Facts
In this case, company [K. AG] constructed a single-family house for spouses S. The total cost of the work amounted to CHF 764,933.70, thus exceeding the approximate estimate. Spouses [S.] refused to pay the remaining balance of CHF 110,736.05, citing cost overruns not attributable to their responsibility. [K. AG] then filed a lawsuit against spouses [S.] to obtain payment of this amount.Considerations
According to case law and doctrine, in the event of a substantial exceeding of an approximate estimate, the client has the right to request an appropriate reduction of the work price under Art. 375 para. 2 CO. The judge has broad discretion to determine the amount of the reduction, taking into account the circumstances of the case.
In this case, the Cantonal Court considered that a 20% exceeding of the approximate estimate was acceptable, given the fact that it had been established approximately and not on the basis of a detailed calculation. The Federal Court ruled that this decision was…