How are fees charged?

Fees
Fees can be charged in a number of ways :

1. 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.
   
2. Lump Sum – 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.
   
3. Time Charge - when the extent of the project is uncertain or when services cannot be related to the value of construction work, an hourly or daily rate would be applied.

Expenses
These may be included within the agreed percentage, lump sum or time charge fee or, more often, they may be charged separately. Items are usually charged at cost plus a transaction handling charge of 10 – 15%. For certain fees such as those due to the local authority for planning or building warrant application, the client will be asked to pay direct.

Payment Schedule
Payment will normally be due on a regular ongoing basis, either monthly, or on completion of each stage of the architect’s work. Interest will normally be chargeable on invoices not paid within the stipulated time scale.

VAT
For most projects, and for all but the smallest contracting firm, VAT will be payable on the works. If the building project involves alterations to a listed building, such works may be VAT exempt. If your architect is VAT registered, VAT will be payable.

Percentage Fee apportionment
For guidance, the portion of the total percentage fee due for each work stage or partial work stage is usually as shown in the following breakdown:-

Fees & Hourly Rates

The A5 booklet 'A Client's Guide to Engaging an Architect', is intended to help clients know what to expect when engaging an architect and to anticipate in their project budgeting. The guide covers such matters as the services an architect typically offers, making the appointment using RIBA standard forms, copyright, insurance and liability etc. It has a section on indicative fees to allow for preliminary budgeting but states clearly that all commissions are individually negotiated and may, for various project-specific reasons, differ from indicative figures.
Typical hourly rates in Scotland are:

A separate guide, subtitled 'Small Works Only', dealing with smaller projects, is available from the RIAS bookshop
Click here to buy online from RIAS Bookshops.

How do I calculate the likely cost of the project?

previous  back to top  home  next

© Edinburgh Chartered Architects Network 2002 - 2006