This is often one of the first question clients wish to know the answer to before deciding to proceed with an Architect.

There are three main methods of remuneration for Architectural services:

PERCENTAGE FEE

This is the most common method under which Architects work. A percentage fee is negotiated based on the size and complexity of the project. THe fee applies to the completed construction cost of the project. Initially an estimate of the cost of the works is used so that fees can be invoiced at a number of stages throughout the project. this figure is adjusted once the final project cost is known. The percentage fee generally includes four stages each representing the following breakdown of the total fee.

Preliminary Design                        15%

Design Development                     15%

Contract Documentation                40%

Contract Administration                  30%

The Architect will generally invoice at the completion of each stage, but this is at the discretion of each individual. Payment of fees are not dependent upon gaining approvals from Council.

Architects will seek instructions form the Client at the end of each stage to proceed with the next stage. Clients have the right to terminate an agreement by written notice at any stage during the project. In those circumstances Clients are liable to pay for work completed only up to the point of such notice.

This method is probably the most equable for both parties. An Architect will set a percentage that allows fair fees that enable a professional service to be provided.

If the scope of works is altered by the Client then the Architect will be remunerated for that  work because it is covered by “final building cost”.

LUMP SUM FEE

Lump Sum Fee is offered on the basis of an agreed scope of works and services as defined in the Project Brief. Should the scope be altered the fees would be amended accordingly. The Lump sum can be broken down into stages as defined under “Percentage Fee” above.

Payment terms are generally similar to those mentioned above.

HOURLY RATE

This is not the preferred method of setting fees in the interest of clients. Because the scope of works is often undefined the fee becomes open ended with no fixed limit. One way of giving more certainty to clients in this instance is to offer a fixed hourly rate with an upper limit. This is generally fair for both parties, but it means the architect has to guesstimate  that upper limit, and in such circumstances is likely to cover any unknowns by adding a safety margin to the overall fee. The most appropriate use of this form of remuneration is for additional work not covered by the initial agreement.

Susbstantiation of the hours expended should be provided on request.

  

CLIENT AND ARCHITECT AGREEMENT

Warwick O’Brien - Architect asks Clients to enter into an written agreement that sets down in plain English the

            Responsibilities and entitlements of the Architect

            Responsibilities and entitlements of the Client

            The Services provided

            The fees

            Reimbursable expenses