NEGOTIATING DESIGN FEES – SIMPLE GUIDE

NEGOTIATING DESIGN FEES – SIMPLE GUIDE

NEGOTIATING ARCHITECTS FEES – SIMPLE GUIDE

AVERAGE RATES FOR ARCHITECTURAL SERVICES

 

Architects typically charge for their services in one of these five ways:

– HourlyCost
– As-Per Developement area
– Percentage of construction cost
– Fixed fee
– Combination

For residential work, smaller projects and renovations the most common method used by architects is hourly. For medium to large size non-residential projects the most common method is a percentage of construction cost. However this method id preferred by most clients.

1. HOURLY FEES

Typical Architectural hourly fees is mostly used for small projects, residential projects or for services where the time to complete the work is not known. The architects computes the number of hours spent on the project and charges a fee/ rate for every hour spent on the project. This is used mostly for design projects in Nigeria, Lagos and its environs.

2. COST PER SQUARE METRE

The cost per square metre method is less commonly used. It does not work well with remodeling projects and is usually only used in the design of custom homes. It assesses a fee based on the square foot measure of the largest concept presented to the Client. Generally, this method limits revisions to a specific number, generally three, and if the Client desires further revisions, the Architect will bill on an hourly basis.

3. PERCENTAGE OF CONSTRUCTION COST

Fees based on a percentage of construction cost is most commonly used in medium to large commercial projects especially corporate and government projects. The average fees for a project of typical complexity is 10% -15% for renovations and 8%-12% for new construction.

4. FIXED FEES

Fixed Fees is most commonly used in projects where the scope can be clearly defined. Sometimes a percentage fee is converted to a fixed fee after the schematic design phase is complete and a cost estimate has been prepared. The fixed fee is usually calculated by estimating the hours required to complete the work, or based on the expected result of the percentage fee.

5. COMBINATION

Combination is most commonly used when portions of the work are billed hourly where the time required to complete the work is not known, and the remainder of the fee is a fixed fee or a percentage of construction based fee.

These are the most commonly used ways your Architect will charge for their design services.

The Client is free to work flexibly through the various options in determining which one that suites the project best and discuss with your architect.

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