Fees
Billed by phase. Often, some phases will have Fixed Fees while others will be billed at Hourly Rates.
Fixed Fees
Make good sense - but only when the amount of work required is predictable; and when there’s a clear definition of “the work is complete”.
Typical Examples:
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Schematic Design Phase
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Building Department Phase
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Construction Documentation Phase
Hourly Rates
Also make good sense - when the amount of work required is unpredictable, or when there’s no clear definition of “the work is complete”. Usually that’s for one of 2 reasons:
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An outside agent’s approval or cooperation is required, and that agent decides how much work is required. (Landmarks approvals, Coop/Condo approvals, Construction Services, etc)
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The Client decides when the work is complete. Typical Examples (Design Development, Interior Design, Bidding/Negotiation)
% of construction
We almost never use this approach. For private work it amounts to a conflict of interest, and it corrodes the 2-way trust that’s essential to a good Architect/Client relationship:
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Are we suggesting expensive work because it helps the client or because it bumps up our fees?
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Are we pushing one option over another because it’s better or because it’s easier to design?