Architectural management: Fee proposals

My design project is quite innotive and I’m struggling to get my head around how I would estimate a fee for my project.

The problem that I face is that unlike most projects, mine will not have a completed building at the end, as one of the main principals is that it’s adaptable throughout its lifespan.

So as a designer, would you;

  1. Have a fee proposal based on the overal scheme % cost (including new roads, landscaping, utilities etc.) Then a set cost for the scheme, and design rights.
  2. Have a fee based on the sale value of each plot? And a % based on cost of works.
  3. Have a fee based on a % of each module throughout the lifespan. Following a % based on cost of works.

If the third option was viable, this would have to be imputed by the manufacturer / contractor of the modules, as you couldn’t charge this directly from the client. A partnership method as the designer with the manufacturer would probably be the best method, as this would allow control of future payments, schemes and design implementations.

Without this you are also running the risk of the design being integrated into other sites, without receiving payment for this. 

My conclusion to the matter is as follows:

1. Charge a hourly rate for the design stage based on a assumptions of time allocated

2. Charge a % value for construction phase based on the tender value

3. Charge a % fee for each plot value and a ongoing fee agreement for a % cost of each module.

My other conclusion is to complete the project using a hybrid tender, consists of a JCT design and build for thre modular construction and JCT for the other onsite works.

Leave a comment