FEE TYPES

There are several types of fees that architects can charge for their services:

Percentage

Architectural fee is a percentage of the cost of the building. The reason for relating the architectural fee to building costs is that the factors affecting the cost to build also affect the time required to design. A large and complex project will naturally take longer to design and cost more to build than a small and simple one. One advantage of the percentage fee type is its flexibility. If the scope of the project increases or decreases, the overall fee can change accordingly without having to renegotiate.

Lump Sum

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.

Area rates

Combines aspects of the percentage and the lump sum fees.  Architectural fee is based on the size of the building rather than the cost. Suits people who wish to negotiate a clear fee structure before the scope of the project has been defined. Click HERE for more detail.

Hourly Rates

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.

Hybrid Fee Arrangement

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.