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.
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 and ends with the Contract Administration.
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 studies
- Programming studies
- Feasibility studies
- Existing facility utilization studies
- User needs surveys
- Visioning workshops, benchmarking tours, 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.