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Judgement of ECJ: minimum and maximum rates of fees for architects and engineers (HOAI) are not compatible with EU law

This is a Press Statement issued by the Bundesarchitektenkammer – BAK (Federal Chamber of German Architects)

 

In its judgement of 4/7/2019, the European Court of Justice (ECJ) determined that the minimum and maximum rates of fees for architects and engineers (HOAI) are not compatible with EU law. This was despite the court confirming that minimum rates can help to ensure the high quality of planning services. However, the German regulation does not pursue this objective in a coherent and systematic manner, since planning services can also be provided by service providers without the latter having to provide proof of their professional aptitude. The ECJ does not consider the binding nature of the maximum rates to be necessary, since the German Federal Government has not sufficiently substantiated that a non-binding framework for pricing is not sufficient to guarantee consumer protection.

In the run-up to the ruling, the Federal Chamber of German Architects (BAK), the Federal Chamber of Engineers (BingK) and the organisation regrouping architects´ and engineers` associations for the HOAI  (AHO) had initially been able to persuade the German Federal Government to uphold the HOAI and to defend the binding minimum and maximum rates before the ECJ, and through that alone they were maintained for almost half a decade longer. Throughout the entire procedure, the BAK together with BIngK and AHO supported the German Federal Government with comprehensive legal and empirical-economic expert reports. The ACE, private builder associations and the BFB (German liberal professions) were also involved in providing political and presentation support. Unfortunately, all of these efforts have not been successful.

The obligation to comply with binding minimum and maximum rates must indeed be abolished as soon as possible due to the judgement. However, the HOAI can remain otherwise unchanged, since neither the performance plans nor the fee rates were the subject of the proceedings.

The judgement will undoubtedly have serious consequences. The BAK is therefore intensively examining which conclusions can be drawn from the ruling, in particular whether the “incoherence” objected to by the ECJ could be counteracted by restricting planning authorisation to architects and engineers. It is working with the BIngK and the AHO to minimise the impact of the ruling. These include proposals for the modification of the HOAI, to ensure that architects and engineers can continue to benefit from the usual, tried and tested fee structure. It is proposed that in the absence of any other express agreement, it is assumed that the average rates are considered to have been agreed. Unless otherwise agreed, the amount of remuneration must be commensurate with the nature and extent of the assignment and the performance of the architect. In the case of a dispute, the court of appeal (e.g. civil court or public procurement tribunal) should also be obliged to obtain an expert opinion from a chamber of architects or engineers.

Immediately after the ECJ ruling, the profession was provided with comprehensive information and support materials to minimise the uncertainty caused by the ruling, in particular with regard to its impact on existing and future contracts.

 

For further information on the ruling please visit the explanatory page.

 

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ACE issues declaration in support of Germany on tariffs

In June 2015, the European Commission launched an infringement procedure against Germany on the grounds that the German minimum compulsory tariffs for architects and engineers (Honorarordnung für Architekten und Ingenieure – HOAI) would allegedly violate the Services Directive by preventing professionals from other Member States from establishing and providing their services freely in Germany.

On 28 February 2019, the Advocate General of the European Court of Justice (ECJ), Maciej Szpunar, released his opinion which considered the minimum and maximum tariffs as unlawful. The tariffs were said to hinder cross border activities, because engineering and architecture firms could not enter the market and establish their own prices. Furthermore, he claimed that Germany had not proved that the independent statutory fee-scales for architects and engineers were suitable and necessary for quality assurance and consumer protection. Therefore, he proposed that the Court uphold the Commission’s decision.

The leading German associations of architects and engineers, together with the Federal Government, strongly advocated maintaining the minimum and maximum tariffs and commissioned several advisory opinions. All studies commissioned in this context proved that there is no evidence to suggest that cross border activities are negatively affected by the presence of fee-scales. On the contrary, quality cannot be guaranteed where there is price dumping of architectural and engineering services. Moreover, the most economically advantageous tender, rather than cheapest price, has been recognised as a principle of the latest version of the Public Procurement Directive. Therefore, ACE finds it incomprehensible that the Advocate General did not follow the conclusive arguments given by the German government. ACE is strongly convinced that the minimum and maximum tariffs serve the common interest by:

  • Protecting customer’s rights through transparency of fees and related services for everyone, certainty of design costs, competition based on quality rather than price, higher quality and more positive results along with lower risks of dispute, amongst other benefits.
  • Supporting cross-border activities by providing helpful descriptions of services and guidelines for providing these services. Insufficient language skills and knowledge of building regulations or relocation issues are the main reasons for not moving to another country.
  • Continuing to ensure that courts have a basis on which to make awards during litigation, while public bodies have reference points that can be used when drawing up budgets for public works.

ACE still maintains that the HOAI does not constitute an obstacle to cross-border establishment and provision of architectural and engineering services in Europe, nor has the abolition of compulsory fee-scales in other Member States led to an increase in cross-border establishment in the past.

The Kamra tal-Periti is a member of the Architects’ Council of Europe.

 

ACE Declaration
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Commission takes further action to ensure professionals can fully benefit from the Single Market

Yesterday, the Commission has taken further steps in infringement procedures against 26 Member States to ensure the full implementation of EU rules on the recognition of professional qualifications.

Only a well-functioning Single Market can deliver its full potential for citizens and businesses around Europe. In line with the Single Market Communication of 22 November 2018, the Commission is today taking further enforcement action to ensure that all Member States fully respect EU rules on the recognition of professional qualifications.

Professionals in the EU Single Market can move across borders and practice their occupation or provide services in another Member States. The EU has put rules in place to make it easier for professionals, such as doctors or architects, to have their professional qualifications recognised in another Member State. The Professional Qualifications Directive (Directive 2013/55/EU) was modernised in 2013 and had to be transposed into national law by 18 January 2016.

The Commission is today sending reasoned opinions to 24 Member States (Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom) and complementary letters of formal notice to 2 Member States (Estonia and Latvia) regarding the non-compliance of their national legislation and legal practice with EU rules on the recognition of professional qualifications (Directive 2005/36/EC as amended by Directive 2013/55/EU).

The reasoned opinions and supplementary letters of formal notice cover issues crucial for the functioning of the Professional Qualifications Directive, in particular:

  • European professional card: Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Finland, France, Hungary, Italy, Portugal, Romania, Slovakia, Slovenia and Sweden;
  • alert mechanism: Austria, Belgium, Croatia, Denmark, Estonia, France, Germany, Latvia, Malta, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden;
  • possibility to have partial access to a professional activity: Austria, Belgium, Croatia, Denmark, Estonia, France, Germany, Hungary, Latvia, Malta, Poland, Slovakia, Slovenia and Sweden;
  • proportionality of language requirements: Belgium, Bulgaria, Croatia, Germany, Poland, Romania and Slovakia;
  • setting up of assistance centres: France, Hungary, Italy and Portugal;
  • transparency and proportionality of regulatory obstacles: Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

These issues were also mentioned in a Communication from January 2017 on reform recommendations for regulation in professional services.

All Member States concerned have now two months to respond to the arguments put forward by the Commission. Without a satisfactory response, the Commission may decide to address a reasoned opinion to Estonia and Latvia, and to refer the other 24 Member States to the Court of Justice of the EU.

Background

With the EU rules on the recognition of professional qualifications (Directive 2005/36/EC as amended by Directive 2013/55/EU) the EU has put in place a modern system for the recognition of professional qualifications and experience across the EU. It promotes automatic recognition of professional qualifications in EU countries, making it easier for professionals to provide their services around Europe, whilst guaranteeing an improved level of protection for consumers and citizens.

The Directive applies in general to regulated professions such as nurses, doctors, pharmacists or architects. Exceptions are professions governed by specific EU directives such as auditors, insurance intermediaries, air traffic controllers, lawyers and commercial agents. The Directive also sets rules for
temporary mobility, establishment in another EU country, various systems of recognition of qualifications, and checks for knowledge of languages and professional academic titles.

These rules are complemented by the European professional card (EPC), an electronic certificate available since January 2016 for five professions (general care nurses, physiotherapists, pharmacists, real estate agents and mountain guides). To ensure that EU patients and consumers are adequately
protected, the Commission has also introduced an Alert Mechanism. The Member State that receives professionals from other EU countries is responsible for checking their qualifications or fitness to practice and, in cases of justified doubt, contacting the Member State that issued the diploma.

To facilitate and speed up this exchange of information between Member States, the Commission has put into place the electronic Internal Market Information System (IMI).

For More Information

 

This is a press release published by the European Commission on 07/03/2019

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Call for Projects in Conflict Zone or Post-Conflict Situations

The International alliance for the protection of heritage in conflict areas (ALIPH) has a mandate to offer concrete support for the protection and reconstruction of cultural heritage in conflict zones or post-conflict situations.

ALIPH aims to financially support associations, foundations, cultural and heritage institutions, and international organisations working to preserve cultural heritage in the face of imminent conflict, or to intervene to rehabilitate it. ALIPH has set the objective of becoming a central actor in the protection of cultural heritage around the world within a three-year timeframe.

The organisation is already committed to the ambitious project of supporting the rehabilitation of the Mosul Museum in Iraq; restoring the Tomb of Askia in Gao, Mali; and rehabilitating the Mar Behnam Monastery in Northern Iraq.

ALIPH is now launching a worldwide call via its new website that will enable it to support prevention, protection and restoration projects on every scale, from the smallest local initiatives to ambitious long-term projects. ALIPH also aims to supply immediate aid wherever this is most urgently needed. Project proposals can be submitted up until 15 March 2019 on the ALIPH website : https://www.aliph-foundation.org/

“Too many places in the world know the suffering and destruction of armed conflict. Among the terrible casualties are the built embodiments of cultural heritage — the physical environments that define culture, creating and sustaining memories of place. Architects can help to protect cultural heritage in conflict zones, and to rebuild it when fighting subsides.  The UIA associates itself fully with the aims of the International Alliance for the Protection of Heritage in Conflict Areas (ALIPH), and joins with the French National Council of the Order of Architects (CNOA) to promulgate this important worldwide call for projects.”

Thomas Vonier, UIA President

Find out more about ALIPH and how to apply for a grant

 

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Call for Entries: European Heritage Awards / Europa Nostra Awards 2019

The European Heritage Awards / Europa Nostra Awards are Europe’s highest honour in the heritage field. The Awards recognise the best conservation projects, the most impressive research; the most dedicated heritage professionals and volunteers; and the finest awareness raising, training and educational programmes.

Architects, craftsmen, cultural heritage experts, professionals and volunteers, public and private institutions, and local communities: this is your chance to win the top heritage award in Europe!

Up to 30 remarkable heritage achievements from all over Europe will be awarded. Of those, 7 laureates will receive a Grand Prix and €10,000 each; one will be granted the Public Choice Award, chosen through an online poll conducted by Europa Nostra, the leading European heritage network.

All the winners will be celebrated at the European Heritage Awards Ceremony in June 2019.

The EU Prize for Cultural Heritage / Europa Nostra Awards (as of 2019 the European Heritage Awards / Europa Nostra Awards) was launched by the European Commission in 2002 and has been run by Europa Nostra ever since. The Awards have brought major benefits to the winners, such as greater (inter)national exposure, increased visitor numbers and follow-on funding. The Awards scheme is supported by the Creative Europe programme of the European Union.

Submit your project and share your success across Europe!

Apply now

Deadline: 15 November 2018 (date of receipt)

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Third Edition of the Baku International Prize

The International Union of Architects (UIA) has announced that the Third Edition of the Baku International Prize, supported by the UIA, is now open for entries.

This innovative, biennial award recognises achievement in urban planning and architecture, focusing on composition, volumetric and spatial solutions. Participants are invited to submit projects in the following categories:

A – Best implemented project in the architecture of public buildings;
B – Best implemented project in the architecture of residential buildings;
C – Best implemented interiors;
D – Best non-realised project;
E – Best implemented project in the field of landscape architecture;
F – Best implemented project in the field of rehabilitation and reconstruction of buildings;
G – Best publication in the field of architecture;
H – Best work in the field of architecture journalism and criticism (online and print)

The Second edition of the Award in 2015 enjoyed participation of 34 countries and the award winners came from 12 countries; Bangladesh, Spain, Portugal, Japan, Azerbaijan, Ukraine, Germany, Italy, Vietnam, Singapore, Kyrgyzstan and Russia.

The deadline for entries has been extended until 15 September 2017.

 

For more information on prizes, submission requirements, and timelines please visit the official Awards page by clicking on button below.

 

Award Info
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UMAR Exhibition

The Union of Mediterranean Architects (UMAR), of which the KTP is a founder member,  is organizing an exhibition under the theme of ‘Modern and Traditional Mediterranean Architecture’. This will form part of the International Union of Architect’s (UIA) 26th World Architecture Congress which will be held at Seoul, South Korea on 3-7th September 2017.

The KTP is being invited to contribute to this exhibition with two posters focusing on the theme.  This exhibition is intended to be representative of identity, heritage, cities, culture in the Mediterranean. The first panel will consist of examples of Modern Architecture and the second panel  will consist of examples of vernacular architecture.

English is the official language for exhibition documents.

The KTP is requesting submissions from its members for consideration for inclusion in the KTP’s panels. These must be submitted digitally, with a minimum 300 dpi resolution, in PDF format, by not later than Friday 30th June 2017. Submissions are to be emailed to info@ktpmalta.org and clearly headed ‘UMAR Exhibition’.

The selection of projects for inclusion in the panels will be at the sole discretion of the Council of the KTP or its appointed advisors.

 

For more information on the technical submission requirements, please visit the link below.

http://www.umar.org/index.php?Did=103

 

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