Should I pay the "Specified Below" Contract Price + Additional Items + VAT and nothing more to the builder?" (I'm not disputing the price of any "Additional Items")

Thank you both again so much for your help.

[R0b]

Atticus has already mentioned previously in a post that the contract would need to be looked at in full to understand some of the questions you are asking. Property/construction type contracts are not typically straight forward and whilst we can speculate based on the limited information you have supplied, you may have not told us about an important term or provision of the contract which means you end up going down one path but in reality should have gone down the other.

You need a lawyer to review the contract and advise you properly on this. If you want to be cheap and not bother getting advice that is of course your right to do so but I would have little sympathy if things go pear-shaped for you.

To answer your question though, whether the Architect is entitled to add on the £17k depends on: (i) what the contract states, (ii) whether the missing £17k was a unilateral or mutual mistake (iii) what the intentions of the parties were at the time the contract was signed i.e. did everyone believe the fees were £87k instead of £97k?

If you genuinely believe the architect is not entitled to charge for the additional amount, then go right ahead and object. It's up to the architect to prove why it should be a recoverable sum when the contract already stipulated £87k and was signed. Only you can decide as we do not have a copy of the agreement so we don't know how it has been structured other than what you have described.

[Pezza54]

PC stands for Prime Cost Sum. PS stands for Provisional Sum
Prime cost sums are amounts of money inserted in a building contract by the client (or designer) and are there to make the contractor aware that the designer/client intends to appoint a subcontractor to carry out this part of the work (eg special windows). The contractor has the chance to add profit and attendance on the subcontractor's work. If the subcontractors work costs more or less than the PC sum the contract sum is adjusted accordingly.

Provisional sums are amounts of money inserted in a contract to cover work that is uncertain in its content and/or may not go ahead.

It is possible, in your case, that the the architect has adjusted these PC sums which has increased the contract sum.

It was the architect's responsibility to check the PC Sums and any Provisional Sums were included in the contract sum by a mathematical exercise (not just accepting a spreadsheet). If the ar4chitect failed to carry out a proper mathematical check he or she may be guilty of professional negligence,.

[busybeaver]

Thanks once again for the replies and the explanation of "PC" and "PS". I do intend to get it checked out by a solicitor.