fees may be too high to compete

Oct 8 '13 15 Last Comment
Oct 8, 13 10:07 am

is 25% for each phase of the project (schematic, design, construction) too much in Lexington KY


Oct 8, 13 10:31 am

25% of what, the fee?

Oct 8, 13 10:48 am

buildings budget I think

Oct 8, 13 10:53 am

if you want work, just make sure you beat the lowest bidder.

Oct 8, 13 11:09 am

I work for a company that is mainly in civil environmental and mining engineering and are now trying to get architecture off the ground it has always been the experiment  and now that mining is in the toilet they want us to get more jobs but they want it to pay like mining did.

Oct 8, 13 11:11 am

The actual work force is underpaid the owners made the new director a Jr. partner so he is not inclined to push thing for us.

Oct 8, 13 11:23 am

It won't "pay like mining did" - not even close.

Oct 8, 13 12:27 pm

can't seem to explain that to Partners ,but it seems we are pricing ourselves out of the market where we have more competition( in the city were most firms are), we can charge what we want in the more rural areas of the state where they don't want to work. I would really like to know what the average fee is for this area. ball park

Oct 8, 13 12:32 pm

25% of the building budget for each phase.  so if it costs $100 to build a building, you charge $25 for schematic design.  then you stop schematic design and move on to design development, for which you charge another $25.  once that is complete, you stop design development and work on construction documents, for which you charge $25.  design fees for a $100 building are $75 at the end.  is that right?

i think it's more common for architects to estimate fees based on the time they put into it.  however, if i were to take a wild stab, i would say closer to 7% of the building cost for design fees, all in.  for a $100 building, you might get $7 if you're lucky.

Oct 8, 13 12:35 pm

here is some stuff some people said a long time ago.

Oct 8, 13 12:45 pm

It's not clear from your post whether they are planning on installment payments of 25% of the total negotiated fee, or are they expecting a total fee equal to 25% of the project budget.  If the later, they will only get it with a gun and mask.  You're doing good at 5%.

Oct 8, 13 12:45 pm

The fee wouldn't be evenly divided through all phases

SD - 15

DD -20

CD - 45

CA - 20

Total would be roughly 10% depending on project type and service level 

Giant box's are a lot cheaper than super complicated labs. 25% of project construction cost is too much for anywhere

Miles JaffeMiles Jaffe
Oct 8, 13 7:59 pm

100% fee, now you're talking.

25% fee, must be a name brand and probably a decorator.

7% fee, find another profession.

vado retro
Oct 10, 13 9:16 am
Oct 10, 13 12:31 pm

good resource!

Oct 12, 13 2:22 pm

@vado - Friedlander FTW :) I still go straight to notes from his class when dealing with contract documents

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