Fees
Retaining the service of an Architect can actually help you get better value for your money. What you pay for is the ability to see many different aspects of a project—the owners needs, the material and spatial constraints, the timetable, the cost, the permits, special site / zoning restrictions, and the design possibilities—through one set of professional eyes.
Percent of the Construction Cost
Architectural services are calculated as part of the project cost, typically around 10 percent of the building budget. So if the cost to build 2,500-square-feet were $500,000, the architect's fee would be $50,000.
If you double the cost to $1 million because you are building a larger project with more design features, the percentage fee charged will go down to about 8 percent, or $80,000.
However, if you are building an addition or remodeling for $150,000 the rate will go up to as much as 12 to 15 percent or $18,000 to $22,500. Smaller jobs often require more work, especially additions that must be tailored to existing conditions. At the beginning of a project, the fee is based on the architect's estimate of the total cost.
The architect's percentage fees can also go up if a project is in a historic district, on a critical dune, near a lake, or stream. Special site restrictions may impose many additional requirements on new construction by a historic commission, the Department of Environmental Equality, or other governmental officials.
If you double the cost to $1 million because you are building a larger project with more design features, the percentage fee charged will go down to about 8 percent, or $80,000.
However, if you are building an addition or remodeling for $150,000 the rate will go up to as much as 12 to 15 percent or $18,000 to $22,500. Smaller jobs often require more work, especially additions that must be tailored to existing conditions. At the beginning of a project, the fee is based on the architect's estimate of the total cost.
The architect's percentage fees can also go up if a project is in a historic district, on a critical dune, near a lake, or stream. Special site restrictions may impose many additional requirements on new construction by a historic commission, the Department of Environmental Equality, or other governmental officials.
Hourly
To make fees more understandable some projects may be charged by the hour. Each hour spent on the project is charged at an agreed upon rate. The total design fee is difficult to estimate, but this allows some flexibility in the scope of service and can be appropriate for some projects such as limited remodels or design or construction administration services only. Hourly fees can become contentious if the number of hours becomes controversial.
It is possible to combine the hourly and percentage systems. Initially, an owner may be charged by the hour as they develop the basic design concept. When the concept design is finalized, the project fee may switch to a percentage of construction costs if the owner decides to proceed.
It is possible to combine the hourly and percentage systems. Initially, an owner may be charged by the hour as they develop the basic design concept. When the concept design is finalized, the project fee may switch to a percentage of construction costs if the owner decides to proceed.