Heaven makes a solid point. It is not always the case, but is true more often than not.
If you work with a Design/Build firm, you should ask if their general liability insurance company knows that they do Design/Build and ask for proof that they do. Most of the time you will be surprised by the results of that question.
Dr. Green, I have worked with the company you are having this issue with, on more than one project. They provide some of the nicest design in this state, but they are always over budget.
The thing that gets most people in trouble when working with an Architect is that they do not get a builder involved until the design is complete. Architects do not order materials, manage man hours on a project or have any idea how to actually build a house ( a couple do, but most do not, I have met and worked with 1). Mainly, they have no idea what actually goes into building a design that they create. Remember, Architecture is a degree in contruction Theory, not in construction.
Having a builder perform Budget Reality Checks during design is very important to keeping the customers goals and budget in mind.
I am not sure what recourse you are going to have other than to stop into their office and discuss this issue with the owner. I know that their contracts are very clear in what you are going to pay and what you are going to get. I can have them start a design on a house tomorrow that I never intend to build, but I will still have to pay them for this use of manpower and experience in design.
Their contract will legally prevent them from having to refund your money. This is down to an ethics and honor issue, you are going to have get your money back, by pleading for it.
I strongly recommend that you do not threaten to destroy their reputation as a way to try and get your money back, it will more than likely backfire on you, especially if you plan to sub-contract for any major building player in your demographic. That is just my advice, from one business to another, that is never a tactic that pans out the way you would dream it will.
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