Architects’ fees largely depend on the nature and size of the project and the circumstances of the appointment. They can vary significantly; since the Royal Institute of British Architects (RIBA) abolished advisory fee scales in 2009, there is little by way of reference. However, it is common practice for fees to be charged between 8% and 12% of the build cost.
Factors to Consider
It is a rule of thumb to assume that: large new-build projects in rural areas attract a lower percentage than small works to existing buildings in major cities; commercial work attracts lower fees than private residential work; works to historic or listed buildings attract higher fees.
One of the main factors to influence the price is the experience and expertise of the architect. However, naturally the size, type, complexity, quality and location of the build are the main variables. Obviously, the more the architect’s professional time is needed the greater the fee; for example, when bespoke design plans are required or when the level of service is high due to complex detailing of individual elements of a build.
Fee Types
Percentage Based
As previously mentioned, nowadays the generally accepted fee range is between 8% and 12% of the build cost. An estimate of the build cost is made to be able to calculate the appropriate percentage. The professional services of the architect are also projected.
Lump Sum / Fixed Fee
This gives the client certainty about the total cost of the architectural services at the beginning of the agreement. This is useful when the work is easily quantifiable and the architect’s time measurable. In circumstances where the agreed fee is in danger of escalating beyond the limits set, it may be necessary to re-negotiate.
Hourly Rate
Generally, the use of an hourly rate is reserved for work when it is difficult to determine the scope of services required when the project is in its infancy, or when additional works are required above the agreed scope of work.
In these circumstances, it is essential that the rate is capped, or a new fixed fee agreed. This gives the client peace of mind that they will be notified and their permission sought if the hourly rate period needs to be extended. Detailed records of the hours worked are needed for transparency and validity.
Money Well Spent?
All fee types are usually set to give value according to the size and scale of the project to be undertaken. There is a relationship between the specific design brief, the build cost and the number of working hours required.
When appointing an architect, they must be registered with RIBA or the Architect’s Registration Board (ARB). The architect must also carry the necessary indemnity insurance cover. This professional role covers many services, including: preparing a strategic brief for the client; carrying out feasibility studies and option appraisals; advice on procurement routes; acting as contract administrator; inspecting the works and post occupancy evaluations.
Our Approach
Here at EDG Architects in Harrogate, North Yorkshire, we operate a fixed fees structure. We choose this method because it gives our customers the financial security and peace of mind of knowing the extent of the charges before they commit to the work and because we know we are competitive with this fee structure. Often this works out cheaper than a percentage based fee by the end of the project.
Often with a percentage fee the build cost used to estimate the Architect’s fees increases, either due to an increase in the scope of the works, due to market factors, or simply because this is a rule of thumb estimate to begin with. When the actual build cost becomes known the Client is often hit with a ‘top-up’ bill for the early stages of a project which have already been completed.
We do not feel that this is fair which is why we operate an open and transparent fixed fee structure. In our experience, the proposals we deal with fit this form of fee type and our customer satisfaction bears witness to this.
Plan your work today for summer 2021!
If you are thinking of a project of your own then we would recommend that you contact us today to start the process. Our average homeowner project takes 35 weeks from the point you appoint us to building work beginning on site!