Design Fees

Design Fees

The setting of design fees vary based on architect, region, and by building type (office, house, school, laboratory, etc.) but the standard is to use a % (2.5%-10%) of the estimated project's construction cost as the basis since it usually determines the complexity and size of the project. The fees are typically also based on a sliding scale that as the project gets larger, the % is lowered and as the project is smaller, the % is higher. In addition, the more complex a project is, the higher the % and the less complex, the lower the %. This is based on the fact that no matter how small or simple the project is, a certain basic amount of design time, client meetings, and drafting work is required to fully explore the design such that the client understands and approves the design and then document it in sufficient clarity, detail, and accuracy to gain city building official approval, provide sufficent information for bidders to accurately price the scope of work, and to ensure limited issues during construction.

An additional fee component is what is called reimbursibles - copies, blueprints (blue prints are no longer used but the term is still used to refer to large format copies of drawings), photos, boards for mounting plans for presentations, are not included in the hourly rates and as such are charged separately.

Payment of Fees

Design fees for smaller projects are typically paid @ 50% at the start of each phase and 50% at the end of the phase whereas for larger and longer time frame projects, a monthly billing may be used.

Additional Fees - (Not included in the above architectural fees)

Structural Engineer - Typically 1%-2% of construction cost depending on size - $200,000 remodel/addition = $2000-$4000 fee
Landscape Architect - 10%-20% of landscape construction cost
Surveys - $2500-$3500 - depends on size of lot and complexity of existing conditions
Soils Report - $3000-$5000 - depends on size of project, access/type of site, and required number of borings
Plan Check/Permit Fees - Typically 4%-5% of city construction value table (LA City - 2500sf remodel/addition = $10,000+-)

Fee Example

A $200,000 construction cost project x 5% = a $10,000 design fee

Hourly Rates - Typically $50-$150/hour (Can be used for the Pre-Design and Schematic Design phases until a preferred option is selected and/or for added design efforts beyond the original scope of work. Many firms have various levels of staff for which they charge differing hourly rates - draftsman, designers, senior designers, project managers, and principals. Design firms also have overheads of approximatley 2x-2.5x the hourly rates to allow for clerical staff, office rent, supplies, utilities, insurance, profit margins (10-20% typical), etc. that are included in the hourly rates. Hourly rates are also typically used for during construction activities ie; site visits, etc. Example - A draftsman makes $20/hr x 2.5 overhead rate = $50/hour billing rate

Lump Sum Fees - Pre-design to Plan Check approval - Example - $10,000 fee for a single family residence remodel or addition. If a lump sum fee is the selected payment method - the architects will break it down to a certain % of the total for each phase based on the amount of work expected in each phase.

Lump Sum Fee - Typical Breakdown ($10,000 Lump Sum Fee example)

Predesign - 10% - $1000 (20 hours @ $50/hour)
Schematic Design - 20% - $2000 (40 hours @ $50/hour)
Design Development 25% - $2500 (50 hours @ $50/hour)
Construction Documents - 35% - $3500 (70 hours @ $50/hour)
Bidding - 5% - $500 (10 hours @ $50/hour) - 1 site mtg + answer questions during the bidding period + review the results with the client.
Plan Check - 5% - $500 (10 hours @ $50/hour) - 2 meetings at city building department and then some time to address their comments
Construction Observation - Hourly - (Not included in the lump sum) (Typ. 1 site mtg/week @ 3 hours = $600/month = $3600/6 month project)