Architectural Fee Proposals: What They Include and How to Compare

When making any purchasing decision, you want to know the price. Selecting an architect is no exception. 

While there are many factors to consider when hiring an architect, fees will likely come into question. Generally, architects present fees in a formal proposal that breaks down the cost of basic services and any supplemental services required for the project. 

Architects use different methods for determining fees—confusing some clients. Taking the time to evaluate each proposal and determine what the cost includes will help you compare your options. 

Whether or not you work with us, we want you to find the best fit for your project. This article will help you evaluate fee proposals by explaining: 

• What a fee proposal includes 
• How to compare fee proposals 
• How to negotiate with an architect 

After reading, you’ll be better prepared to meet with architects, evaluate firms, and make your selection. 

What Does a Fee Proposal Include? 

Architecture fees are based on the size, complexity, and risk associated with the project. Like any professional service, the architect will determine the price based on the time and effort needed to complete the work.   

To provide a price, an architect needs to understand the full scope of the project. You may define the scope in a Request for Proposal (RFP) or discuss it in a more informal meeting.  

Some clients may not know their needs and need an architect to help plan the project. In these cases, an architect may charge an hourly rate for pre-design services like master planning, feasibility studies, programming studies, or site selection before proposing a fee for the design of the building.  

A typical fee proposal breaks down the price into basic and supplemental services. 

Basic services are those required to complete design work and see the project through construction. Your architect will break down these services into five phases: 

• Schematic Design 
• Design Development 
• Contract Documents 
• Bidding/Negotiation 
• Contract Administration 

Often, architects charge a percentage of the construction cost for basic services, but this is not the only pricing method. Some architects may charge a fixed fee for basic services or an hourly rate for each project phase. 

Supplemental services are any additional services your project may require. For example, many clients need assistance procuring Furniture, Fixtures, and Equipment (FF&E)—a service outside the scope of basic services in a standard AIA owner-architect agreement. Like basic services, supplemental services can be charged as a percentage, fixed sum, or hourly rate.   

Learn more by reading about the differences between basic and supplemental services. 

An architect’s fee also includes the cost of consultants. The fee proposal should break down the costs of any third parties brought onto the project outside of basic services, such as civil engineers, landscape architects, cost estimators, and acousticians. 

How Do You Compare Fee Proposals? 

Depending on your project, you may see a range of differences across fee proposals. One firm may charge a 10% fee for basic services, while another may offer an 8% fee. 

Depending on what the fee includes, a lower percentage may not necessarily equal a lower overall price. Carefully evaluating each proposal will help you estimate what you will pay. 

When comparing fee proposals, determine how the architect charges each project phase. Does the percentage fee cover every phase, or are some charged an hourly rate? 

For example, some firms include Contract Administration (CA) in their basic services percentage fee, while others use an hourly rate. Asking for a time estimate or a not-to-exceed for CA will help you make an apples-to-apples comparison between different firms. 

Second, determine what the architect includes in the basic service fee. One firm may group a service like interior design into basic services, while another may make it supplemental. One approach is not necessarily better, but spotting these differences can lead to more accurate comparisons.   

Lastly, note whether the percentage fee is based on construction costs or project costs. If the proposal applies a percentage to the total project cost, you may end up paying more even if the fee is a lower percentage.  

Let’s look at a hypothetical example. You are starting a project with a $1 million construction cost and a $500,000 FF&E budget.  

Architect A bases the fee on a percentage of the construction cost and charges an 8% basic services fee. FF&E selection is a supplemental service and has a 1% fee.   

Architect B groups FF&E selection with the construction cost and charges a 6% fee. While Architect B offers a lower percentage, the overall price is higher. The cost for Architect A is $85,000, while Architect B is $90,000 because Architect B’s proposal was based on a $1.5 million cost.  

This simple example demonstrates how fee proposals can differ. If you don’t review each proposal and do the math, you may pay more than expected.  

Learn more by reading about how to evaluate architecture fees. 

Choosing Based on Qualifications 

The architect-client relationship can last months or even years. Although fees may factor into your decision, the architect’s qualifications should be the deciding factor. 

Remember: you are paying for a professional service. The fee reflects the time and effort that goes into your project. A lower fee may translate to a lower level of service and design quality. 

Lower fees may not even lead to cost savings. The decisions made with your architect impact whether you can deliver the project on time and within budget. Choosing someone based on qualifications is the best way to prevent cost overruns. 

To be clear, we are not suggesting that the most expensive architect is the best option. Rather, selecting an architect is too big of a decision to base on fee alone.  

Can You Negotiate Fees? 

A fee proposal is not a final offer and is up for discussion and negotiation.

If you receive a fee proposal from a qualified architect that seems higher than others, ask them to clarify what it includes. A conversation can help you spot differences between proposals, and you may be able to reach an agreement that meets the project’s requirements.   

Negotiating with the most qualified architects is your best chance to achieve a high-quality project that fulfills your goals. Thoroughly vet each proposal and allow qualifying candidates to discuss fees.   

Learn More About Architecture Fees 

While price is an important consideration, there is far more to consider than the percentage on a fee proposal. When reviewing proposals, determine how the architect charges for each project phase and how the architect separates basic and supplemental services. These steps will help you make an apples-to-apples comparison between different firms.

Above all, remember the importance of qualifying architects. Your choice impacts many aspects of your project—from the design quality to the construction process to the long-term costs of building operations. This is not a decision to take lightly.

We believe in having transparent conversations about fees and costs. Learn how we determine our fees by viewing our pricing page.