Fee consideration for architects - Revision history

Editor at 21:16, 21 January 2026

2026-01-21T21:16:07Z

← Older revision		Revision as of 21:16, 21 January 2026
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	Typically, 70% 30% 10% - Salary Overheads Profit.		Typically, 70% 30% 10% - Salary Overheads Profit.

−	~~[[Category:Articles_needing_more_work]]~~ [[Category:DCN_Commentary]]	+	[[Category:DCN_Commentary]]

Designing Buildings at 08:14, 2 December 2020

2020-12-02T08:14:13Z

← Older revision		Revision as of 08:14, 2 December 2020
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−		+	This article needs more work. To help develop this article, click 'Edit this article' above.
−	This article needs more work. To help develop this article, click 'Edit this article' above.~~<br/>~~	+

	See also Architect's Fees.		See also Architect's Fees.
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	To establish the extent of services so that client has a clear understanding of the role and service the architect is about to engage, it is crucial that an appointment document is completed and signed by both parties. This will make clear, in writing what services will be provided and the conditions of engagement.		To establish the extent of services so that client has a clear understanding of the role and service the architect is about to engage, it is crucial that an appointment document is completed and signed by both parties. This will make clear, in writing what services will be provided and the conditions of engagement.

−	Once a clear scope and deliverables are set, it is possible to begin to asses the time involved in carrying out the works and start to asses corresponding fees that relate to specific packages of the work. The architect should issue the client with a programme and cash flow forecast so they know when to expect an invoice. This allows the client to prepare their finances accordingly. In addition it is imperative to make sure payment terms are clear.~~<br/>~~	+	Once a clear scope and deliverables are set, it is possible to begin to asses the time involved in carrying out the works and start to asses corresponding fees that relate to specific packages of the work. The architect should issue the client with a programme and cash flow forecast so they know when to expect an invoice. This allows the client to prepare their finances accordingly. In addition it is imperative to make sure payment terms are clear.

−	= ~~'''~~Projects specific issues and business issues to be considered~~'''~~ =	+	= Projects specific issues and business issues to be considered =

	Project specific considerations:		Project specific considerations:
−	*What Is being asked for?/ How were you approached?	+
−	*Is the client clear about what they want?	+	* What Is being asked for?/ How were you approached?
−	*What is the extent of services required? Full, partial, just feasibility etc?	+	* Is the client clear about what they want?
−	*Basic fee or additional services?	+	* What is the extent of services required? Full, partial, just feasibility etc?
−	*Are contract administrator / lead consultant roles Included?	+	* Basic fee or additional services?
−	*What is the procurement route?	+	* Are contract administrator / lead consultant roles Included?
−	*Does sufficient information exist about the services being asked for?	+	* What is the procurement route?
−	*Are the services asked for beyond your expertise?	+	* Does sufficient information exist about the services being asked for?
−	*Will additional consultants be needed?	+	* Are the services asked for beyond your expertise?
−	*Is the programme reasonable?	+	* Will additional consultants be needed?
−	*If there is a target cost, is it reasonable?	+	* Is the programme reasonable?
−	*What is the level of project complexity?	+	* If there is a target cost, is it reasonable?
−	*Does it include work to an existing building or conservation work?	+	* What is the level of project complexity?
−	*Are there elements of repetition that may reduce the fee.	+	* Does it include work to an existing building or conservation work?
−	*Is there potential to use knowledge from previous projects.	+	* Are there elements of repetition that may reduce the fee.
−	*Likely expenses.	+	* Is there potential to use knowledge from previous projects.
−	*Is it possible to benchmark against other practices / projects?	+	* Likely expenses.
−	*Is there any requirement to give a maximum price?	+	* Is it possible to benchmark against other practices / projects?
		+	* Is there any requirement to give a maximum price?

	Wider practice / business considerations:		Wider practice / business considerations:
−	*Is this a new client?	+
−	*What is their financial status?	+	* Is this a new client?
−	*Have you performed credit checks and asked about them around the industry?	+	* What is their financial status?
−	*Will the client be open to value incentives? If so should the practice take the risk?	+	* Have you performed credit checks and asked about them around the industry?
−	*Are there sufficient resources?	+	* Will the client be open to value incentives? If so should the practice take the risk?
−	*Is additional professional indemnity insurance (PII) cover required?	+	* Are there sufficient resources?
−	*Assess cash flow and fee forecasting.	+	* Is additional professional indemnity insurance (PII) cover required?
		+	* Assess cash flow and fee forecasting.

	Professional obligations:		Professional obligations:
−	*The fee should be confirmed in writing and explained to client.	+
−	*You should have proper resources for the delivery of the services required.	+	* The fee should be confirmed in writing and explained to client.
−	*You should have appropriate Professional Indemnity Insurance (PII) cover.	+	* You should have proper resources for the delivery of the services required.
−	*You should have an Employment Policy in place.	+	* You should have appropriate Professional Indemnity Insurance (PII) cover.
		+	* You should have an Employment Policy in place.

	= Calculation considerations =		= Calculation considerations =

	Empirical data:		Empirical data:
−	*Practice records (ie. % fee earning hours. Keep good time sheets)	+
−	*Building Cost Information Service.	+	* Practice records (ie. % fee earning hours. Keep good time sheets)
−	*Colander.	+	* Building Cost Information Service.
−	*RIBA Business benchmarking.	+	* Colander.
		+	* RIBA Business benchmarking.

	Calculated prediction:		Calculated prediction:
−	*Provisionally allocate resources and check against practice workload.	+
−	*Schedule activates and requirements.	+	* Provisionally allocate resources and check against practice workload.
−	*Identify real costs of staff.	+	* Schedule activates and requirements.
−	*Identify ancillary costs such as travel, PII, hard/software.	+	* Identify real costs of staff.
−	*Direct costs; payroll, NI, pensions, CPD etc.	+	* Identify ancillary costs such as travel, PII, hard/software.
−	*Indirect costs; overheads and profit.	+	* Direct costs; payroll, NI, pensions, CPD etc.
		+	* Indirect costs; overheads and profit.

	Ideally, perform a calculated prediction and test it against empirical data.		Ideally, perform a calculated prediction and test it against empirical data.
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	Typically, 70% 30% 10% - Salary Overheads Profit.		Typically, 70% 30% 10% - Salary Overheads Profit.

−	[[Category:Articles_needing_more_work]]	+	[[Category:Articles_needing_more_work]] [[Category:DCN_Commentary]]

Designing Buildings at 17:06, 1 December 2014

2014-12-01T17:06:11Z

← Older revision		Revision as of 17:06, 1 December 2014
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	= Calculation considerations =		= Calculation considerations =

−	~~===~~ Empirical data: ~~===~~	+	Empirical data:
	*Practice records (ie. % fee earning hours. Keep good time sheets)		*Practice records (ie. % fee earning hours. Keep good time sheets)
	*Building Cost Information Service.		*Building Cost Information Service.

Designing Buildings at 17:05, 1 December 2014

2014-12-01T17:05:48Z

← Older revision		Revision as of 17:05, 1 December 2014
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	*Assess cash flow and fee forecasting.		*Assess cash flow and fee forecasting.

−	== Professional obligations: ==	+	Professional obligations:
	*The fee should be confirmed in writing and explained to client.		*The fee should be confirmed in writing and explained to client.
	*You should have proper resources for the delivery of the services required.		*You should have proper resources for the delivery of the services required.

Designing Buildings at 17:05, 1 December 2014

2014-12-01T17:05:10Z

← Older revision		Revision as of 17:05, 1 December 2014
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	To establish the extent of services so that client has a clear understanding of the role and service the architect is about to engage, it is crucial that an appointment document is completed and signed by both parties. This will make clear, in writing what services will be provided and the conditions of engagement.		To establish the extent of services so that client has a clear understanding of the role and service the architect is about to engage, it is crucial that an appointment document is completed and signed by both parties. This will make clear, in writing what services will be provided and the conditions of engagement.

−	Once a clear scope and deliverables are set, it is possible to begin to asses the time involved in carrying out the works and start to asses corresponding fees that relate to specific packages of the work. The architect should issue the client with a programme and cash flow forecast so they know when to expect an invoice. This allows the client to prepare their finances accordingly. In addition it is imperative to make sure payment terms are clear.	+	Once a clear scope and deliverables are set, it is possible to begin to asses the time involved in carrying out the works and start to asses corresponding fees that relate to specific packages of the work. The architect should issue the client with a programme and cash flow forecast so they know when to expect an invoice. This allows the client to prepare their finances accordingly. In addition it is imperative to make sure payment terms are clear.<br/>

−	Where it is necessary to stop working for non-payment of fees, it is important to send a letter of suspension of services for late payment payment. This warning letter may prompt the client to pay. Record of events should be kept through minutes, emails and ~~letters~~ to ~~support any verbal discussions. If any verbal discussions occur it is vital that they are backed up in writing in the event of any dispute. Should the payment not come through, it may~~ be ~~necessary to take further action. See Remedies for late payment.~~	+	= '''Projects specific issues and business issues to be considered''' =

−	~~= '''Projects specific issues and business issues to be considered before calculating a fee.''' =~~	+	Project specific considerations:
−		+
−	~~== '''~~Project specific considerations~~''' ==~~	+
	*What Is being asked for?/ How were you approached?		*What Is being asked for?/ How were you approached?
	*Is the client clear about what they want?		*Is the client clear about what they want?
Line 38:		Line 36:
	*Is there any requirement to give a maximum price?		*Is there any requirement to give a maximum price?

−	== Wider practice / business considerations ==	+	Wider practice / business considerations:
	*Is this a new client?		*Is this a new client?
	*What is their financial status?		*What is their financial status?
Line 44:		Line 42:
	*Will the client be open to value incentives? If so should the practice take the risk?		*Will the client be open to value incentives? If so should the practice take the risk?
	*Are there sufficient resources?		*Are there sufficient resources?
−	*Is additional PII cover required?	+	*Is additional professional indemnity insurance (PII) cover required?
	*Assess cash flow and fee forecasting.		*Assess cash flow and fee forecasting.

−	== ~~'''Calculation considerations''' ==~~	+	== Professional obligations: ==
−		+
−	~~Work stage fees:~~	+
−	*It is common to time charge during the early stages.	+
−	*What is the procurement route?	+
−	*Is the appointment for normal service?	+
−	*Architects add most value up to planning, but more resources are required in later stages.	+
−		+
−	~~Acknowledging added value:~~	+
−	*Incentive fees: (ie % of value increase on land if planning is received.)	+
−	*Equity shares.	+
−	*Value framework (developer led where fees are agreed traditionally and then expressed as a % of the overall project profit margin).	+
−		+
−	~~Explain professional obligations and potential employment issues relating to project resourcing~~	+
−		+
−	Professional obligations:	+
	*The fee should be confirmed in writing and explained to client.		*The fee should be confirmed in writing and explained to client.
	*You should have proper resources for the delivery of the services required.		*You should have proper resources for the delivery of the services required.
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	*You should have an Employment Policy in place.		*You should have an Employment Policy in place.

−	== Calculation considerations ==	+	= Calculation considerations =
−		+
−	~~=== Resource calculation ==~~=	+

−	Empirical data:	+	=== Empirical data: ===
	*Practice records (ie. % fee earning hours. Keep good time sheets)		*Practice records (ie. % fee earning hours. Keep good time sheets)
	*Building Cost Information Service.		*Building Cost Information Service.

Designing Buildings at 16:59, 1 December 2014

2014-12-01T16:59:50Z

← Older revision		Revision as of 16:59, 1 December 2014
Line 1:		Line 1:

		+	This article needs more work. To help develop this article, click 'Edit this article' above.<br/>

−	~~To help develop this article, click 'Edit this article' above.~~	+	See also Architect's Fees.
−	See also Architect's Fees.	+

−	~~----~~	+	= Introduction =

−	The RIBA are moving towards resource based fee calculation - promoting the RIBA fee calculator as a tool with outputs that can be used to explain fee calculation to clients.	+	The RIBA are moving towards resource based fee calculation - promoting the [http://www.architecture.com/RIBAMembership/LoginToMembers-onlyArea/MemberServices/ProfessionalSupport/Policiesandtoolkits.aspx#fees RIBA fee calculator] as a tool with outputs that can be used to explain fee calculation to clients.

−	~~'''RIBA fee calculator'''~~	+	The RIBA Practice committee highly recommends architects spend whatever time they need to carefully asses, formulate and present the details of the fee required for any job. The fee can then be explained and agreed with the client to form a basis of a transparent and successful relationship. Spending an adequate time on fee calculation will ensure an appropriate charge for architect’s services.
−	*The RIBA Practice committee highly recommends architects to spend whatever time they need to carefully asses, formulate and present the details of the fee required for any job.	+
−	*The ~~Fee~~ can then be explained and agreed with the client to form a basis of a transparent and successful relationship.	+
−	*Spending an adequate time on fee calculation will ensure an appropriate charge for architect’s services ~~and avoid loosing money on a project and hopefully demonstrate profit~~.	+

−	~~'''Pointers to good practice: (then project considerations)'''~~	+	To establish the extent of services so that client has a clear understanding of the role and service the architect is about to engage, it is crucial that an appointment document is completed and signed by both parties. This will make clear, in writing what services will be provided and the conditions of engagement.
−	*To establish the extent of services so that client has a clear understanding of the role and service the architect is about to engage, it is crucial that an appointment document is completed and signed by both parties.	+
−	*This will make clear, in writing what ~~service you are providing~~ and conditions of engagement.	+
−	*Once a clear scope and deliverables are set, we can only then begin to asses the time involved in carrying out the works…	+
−	*And start to asses corresponding fee that relates to the specific package of the work.	+
−	*Issue the client with a programme and cash flow forecast so that the client knows when to expect an invoice. This allows the client to prepare their finances accordingly.	+
−	*In addition it is imperative to make sure payment terms are 14 days and that we are been paid promptly.	+

−	~~'''Pointers~~ to ~~good practice: (~~to ~~back up business considerations)'''~~	+	Once a clear scope and deliverables are set, it is possible to begin to asses the time involved in carrying out the works and start to asses corresponding fees that relate to specific packages of the work. The architect should issue the client with a programme and cash flow forecast so they know when to expect an invoice. This allows the client to prepare their finances accordingly. In addition it is imperative to make sure payment terms are clear.
−	*Be prepared to stop working for non-payment of fees	+
−	*Make sure to send ~~out~~ a letter of suspension of services for late payment payment.	+	Where it is necessary to stop working for non-payment of fees, it is important to send a letter of suspension of services for late payment payment. This warning letter may prompt the client to pay. Record of events should be kept through minutes, emails and letters to support any verbal discussions. If any verbal discussions occur it is vital that they are backed up in writing in the event of any dispute. Should the payment not come through, it may be necessary to take further action. See Remedies for late payment.
−	*This warning letter ~~prompts~~ the client to pay ~~on time next invoice date~~.	+
−	*This is a good tactic to protect our business as we can record the continued late payment of serial offenders, and will be very useful should we need to take them to court to collect payment.	+
−	*This goes without saying that all record of events should be kept through minutes, emails and letters to support any verbal discussions. If any verbal discussions occur it is vital that they are backed up in writing in the event of any dispute.	+
−	*Should the ~~final~~ payment not come through, ~~we must chase~~ it ~~up through the final claims court~~	+

	= '''Projects specific issues and business issues to be considered before calculating a fee.''' =		= '''Projects specific issues and business issues to be considered before calculating a fee.''' =

Designing Buildings at 16:50, 1 December 2014

2014-12-01T16:50:50Z

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Xelasanti: Protected "Fee consideration for architects" ([edit=author] (indefinite) [move=author] (indefinite))

2014-07-06T18:20:50Z

Protected "Fee consideration for architects" ([edit=author] (indefinite) [move=author] (indefinite))

← Older revision

Revision as of 18:20, 6 July 2014

Xelasanti: Created page with " '''Fee considerations for architects''' The [http://www.designingbuildings.co.uk/wiki/RIBA RIBA] are moving towards resource based fee calculation - promoting the [http://www...."

2014-07-06T18:20:38Z

Created page with " '''Fee considerations for architects''' The [http://www.designingbuildings.co.uk/wiki/RIBA RIBA] are moving towards resource based fee calculation - promoting the [http://www...."

New page

'''Fee considerations for architects'''

The [http://www.designingbuildings.co.uk/wiki/RIBA RIBA] are moving towards resource based fee calculation - promoting the [http://www.designingbuildings.co.uk/wiki/RIBA RIBA] fee calculator as a tool with outputs that can be used to explain fee calculation to [http://www.designingbuildings.co.uk/wiki/Clients clients].

'''[http://www.designingbuildings.co.uk/wiki/RIBA RIBA] fee calculator'''
*The RIBA Practice committee highly recommends architects to spend whatever time they need to carefully asses, formulate and present the details of the fee required for any job.
*The Fee can then be explained and agreed with the client to form a basis of a transparent and successful relationship.
*Spending an adequate time on fee calculation will ensure an appropriate charge for architect’s services and avoid loosing money on a project and hopefully demonstrate profit.

 

'''Pointers to good practice: (then project considerations)'''

*To establish the extent of services so that client has a clear understanding of the role and service the architect is about to engage, it is crucial that an appointment document is completed and signed by both parties.
*This will make clear, in writing what service you are providing and conditions of engagement.
*Once a clear scope and deliverables are set, we can only then begin to asses the time involved in carrying out the works…
*And start to asses corresponding fee that relates to the specific package of the work.
*Issue the client with a programme and cash flow forecast so that the client knows when to expect an invoice. This allows the client to prepare their finances accordingly.
*In addition it is imperative to make sure payment terms are 14 days and that we are been paid promptly.

'''Pointers to good practice: (to back up business considerations)'''

*Be prepared to stop working for non-payment of fees
*Make sure to send out a letter of suspension of services for late payment payment.
*This warning letter prompts the client to pay on time next invoice date.
*This is a good tactic to protect our business as we can record the continued late payment of serial offenders, and will be very useful should we need to take them to court to collect payment.
*This goes without saying that all record of events should be kept through minutes, emails and letters to support any verbal discussions. If any verbal discussions occur it is vital that they are backed up in writing in the event of any dispute.
*Should the final payment not come through, we must chase it up through the final claims court

'''Fee considerations for architects'''

 

'''Projects specific issues and business issues to be considered before calculating a fee.'''

'''Project specific considerations'''

*What Is being asked for?/ How were you approached?
*Is the [http://www.designingbuildings.co.uk/wiki/Client client] clear about what they want?
*What is the extent of services required? Full, partial, just feasibility etc?
*Basic fee or additional services?
*Are [http://www.designingbuildings.co.uk/wiki/Contract_administrator contract administrator] / [http://www.designingbuildings.co.uk/wiki/Lead_consultant lead consultant] roles Included?
*What is the [http://www.designingbuildings.co.uk/wiki/Procurement_route procurement route]?
*Does sufficient information exist about the services being asked for?
*Are the services asked for beyond your expertise?
*Will additional [http://www.designingbuildings.co.uk/wiki/Consultants consultants] be needed?
*Is the [http://www.designingbuildings.co.uk/wiki/Programme programme] reasonable?
*If there is a [http://www.designingbuildings.co.uk/wiki/Target_cost target cost], is it reasonable?
*What is the level of project complexity?
*Does it include work to an existing building or conservation work?
*Are there elements of repetition that may reduce the fee.
*Is there potential to use knowledge from previous projects.
*Likely expenses.
*Is it possible to benchmark against other practices / projects?
*Is there any requirement to give a maximum price?

'''Wider practice / business considerations'''
*Is this a new [http://www.designingbuildings.co.uk/wiki/Client client]?
*What is their financial status?
*Have you performed credit checks and asked about them around the industry?
*Will the [http://www.designingbuildings.co.uk/wiki/Client client] be open to [http://www.designingbuildings.co.uk/wiki/Value value] incentives? If so should the practice take the [http://www.designingbuildings.co.uk/wiki/Risk risk]?
*Are there sufficient resources?
*Is additional PII cover required?
*Assess [http://www.designingbuildings.co.uk/wiki/Cash_flow cash flow] and [http://www.designingbuildings.co.uk/wiki/Fee_Forecasting fee forecasting].

'''Calculation considerations'''

'''Work stage [http://www.designingbuildings.co.uk/wiki/Fees fees]'''

*It is common to time charge during the early stages.
*What is the [http://www.designingbuildings.co.uk/wiki/Procurement_route procurement route]?
*Is the [http://www.designingbuildings.co.uk/wiki/Appointment appointment] for normal service?
*[http://www.designingbuildings.co.uk/wiki/Architects Architects] add most [http://www.designingbuildings.co.uk/wiki/Value value] up to planning, but more resources are required in later stages.

'''Acknowledging added [http://www.designingbuildings.co.uk/wiki/Value value]'''

*Incentive [http://www.designingbuildings.co.uk/wiki/Fees fees]: (ie % of [http://www.designingbuildings.co.uk/wiki/Value value] increase on land if planning is received.)
*[http://www.designingbuildings.co.uk/wiki/Equity Equity] shares.
*[http://www.designingbuildings.co.uk/wiki/Value Value] framework ([http://www.designingbuildings.co.uk/wiki/Developer developer] led where [http://www.designingbuildings.co.uk/wiki/Fees fees] are agreed traditionally and then expressed as a % of the overall project profit margin).

Explain professional obligations and potential employment issues relating to project resourcing

 

'''Professional obligations'''
*The fee should be confirmed in writing and explained to [http://www.designingbuildings.co.uk/wiki/Client client].
*You should have proper resources for the delivery of the services required.
*You should have appropriate [http://www.designingbuildings.co.uk/wiki/Professional_indemnity_insurance Professional Indemnity Insurance] (PII) cover.
*You should have an Employment Policy in place.
*

'''Calculation considerations'''

'''Resource calculation'''

Empirical data
*Practice records (ie. % fee earning hours. Keep good time sheets)
*[http://www.designingbuildings.co.uk/wiki/Building_Cost_Information_Service Building Cost Information Service]
*Colander.
*[http://www.designingbuildings.co.uk/wiki/RIBA RIBA] Business [http://www.designingbuildings.co.uk/wiki/Benchmarking benchmarking].
*

Calculated prediction.

*Provisionally allocate resources and check against practice workload.
*Schedule activates and requirements.
*Identify real [http://www.designingbuildings.co.uk/wiki/Cost costs] of staff.
*Identify ancillary [http://www.designingbuildings.co.uk/wiki/Cost costs] such as travel, PII, hard/software.
*Direct [http://www.designingbuildings.co.uk/wiki/Cost costs]; payroll, NI, pensions, CPD etc.
*Indirect [http://www.designingbuildings.co.uk/wiki/Cost costs]; overheads and profit.

Ideally, perform a calculated prediction and test it against empirical data.

Typically, 70% 30% 10% - Salary Overheads Profit.

[[Category:Articles_needing_more_work]]