Fee structure... architecture.

[utiler]

Is it reasonable to expect a design fee structure be based on the area of a building rather than a percentage of project cost?

I have come up against it quite a lot recently [high-end residential] where a client asked the question that if he chose to lay marble throughout his new home at the cost an additional $100,000 over the alternative, then why should I expect a percentage of his choice of taste?

By the same token, building cost escalation has been out of control in the previous few years so is it worth taking the focus off building cost and 'design for area'....... If there are designers out there already working off this model it would be great to know it is structured and how it is received....

just a thought...... what is yours?

thanks in advance

[nicholas]

I have had a client say something similar; usually the level of detailing and coordination increases with cost. Marble is a perfect example; while to your client it may seem like you are simply replacing one material with a more expensive one and collecting a windfall. The process of choosing the slabs, cutting, coordinating the details and layout to suit the stone in situ as well as the site supervision increases and therefore justifies the increase in fee.

[arv]

Agree with you there , using a more expensive material very often entails more work in detailing . But what happens if the client chooses to put gold plated bathroom fittings ? It doesn't really mean more work for the architect .

[Pedro Barradas]

A marble floor... doesn´t implicate necesserely more work to the architec... imagine, is just standart mosaic... to be lay down, same detail as porcelanice tiles... or imagine the marble was already chosen from factory, and the panels were already pre-prepared.

I believe that fees indexed to construction cost it´s good for first approach... but then if changin on materials (deceasing or increasing) change construction price, it would reflect on Architect fees... unless it envolves extra non estimated work.

[tdmc]

there is a fundamental problem with percentage based fees - low construction cost does not necessarily mean low design input/control.

floor area is a valid way to cost fees. I tend to favour fixed fee (worked out "my own" way) for agreed services and a decent hourly rate for unspecified services. that way changes to the brief etc are "easier" to monitor and charge for.

there will never be a simple formula

[Pedro Barradas]

Tdmc... you are right.. there is no magical/ perfect formula it depends on the nature of the project...

[arv]

Originally Posted by tdmc

there is a fundamental problem with percentage based fees - low construction cost does not necessarily mean low design input/control.

In a percentage based system it is a disincentive for the architect to keep the cost down .

[am_i_wry]

If your client decides he wants to change the way the fee is calculated half way through then tough, though you might agree a fixed price fee for any particular change. The percentage fee is by no means the be all and end all. Fixed price fees are fine but you have to remember that risk needs to be built in so your client could end up paying more. You also have to be a bit stricter with what constitutes part of your agreement and what is chargeable as an extra. A savvy client will know that if he tries to rip the pish with the fee he will end up with a reluctant and obstructive consultant who will be getting contractual on his ass at every turn.

[utiler]

thanks all, a few of your comments were my dilemma;
on one hand percentage based fee doesn't neccessarily work for small projects however metre rates can, and percentage fees are more varied than fees based on area.

I am considering a 'rate range' per m2 for varying degrees of difficulties...

[utiler]

also,
As for final costs; what if the builder goes bust or the building gets blown away in a cyclone during construction? Also, final fees implies i don't know what i am being paid until the end of the project, at which point my service was provided long ago considering no project management]....it might sound a little far fetched but that's why i'm thinking 'foot fees'....

cheers,