How much do architects cost?
The way architects charge for their services can often appear to be mysterious. While other professionals, such as solicitors, are universally understood to charge by the hour, an architect’s services will be completely bespoke to your project; reflecting its scale, nature and complexity as well as the amount of design innovation and detail resolution you require. This means that it’s very difficult for architects to offer a standard pricing structure, or to give a quotation before they have fully understood the nature of the project and the expectations of the individual client. We’ve written this blog to set out and explain the factors that might influences architectural design costs for your project.
Generally, architects charge fees in one of three ways, although not necessarily exclusively. It might be that on a single project there is a fixed fee up to planning stage, a percentage fee up to tender stage and an hourly rate during construction.
A fixed, lump sum fee
This method is often used if the scope of work required is clearly defined at the outset (see our services page for more info). This method of fee calculation is often attractive to the client as it can give them peace of mind regarding the fees required to complete the work. If however, the scope of work alters or the work has not been clearly defined, then a negotiation will need to take place in order to cover the additional time the architect needs to complete the work. If negotiation is not an option, then the architect may price this risk into the initial quotation, meaning that the lump sum fee may not always represent the best value option for the client.
A percentage of the project costs
This method allows architects to charge a fee as a percentage of the overall construction budget. The percentage fee is spread out over the course of the project, from brief development, through concept design, technical design and delivery on site, and invoices are issued monthly according to work completed. This method of fee calculation allows for a bit more variation in scope through the design process, as any alteration in scope is likely to effect overall build budget, and consequently the fee the architect can charge. Most architects will agree to a 10% variance in construction budget before they will alter their fees. Crucially with this method, either the client, architect or a quantity surveyor would need to have a good handle on how much the project is likely to cost (we should write another article about just that!).
By the hour
This method of fee calculation is often used for small or discreet pieces of work and where the scope of work cannot be clearly defined at the outset. An architect will often cap their fee at an agreed limit and only exceed this with prior agreement form the client.
How Fees are Invoiced
Fees are charged at the end of a RIBA work stage or monthly as a proportion of the work undertaken. The latter method is more common for smaller architects’ practices as it helps with cashflow and helps clients spread payments.
As a rule of thumb, you can expect to pay between 8-15% of the total construction cost for a domestic project, split approx. 35% planning, 35% up to tender and 30% during construction. This proportion will reflect the anticipated time split between the different stages and could be adjusted depending on the procurement route and the amount of input required from the architect at each stage.
Our code of conduct requires architects to record our fee or method of calculating it in writing before we undertake services. This should be set out clearly in a fee proposal, followed by an appointment document including any terms and conditions which protect both the client and the architect.
While you may agree the total project fees up front, an architect will work through RIBA Stages incrementally, allowing you to pause or halt the project at any time, and pay only for the work that has been undertaken.
What factors will affect the cost of your project?
Project size – generally speaking, the smaller the project, the larger the proportion of the overall project costs will need to be spent on fees. This is the case as smaller projects are often bespoke and present fewer economies of scale for the architect.
Project complexity – if the project is particularly complex and is likely to involve problem solving or research and innovation, then the fees are likely to be higher than they would be for a more straightforward project that can be easily defined at the outset. In general, the fees for a new build are likely to be lower than that for a project involving an existing building, especially if it is a heritage building or it is located within a conservation area. Works to existing buildings are often more complex, presenting more unknowns and additional statutory consents.
Location – the location of a project is also likely to affect the fees you might pay for an architect. The cost of construction is higher in certain parts of the country and these same areas or regions are likely to attract higher design team fees. Your project costs may well be higher if the project is in a remote or difficult to access location.
Project Stage – different stages of a project carry different levels of involvement and risk for an architect and the fees will reflect this. The level of involvement at each project stage will also depend on the procurement route and type of construction contract chosen to deliver the project.
The size of the architect’s practice – the size of the architect’s practice that you choose to work with may also effect the fees you pay. Generally larger firms will have higher costs and overheads and consequently need to charge higher fees.
The level of service and deliverables offered – some practices offer specialist services in accordance with their particular skills and experience. They may also be able to offer particular services connected with their use of technology – this might include Building Information Modelling (BIM) or energy modelling using Passivhaus software, for example. This enhanced service will be reflected in the fees charged.
The architect’s reputation and experience – an architect who has built up a strong reputation or who has been recognised with industry awards will often come at a higher price.
Assessing fee proposals
When comparing quotations form architects, it’s a good idea to look beyond the headline figure and make sure that the architect has fully understood the project requirements.
The outputs the architect is offering for each stage may also vary widely, so comparing the level of service on offer may help you decide which practice best suits your project requirements.
It’s a good idea to request a portfolio of past projects, as well as a client reference with any fee proposal. This will give you an idea of the architect’s design approach, their communication style and ability to collaborate, as well as their approach to material specification and crucially, their ability to run a project successfully through all stages.
Overall though, it’s most important that you choose an architect based on who you would like to work with and how well you feel they understand your brief and share your enthusiasm for your project.
We offer a free 45 minute consultation for every project to make sure we understand your aspirations and to give you a chance to get to know us.
If you have any queries relating to a particular project, then please do get in touch and we’d be very happy to discuss them with you!