How architects set their fees

What a fee pays for

An architect's fee is not just their time on drawings. It pays for:

Skilled people. Design, technical, coordination and management time.
Running costs. Premises, software, computers, equipment, training, administration and marketing.
Insurance. Professional indemnity and other cover, which is a significant cost.
Risk. Responsibility for the design, sometimes for many years.
Profit, needed for the practice to be secure and to invest.

Common ways of charging

Fixed (lump-sum) fee. A set price for a defined scope. It is clear, but depends on the scope being clear. Changes are usually charged separately.
Percentage fee. A percentage of the construction cost. It is simple and links fee to project size, though it can feel unclear if costs change, and it needs a definition of what "cost" includes.
Time-based fee. Charged by the hour or day, at agreed rates, often with an estimate or a cap. It suits work that is hard to define.
Stage-based fees. Different fees, or methods, for different stages, such as a fixed fee for early design and a percentage later. See The RIBA Plan of Work.
Mixed or incentive fees. Combining methods, or sharing some risk and reward.

An architect's fee is not just their time on drawings.
How architects set their fees

What affects the fee

Scope. Which stages and services are included: concept only, planning, technical design, tender, site inspections, contract administration.
Size and complexity. A complex building, a tight site or a heritage context requires more time.
Quality and detail. A high level of design and detail takes more effort.
The client. How clear the brief is, how quickly decisions are made, and how many people have to agree.
Programme. A fast programme may need more resources.
Approvals and consultations. More authorities, more work.
Risk and liability. Higher-risk projects or heavier liability can affect cost and insurance.
Location and travel. Distance and time.
Other consultants. Engineers, surveyors and specialists are often paid separately, unless the architect is appointed to lead and include them.

How to compare quotes

Compare like with like. A lower fee may cover less. Check scopes and exclusions.
Look at what is not included, such as planning fees, surveys, models, visualisations, site visits and revisions.
Ask about changes. How will extra work be priced?
Consider value, not just price. A good design can save more than it costs, through efficiency, lower running costs and fewer problems. See Cost, quality and time.
Do not choose on price alone. The cheapest fee can become the most expensive if it leads to poor design, or to disputes.

Fairness and honesty

Good practices are open about how they charge, describe the scope in plain language, explain what is not included, keep records, and tell clients early when something will cost more. Ask for this.

For practices

If you run a practice, see How to start an architecture practice and Cash flow in a small practice.

In short

Fees pay for people, running costs, insurance, risk and a fair return. Compare the scope as well as the price, and put it all in writing.

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