WHAT FEES ARE INVOLVED?
MAKE SURE YOU KNOW YOUR NUMBERS….
We consider every project, and corresponding fee proposal, individually to ensure that we tailor our services to meet the client’s exact requirements and expectations, unlike many ‘fixed price’ type deals most often associated with un-regulated ‘design services’.
Fees can be charged in a number of ways as follows, and are dependant not only on the project size and complexity but on the extent of the service (or involvement) required by the Client:
1. Fixed Price
In this case, the fee is fixed for clearly defined package of work fixed at the outset. Any additions to the package arising after services have commenced can either be negotiated with you, or, if the extent of additional work required is difficult to assess, by applying an agreed time charge rate – so much per hour. When we are supplying drawings and our services are not required throughout the project then we will most often provide a fixed lump sum fee.
2. Percentage fees
Fees can be based on a percentage of the construction cost, initially calculated using an agreed estimated cost and later, using the actual construction cost. This rate will vary relative to the level of service provided, the type of building, and also depend on whether the project is new-build or alterations to an existing building. Our fees are often charged in this way when we are involved throughout the project, as it means that our fees are related to the size and cost of the project, which is generally relative to the architectural work involved.
3. Time Charge
This might apply to feasibility exercises or when the extent of the project is uncertain at the beginning, then an hourly or daily rate would be applied. This might also be required when our involvement in a project changes significantly during the project as a result of changes or abortive work which we cannot control.
We offer a free initial meeting with our Clients to discuss the project generally. This also gives us the opportunity to advise if the project seems feasible. Following our initial meeting, and assuming the extent of the works and service required is agreed, we will provide a written confirmation of our fee and terms of appointment for consideration and approval.
Expenses – General expenses such as postage, prints, specialist maps, travel etc are most often charged separately and in addition to the fee quotation. For certain fees, such as those due to the local authority for planning or building warrant application, our clients will be asked to pay direct.
Payment Schedule – Payment will normally be due on a regular on-going basis, either monthly, or on completion of each stage of the work.
VAT – As we are VAT registered, VAT will be charged to our Architectural Design services and generally it will also be payable on the construction works if the contractor is also VAT registered. If the building project involves alterations to a listed building or a new house, certain works or materials may be VAT exempt.
For further clarification refer to the HM Revenue & Customs Website.
Other fees likely to be incurred will be for the appointment of any consultants, typically a Structural Engineer, and Local Authority application fees for planning and building warrant approval applications.
