The answer is: Yes, inherently the architect is liable. Thus, two cases have to be differenced: 1. The parties have not agreed on a contractual stipulation regarding the compliance with the cap of building costs or 2. the contractual stipulation contains an obligatory cap of building costs.
For both constellations applies that the exceedance of the cap of building costs constitutes poor performance by the architect and therefore is liable. This liability which so far results from the service phases directly is statutory since the building law reform in section 650p para. 2 German Civil Code (BGB). The building owner is entitled to claim for damages and removal of defects as well as he has the right of cancellation and right to reduce the price with regard to the professional fee.
The main difference lies in the fact that the lies in the fact that if no contractual stipulation is agreed on the architect is granted a scope of tolerance which conforms to the particular case. Whereas the contractual stipulation constitutes an agreement on the legal and factual nature, therefore the building owner is entitled to exercise his rights as the scope of tolerance shall be neglected.
Thus, the building owner only experiences absolute certainty if the architect contract does contain the guarantee of building costs. According to the Federal Supreme Court (BGH), who inherently deems such regulation valid, such agreement has to contain a regulation that the architect officially states to maintain the cap and guarantees compliance with such regulation. Only then the architect is without any doubt liable for incremental costs exceeding the cap of the building costs.
Published by Immobilienanwälte Edition 2020/2021 / Publication of the Immobilien Zeitung (https://www.immobilien-zeitung.de/)
Author: Christian Ohler, Jebens Mensching PartG mbB