- Architects: don’t ignore the budget (Riva Properties v Foster + Partners)
- Original news
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Duty to consider budget and advise
- No loss argument
- Recovery of losses
- Case details
Construction analysis: The court held that an architect had a duty to identify the constraint of its client’s budget. Having prepared a design costing £125m more than the budget, the architect had breached its duty in this regard. The court held the architect had also breached its duty to advise that the costs of the project could not be value engineered down by £95m. The court also considered that ‘no loss’ arguments did not apply where the architect’s appointment contained an, as yet unexercised, ability to call for a collateral warranty or assign the appointment.
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