The cost of an architect can vary depending on numerous factors including, level of experience of the architect, background training, type of building, size of building, complexity of building, and the location of the building. Architect’s fees can also be based on a percentage of the total construction cost, on time expended, or a lump sum. You can select all or part of an architect’s services, from an initial design discussion through to the final delivery of the project on site. For some projects the architect’s role may be limited to drafting the blueprints, or making alterations to existing plans or completely designing a building from scratch.
To put it another way when you hire an architect you are paying for a service. A good architect brings both imagination and expertise to the task at hand. He or she can provide for both short-and long-range objectives. The expertise, training and experience of an architect allows them to offer approaches and solutions that you might have never thought of on your own. What is included typically in an architect’s fee is the time that the architect must take to analyze your requirements, define what you need and want, develop and revise the design, coordinate the permit process, and ascertain that the project is built according to the plans and specifications.
It is important that during your first few meetings with a potential architect, you clearly communicate your expectations and needs. The level of involvement and complexity of the project will greatly impact the time and therefore architectural cost of the project.
It is 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. Traditionally for a residential project architecture fees will run approximately 8-12% of the final costs of building the home. Likewise, it is common for a study project to be charged via a lump sum or hourly rate.
Fee percentages can range from 5-15%; as the building size goes up, the fee percentage usually goes down. Some firms established a fee chart that is based on past experience of how much time it takes to successfully complete a certain size and type of project. This fee structure typically includes standard fee percentages for projects of varying costs of construction as well as the architect’s hourly rates. Architects may adjust the fee after reviewing the project in terms of its complexity. The project may be identified as standard, above average, or below average in complexity. Based on several variables, the percentage on the fee chart may be adjusted up or down from the "standard" fee listed.
Examples of variables that would increase the fee percentage charged for a project would include fast tracking, numerous meetings, extensive renovation, the need for extra specialty consultants, to name a few. Examples of variables that would decrease the fee percentage charged for a project would include repeat work from the same client contact person, a repetitive project like window replacement, and an unencumbered approval process.
Lastly, 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 administrative costs.
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 specialist with a solid understanding of the owner and strong experience in your 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.