#421 - GUIDE TO ARCHITECTURE FEES
SUMMARY
This week David and Marina of FAME Architecture & Design discuss the different types of architecture fee structures including the percentage of construction cost model; the fixed fee model; the hourly fee structure; and hybrid fee structures. The two also cover the benefits and challenges of each fee structure; interior design fees; why architect’s fees vary greatly; the amount of work involved in each project phase; and more. Enjoy!
TIMESTAMPS
(00:00) Types of Fee Structures.
(00:44) Percentage of construction cost.
(14:29) Fixed fee model.
“When comparing architects’ fees, most of the time, the reason why a fee will be significantly higher or lower than another is that there is a quantifiable difference in the fees and services they offer and the quality of those services. It's not because someone's just cheaper to be cheaper, more expensive to be more expensive, or not necessarily that someone's way more talented than another person. It has to do with the quantifiable difference in their services.
For any client looking to hire an architect, you must know the services they're providing and the quality of those services. You have to, have to, have to know it because this project could cost millions of dollars. It's going to take years. It's a huge commitment. You want to spend a couple of weeks doing that little bit of research to find out what services they're offering and the quality of the services. ” (16:01)
(18:24) Be aware of fixed fee model inclusions and exclusions.
(27:39) Benefits of fixed fee model.
(31:35) Challenges of fixed fee model.
“If you know as a client that you have a hard time in life making choices, it’s most likely that you're going to have a hard time making choices on a project. So, if you're limited to one option for the design of each project element, that's probably not going to work out for you. It's hard for the architect to [provide multiple design options] when they are an additional service and ask for extra payment. It kills the buzz of the agreed fixed fee at the beginning because now the project is going beyond the agreed number.” (32:57)
(36:41) Hourly fee structure.
“When you have an architect who charges hourly, they should give you a ballpark idea of how much the total fee should be. That goes back to using the percentage of construction cost structure to establish that benchmark. So even if you go with an hourly fee, your architect probably has an idea of the range it's going to be. As you move along, they should keep you updated on where you are with the fee that’s spent so far compared to what was estimated and how much work is left.” (40:17)
“The hourly fee structure is not as suitable for clients who don't trust the people they're working with, or if they want to manage the hours of a creative. Design is not always efficient. It could be efficient to draw and model, but to get to the design… it's not an efficient process. That's just the nature of what creation is.” (45:05)
(48:15) Hybrid fee structure.
(55:29) Interior Design fees.
(01:00:03) Why architect's fees vary greatly.
(01:01:54) How much work takes place in each phase.
(01:03:49) Summary.
“You always want to hire the professional that's the best fit for you, and the one who's qualified more than anything else. So, if you're talking to an architect and they have a different fee structure than the other one, but you don’t like their fee structure, then tell them or just deal with it. Always go with the architect who you like as a person and who you trust. That's the most important thing, always. That trumps everything else, including the fee amount to a degree… It's a mistake for clients to compare two architects and say, “Well, there's a 2% difference in fees. I like the more expensive one better [But I’ll go with the cheaper one.” Go with the one that's 2% more. You don't want to roll that dice on a project that is going to be this close of a relationship for years.” (01:04:33)
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#417 - DESIGN ARCHITECT & EXECUTIVE ARCHITECT ROLES EXPLAINED
SUMMARY
This week David and Marina of FAME Architecture & Design discuss the responsibilities and roles of the Design Architect and the Architect of Record (AOR) also known as the Executive Architect when working together during each project phase from pre-design to concept design; schematic design; design development; construction documentation; bidding; and construction. They also discuss legal liabilities; fee differences; knowledge overlap; and more. Enjoy!
TIMESTAMPS
(00:00) Design Architect vs Executive Architect.
“The responsibilities of the design and executive architect are very different. The Design Architect sets the big design vision for the project. The Executive Architect, also known as the Architect of Record, is responsible for turning that vision into reality by managing construction documents, construction administration, and permitting. When you have these two entities working together, all design decisions and design oversight happen by the design architect, and the architect of record is there to help them execute their vision. [At the start of a project, it's very important to establish the role of these two architects to avoid them talking over each other.]” (03:54)
(06:42) Pre-Design Phase.
(09:38) Concept Design Phase.
(13:25) Schematic Design Phase.
(17:04) Design Development.
(24:14) Construction Documents.
“[After the design phases] clients and Executive Architects could think, “Let’s change this design detail here to make it work for construction. It’s not a big deal.” But if that repeats a thousand times across the whole project, it will become an issue. Clients should understand the value of the services from each professional. If you hire a design architect for their design vision, then it makes sense to have the design architecture involved during Construction Documents. [Oftentimes, during Construction Documents, the design architect is like consultant that ensures the project is progressing towards the right direction.]” (28:39)
(30:34) Bidding and Construction Phase.
“The person who did the construction documents should always be the one performing construction administration. [When the executive architect goes on site they have the drawing in their head of that exact thing, and they understand how it’s meant to look.] Construction administration is also the phase where contractors will have questions. So the executive architect will report back to the design architect if any of the construction issues have a big impact on the project’s design.” (32:20)
(33:21) Legal liabilities of design and executive architects.
(36:17) Fees for Design vs Executive Architect.
“The Architect of Record is doing all the construction administration, all the construction documentation, half of the design development, and maybe more depending on the situation, which means the Executive Architect is doing around 55-75% of the work. Clients have asked me, “Why is the Executive Architect’s fee and billable hours higher than the Design Architect's? The Design Architect has designed the whole project. The only thing the Executive Architect has to do is the permit drawings and visit the site now and then. And the contractors are doing the heavy lifting during construction.” This question is based on false information. That's not how buildings happen. There is sometimes the misconception that the Design Architect has designed the whole project so there’s not much left to do. When in reality, the bulk of the architecture work happens after the design phases.” (38:59)
(45:12) Keys for successful teamwork.
“When you hire a Design Architect and an Executive Architect, you want to make sure that both parties get along and understand what they're hired for. Some offices only work as the Architect of Record (AOR), and that's their business model. They just want to accomplish what's been designed and those people tend to be great because they're extremely focused and they don't have ego. They're just interested in the technical side of the project. Some offices do both design and AOR. It’s important to establish clear responsibilities among all the parties in this case so there is no confusion or frustration from one side to the other, especially when there are gaps during the process or design.” (45:22)
“A key takeaway for clients when hiring architects is that if a Design Architect only produces the design but has no interest in being involved during construction documentation, it's a major red flag. Ideally, you want to hire two offices that overlap in knowledge but also understand that their responsibilities do not overlap. [As a client, you should hire a design architect who understands the basics of construction technicalities and how to navigate around the different building codes because those should be considered during design.]” (54:05)
(01:05:53) Summary.