This is also a common method of setting fees, especially where the architect will not be involved in the project during the construction phase. The architect agrees on a fixed sum of money for an agreed scope of work. This has the advantage that the client knows exactly how much the architect's fee will be. However, if the project increases or decreases in size, the overall fees will be renegotiated.
This is the most flexible fee arrangement, and is often used for very small projects, or for the preparation of initial design concepts. We generally agree on a maximum number of hours not to be exceeded without client approval. Some projects begin with an hourly rate arrangement, then shift to a percentage or lump sum once the overall scope has been determined.
We understand that some projects may not fit neatly within a single category. It may be appropriate to begin work with one basis of fees with the intention of changing to another once the scope of the project is better known.