design over budget
An architect gives owner an estimate cost based on CD, he predicts it's gonna be $1m and it's within the owner's budget. However, during bidding, the bids are around $1.8m and it's over budget. If the architect has to change the design to meet the budget, would it be considered as additional service or the architect has to fix it for free?
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Hey, no problem. Glad I could respond.
Whether the project is publicly or privately funded determines the outcome. 10% overage is typical depending on the projects complexity.
Public projects that are funded by local or state governments or have bonds tied to the project can not go over.
It depends what the scenario is really. Well informed project managers have their numbers on point.
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Also, a project budget would ever get that far in a traditional bid package. By time it reaches CD, the budget is well defined. If it goes beyond like your scenario by 800k, again, the Architect is generally responsible for redesign without additional fee.
You might have a situation if the client all of sudden at the CD phase suggests increasing the square footage or changing the contract agreement that owner and architect had negotiated, then the Architect could request for additional services fee to redesign.
It's contingent upon the scenario as I mentioned.
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Be sure you understand what ncarb is asking. real world vs ncarb are closely related. ncarb, in this case is always correct, so whatever their response is to this particular situation, go with that. When you have years under your belt...and you're calling the shots, It's all about your business, your practice, and the risk your business assumes.
good luck.
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