Architect Fees: Understanding the Different Methods

Understanding architect design fees is crucial for effective planning and budgeting. There are three primary methods by which architects generally determine our fees: percentage fees, lump sum fees, and hourly rates. Each method has its own advantages and disadvantages. Here, I have outlined these methods to help you make an informed decision.

Architect Fees (Percentage)

This traditional method involves calculating the architect’s fees as a percentage of the project’s construction cost (excluding GST). The percentage varies based on the project’s size and type, allowing flexibility as the design evolves. This method is advantageous for clients who are committed to proceeding with their project and wish to engage the architect from the initial stages through to contract administration. It enables early agreement on fees even before finalizing the design, with adjustments made as the project develops. This arrangement is particularly common for clients seeking a comprehensive service package

Advantages

• Allows early fee agreement.
• Adapts to changes in project scope and cost.
• Suitable for full-range architectural services

Disadvantages

• Fees increase with project cost.
• Potential for higher costs if project scope expands.

Architect Fees (Lump Sum – MOA.studio preferred method)

A lump sum fee is a fixed amount agreed upon for delivering specified services. This method is best suited for projects with a clearly defined design brief. The certainty provided by a fixed fee is beneficial for both the client and the architect, ensuring that there are no surprises regarding the total cost of services.

Advantages

• Provides certainty regarding architect fees.
• Easy to understand and budget for.

Disadvantages

• Not suitable for projects with evolving designs.
• Limited flexibility for changes or unforeseen developments.

Architect Fees (Hourly Rates)

Under this arrangement, the architect charges an hourly rate for the time spent on the project. This method is particularly useful for smaller projects or those with numerous changes anticipated, such as early concept design and feasibility studies. It offers complete flexibility, allowing the client to pay only for the time expended. After an initial meeting, a budget estimate is usually provided to give the client an idea of potential costs.

Advantages

• Flexibility in design changes and scope adjustments.
• Suitable for early-stage projects and feasibility studies.

Disadvantages

• Uncertainty in total cost.
• Requires careful tracking of time and expenses.

Typical Architect Fee Ranges

Each project is unique, tailored to specific site requirements and planning regulations, necessitating individual quotes. For reference, my fees for residential projects typically range from 5% to 12% of the construction cost, depending on the project’s scale and complexity. Below is a rough guide on what you could expect to pay in architect fees for design and plans:

• Construction cost of $200k at 12.5% = $25k approx fee for architectural plans
• Construction cost of $500k at 7% = $35k approx fee for architectural plans
• Construction cost of $700k at 6.5% = $45k approx fee for architectural plans
• Construction cost of $1mill at 6% = $60k approx fee for architectural plans
• Construction cost of $2mill at 5% = $100k approx fee for architectural plans

Further Reading?

Want even more information about architect design fees? Consumer advocates CHOICE published a good article Here.