The determination of architectural fees is based on the matching of the scope or level of services needed for a particular project.  This is a crucial aspect of the working framework between client and architect. 

John Ruskin, a famous 19th century art historian and scholar wrote, 

"It's unwise to pay too much, but it's worse to pay too little. For when you pay too little, you sometimes lose everything, because that which you paid for is incapable of doing what it was bought to do. The common law of business prohibits paying a little and getting a lot, it can't be done. If you deal with the lowest bidder, it is wise to add something for the risk you take and if you do that you might as well pay for something better."

How is the fee determined? 

Time expended for a particular project is the bottom line determination for the architectural fee. Architectural fees are determined in a number of different ways depending on the type and scope of work.  Every client’s situation is a little different and compensation can be determined according to what fits your situation and the following are some examples:

·         Hourly  fees:   

Some projects are done at an hourly rate especially when the extent of the job is unknown or undecided at the beginning.  Often a project can be done at an hourly rate with a preset maximum amount. 

·         Percent of Construction Cost:

Under this circumstance, compensation will be based on a simple percentage of the overall construction cost of the project.  Percentages will vary depending on the project/ building type and the scope of services defined.

·         Stipulated sum:  

Some projects are done on a stipulated sum per unit, due to repetitive factors of the project - for example, the number of square feet, apartments, retail spaces, etc.

·         Fixed fee:  

If the project is very straight forward without much room for change, a simple fixed fee may be in order. 

The most frequently posed question during the initial interview process between architect and client is, "How much do you charge?". The proposed fee must be analyzed by the client, relative to the scope of services being proposed and the consultant fees that is being incurred on the owner's behalf. The proposal must carefully match the scope of services needed to maximize the particular client and project.

When preparing a proposal, fees are a product of three primary factors:

1.        Consultant Fees

2.       Hours budgeted per phase

3.       Hourly rate for each team member

Consultant fees may include:

·       Structural Engineer consultation may be needed for foundation, floor  and roof structures.

·       Mechanical, Electrical and Plumbing Engineer services are usually needed for commercial projects but may be done as a design/ build method for residential projects. The design/ build process would incorporate the use of specialized contractors to design the particular system with oversight by the architect or engineer.

·       Civil Engineer may be necessary if the project requires a septic system or has difficult site issues.  Some jurisdictions require at the minimum a Survey Engineer to verify property lines, setbacks and utilities.

·      Soils Engineer may be needed if there is a potential issue with the quality of the soil situation in a given area.

·      Landscape Architect may be needed for certain commercial projects that need a sophisticated use of the land for local ordinances or for environmentally friendly solutions.  Distinctions need to be made between hard and soft landscaping. Hard are items such as retaining walls, planters, patios, walkways, outdoor lighting, etc. Soft is the design of the plant material within the designated landscape areas.

·      Interior Designer may be needed to assist in the definition of spatial concepts.  An interior designer will define and specify interior products based upon the design intent such as flooring, lighting, interior trim and doors, cabinetry, paint and wall coverings, etc.This service can be provided within the scope provided by Tozai Architecture Interiors.

·      Perspective Rendering and Study Models may be needed to make decisions during the design and construction documents phases. These can be done in the physical or computer graphic realm.  This service can be provided within the scope provided by Tozai Architecture Interiors.

Hours Budgeted:

Hourly budgets are created for the project based upon the agreed scope of work. The time per phase of work is estimated per three phases of work:

1.        Research and Programming Phase

2.       Design Phase (Schematic, Preliminary Design Development and Construction Documentation)

3.       Construction Administration Phase; this can be a simple oversight of the contractor bid review and periodic site visits to assure that the contractor is adhering to the design intent to a more comprehensive design and material adaptation with the construction process. 

Hourly Rate:

The fee proposal is a basic recommendation to client of the amount of effort and time estimated to be expended per phase by the assembled team for the scope of work for the project.  The team members may include:

·  Project Architect: (primary contact with client; designer and supervisor of all consultants, designers and draftsman to coordinate a cohesive project through construction)

·  Designer 1; senior designer (primary design associate for project architect; design would include overall interior coordination of details; Kitchen and Bathroom design, etc. Exterior details, etc.)

·  Designer 2; junior designer (design assistant for Designer 1; duties can include selection of interior finishes and detailing)

·  Draftsman 1; senior draftsman (coordinate construction documentation production with Project Architect)

·  Draftsman 2; junior draftsman (drafting assistant for Draftsman 1)

It is important to stress the need to have a thorough comprehensive architectural service package to maximize the possibility of a successful project.  The design is the least expensive portion of the project.  If time is not spent carefully understanding and designing the project, costs of construction could escalate through change orders, etc.   More importantly, the environment needs to function properly on a multitude of levels such as optimal spatial relationships, efficient use of spaces that reduces redundancies, maximum use of natural and manufactured energy, appropriate use of artificial and natural lighting, appropriate use of the building site to maximize natural cycles and interior detailing.  Budget controls and estimates throughout the project will reduce surprises of cost over runs.  With knowledge of the budget, value engineering could be instituted during the design process to find solutions that will take full advantage of the design intent.

Fee ranges will vary depending on the building type, complexity of the building, whether the project is a new or addition/ remodel and site conditions.  Commercial building types vary greatly so we will need to discuss the specifics with the client.  

A general guideline for Residential Design Fees: 

Fees are based on the scope of services and anticipated time involved in the completion of the project.  The fees are broken down into the design phases and itemized with anticipated personnel time needed.   The fees can range from 1% to 12% +- of the actual building cost.  Below is a brief description identifying the range of services.

Permit Set of Construction Documents:  

(1-3% new custom design; 2-4% addition/ remodel)  The construction documents would be the culmination of design discussions between Architect and Owner.  The number of meetings can range from 3-6 +- meetings.  The fee range would depend upon the difficulty level of the site/ building jurisdiction/ building structure/ architectural details.  The finished construction documents would be a tool to obtain building permits, general construction bids from contractors and general understanding of building material and techniques for construction.  The owner and contractor would be responsible for the execution of construction and interior finish details. 

Builder’s Set of Construction Documents:  

(4-6% new custom design; 5-7% addition/ remodel)  The construction documents would be the culmination of design discussions between Architect and Owner.  The number of meetings can range from 7-20 +- meetings.  The fee range would depend upon the difficulty level of the site/ building jurisdiction/ building structure/ architectural details.  The finished construction documents would be a tool to obtain building permits, more specific construction bids from contractors and more specific understanding of building material and techniques for construction.  The architect will be responsible for basic execution of construction and interior finish details.

Architectural Set of Construction Documents:  

(7-10% new custom design; 8-12% addition/ remodel)  The construction documents would be the culmination of design discussions between Architect and Owner.  The number of meetings can range from 20- 60+- meetings.  The fee range would depend upon the difficulty level of the site/ building jurisdiction/ building structure/ architectural details.  The finished construction documents would be a tool to obtain building permits, specific construction bids from contractors and specific understanding of building material and techniques for construction.  The architect will be responsible for the specific execution of construction and interior finish details.