Understanding Professional Architectural Fees
Hourly Rate Hourly Rates are charged for the time spent by different level positions on the project. This method is typically used when a project requires additional Schematic Design work before a scope of work can be determined. It is most commonly used in renovations and small residential projects.
Percentage of Construction Cost A Fee based on a Percentage [%] of Construction Cost is a commonly used method in medium to large commercial projects and custom residence design. Average fees are dependent on the complexity of a project ranging from 4-12% for Renovations and 6-15% for New Construction. To determine the Fee [%] we look at factors such as level of design and detail, and the scope of services required for the project. Fee % Levels of Custom Residence Design Elite Level of Design – 10-15% Moderate Level of Design – 8-12% Basic Level of Design – 4-10% Fixed Fees / Lump Sum In projects with clearly a clearly defined scope of work we use a Fixed Fee. A Fixed Fee can be calculated by estimating the amount of required hours to be spent on the project. We will use a Task-Fee Chart to establish what services in each design phase will be required, and the amount of time appropriate for each task assigned to the various designer hourly rates. Combination Depending on the clients’ preference and the type of project, a variety of these combined methods during certain phases of a project. For instance, an Hourly Rate method may be initially used until a defined scope is established and we can estimate the amount of remaining work required to set a Fixed Fee, also known as a Lump Sum.
What is Scope of Services?
The Scope is defining the who, what, why, where, and how’s of the project. Once the Scope is determined we will also define what services your project requires. Depending on your project and needs, you may not need full design services so we are able to tailor our services to fit your needs. Full Architectural Design Services include the following:
Programming & Planning
Schematic Design (Conceptual Ideas)
Design Development
Construction Documents
Bidding & Negotiation
Construction Administration
Additional Services
How do we put all these together? [ Design Phases – Tasks – Hours – Rates ] In order to determine a Fee, we break down the tasks in each Design Phase required. We estimate hours to be spent on each task based on similar previous projects completed as a reference. The total hours by various level positions are then applied to Hourly Rates provided in your Proposal.
In the chart shown above, we’ve given an example Fee determination based on Percentage of Construction Costs. We’ve used a 9% Fee of Construction Costs. If the Construction Costs are estimated to be $250,000, our Architectural Fee based on 9% is $22,500. We take the Total Architectural Fee and apply the Design Phase percentages to determine the fees allotted for each phase of design. This chart also allows us to compare and stay on track in the design processwith your budget.
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