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Q: Architectural Design Fees ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Architectural Design Fees
Category: Business and Money
Asked by: azdweller-ga
List Price: $200.00
Posted: 27 Sep 2006 11:44 PDT
Expires: 27 Oct 2006 11:44 PDT
Question ID: 768953
Ok, this is a pretty esoteric question but I figured I'd give it a
shot anyway.  I am looking for information on what commercial
architects are charging for their design services on industrial and
retail projects in Arizona.  More specifically, I don't want to know
what their hourly billing rate is, as that is pretty much standard
across the board, but rather what their total fee ends up being on a
cost per square foot basis.  And ideally the information should be
current as of this year.

I realize this is a highly specific question, and to be honest, I'm
not sure if this information is even publicly accessable.  That being
said, I will accept broader information if you can find it.  Such as
expanding your scope to the entire US and/or expanding your scope to
not just industrial or retail projects.  Another alternative would be
to provide information on the fees in a "percentage of total project
cost" format.  Another thing that would help is if you can provide
information on sources for this kind of specific market analysis.  I'm
sure there are companies out there that track this kind of stuff on
some level.

However my ideal answer would be to the question exacly as it is
stated in the first paragraph.  Please let me know if you need any
clarification.  Thanks.

Request for Question Clarification by bobbie7-ga on 30 Sep 2006 08:44 PDT
I?ve been working on your question on and off for last few days and 
this is what I located.

ARCHITECTURAL FEE GUIDELINES
Arizona School Facilities Borrad
http://www.azsfb.gov/sfb/new%20construction/docs/arch%20fee%20guidelines.htm


Percentage Fee: Fee is based on a percentage of the accepted bid for
Construction and can range from 2% to 10%, again depending on the
complexity of the project, difficulty of the site, and the services
provided.
http://www.bsa-architects.com/faq.html

Does this help?  Would this infomration work for you?

Bobbie7

Clarification of Question by azdweller-ga on 02 Oct 2006 09:36 PDT
Bobbie7, thanks for working on this.  To clarify, I am not looking for
"general" information or guidelines, but rather what actual
architecture firms are charging for actual projects.  And by this I
don't mean that I need the actual names of the architecture firms or
the names of the projects, but just actual numbers as opposed to
guidlines.

Hope that helps, let me know if you need any more info.  Thanks.

Request for Question Clarification by bobbie7-ga on 02 Oct 2006 11:50 PDT
Dear Azdweller,

Thank you for the clarification.

Please let me know if the information provided by Tallman & Demarest
Architects is on target.

Thanks,
Bobbie7


Typical fee percentages and construction costs

Tallman & Demarest Architects

------------------------------------------------------------------------------
                           Architect's Fee%   Cost/sq. ft. US$  
Building Size sq ft
------------------------------------------------------------------------------
Mixed Use 
Retail
Professional
Residential	      5 to 12%         $66 to 134        40,000 to 310,000 

Country Clubs
Clubhouses       8.6 to 15          76 to 215            13,000 to 66,000

Executive Hotels  6 to 12.2         68 to 195           29,000 to 190,000

Custom Housing
Single Family     8.5 to 16         80 to 190           2,800 to 9,000

Light Industrial   2.6 to 9          27 to 98         9,000 to 188,000

Medical Office      8 to 13          77 to 190         8,500 to 42,000

Office Buildings
Low Rise         5.6 to 10.75         61 to 155       15,000 to 90,000

Restaurants
Custom               5.5 to 13         66 to 165       1,900 to 7,500

High Schools       6.4 to 9.75         52 to 130     32,000 to 150,000

Public Offices
City/County          6.7 to 11.5       60 to 165     11,000 to 31,000
----------------------------------------------------------------------

http://www.tdarchitects.com/project_fees.html

Request for Question Clarification by bobbie7-ga on 02 Oct 2006 11:51 PDT
I hope the table comes out better this time.


Typical fee percentages and construction costs

Tallman & Demarest Architects

------------------------------------------------------------------------------
                       Architect's Fee%  Cost/sq. ft. US$  Building Size sq ft
------------------------------------------------------------------------------
Mixed Use 
Retail
Professional
Residential	      5 to 12%         $66 to 134        40,000 to 310,000 

Country Clubs
Clubhouses       8.6 to 15          76 to 215            13,000 to 66,000

Executive Hotels  6 to 12.2         68 to 195           29,000 to 190,000

Custom Housing
Single Family     8.5 to 16         80 to 190           2,800 to 9,000

Light Industrial   2.6 to 9          27 to 98         9,000 to 188,000

Medical Office      8 to 13          77 to 190         8,500 to 42,000

Office Buildings
Low Rise         5.6 to 10.75         61 to 155       15,000 to 90,000

Restaurants
Custom               5.5 to 13         66 to 165       1,900 to 7,500

High Schools       6.4 to 9.75         52 to 130     32,000 to 150,000

Public Offices
City/County          6.7 to 11.5       60 to 165     11,000 to 31,000
----------------------------------------------------------------------

http://www.tdarchitects.com/project_fees.html

Clarification of Question by azdweller-ga on 02 Oct 2006 13:17 PDT
Yes, this is exactly the type of information I am looking for. 
However I was hoping for a larger sampling of companies so that I can
compare some numbers.  Thanks.

Request for Question Clarification by bobbie7-ga on 02 Oct 2006 15:01 PDT
Dear Azdweller,

I resumed my search and I found one more example.

Gerard Lee Architects

Design Fees & Construction Costs

As we have noted in our previous pages, many people at the start of
their project, do not have a firm grasp of all the issues and costs
associated with their residential project. Be it a new custom home or
remodel.

So we present a hypothetical project and it's associated costs. These
tend to be skewed towards market trends in the Bay Area and are
subject to change. We all know how fluid interest rates have been in
recent years, and the costs of loans and property taxes. We advise you
to use these only for what they are, a hypothetical situation and we
strongly urge you to use the services of a professional to assess
current market trends and costs.

In our last page we noted that architects' fees for professional
design services will range from 10 to 15 percent of construction costs
for a new custom house and 15 to 20% for an addition/remodel (remodels
are riskier and more complex).
To some clients, this seems excessive and are unable to comprehend the
added value they actually get with good design services. What we need
is a proper context of the true costs of design fees. So let's
consider a typical 25-30 year life cycle costs of a home (30 yr
mortgage/ loan). The actual cost of the building maybe 2-3 times the
initial outlay. Do note that these are representational numbers. You
should use current values that reflect the area you intend to build
in.

We will use the table below as an *example for a 2,000sf custom home:


Cost of Property/ Building site: $100,000 
Construction cost: $700,000 (~2,000sf x $350-$450/sf) 
Architect's 10% fee: $70,000 
Broker, closing, title fees: $13,000 
Landscaping and paving: $10,000 
7.0% interest on $620,000 mortgage: $864,640 (30 years fixed) 
Taxes at $6,000 per year: $180,000 
Total: $1,937,640 over 30 years

Gerard Lee Architects
http://www.gleearchitects.com/resfaq2a.htm#fee


Please understand that I did try very hard to locate additional data
without any luck.

May I post this information and the previous figures from Tallman &
Demarest Architects as the answer to your question?


Sincerely, 
Bobbie7

Clarification of Question by azdweller-ga on 02 Oct 2006 15:47 PDT
Yes, you can post this as the answer.  Thank you for your hard work, I
know this wasn't easy to find.
Answer  
Subject: Re: Architectural Design Fees
Answered By: bobbie7-ga on 02 Oct 2006 15:54 PDT
Rated:4 out of 5 stars
 
Dear Azdweller,

Thank you for accepting my findings as the official answer to your question.

I located two more bits of information that might interest you.

Sincerely,
Bobbie7


Clifton Architects

?As a general guide for a domestic project: we would be likely to
charge in the range of 12% for a loft conversion and 10% for a largish
new house.?
http://www.clifton-architects.co.uk/CDA/servicesfees.html


SCArchitect, Inc.

?In the case of a large project, which SCArchitect, Inc. typically
defines as having a construction cost of $500,000.00 or greater, a
percentage of the cost of construction fee is typically recommended.
This fee would include all standard architectural services; project
analysis, schematic design, design development, construction plans &
details, specifications and construction administration as well as
structural, electrical and mechanical engineering consultant costs.?

?We, at SCArchitect, Inc. treat each project as a unique project and
utilize the best fee structure that allows us to provide our clients
with the most professional service necessary to insure a successful
project. The most ?expensive? fee our clients will pay will be the
cost of construction change orders to correct design deficiencies.
Therefore, we utilize engineering consultants who have the most
qualified experience.

Every project will be designed and completed in several phases. Our
fees will be invoiced for services rendered based on the portion of
service completed for each phase on a monthly basis.

The following is our typical breakdown of the percentages of the fee
pertaining to the phase of the project completed. (These percentages
may vary from project to project):?

Project Phase	  					Percent Charged 
Schematic Design					15% 
Design Development					20% 
Working Drawings					35% 
Agency Approvals					5% 
Building & Contract Negotiations			5% 
Construction Administration				20% 
http://www.scarchitect.com/Architect%20Fees.htm




I am reposting the previous information here for your convenience.




Typical fee percentages and construction costs

Tallman & Demarest Architects

------------------------------------------------------------------------------
                       Architect's Fee%  Cost/sq. ft. US$  Building Size sq ft
------------------------------------------------------------------------------
Mixed Use 
Retail
Professional
Residential	      5 to 12%         $66 to 134        40,000 to 310,000 

Country Clubs
Clubhouses       8.6 to 15          76 to 215            13,000 to 66,000

Executive Hotels  6 to 12.2         68 to 195           29,000 to 190,000

Custom Housing
Single Family     8.5 to 16         80 to 190           2,800 to 9,000

Light Industrial   2.6 to 9          27 to 98         9,000 to 188,000

Medical Office      8 to 13          77 to 190         8,500 to 42,000

Office Buildings
Low Rise         5.6 to 10.75         61 to 155       15,000 to 90,000

Restaurants
Custom               5.5 to 13         66 to 165       1,900 to 7,500

High Schools       6.4 to 9.75         52 to 130     32,000 to 150,000

Public Offices
City/County          6.7 to 11.5       60 to 165     11,000 to 31,000
----------------------------------------------------------------------

http://www.tdarchitects.com/project_fees.html




Gerard Lee Architects

Design Fees & Construction Costs

As we have noted in our previous pages, many people at the start of
their project, do not have a firm grasp of all the issues and costs
associated with their residential project. Be it a new custom home or
remodel.

So we present a hypothetical project and it's associated costs. These
tend to be skewed towards market trends in the Bay Area and are
subject to change. We all know how fluid interest rates have been in
recent years, and the costs of loans and property taxes. We advise you
to use these only for what they are, a hypothetical situation and we
strongly urge you to use the services of a professional to assess
current market trends and costs.

In our last page we noted that architects' fees for professional
design services will range from 10 to 15 percent of construction costs
for a new custom house and 15 to 20% for an addition/remodel (remodels
are riskier and more complex).
To some clients, this seems excessive and are unable to comprehend the
added value they actually get with good design services. What we need
is a proper context of the true costs of design fees. So let's
consider a typical 25-30 year life cycle costs of a home (30 yr
mortgage/ loan). The actual cost of the building maybe 2-3 times the
initial outlay. Do note that these are representational numbers. You
should use current values that reflect the area you intend to build
in.

We will use the table below as an *example for a 2,000sf custom home:


Cost of Property/ Building site: $100,000 
Construction cost: $700,000 (~2,000sf x $350-$450/sf) 
Architect's 10% fee: $70,000 
Broker, closing, title fees: $13,000 
Landscaping and paving: $10,000 
7.0% interest on $620,000 mortgage: $864,640 (30 years fixed) 
Taxes at $6,000 per year: $180,000 
Total: $1,937,640 over 30 years

Gerard Lee Architects
http://www.gleearchitects.com/resfaq2a.htm#fee
azdweller-ga rated this answer:4 out of 5 stars
It wasn't 100% what I was looking for so I can't give it 5 stars. 
However it was a very thorough and well-researched answer just the
same.

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