Regarding the example presented in this video, I think it could result in a claim against the architect from the very beginning.
@kiaragalicinao Kiara, would you mind providing your insights/experience on this?
According to AIA B101, article 3.22: “The Architect shall prepare a preliminary evaluation of the owner’s program, schedule, budget for the cost of the work, project site, the proposed procurement and delivery method, and other initial information, each in terms of the other, to ascertain the requirements of the project. The Architect shall notify the owner of (1) any inconsistencies discovered in the information…”
Even before the contract is signed, the architect is supposed to evaluate the owner’s budget to determine if it is realistic and aligns with the owner’s expectations (program).
Regarding the example provided in the video, I think that if the architect waits until the end of the SD phase when he/she is required to provide a cost of the work estimate to let the owner knows that the project is about $700,000 over budget, even though the architect recommends changes to the project to adjust the numbers by reducing the size and quality, the owner may question/complain why the architect did ascertain the requirements of the project and didn’t bring this isuue to the table in the preliminary evaluation.
Moreover, at 3:07 minutes, it is mentioned that: “the architect knows from past experience and research that the average cost per square foot for multifamily projects utilizing wood construction is about $215 per square foot in your geographic area… to construct the project”, then 24,000 SF x $215 + contingencies > $5,000,000. This is something that should have been brought to the owner’s attention even before the contract was signed to maintain a good relationship, avoid things turning sour and a claim being brought against the architect.
Thank you very much in advance for your comments on this.