If the owner terminates an architect without cause, which statement is true?

• A. The owner must pay work-to-date, including overhead and profit.
• B. The owner can transfer the project to another architect without consequences.
• C. The owner pays only unpaid invoices.
• D. The owner loses all rights to compensation.

Answer: (C)

When an owner terminates an architect without cause, the architect is entitled to compensation only for the work already performed and the expenses incurred up to the termination date. In practice, that means the owner is responsible for paying invoices that have been issued but not yet paid, i.e., the unpaid invoices at termination. There is no obligation to pay for services that would have been performed after termination, nor to cover overhead and profit on future work. This is why the statement that the owner pays only unpaid invoices is the best description.

Context: the termination ends the ongoing services, but the value already delivered up to that point and any reimbursable expenses are the architect’s due. Transferring the project to another architect can occur, but it isn’t without practical consequences and doesn’t create a blanket right for future fees. The owner does not lose all rights to compensation; the architect retains a claim for work performed to date.