Architect costs

[Oz07]

How long is a piece of string but generally what are people paying for architects? Ive always used a riba architect previously and also had a PCC off them too. I think excluding the PCC I've usually paid around 2% of build cost. Not that the deal is a set % of build cost its just that's where the quote has come in. For planning and building regs no project management or anything like that. 

[fatgus]

We had quotes from £3k to well over £50k for ours… the RIBA architects at the top end were far too interested in telling us how wonderful they were and generally wanted to build the house they wanted, whereas the one we eventually chose (around £4k, which is <1% of build cost) listened, understood and delivered exactly what we wanted. We’d probably have been happy with 2% of build cost, but some were nudging 10% which is surely insane unless it’s a really complicated design 🤷🏻‍♂️

[Gus Potter]

2 hours ago, Oz07 said:

How long is a piece of string but generally what are people paying for architects? Ive always used a riba architect previously and also had a PCC off them too. I think excluding the PCC I've usually paid around 2% of build cost. Not that the deal is a set % of build cost its just that's where the quote has come in. For planning and building regs no project management or anything like that. 

Food for thought:

 

Another way of approaching this is to ask. What would it cost you to get a washing machine repair Engineer? Say £50- 60 quid an hour? Ok they have a "down time" that they don't get paid for as they may be at your house for an hour then have to drive to the next job, but someone has to pay for that. 

 

Now typical rates for a structural engineer working under the IR35 scheme in the UK are about £350 to £500 a day, equates to £45 - £70 an hour as they get paid for a full 8 hour day. Much depends on experience! 

 

Go to a self employed SE/ Architectural Designer like me who has no employees then the rates are about the same except that I have overheads. These are primarily my software, my PI insurance and admin costs. Admin / business generating costs. Admin is admin, I pay an accountant, have to keep records, a secure data base etc.. but quite a lot of time is spent generating business that a contractor under IR 35 does not have to do. 

 

Turning now to say a small Architect practice with four or five employees that are innovative, expanding and so on. The overheads shoot up, often dramatically. 

 

How long is the string? 

 

Well it has no end. This is a summary for sake of conversation.  It used to be in the old days that say Architect's, Engineers, Surveyors got a percentage of the build cost. But as the market got more competetive and folk like say MBC timber frame (the list is endless) came along and offered a design service then the main designers.. like Architect's, SE's just shifted part of the design work  onto them. Now all that worked ok for a bit.. but now it's got to the stage where the lack of coordination is really causing problems. This is not helped by TV programmes ect that often suggest you can pick builder and design sevices like something off a barber shop menu and it will all be ok at the end of the day. 

 

My take: 

 

It's vitally important to understand what you designer is offering. Not just in terms of say doing a few drawings but also their understanding of how the design process works practically and how you go about communication to and finding the right builder. . I find that often once I explain this "added value" then many are happy to pay for a service that includes much more than drawings and some structural calculations. In the round once you become a competant designer then the rest is down to communication.. which is a skill in itself. 

 

2% of a build cost for an Architect

 

Take a house extension at 100k.. you won't get much for your two thousand pounds. take a new build at 300k  with all the work that goes along with that, dealing with the roads, environments, water board.. all that stuff all for 6.0k. Just maybe but I would not do it as I know I would have to cut corners.. which will come back to bite eveyone.

 

Quite often these days I break down my quotes / estimates into how long I'll spend on each element of the design. I'll maybe say.. two days to survey the site,  at £xx amount per hour and so on. I find Clients embrace my transparency. It is very rare that they come back and say my hourly or daily rate is too high. 

 

In the round I don't think applying a percentage fee cost works anymore.. you have to be much more streetwise. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Gus Potter]

18 minutes ago, fatgus said:

We had quotes from £3k to well over £50k for ours… the RIBA architects at the top end were far too interested in telling us how wonderful they were and generally wanted to build the house they wanted, whereas the one we eventually chose (around £4k, which is <1% of build cost) listened, understood and delivered exactly what we wanted. We’d probably have been happy with 2% of build cost, but some were nudging 10% which is surely insane unless it’s a really complicated design

For less than 1.0% you must have got the most basic service which is not for all. 

 

Can you let us know just what you got for your 1%?