Chapter 7 of 12Part III: Contract and Design
Two architects can quote very different numbers for the same house and both be reasonable, because they are quoting different things. Before comparing fees, you need to know how each one is calculated and what it includes. This chapter explains the common fee models, how payments usually follow the phases of design and where additional charges tend to appear.
What are the common fee models?
| Model | How it works | Works well when | Watch for |
|---|---|---|---|
| Percentage of construction cost | Fee is a share of the final construction cost | Scope is clear and the budget is realistic | Fee rises if the project grows; agree on how cost is measured |
| Hourly | You pay for time spent, often with an estimate or a cap | Early studies, small or uncertain projects | Open-ended totals; ask for regular reports of hours |
| Fixed fee | A set amount for defined services, often split by phase | Scope and services are well defined | Changes to scope become additional services |
| Mixed | Fixed for design phases, hourly for construction or extras | Most residential projects | Read which parts are which |
None of these is better in general. What protects you is a clear list of the services the fee covers, which is also what California requires in the written contract.
How do payments follow the phases?
Design work usually runs in phases, described in From Sketch to Permit Set: The Design Phases: early studies, schematic design, design development, construction documents and help during bidding and construction. Many contracts tie each payment to the end of a phase and require your approval before the next one starts. The California Architects Board recommends exactly that: a schedule of fee payments, and written approval at designated phases and before additional costs are incurred.
Phase-based payment also gives you natural exit points. If the project changes direction after schematic design, you have paid for what was done, not for drawings you will not use.
Why do San Francisco fees vary so much?
The same square footage can take very different amounts of design time here. An older house with no reliable drawings needs measuring before anything else. A hillside lot needs more coordination with engineers. A project that goes through neighborhood notice, a pre-application meeting or historic review needs drawings, meetings and revisions that a simpler job does not. When one architect quotes more than another, ask which of these they have priced in. Often the higher quote is simply the more complete one.
What counts as an extra?
The Board’s list of interview questions reads like a list of the places where extras hide. Ask about each one and write the answers into the contract:
- consultants such as structural, civil, geotechnical, mechanical and landscape, and whether their fees are inside or outside the architect’s fee;
- time spent getting permits and other approvals, including meetings with neighbors;
- redesign if bids come in over the construction budget;
- changes required by the building department or other agencies;
- changes you request, and changes a contractor requests;
- reimbursable expenses such as printing, fees paid on your behalf and travel, and how they are approved.
What about retainers?
Some architects ask for a retainer to start. The Board’s guide asks owners to be wary of excessive advances or retainers and suggests that the contract state the retainer amount and how and when it is applied to the total fee. Payment schedules should reflect the services actually provided, and the final payment should come when the services are complete.
Is the fee the whole design cost?
Usually not. On a San Francisco project you will also pay for surveys, reports and city fees, and possibly for an expediter or specialist consultants. Ask each candidate to list the other costs they expect for your project so you can budget them from the start, as described in Setting Your Scope and Budget Before the First Call.
How should I compare two quotes?
Put the quotes side by side and line them up by service, not by total. For each one, mark what is included, what is extra and what is not offered at all. A lower fee that excludes construction observation, or that treats Planning meetings as extras, may cost more by the end. If one quote is much lower than the others, ask what it leaves out before assuming it is a bargain.
What happens if unpaid fees become a dispute?
It helps to know the other side’s options. California gives architects the right to record a design professional’s lien before construction starts, once a permit or other approval connected to their work has been obtained, and a mechanics lien once construction begins. The Board notes that a design professional’s lien is not available for an owner-occupied single-family home with construction costs under $100,000. Paying on the agreed schedule and keeping records of every payment avoids most of this.
Tip: Ask for detailed invoices that match the phases in the contract. The Board recommends it, and it makes checking progress against payments simple.
Fees are one part of the agreement. The next chapter covers the whole written contract and the items California law requires in it: The Written Contract: What California Requires and What to Add.