Contracts

The Means Square Footage Cost Data survey indicates that fees for
architectural services on a custom house can range from 5 to 15 percent of
the total cost of construction. Factors that affect the fees include the scope
of the project, the level of quality and detail, and economic conditions.

The architect's fee is usually a relatively small part of the cost of the entire
building project, including the estimated construction cost (on which the
fee is computed), the furnishings and equipment, and the interest paid on
the mortgage. If you consider the cost of a house over a 25-year period,
your actual expenditure is probably two and a half times the initial price
tag.

Contracts / Get it in Writing

When building or renovating a home, you need someone who can both see
the big picture and understand your project in great detail, someone who will
look after your interests in what is likely to be unfamiliar territory.

No handshake or letter of agreement is firm enough to cover all the roles,
responsibilities, and obligations that must be carried out in your building
project. Your architect can efficiently prepare construction documents,
detailed drawings, and specifications that the contractor will use to establish
construction costs and build the project. When your architect uses AIA
documents, you benefit from what are considered to be "the bible" of the
construction industry. These standard forms of agreement indicate the
current consensus among construction industry leaders representing
owners, contractors, engineers, and architects. Many details are covered in
clear language that is widely known and accepted. In addition to the highly-
regarded AIA owner-architect and owner-contractor agreements, your
architect can make available documents for small projects, construction
management, project administration, and a range of abbreviated-form
agreements.

The Architect's Fee

There is no set fee arrangement for a particular type of project.

Fees are established in a number of ways, depending on the type

of project plus the extent and nature of services required from an architect.

Common methods of compensation include: hourly rates, a stipulated sum

based on the architect's compensation proposal, a stipulated sum per unit

of what's to be built (i.e., the number of square feet or rooms), a percentage

of construction costs, or a combination of these methods. Your architect
will explain how a fee is to be established. Then, the basis for the fee, the
amount and the payment schedule are issues for you and your architect to
work out together.