SHORT # 2 | How to set Architectural fees: How do Architects charge? | Design Hustle
Designing a building is a difficult and time-consuming affair. Us architects need to get paid, dammit!! In this video ill attempt to discuss the way architects can charge their clients in 90 secs! There are several methods of compensation for an Architect’s services. You can break them down into three types:
1- Lump Sum or Fixed Fee
This is the amount agreed upon with the client at the start of the project. This works well for projects where all the variables and the scope of work is clearly defined. A payment schedule is decided based on either stages or time with a down payment to mobilize.
2- Time basis
This is basically the “hourly rate “ that is to be charged from the client for services rendered. Very useful method when the scope of work is not clear or when partial services are required. Hourly rate contacts are also negotiated on hourly unit rate along with an estimate of the total number of estimated hours required to finish the work.
3- Percentage-based Fee
A percentage-based fee links the fee for the Architect’s services to a percentage of the construction cost of the project. The percentage varies according to the size of the project. The actual distribution of the fee is decided by architectural stages:
1- 12 to 20% for Schematic design SD
2- 12 to 25% for Design development DD
3- 30 to 45% for Construction documents CD
4- 2 to 5% for bidding 5- 20 to 30%Construction administration
Design Hustle is a creative and educational video series produced by AGEN-C Khan from Bern, Switzerland. Founder Ali Rahman Khan shares learnings from design, architecture, and entrepreneurship with a global audience. A practicing architect in Switzerland and the co-founder of a technology start-up based in Pakistan. Khan founded Design Hustle to document the countless interactions he has with inspirational leaders from different fields who are willing to share their expertise with other architects, designers, and entrepreneurs. Of course, he doesn`t shy away from sharing his experiences, learnings, and point of view with the audience as well.