The architect's primary professional and contractual responsibility is to serve as the owner's trusted advisor. When the architect determines that the owner's program requirements cannot be met within the established budget, the immediate and most crucial action is to inform the owner of this discrepancy. This step is foundational; it clearly communicates the project's infeasibility under the current constraints, upholding the architect's duty of care and honesty. Only after the owner is aware of the core problem can a productive discussion about potential solutions—such as modifying the program, increasing the budget, or phasing the project—take place.

A. Scale down the program to meet the budget. This is a potential solution, but the architect cannot unilaterally change the project program. This decision must be made by the owner.

B. Recommend that the owner complete the project in two phases. This is a viable strategy to be explored with the owner, but it is a subsequent recommendation, not the initial required action of informing them of the problem.

D. Advise the owner to increase the budget. This is one of several potential solutions. The architect's first duty is to state the problem, not to presume which solution the owner will or can choose.

1. AIA Document B101™–2017, Standard Form of Agreement Between Owner and Architect.

Section 6.3: "If at any time the Architect’s estimate of the Cost of the Work exceeds the Owner’s budget for the Cost of the Work, the Architect shall make appropriate recommendations to the Owner to adjust the Project’s size, quality, or budget for the Cost of the Work, and the Owner shall cooperate with the Architect in making such adjustments." This clause presupposes that the architect has first informed the owner that the estimate exceeds the budget. The act of informing is the trigger for making recommendations.

2. The American Institute of Architects, The Architect's Handbook of Professional Practice, 15th Edition.

Chapter 10.2, "Managing Project Scope, Schedule, and Cost" (specifically section on "Balancing Scope, Quality, and Cost"): The handbook emphasizes that scope, quality, and cost are interdependent. When a client's expectations for scope and quality do not align with their budget, the architect's role is to "clearly communicate the trade-offs" and "help the client make informed decisions." The initial step in this process is the communication of the imbalance itself. (p. 678-679).

3. Demkin, J. A. (Ed.). (2008). The Architect's Handbook of Professional Practice, 14th Edition. John Wiley & Sons.

Chapter 11.1, "Project Management": This chapter details the architect's role in managing client expectations and project constraints. It states, "When the owner’s project requirements and budget are in conflict, the architect should notify the owner promptly and recommend appropriate action." This explicitly identifies notification as the primary step. (p. 583).