There was a time when The American Institute of Architects (AIA) actually published a recommended fee schedule. However, in 1990, the Department of Justice won a lawsuit where the AIA was to withdraw these recommendations and could in no way, directly or indirectly, restrain the way architects charge for services. Therefore, no real standard drives Architectural pricing which can pose a challenge for both Clients and Architects. For Clients, it is common to select the lowest bidder and that can have costly downsides. For Architects, it can be hard to successfully convey the value of their expertise.
Rather than being paid for expertise, as some doctors or lawyers are, Architects are thought to be compensated for an object – a Drawing Set. As mentioned in Beyond the Drawings, the service (and vision) of an Architect is so much more than a set of drawings. While an architects’ fees are an additional project cost, hiring an architect can actually save you money in many ways. Architects can monitor your budget and propose designs that reduce energy costs and function efficiently. They can turn a difficult lot into a successful building site and fully develop a project to avoid changes once construction is underway. Further, it is the knowledge they have of the profession and industry that fuels an in-depth and successful design project.
An architect’s compensation can be based on time and/or a fixed fee. It is typical to perform architectural services on an hourly basis, with estimated costs depending on client’s requested levels of service, anticipated project scope of work, and town/city requirements. A hybrid fee that combines both an hourly fee and a fixed fee based on the individual phases throughout the entire project typically works best for both the Client and the Architect.
It is best for an Architect to understand the scope of a project in order to create a fee that makes the most sense for each specific project. There should be a clear understanding of the scope of the work and a custom fee created to reflect that work. It is reasonable that fees have a proportionate relationship to the cost of the project. It is common in residential projects, especially additions or renovations, for fees to reflect a baseline of work. This is due to the fact that there is a minimum amount of time required to document, design, permit, and coordinate the project; whether the project is a 300 SF mudroom or a 1,000 SF master bedroom and bath.
A Registered Architect who believes in providing a high quality of service is able to keep fees in proportion to the project while working with the Client to meet the standard requirements that comes with every design project. An Architect brings an expertise to every project that strengthens the success of that project.