An architect's professional fees in terms of a tender concerning the once-projected relocation of the Oncology Department from Boffa Hospital to Zammit Clapp were drastically reduced after an appeal lodged by the director of health.

Valerio Schembri in his personal capacity and on behalf of Valerio Schembri Project Workshop Ltd, had sued the director over fees allegedly owed to him by virtue of the contract entered into with the health authorities relative to the said project.

In October 2012, the First Hall of the civil court, had upheld the applicant's claim and ordered the government authorities to pay Mr Schembri €804,119.88 representing his pre-established fees at four per cent of the certified works.

The court of appeal, presided over by Mr Chief Justice Silvio Camilleri and Mr Justices Giannino Caruana Demajo and Noel Cuschieri, heard how Mr Schembri's architectural firm had won the contract in October 2003 following a tendering process.

The contract was signed for two years and in November 2005 was renewed for a further three months up to January 2006. However, in September 2006, Mr Schembri had allegedly received a letter from the director of health which, while thanking him for his "sterling service", informed him that the contract had been awarded to someone else for the next two years.

The court observed that since the project assigned to Mr Schembri never materialised, the four per cent payment rate due on the certified works was to be reduced to 2.67 per cent. This rate was due on the bills of quantities, structural calculations and applications for permits undertaken by the architect.

The court, therefore, partly upheld the appeal filed by the director reducing the fees payable to Mr Schembri from €804,119.88 to €103,522.33, relative to the works performed. A further €2,000 covering expenses related to copies of plans submitted, were calculated by the court as payable to Mr Schembri.