Understanding Architects’ Fees: Simplifying the Process
Many people have an unclear understanding about how architects charge for their services—and it’s easy to see why. There are several fee structures, each with its own complexities.
One common approach is charging a percentage of the construction cost, often referred to as the Cost of Works.
For example, let’s say the Cost of Works for building a new home is $600,000 (excluding GST). Using a standard fee of 10%, the architect’s fee would be $60,000 (excluding GST). If the budget were doubled, the percentage fee might decrease slightly, as larger projects often yield economies of scale.
On the other hand, if you’re planning a $300,000 extension, the percentage fee might be higher. Smaller projects frequently involve more detailed work due to existing site conditions.
Fee percentages can vary between architectural practices, as do the services they offer. For alterations or extensions, fees can range from 8% to 18% of the Cost of Works.
At the lower end, the architect may provide basic designs, leaving you to select finishes, fixtures, and fittings, and manage coordination with the builder.
At the higher end, the architect handles everything from material selection to working closely with the builder to see the project through to completion.
For heritage projects, fees may be slightly higher due to additional planning and regulatory requirements.
Making Fees More Transparent
Understanding architects’ fees is easier if clients grasp how construction costs and design decisions interplay—and the level of involvement required from them. However, this knowledge gap can often make fee structures seem opaque.
To make costs more comprehensible, some architects charge an hourly rate, a familiar method for many people who have dealt with lawyers or accountants. Hourly rates and percentage fees can also be combined. For instance, an architect might charge hourly for initial design work, then switch to a percentage fee once the project progresses.
While hourly rates may simplify the process, the financial commitment of a custom home, renovation, or extension can feel daunting. Unlike buying a car, where you can take a test drive, architecture involves investing significant funds before you see the final result.
Flexible Options for Starting Your Project
At Pinnacle design studio, we offer flexible entry points for clients. For the initial design stage, we provide the choice of hourly rates or fixed fees, so you can explore ideas without committing to the entire process upfront. This approach helps you decide if we’re the right fit for your project.
During the concept design phase, we might charge hourly and provide an estimate for that stage. Alternatively, a fixed fee can be agreed upon. This phase is a collaborative effort, where I work with you to explore ideas using quick, freehand sketches. Pen and tracing paper allow us to rapidly test possibilities and refine options together.
This process not only helps you visualize the potential of your project but also gives you confidence in your choices and an understanding of how construction costs are influenced. By the end of this stage, you’ll have a realistic cost estimate, allowing you to move forward comfortably if you choose to proceed.
Building a Collaborative Relationship
Working with an architect is often compared to a “short-term marriage,” as it requires close collaboration and mutual trust. During the design process, you’ll see me wear various hats—creative designer, budget-conscious planner, and proactive project guide—to ensure your vision comes to life.
Our initial design phase provides a chance for us to establish a strong working relationship, giving you confidence in the journey ahead and ensuring you feel empowered as an informed client.
Let’s explore the possibilities for your new home together, one sketch at a time.