Advantages of Architect Percentage Fee Pricing

The setting of fees and the valuing of architectural work can be somewhat complex. Every project for an architect is individual, requiring a different level of expertise and input, therefore, fee schedules can vary. It is common practice for many architects to set their fee for a project as a percentage of the total construction cost.

However, an architect can be engaged for full service or partial service and this can affect the percentage fees charged.

advantages of architect percentage fee pricing

Percentage fees have a number of advantages particularly for the design and documentation stages of a project.

1. Flexibility

As the project alters through the design stages, the percentage fee enables flexibility in the project budget.  With any changes made to the design, for example, the project becoming larger or smaller, percentage fees enable adjustment of fees in relation to these changes.

2. Monthly Billing

There are mutual cash flow advantages for both the client and the architect. By defining the total fee at the beginning, the percentage calculation can be used to bill for a portion of the total fee, based on the progress of the build.

3. Fairness

Percentage fee arrangements place the onus on the architect to ensure that the project moves along in a timely and efficient manner. The fee is capped to a percentage of the project cost and therefore, the architect must work efficiently to derive a profit.

4. Budget efficiency

By establishing a percentage fee at the beginning of the design process, the client can take these architectural costs into consideration when managing their budget.

5. Ease of calculation

Some large projects may take years to complete. Other methods of fee calculation for such a long gestation period can be complex and even lead to disputes. Percentage fees can be calculated at any time using the current project value.

Percentage fees have been derived from the long tradition of architectural practice. In most cases we would recommend the percentage fee arrangement for the design and documentation stages of a project, however, we take into consideration the individual circumstances for each client and calculate fees accordingly.
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