Depending on the project type and the architectural firm, an architect may
charge for a project via a percentage of a cost of construction fee, a lump sum
fee, or hourly rates. It is most typical for a project that involves all five
architectural phases of work (Schematic Design, Design Development, Construction
Document, Bidding and Construction Administration) to be charged via a
percentage of the cost of construction.
Fee percentages can range from 8-15%; as the building size goes up, the fee
percentage usually goes down.
All projects include some reimbursable expenses. These project costs are
expenses to the project such as permitting fees, reproduction expenses, soil
borings and other environmental testing, construction testing, etc. These costs
are in addition to an architect's fees and can be paid directly by the client or
paid by the architect and reimbursed at a mark-up to account for pre-payment and
No discussion of fees would be complete without the understanding that
architectural fees from various firms must be evaluated very carefully to
determine the best value. Perhaps the most important consideration in the whole
fee discussion is the realization that a skilled architectural firm with a solid
understanding of the Owner and strong experience in a particular building
specialty has the best ability to deliver the most building for your budget.
While clients may be looking at the front end of a project to save dollars in
fees, the same architect whose fee was a little higher can often deliver a more
cost effective building and better control construction costs. The focus on cost
savings would best shift to the big picture and total budget including life
cycle costing, the cost to operate and maintain the building over its lifetime.
Certainly, a good architect that is paid a fair fee can and will do a lot to
control the initial and life cycle costs of the building project.
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