Architect Fees and Services

By
©1993-2012 Tim Carter

        
Summary: Architectural services are not all the same. Some architects are full service and offer all sorts of assistance while others just like to pump out plans. If you are building for the first time, the extra services a good architect offers may be worth their weight in gold.

DEAR TIM: My husband and I are going to build a new home on a lot we own. After interviewing several architects we have discovered that the fee charged for the plans is a function of the amount of service they provide as the house is being built. Is it necessary to have the architect part of the building team is we hire a decent contractor? Why pay a higher fee to the architect if the job goes smoothly? What can we do to ensure the job does go smoothly? Henrietta S., Glenview, IL

DEAR HENRIETTA: Congratulations on this exciting project! You are about to take a trip that has many paths. Some of them lead to the Twilight Zone and others can take you to Fantasy Island. All too often, people end up at the wrong place. There is no doubt a superb architect paired with a fantastic builder will help make your building experience a happy one, but unfortunately, it is not an absolute guarantee.

This custom home was designed by a top residential architect and is being built by a superb builder. The architect does stop by the jobsite from time to time to check quality and progress. Photo Credit: Tim Carter
This custom home was designed by a top residential architect and is being built by a superb builder. The architect does stop by the jobsite from time to time to check quality and progress. Photo Credit: Tim Carter
A great example of this dynamic situation where an architect follows the house from conception to completion is in the famous movie Mr. Blandings Builds His Dream Home, starring Cary Grant. The architect was routinely in scenes where Cary Grant and his wife needed help dealing with the builder and his subcontractors. Every week during the process there seemed to be new problems that had to be solved, granted some were slightly sensationalized for the movie, but all were based in reality.

The problem with building a new home is that many homeowners do not possess the power of visualization. Problems start to happen on jobsites when the homeowner finally sees things that just appeared as lines on a drawing. Great builders and architects have this mystic power and using it allows them to take a two-dimensional set of blueprints and create a real three-dimensional image of the finished object in their heads. Modern computer software is now available that allows planners to create three dimensional views and actual walk-through views of what both the inside and outside of a home will look like.

Architects can be exceedingly helpful during the building process to assist with any change orders and to act as the tie-breaker in minor or moderate disputes between you and your builder. This is an often overlooked tool in a homeowners toolkit. If you can get the architect to agree to this and then put that language in the contract between you and the builder, you may avoid costly legal disputes at a later date.

Architects also take pride in their work and want to see that the house is built the way it was drawn. Often the methods and materials they specify exceed building code requirements. Periodic field inspections at critical times allow the architect to verify the builder is doing the job right. You may not have the time nor the expertise to do these inspections yourself. Once again, if you decide to use the architect in this capacity, be sure it is spelled out in the contract between you and the builder. Note that the builder must make any and all corrections at his sole expense as pointed out by the architect.

I would talk with several of the architects and see if you can arrive at a compromise. You pay the base rate for all of the design work, working drawings and anything you need to get bids and a building permit. Then see if the consults and inspections can be ordered ala carte as you might need them.

If you want your job to go smoothly, you must have superb plans and detailed specifications. It also pays for you to preselect all items that will be used in your home. Do not rely on allowances and then try to pick things as you build. Some fixtures need very long lead times. If you delay deciding, you may severely limit the things you can select from. The preselection process eliminates surprises, and allows you to get bids from contractors that are highly accurate as each bidder knows exactly what they need to install.


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The extra money you pay an architect to go along for the ride can be looked at as an insurance policy. Many of us have house insurance policies that protect us in the event of a fire, storm or natural disaster. We don't want these bad things to happen, but still pay premiums year in and year out. I pray that you also have no problems during your homebuilding experience, but having an architect on call might give you tremendous peace of mind during your journey.

Perfect plans and specifications are possible. Years ago, I was awarded a job where the plans were great and the Fortune 500 Company executive homeowner had spent the time to create a binder that had photos, model numbers, finishes, paint chips, carpet samples, etc. of each and everything in the job. At the meeting where we signed the deal, he said, "My work includes many trips and meetings. I doubt I will ever see you during this job. It will be nearly impossible for you to contact me with questions so I have tried to think of all you need to know."

Well, he did a fantastic job, but his wife got involved and changed some of his ceramic tile selections as the job progressed. Had that not happened, I would have successfully completed the project with no interaction after the contract was signed. It is a dream come true for a builder as far as I am concerned as I knew what I had to do and never had to wait on an indecisive homeowner.



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Comments:

Welcome! I, Tim Carter, don't answer questions here. If you post a question here in the Comments Area, perhaps another visitor will help you. You need to go to the Ask Tim page if you want a question answered. Once there, look closely at how many weeks behind we are. Please be patient as you use this free service. If you have an emergency and need to talk to me, there is an option there for you.
Bill Hirsch
28 Sep 2008, 14:09
Tim:

It is always refreshing to see articles that explain how an architect can be extremely valuable and how his fee can often end up more than paying for itself in savings and by guaranteeing you get a better house. I have not been to your site before, but I just signed up for your newsletter and I look forward to reading each installment.
I have written a new book, Designing Your Perfect House. It is available at www.designingyourperfecthouse.com. But I would love to send you a review copy, if you would like.

Best regards,
Bill

William J. Hirsch Jr. AIA
Alysse
04 Feb 2009, 10:46
This was a very insightful article. I am not an architect, but a consultant in art and architecture. Current trends in the field are destroying the integrity of the industry. I recently was called in to consult on a design/build project. It had been under construction (from fire damage) for 4 months. Not including three months in "design" As I stood there with my client the builder/architect told her she really needed to decide on the kitchen appliances and layout. I could not believe after months of design and construction time they had failed to provide final plans for the kitchen. He said he had a budget for the room, but never defined what was included fully. It is becoming more and more common that the project is not fully through through before construction begins and the homeowner knows no different. I asked the builder/architect to walk through the house and I asked questions on what has and hadn't been decided on yet and proceeded to work with the client to finalize details and avoid further surprises. I suggest to all my clients a book such as you had before construction begins. It, by far, controls costs and helps the homeowner to stay focused on their initial goals. Small changes can be tolerated as the owner gets a better visual conception of the project, such as hardware changes etc, but not large changes resulting from failure to plan a kitchen. So, I encourage clients to use architects, it is not as much as a guarantee as it used to be. I personally don't recommend design/build firms. But separate architect from builder. That is where you have someone working in your best interest. Just like Mr. Blandings.
A check and balance system.

Michael B.
14 May 2009, 10:50
Hi Tim, I've begun the process of remodeling an old beach home that I bought from my grandparents over 12 years ago. My wife and I have decided it's time to signficantly upgrade the home. We have engaged a builder and his primary architect to do the work.

My question relates specifically to the fees I should expect to pay the architect. What are typical costs or hourly fees for the services of the architect. The home design is for almost 3000 sq. ft and the quote I received from builder was $265k (which did not include the architect fees).

He has given us an estimate of approximately $12k in total and I'd just like to know that it is a fair price.

Sincerely, Michael B. Cambridge, MA
tom kohlman
05 Aug 2009, 15:05
We're building a new home in Wis. Maybe they are a little crazy back there but I don't think you can skip the architect because all home construction has to go to the state for structural/energy approval. That includes window sizes and insulation plans.

My wife found her "dream house" in a book she bought that was obviously connected to the "e-plans" site. Customizing the plan on their site directs you to an architect. It costs a few bucks but if you find a stock plan that you like and only want minimal changes, it won't be much compared to what I'm reading here (our plans came in at under $3,000 total with changes). They arrived a few days ago and a trip to Staples gave me the 5 copies I wanted ($2.99 per page so a big ouch there but they did it while I waited).
Kenneth Crutcher
20 Sep 2009, 11:23
Your story about your experience with the "perfect plans and specifications" describes exactly what the services of an architect are. A complete set of construction documents from a licensed architect will answer all the questions a contractor or builder will have.
To get this "perfect" set of plans you have to expect to pay a full fee for architectural services.
Rich Millner
31 Jan 2010, 18:34
I'm buying online plans from a reputable designer and making changes to some aspects of the new home's design. My builder's architect who will redraw plans is asking for $1.00/sq foot of a 4,000 ft home plus my costs of buying the original plan from the online site. Is this a fair deal or should I seek other bids?
Dana Gilliland
08 Jun 2011, 18:39
In the last 10-15 years the building boom has been lucrative for architecture firms. During that time many architecture graduates gained in-office experience as they worked their way up from designer or job captain to project manager. During that time many of these individuals never took the initiative to get their architect's licensed. Now that the economy has slowed down, owners and developers can pick and choose the architecture firm for their project. In that same regard, they can also request to verify credentials of staff who will be managing their project for the architectural firm. For example, if a project designer or manager is overseeing entitlements for a multi-million dollar project, he or she has over ten years experience, but is not licensed to practice architecture, there could be a problem! The California Architects Practice Act Sec. 5536 states “Practice without license or holding self out as Architect is punishable by law”. After all, if you were paying for legal services at a law firm, you would expect the lawyer representing your case to have passed the bar!

This goes for Green Building as well. Architects are expected to take the lead on LEED. The Architect in charge of your green building project should be a LEED AP (Accredited Professional). There is a growing number of municipalities requiring Green Design. Cities such as Los Angeles offer priority plan check for Green Buildings (time is money). In the LEED AP exam seminar I attended, there was only one other architect in the room. The majority of professionals attending the seminar were builders, developers, and property managers. Currently over half of Turner Construction Company's professional staff is LEED AP.

Some clients retaining architecture services are now including project staff with their credentials in their owner-architect contracts. This is a good way to reassure owners and developers are getting the professional services they are paying for.

Peggy Parker
28 Jan 2012, 08:37
We are speaking with a high end reputable builder and a design firm/architect referred by the builder to build our first custom home approx 10,000 sq ft and quoted $180-$215 per sq ft. So far.

My gut feeling is that we do not need our real estate agent to guide us through the process at $30-$60,000 commission when we could hire an interior designer & accountant for that instead. We need a consultant with our best interests in mind who specializes with everything along the way with design, layout, electrical, kitchen layout, negotiations, follow through on invoicing, %markup for builder negotiations (we were quoted 12% but I understand cost + 10% is more reasonable
or a flat project rate). What can we expect from a design firm charding $5k for conceptual design and $25k architect fees? What type of consultant are we looking for? Help! Would our builder, architect, designer be the ones for these services only? I don't know what I don't know.
Bill Hirsch
28 Jan 2012, 09:03
Here are the short answers to your questions, Peggy.

You certainly do not need to pay a real estate agent thousands of dollars to guide you through the process. That is not their area of expertise. They sell houses. They don't design and build them.

A good architect and interior designer do those things all the time. Your money is better spent with them. All of the things you mention needing a consultant for are things a good, experienced architect can do for you. But at fees of only $25k, they won't have time to do all of it. That level of fee for a 10,000 s.f. house would probably only buy you a design and basic construction drawings. For what I call "comprehensive services," you should expect a fee of 7% to 10%. That will buy the time needed for your architect to be your guide throughout the entire design and building process. in the long run, it is a valuable and worthwhile investment.

I would suggest you visit my websites, www.williamhirsch.com, www.designingyourperfecthouse.com, and www.about-home-design.com. There is a lot of free information there that might help you sort things out. You could also buy my book, Designing Your Perfect House. In there, I discuss the process in a lot of detail. And if you like, you could contact me directly. That way I could give you the long answers. You're about to spend a lot of money. I'd hate to see you end up with a house that is less than it could be.

Peggy Parker
29 Jan 2012, 17:04
Thank you, Bill. 7-10% for an architecture is close to the fee for the builder? What am I missing? I found your book on Amazon. We are meeting with our potential builder, Arcadia and the design firm to go over the first conceptual drawings.

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