Additional cost in construction

Dear PAO,

Early this year, my wife and I engaged the services of a team of architect and engineer to design
and build our dream house. After several meetings, we approved the final design of our future
home and agreed to the price quotation given by our architect and engineer. Three months into
the construction, the architect informed us that he can modify the design of the house to allow
more natural light into our house. We told our architect that we are amenable to the change as
long as it will not cost us anything more than the original price quotation. He replied that if we
want to make the change that he is suggesting, we have to shoulder the additional cost for the
changes. As we do not have any extra money, we declined his suggestion to modify the design of
our house.

However, he insisted that we should agree to the modification and the additional cost as the
engineer already made the changes in the construction.

As much as we want to agree to shoulder the additional cost, we cannot do so because we used
most of our savings to pay for the original proposed construction price given to us. Given that the
engineer already made the suggested changes without our approval, are we required to pay for
the additional cost of the changes made by our architect and engineer even if we did not agree to
it?

Mickey

Dear Mickey,

No. You are not required to accept the recommended changes in the design of your house.
Neither are you required to pay for the additional cost incurred by your architect and engineer in
modifying the design of your house. This is supported by Article 1724 of the Civil Code of the
Philippines which provides:

“Article 1724. The contractor who undertakes to build a structure or any other work for a
stipulated price, in conformity with plans and specifications agreed upon with the landowner, can
neither withdraw from the contract nor demand and increase in the price on account of the higher
cost of labor or materials, save when there has been a change in the plans and specifications,
provided:
Such change has been authorized by the proprietor in writing; and

The additional price to be paid to the contractor has been determined in writing by both parties.”

This means that an architect, engineer or contractor cannot demand to increase the agreed upon
cost to build a structure due to the unilateral changes made by the latter, unless the said changes
and the additional charges in connection therewith have been agreed to by both parties. Thus, to
justify the increase in the cost to construct the property, the architect, engineer or contractor
should have first secured your consent to the said changes and the additional cost for the
construction should have been determined and agreed to by the parties in writing. It appears from
your letter that the changes were unilaterally made by your architect and engineer; thus, you are
not bound to pay for the additional cost of construction as you did not agree to the same.