---
title: What is a Pre-Design Contract?
description: On a building project, a pre-design contract covers any supplemental services necessary before starting design work. Learn what the contract includes and its pricing structure. 
image: https://neumannmonson.com/hubfs/predesign%20contract%20header.jpg
---

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# What is a Pre-Design Contract?

May 22nd, 2024 | 7 min. read

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[Dave Zahradnik](https://neumannmonson.com/blog/author/dave-zahradnik)

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Building projects require extensive planning and preparation. Before starting design work, owners need a site, a budget, and a list of spaces and goals. 

While some enter an architectural agreement with this information in place, others need assistance. **This is when a pre-design contract—an agreement for preliminary work outside basic services—comes into play.** 

We have worked with many clients who have used this agreement to explore options and determine a project’s scope. In our experience, investing in pre-design services minimizes unknowns and creates a more intentional and efficient design process. 

**This article will explain pre-design contracts, the services they might include, and their pricing structure.** 

## What Services Does a Pre-Design Contract Cover? 

A pre-design contract covers any services you may need before starting [basic architectural services](https://neumannmonson.com/blog/basic-vs-supplemental-services-architecture-fees). 

**In a typical American Institute of Architects (AIA) contract, basic services are the standard duties an architect must perform to design a building and monitor its construction. **A basic services contract starts with [Schematic Design](https://neumannmonson.com/blog/schematic-design-what-can-you-expect) and ends with the [Contract Administration](https://neumannmonson.com/blog/expect-architect-construction). 

To start basic services, the architect needs preliminary information about the project’s budget, scope, and site. **Without this information, the owner may need to enter into a separate agreement to cover any supplemental services the project requires.** 

These services may include: 

- [Site selection](https://neumannmonson.com/blog/architect-site-selection) studies 
- [Programming](https://neumannmonson.com/blog/architectural-programming) studies 
- [Feasibility studies](https://neumannmonson.com/blog/architectural-feasibility-study-learn-prepare) 
- [Existing facility utilization studies](https://neumannmonson.com/blog/existing-facility-utilization-study) 
- [User needs surveys](https://neumannmonson.com/blog/architectural-user-needs-survey) 
- [Visioning workshops](https://neumannmonson.com/blog/architectural-visioning-workshop-activities-process), [benchmarking tours](https://neumannmonson.com/blog/benchmarking-tours-expect-include), and other goal-setting activities 

Pre-design contracts differ from project to project. Some owners may have a site and budget but lack a program—a list of necessary spaces and their requirements. Others may have a solid understanding of their goals but need help finding a site. You and your architect should discuss your project and the work done to date to determine what supplemental services you require. 

**A pre-design contract can also cover the time your architect spends working with your municipality.** Some projects require city approvals involving council meetings, especially when rezoning a property. 

These processes can range in length, and their outcome is not always clear. A pre-design contract helps uncover any unknowns and determine your project’s viability before diving into design work. 

## How Do Architects Charge for Pre-Design Work? 

Since pre-design contracts fall outside the scope of basic architectural services, architects may use a different pricing structure. 

**Generally, architects charge a percentage of the construction cost for basic services.** For example, they may set a 10% fee, meaning their fee equals 10% of what the owner spends on construction. 

**Although pre-design contracts can use this pricing structure, most architects charge an hourly rate.** This approach tends to be the fairest for all parties. 

It is difficult to determine how long pre-design work will take—especially with city approvals—and an hourly rate means clients only pay for the time that goes into the project. To give you a better understanding of what you may pay for pre-design services, your architect can provide a general time estimate. 

## Do You Need a Pre-Design Contract? 

Not every project requires a pre-design contract. Typically, these agreements occur when an owner is unsure of their needs and wants to explore their options. 

Some owners may sign a pre-design contract for a feasibility or programming study to determine the project’s viability.** Others may need to study their options for board approval or fundraising.** 

Although working with an architect is the most common way to study your options, some owners may take a different approach. **For example, a contractor can help you determine your project’s budget and scope before you contact architecture firms.** Other owners may hire an Owner’s Representative or a Construction Manager to determine the project details. 

While these approaches fit some owners’ needs, working with an architect during pre-design creates a more seamless transition into design work. **Pre-design activities give your architect a solid understanding of your organization, structure, and needs, leading to more customized solutions. **Your architect can also start developing concepts during pre-design, creating a smoother design process. 

## Learn More About Architectural Contracts 

Pre-design is a time to set project goals, explore ideas, and determine your project’s viability. It is an opportunity to form a project vision and discover unknowns before starting design work. 

While some owners may start a basic services agreement with a clear vision, others may need assistance setting a budget, program, and project goals. Since these services are supplemental, they are usually charged at an hourly rate. 

**After pre-design, an owner may enter a standard architectural contract, typically an AIA agreement.** The AIA has over 20 different owner/architect agreements, and the type you use depends on your project and goals. 

Prepare for signing a contract with an architect by reading about [AIA contracts and their benefits](https://neumannmonson.com/blog/aia-contracts-types-benefits). 

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