Architect Fees | RISE Design Studio

Why Architect Fees Vary

Architect fees typically range from 5% to 15% of the total construction costs, with the exact percentage determined by factors such as the project's scope, complexity, and the architect's experience. In the past, the Royal Institute of British Architects (RIBA) provided a recommended fee scale to guide architects in setting their rates. However, this practice was discontinued in the 1980s to promote competition within the industry.

Fee Structures

Architect fees in the UK depend on various factors including the project's size, type, and quality. These fees reflect the level of service offered and the quality of the final building. If the project brief and budget are clearly defined, fees are typically negotiated at the outset. If not, architects may charge for the time spent during feasibility stages until the construction costs, size, and complexity can be accurately determined.

Architect fees are generally calculated using one of three methods:

Percentage of Construction Cost: This method is common for domestic residential projects and provides a reasonable indication of the overall fee, allowing for adjustments as the project scope changes. An initial construction budget is set, and the agreed percentage is applied. If the budget is revised, the fee is adjusted accordingly. This approach offers flexibility as the design evolves without needing to renegotiate terms frequently. However, clients sometimes worry that this method might incentivise architects to increase construction costs. It is important to note that architects are bound by their code of conduct, which requires them to act with integrity and manage clients' money properly.

Fixed Fee/Lump Sum: Used where the scope of work is clearly defined, this method provides cost certainty but may require renegotiation if the project scope changes significantly. This approach is best for straightforward projects with a well-defined brief. Clients appreciate the peace of mind that comes with knowing the costs upfront, but it is crucial to ensure that the scope is comprehensive to avoid unexpected changes and additional costs.

Time Charge/Hourly Rate: Often used for small, discrete pieces of work or feasibility studies, this method provides flexibility but less fee certainty. Architects may cap their hours at an estimate, only to be exceeded with client approval. This method is useful when the project scope is not yet fully defined, offering a 'pay as you go' approach.

Architect Fees for Private Houses for Individual Clients

Within the category of 'private houses for individual clients,' there are four subcategories explored below:

Architects Fees for a New House
A new build house on a vacant site is the most straightforward private residential project type for an architect, typically attracting the lowest percentage fees for residential work. For a new house or self-build project, architects' fees for a full service in 2018 may be as follows (these figures are indicative, as many factors can influence the final cost):

£100k budget: 9%
£200k budget: 8%
£500k budget: 7.5%
£1m budget: 7%
Although VAT is typically not payable on the construction cost of a new house, VAT is still payable on architects' fees and for all other consultants involved in the process.

Fees for Extensions, Basements, and Loft Conversions
These projects are resource-intensive due to the complexity of working with existing buildings. There are few economies of scale or repetition. It is worth noting that these types of projects seldom occur in isolation, as there is often some refurbishment of the existing house too. For a high-quality design, architects' fees for extensions in 2018 may be in the region of:

£100k budget: 13.5%
£200k budget: 12.5%
£500k budget: 11.5%
£1m budget: 11%

Listed Building Fees
These projects are even more resource-intensive due to the complexity of working with listed buildings. The process of obtaining listed building consent and designing for the alteration or restoration of historic fabric requires an experienced architect with specialist knowledge. Fees for works to listed buildings in 2018 may be in the region of:

£100k budget: 15.5%
£200k budget: 14.5%
£500k budget: 13.5%
£1m budget: 12.5%

Stages of Architect Involvement
Architects can be involved in various stages of a project, each potentially incurring different fees:

Feasibility Study: Initial site visits to determine project feasibility and provide preliminary design suggestions. This stage helps clients understand what is possible within their budget and constraints.

Conceptual Drawings: Development of initial design concepts for client review. These drawings help clients visualise the potential outcome and make informed decisions.

Planning Application: Preparation of plans for obtaining planning permission, including submissions to the local authority. Architects handle the complex paperwork and liaise with planning officials to streamline the process.

Building Regulations: Detailed technical drawings for compliance with building regulations, potentially involving structural engineers. These drawings ensure that the project meets all legal requirements and standards.

Tender and Construction: Assistance in the tendering process and support during construction. Architects help select reliable contractors and oversee the construction to ensure it follows the design and specifications.

Inspection and Contract Administration: Ensuring builders adhere to project requirements and overseeing milestones and payments. This stage involves regular site visits and managing contractual obligations.

Project Management: Comprehensive oversight of the entire construction process. For ambitious projects, architects can manage every aspect to ensure the project is completed to the highest standard.

Additional Costs

As you embark on budgeting for your construction project, it is essential to consider additional costs that are frequently overlooked before determining the amount you can allocate for architect fees. These include:

Planning Application: Fees to the local authority for planning permission applications, typically around £206 in England as of 2023.

Inspection and Building Control: Costs for building notice submissions and inspections by local authorities.

Structural Engineer: Additional costs for technical calculations and structural integrity assessments.

Party Wall Surveyor: Costs associated with resolving any party wall matters, which can arise when working on or near a boundary wall shared with a neighbour.

Sustainability Consultant: Fees for ensuring the project meets environmental and sustainability standards, which can include energy efficiency measures and use of sustainable materials.