Opinion ID: 2129946
Heading Depth: 1
Heading Rank: 7

Heading: architectural duties

Text: In Durand Associates, Inc. v. Guardian Inv. Co., 186 Neb. 349, 183 N.W.2d 246 (1971), this court first discussed the nature of an architect's contractual duties to a client. Durand, the architect, agreed to design an apartment building for Guardian Investment, and, after some discussion about cost, a $420,000 figure was inserted as the construction cost estimate in the architectural contract. The lowest bid received on the project was $724,535. When Guardian told Durand that this cost was too high, Durand spoke with some bidders in an attempt to eliminate items and was able to cut the cost of construction to $652,728. However, even the reduced cost figure was too high for Guardian. After Guardian terminated the contract, Durand sued Guardian for breach of contract, and Guardian cross-claimed based on the erroneous construction cost estimate by Durand. At the close of the evidence, the trial court granted directed verdicts in favor of Durand on Guardian's cross-claim and in favor of Guardian on Durand's breach of contract claim. After noting that the contract obligated Durand to furnish cost estimates when requested to do so, the Durand court addressed the architect's contention regarding the contractual language that [the architect] does not guarantee such estimates. Durand's profession required him to keep informed on building costs and in case of any question he could readily ascertain the approximate cost on any project. His knowledge in this respect was superior to that of the defendants. Durand held himself out as an expert in his field. He was supposed to be skilled in estimating costs of construction. Those employing him or his firm had a right to expect that he would exercise that skill and judgment. It was his affirmative duty to give the defendants some definite idea of the reasonable cost of the project. It is immaterial whether or not the defendants told him, as they contend, that the cost could not exceed $420,000 above the exclusions. When that figure was included in the contract, he was bound by it. If it was not a realistic estimate, he should have disclosed to the defendants that the plans proposed by him could not possibly be carried out for that figure. He was duty bound to make full disclosure of all matters of which he had or should have had knowledge which it was important that his clients should know. ... We ... hold that an architect or engineer may breach his contract for architectural services by underestimating the construction costs of a proposed structure. The rule to be applied is that the cost of construction must reasonably approach that stated in the estimate unless the owner orders changes which increase the cost of construction. It is ordinarily for a jury to say whether the actual cost is within a reasonable range of the estimated cost unless, as here, the excess is so great that the court can deal with it as a matter of law. Id. at 354-55, 183 N.W.2d at 250-51. Because Durand breached the architectural contract by markedly underestimating the cost of construction, he was barred from recovering under the contract. Hoffman and Miller argue that Durand controls the present case, and also seek to hold Getzschman liable under common-law tort theories breaches of a fiduciary duty and the duty of due care. If there is an express contract for architectural services, an architect's duties are determined by the contract for the architect's employment. Guirey, Srnka & Arnold, Architects v. City of Phoenix, 9 Ariz.App. 70, 449 P.2d 306 (1969); Moundsview Ind. S.D. No. 621 v. Buetow & Assoc., 253 N.W.2d 836 (Minn.1977); Kelly v. Northwest Community Hospital, 66 Ill.App.3d 679, 23 Ill.Dec. 466, 384 N.E.2d 102 (1978); Cobb v. Thomas, 565 S.W.2d 281 (Tex.App.1978); I.O.I. Systems, Inc. v. City of Cleveland, Tex., 615 S.W.2d 786 (Tex.App.1980). Implicit in every contract for architectural services is the duty of the architect to exercise skill and care which are commensurate with requirements of the profession. Rowe v. Moss, 656 S.W.2d 318 (Mo.App.1983); I.O.I. Systems, Inc. v. City of Cleveland, Tex., supra ; Nelson v. Com., 235 Va. 228, 368 S.E.2d 239 (1988). If an architect fails to exercise reasonable professional care in the discharge of his contractual duties, the architect breaches the contract of employment. Durand Associates, Inc. v. Guardian Inv. Co., 186 Neb. 349, 183 N.W.2d 246 (1971). This court has recognized the principle that `accompanying every contract is a common-law duty to perform the thing agreed to be done with care, skill, reasonable expediency, and faithfulness, and a negligent failure to observe any of these conditions is a tort as well as a breach of contract.' Driekosen v. Black, Sivalls & Bryson, 158 Neb. 531, 536, 64 N.W.2d 88, 92 (1954). Although an aggrieved party may choose a tort action rather than a contract action to remedy alleged negligence in the performance of a contract, nevertheless, the contract may control the scope of a duty undertaken by the defendant. In the context of a negligence claim based on an architectural contract, tort liability may arise when the architect negligently fails to perform an express or implied contractual duty. While Nebraska law allows a party to base a claim for nonperformance of a contractual duty on either a contract or tort theory, in both cases the contract may determine the duty which has been breached with resultant liability. Regarding an architect's duty to inform the client concerning the cost of a proposed project, Durand governs only those situations when the architect has agreed to design a project with a specified budget, or when the architect is obligated to furnish an estimate of construction costs. An architect employed to prepare plans and specifications for a building, with the understanding that the construction would be accomplished within certain cost limitations, cannot recover compensation for [architectural] services when the building cannot be erected except at a cost materially in excess of the amount specified. Kleinschmidt, Brassette & Associates v. Ayres, 368 So.2d 1153, 1155 (La.App.1979). See, also, Kurz v. Quincy Post No. 37, American Legion, 5 Ill.App.3d 412, 283 N.E.2d 8 (1972); Guirey, Srnka & Arnold, Architects v. City of Phoenix, supra ; Baylor University v. Carlander, 316 S.W.2d 277 (Tex.App.1958); Zannoth v. Booth Radio Stations, 333 Mich. 233, 52 N.W.2d 678 (1952); 6 C.J.S. Architects § 32(b) (1975). However, when an architect has no express contractual obligation to design a structure within a specified budget or to estimate the construction cost of a proposed project, construction at a cost greater than anticipated by or acceptable to the owner is no defense to an architect's action to recover a fee. [W]here the cost of construction is not fixed in the agreement employing an architect, nor estimated by him, but the plans are prepared according to details dictated by the owner, it has been held that the fact that the plans when completed call for a building which will cost more to erect than the owner expected, or is willing, to pay, will not preclude the architect from recovering compensation for his services in making the plans. Guirey, Srnka & Arnold, Architects v. City of Phoenix, supra, 9 Ariz.App. at 76, 449 P.2d at 312. [W]here an architect is employed to prepare plans and specifications for a building and there are no cost limitations agreed upon, such architect can recover compensation for his services irrespective of the costs of construction. Kleinschmidt, Brassette & Associates v. Ayres, supra at 1155.