How do most architects calculate fees?
archinect.com
There is no one-size-fits-all approach to architectural fee calculations. Ultimately, the decision of how to structure a fee is a business decision and judgment call on behalf of the architect, to be arrived at with consideration to a range of factors, including the project scale, typology, scope and clarity of service, and risk of changes or delays.In a recent feature article, we rounded up the five most popular methods used by architects to calculate a fee, together covering 97% of billings in 2023 according to the AIA 2024 Firm Survey Report.Of all structures, the two most popular were the stipulated sum and professional fee methods, each of which was responsible for 32% of billings in 2023. While the stipulated sum method was amenable to situations where the project brief, budget, and architects scope of services were clear, the professional fee structure offers the most flexibility across sectors and scales.Elsewhere, an hourly rate structure constituted 20% of billings and was most likely to be used by small firms. The hourly rate structure can also be amenable in situations where the scope of the architects brief is less clear, including feasibility studies to test a projects viability, as well as being used for services beyond typical design roles, such as consultancy and expert witness services.Rounding out...
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