Typical Fee Structures for Architects
2018/2/6 – How do Architects typically charge for a construction project, you ask? The answer depends on the Architect, the Client and the Project. Here are some of the more common methods:
Hourly Fees – exactly as it sounds the Architect submits a list of staff with associated cost per hour. Sometimes the Architect will provide a “not to exceed” number or an estimated range of total cost to go with this. Typical costs per hour range from $60 for administrative/cad personnel to over $200 at some firms for firm Principles.
Per Square Foot Fees – the Architect will charge the Client per square foot of construction. In our experience this is rare among Architects but often MEP Engineers will provide their sub-consultant prices to Architects utilizing this method.
Lump Sum Fee – the Architect will provide a lump sum fee to provide a design for a building after understanding the Clients project scope. We utilize this method quite a bit, but when we utilize this method we typically will describe what services we are providing in detail as part of the agreement. It is important for Owners to study the Architects proposed scope of work and communicate what services are desired and which are not.
Percentage of Construction – Fees are based on percentage of Construction cost, typically between 5% and 14% depending on project size, Architect involvement and complexity. Renovations are typically more expensive than new construction on a percentage basis to design. Small projects are typically more expensive to design on a percentage basis than large projects. For this method it is also important for Owners to study the proposed scope of Architectural work. Architects are usually very willing to adjust scope of work and scope together to provide a level of service customized to their clients. This method is sometimes best when the exact scope of the project hasn’t been determined yet.
We typically get asked the following questions related to fee:
Q: What happens if the project comes in over budget?
A: We will typically redesign it to meet your budget for no cost to you. To date, Falk Architects has never had a project exceed it’s Owner provided project budget. We work to meet Owners budgets by providing “alternates” in the construction documents. Alternates are items that are extras that aren’t necessary for the design but would be nice if affordable. By providing several alternates and getting several bidders on each project we are able to find a bid that meets a Clients budget.
Q: What happens if I (the Owner) changes the design during construction or during creation of Construction Documents?
A: Usually if it a minor item we work with our Clients to meet their needs. However, if we have spent large amounts of time with creating construction documents for a design that has been approved by the Owner and they make a major change, it can be very costly to the Architect. We try to educate our Clients about the importance of a linear design process. Going back and making changes late in the process can often lead to coordination issues as well, because of limited time to make changes. Avoid late changes to the design at all cost.
Q: When do we pay?
A: We typically invoice for work performed at the end of each month and request that payment is made within 30 days of receipt of invoice.