Fee structures: What you can expect to pay for an architect

At some stage in your life you may require the services of an architect to design your new home, design an extension or renovation. It goes without saying that you should use an architect who is appropriately certified, however you may be concerned about the cost. So what can you expect to pay, as a general rule, and what are the payment terms? Read on to learn the facts about hiring an architect.

Cost of an architect: The fee structure

An architect’s fees are not governed by a fee control system as they are subject to open market competition. With this in mind you should consider that your architect’s fee structure will fall into one of the following categories, depending on the type of service you require:

• Percentage of overall work
• Hourly rates
• Lump sum payments

When you engage an architect for your building project you should ask for the fee structure to be clarified and don’t hesitate to ask questions regarding the cost or the work. The information should all be contained in the Client/Architect Agreement, sometimes called the Terms of Engagement.

Architect payment schedules

Payment terms will be clearly laid out in the Client/Architect Agreement and you will need to ensure that you understand the exact terms regarding your payments. Don’t wait until the project is in progress – ask your architect to clarify anything you’re not sure of at the start.

An architect will have a fixed fee scale for items such as design consultations, site inspections and appraisals, sketches and design development, and any related documentation. There may also be optional extras relating to your specific desires and your budget. If your budget isn’t very flexible, you’ll need to say so up front.

A good estimation of architect fees is to figure in around 15% of the total cost of the project for smaller jobs and around 8% for larger ones. The Royal Australian Institute of Architects (RAIA) recommends that fees be based on a sliding scale, depending on the size of the project and the amount of work involved.

One final consideration – it’s wise to get quotes from three or four architects, as this will ensure that you get the most competitive price and keep fees down. After that, ensure that all costs are clear and specified in writing, so that you don’t get a nasty surprise later.