The cost of architecture is a contentious topic and a difficult one to find a consensus on. The American Institute of Architects suggests that design fees for remodels are generally around 15% of the eventual construction cost, while for new construction projects, it’s around 10%. However you can also find designers who will charge only a few thousand dollars for a complete set of drawings.
This article explains the many reasons for the disparity and inconsistency with design fees. In short, every project is unique and cannot be exactly compared to another. While two projects may seem similar, the complexity may be vastly different based on jurisdiction, environmental factors, materials and scope. In addition, this article details why a good architects fee may be higher than expected because of their time, energy, expertise and of course, CREATIVITY.
This investment might appear substantial for simply creating building illustrations. However, let’s delve into what clients receive for this expenditure and the comprehensive services architects provide beyond mere drawings:
Considering the extensive services architects provide in a project, what exactly is included in their design fee? Typically, a portion—about one-third—is allocated to the staff member directly involved in the task, while the remaining two-thirds cover the overhead expenses of running the firm. Any surplus from overhead contributes to the firm’s profit. For instance, if an architect charges $150 per hour, it’s plausible that they engage in billable work approximately half of their time, equating to around 1000 billable hours in a typical 2080-hour work year, often less. Out of a total billing of $150,000, $50,000 would be allotted for the architect’s salary, with the remaining $100,000 allocated for overhead expenses such as professional liability insurance, general liability insurance, high-end software, office rent, and operational costs. It’s crucial for firms to maintain a surplus in overhead expenses to sustain operations during slow periods, unforeseen mishaps like tile order errors, or delayed client payments. Does this sound enticing? Is being an architect appealing? Many architects are drawn to the profession due to the intrinsic rewards of their work, rather than purely financial incentives.
If you would like to learn about our new IOS application JobSync, that helps us manage complex construction projects, please visit www.innate-aec.com/shop. If you’d like to learn more about our architecture or construction process, visit www.innate-aec.com/about, and if you’d like to get started on an architecture, new construction or general remodel project, please visit www.innate-aec/contact.
This article explains the many reasons for the disparity and inconsistency with design fees. In short, every project is unique and cannot be exactly compared to another. While two projects may seem similar, the complexity may be vastly different based on jurisdiction, environmental factors, materials and scope. In addition, this article details why a good architects fee may be higher than expected because of their time, energy, expertise and of course, CREATIVITY.
This investment might appear substantial for simply creating building illustrations. However, let’s delve into what clients receive for this expenditure and the comprehensive services architects provide beyond mere drawings:
- Drawings: These serve as the most tangible output, providing essential information for securing permits from the building department and guiding builders in constructing the building. While some may assume that basic CAD skills suffice for creating plans, it’s not just about drawing ability but rather understanding what to include in the drawings. This underscores the importance of accessing the architect’s expertise throughout the entire design and construction journey, making the drawings themselves less valuable compared to the invaluable guidance provided by the architect.
- Experience: The drawings convey a wealth of contractual information that requires years of focused learning to effectively communicate to various stakeholders, including building departments, engineers, builders, material suppliers, and clients. Architects determine the optimal approach to meet client needs and ensure that construction aligns with expectations, budget, schedule, building codes, zoning regulations, builders’ capabilities, material constraints, and numerous other factors. These considerations are distilled into technical drawings and documents to communicate requirements to relevant parties. While experience plays a crucial role, much of its value lies in verbal communications and visual inspections with the architect. This direct interaction allows for swift, targeted feedback, saving thousands in construction costs by addressing issues promptly. This leads to the subsequent benefit…
- Time: Throughout any project, there are numerous pivotal moments before and during construction when your architect’s immediate availability is crucial. These include meeting deadlines set by building departments, providing on-the-spot clarifications to builders regarding construction techniques, addressing client concerns or anxieties about budget estimates, dealing with inspectors requesting costly but unnecessary additions, or assisting clients in making significant decisions during moments of stress or uncertainty. On countless occasions, I’ve had to prioritize my clients’ projects over personal commitments, sacrificing leisure time, and even family moments to ensure that urgent project needs are met promptly. I view it as renting out my expertise, always on standby to assist whenever needed. Moreover, architects remain available even during times when clients do not require immediate assistance. Despite potential lulls in project activity, architects must keep their businesses operational and maintain readiness for crucial tasks, much like surgeons who remain on standby in the ER, ready to act when required.
- Coordination: Your architect serves as the central coordinator for all parties involved in bringing your building project to fruition. They possess comprehensive understanding of technical details from builders, product suppliers, building departments, and engineers, amalgamating this information into a cohesive set of documents essential for your project team. The architect oversees the collaboration of various professionals including surveyors, structural engineers, mechanical engineers, electrical engineers, plumbing engineers, geotechnical engineers, civil engineers, builders, building departments, inspectors, arborists, ecologists, biologists, landscape architects, lighting designers, smart home technology providers, real estate agents, archaeologists, historians, neighborhood groups, and numerous material suppliers.
- Assurance: By engaging an architect, you secure the confidence that your building will function effectively, remaining leak-free, tailored to your requirements, comfortable, and safe. Optimal performance is ensured when the architect remains involved throughout the entire project, including the construction phase. Fragmented commissioning, akin to assembling only the bread for a sandwich, yields subpar results. To achieve optimal outcomes, the architect must oversee the entire process.
- While individuals may discern their preferences regarding what they see, often they are unaware of the underlying reasons. This is where your architect steps in. With an innate understanding, your architect comprehends your desires even when unspoken, or when you believe you know what you want but may not. It’s akin to the times in adolescence when parents foresaw the consequences of risky behavior, much like a proficient architect anticipates the trajectory of your project. When clients articulate their intentions, an architect can anticipate their next steps, identify aspects of the request that may not be feasible, and guide them towards the essence of their vision. Presenting options beyond imagination, architects elucidate why the optimal solution prevails, even if initially unconventional. Architects aspire to inspire clients through their spaces, extending creativity into unconventional realms such as navigating permit challenges, devising innovative construction methods to save costs, determining the most advantageous real estate strategy, or proposing cost-effective project sequencing. Your architect serves as a resourceful problem solver, committed to finding solutions across various domains.
Considering the extensive services architects provide in a project, what exactly is included in their design fee? Typically, a portion—about one-third—is allocated to the staff member directly involved in the task, while the remaining two-thirds cover the overhead expenses of running the firm. Any surplus from overhead contributes to the firm’s profit. For instance, if an architect charges $150 per hour, it’s plausible that they engage in billable work approximately half of their time, equating to around 1000 billable hours in a typical 2080-hour work year, often less. Out of a total billing of $150,000, $50,000 would be allotted for the architect’s salary, with the remaining $100,000 allocated for overhead expenses such as professional liability insurance, general liability insurance, high-end software, office rent, and operational costs. It’s crucial for firms to maintain a surplus in overhead expenses to sustain operations during slow periods, unforeseen mishaps like tile order errors, or delayed client payments. Does this sound enticing? Is being an architect appealing? Many architects are drawn to the profession due to the intrinsic rewards of their work, rather than purely financial incentives.
If you would like to learn about our new IOS application JobSync, that helps us manage complex construction projects, please visit www.innate-aec.com/shop. If you’d like to learn more about our architecture or construction process, visit www.innate-aec.com/about, and if you’d like to get started on an architecture, new construction or general remodel project, please visit www.innate-aec/contact.
