Expert tip Oliver Girharz - The project can finally start ... The implementation
After talking about who and what you need for the implementation of a construction project on Mallorca in the last issue, today we go one step further and talk about the project goals and architects' fees. Before you can start your building project, you should think about a few basic points:
Costs – deadlines – qualityätDefining the project goals is easier than it may initially sound, but harder than you might think. The construction costs include not only the construction work, but also the fees and taxes for the building permit, registration fees and, of course, VAT. The architect, the technical architect, the health and safety coordinator and also the engineering office must be paid from the budget. Depending on the project, ancillary construction costs can quickly amount to over 25 percent of the total budget, without taking VAT into account.
Once I have determined my personal budget, it is also a matter of deadlines and time limits. It is always advisable to include deadlines and dates in all contracts with those involved in the construction, which should of course be realistic. For example, the architect should also be specified when the design, approval and execution project must be completed. Although the architect has no influence on the processing speed of the respective building authority, this prevents unwanted delays in the processing of their own planning in advance.
The contractor should also be told from the outset how long it will take to complete the construction project. Delays in the completion of the construction work are usually subject to contractual penalties if the contractor is responsible for the delay.
Determining quality, on the other hand, is the most difficult of all project objectives, as quality has a direct influence on costs and deadlines. The higher the standard, the more expensive the construction project will be, and implementation usually takes longer. My tip is to get to grips with the materials and finishing details as soon as possible and to provide the architect with as much information as possible about your wishes during the planning process.
Which planners do I need and what costs do I need to calculate? Architects like to charge a percentage of the construction costs, but this has a certain potential for disputes. We therefore ALWAYS recommend that our clients agree a lump sum with the architect. The technical architect, on the other hand, almost always charges a percentage, depending on the size of the project, 2.5-3.5 percent of the chargeable costs should be calculated. The engineering office, on the other hand, which is always recommended, is usually also charged a lump sum, as is the health and safety coordinator (tip: always look for an external company for the inspection, even if the technical architect also offers this!) offers flat rates.
In the middle of last year, we were commissioned with the project management of a project that was already under construction. One of our first tasks was to settle disputes regarding the architect's fee agreement. In a two-page contract between the client and the architect, a fee of 10 percent of the construction costs was agreed, which at the time was estimated by the architect at just under EUR 1 million. However, the estimate at the time was not realistic; the actual construction costs were around twice as high, and therefore, according to the architect's understanding, so was his fee. It took almost three months before we were able to reach an amicable agreement. Disputes that could have been avoided by both sides with a well-drafted contract.
The author is the managing director of the engineering and project management company Matrol Servicios y Peritajes SL. Telephone number: 971 10 40 25 – website: www.matrol.es.
