CONTRACTS CONCLUDED WITH THE PROFESSIONALS ARE VALID WITH RESPECT TO THE ARCHITECT.
17.01.2013
CONSTRUCTION – Apparent authority of the architect
If an architect is entrusted with the construction management, he is usually also responsible for finding the necessary professionals to carry out the work and concluding the relevant work contracts with them.
The architect's intention is not usually to become the professional's contractual partner himself; rather, he concludes the work contracts in the name and on behalf of the client. Important: It is not necessary for an explicit written power of attorney to be present. Section 1029 of the Austrian Civil Code stipulates a so-called apparent power of attorney for such cases. When an architect is commissioned to manage the construction, it is assumed that he is also authorized to conclude all the necessary transactions on behalf of his client. Whether this actually exists is irrelevant. There is also no obligation for the contractual partners to inquire as long as there is no legitimate reason for doubt. The correctness of the legal appearance only needs to be checked if the circumstances give rise to concerns. This means that third parties can rely on the existence of a corresponding power of attorney from the architect when concluding transactions that are normally necessary for the construction. The contracts concluded with the professionals are therefore valid with regard to them, even if the architect was not authorized to conclude them in the individual case. Your lawyer will be happy to advise you about the client’s claims for damages against an architect who acts in breach of his authority!