Sydney Architect Adam Pressley FRAIA runs a residential practice designing homes. 'We focus on our clients brief, provide designs in 3-dimensions and we can manage just one stage or every stage of the process'. F A Q - Frequently Asked Questions:

How do architects charge for their services?

There are three main ways architects charge for their services, and some projects may include all three types of fees, which are introduced at different stages of the project.

1. Percentage Fees

This is probably the most common method because it requires the least work. The architect offers a range of 'Full Service' fee percentages, which vary depending upon the type and size of the project.

Example: New homes are usually cheaper than additions / renovations, and small projects command a higher percentage than larger ones. Most projects would fit within the 8% - 18% range of the projects total 'Construction Cost' for the Full Service.

Initially where the actual 'Construction Cost' is not known the architect bases their fees on the budget for the project.

Benefits:

• If the scope or work represented by the project's construction budget grows because of changes in the brief or because a design evolves, then the architect is automatically covered for the cost of the extra work

Disadvantages:

• Not everyone likes to committ to a big fee at the begining of a job


• If the architect suggests additional design elements during the project, which add cost to the job, there can often be a perception that they are doing so to add padding to their fees. (Although this is rarely the case, it can cause strain on the working relationship)


• The original fee percentage quoted, may have come from the architects experience on other projects, but will not necessarily be related to the current project causing the fees to be too high or too low


• The architects fees are related to the cost of the project, and not necessarily to the amount of work they do

2. Fixed Fees

This involves the client providing a detailed brief to such a degree that the architect can provide a quote for the work. Whilst it is called a 'fixed fee', it must be altered when there are significant changes to the scope of work.

This method requires the scope of work to be really clearly defined and with all 'Fixed Quotes' there is often a considerable 'extra or margin' built in to keep the architect out of trouble.

Benefits:

• The client has a fixed fee, so unless the scope of work changes, the fees are fixed

Disadvantages:

• Often the architect can begin to run out of fees during a project and their ability to do the job properly is diminished. Jobs can consequently end up being done 'to a price' rather than 'to a quality'


• If the project goes well, the architect can pocket the 'extra or margin' initially added in the quote resulting in the total cost of the job being more than a cost plus project

3. Hourly Rates or Do and Charge

This method involves the architect specifying their hourly rates, then keeping an accurate record of all time spent on the client's behalf, and invoicing monthly or at the completion of each stage.

Benefits:

• If a stage by stage estimate is provided then the Hourly Rate Fee can be better than a Fixed Fee because it has no 'extra or margin'


• The client does not have to sign up for a large initial fee and can see how the costs develop over the course of the project


• The architect can give their best for every stage of the project without worrying about running out of fee. This is ideal for 'high quality' projects, which require a high level of thought and detail


• This is also a good method where the design or scope of work is evolving; is unclear; or where the building is under construction while the documents are being completed


• The architects fees are not at all related to the cost of the project

Disadvantages:

• The client can be up for higher fees if they make a lot of changes, but this may be true across the other fee types also

Copyright All Australian Architecture 2009