Architect and GC fees
We are about to begin renovations on a townhouse in Brooklyn. And I wanted to get some feedback on the architect and brooklyn fees. We are working with a design/build firm and the fees are 9% for architect and 22% for general contractor! So the fees together for the firm are over 30%! Is this…
We are about to begin renovations on a townhouse in Brooklyn. And I wanted to get some feedback on the architect and brooklyn fees. We are working with a design/build firm and the fees are 9% for architect and 22% for general contractor! So the fees together for the firm are over 30%! Is this typical for brownstone renovations? Thanks.
Whether it’s legal or not, “design-build” is a reality within the residential sector. The percentages your design-build guy is quoting are not unusual, but you should know that the design percentage is actually low for a photo-quality design, and most of these design-build guys are making a lot more than 22% on the construction side.
The best way to get favorable G.C. pricing is to contract separately with an architect who works for YOU. Then, we architects produce biddable design and construction documents that a number of qualified GC’s can bid on — competition drives your cost down. Of course, it’s tough to justify hiring an independent architect for a “smallish” project, but if you’re going to spend over $100K, you really owe it to your bottom line to hire an independent professional to make sure that your investment is being wisely spent.
Obviously, I too, would be happy to chat with you off-line about your project in greater detail. My contact is available through the Brownstoner site or at:
http://www.jkosterarch.com/
Either way, good luck with your project!
Oh, yeah. and the whole percentage thing. Depending upon the size of the job, we range anywhere from 5% to 10% (larger jobs usually get lower percentage), and the contractor puts in 15% – 20% overhead and profit.
Jim
New York State law prohibits a licensed professional (architect) from engaging in profit sharing with a non-licensed professional (contractor).
We offer design-build services in that I approach most of my jobs with the contractor as my unofficial partner. We prepare a joint proposal outlining all of the costs from design to DOB to construction and sign-off, but we separate out those costs.
If the client hires us, he/she signs a contract with me for the architectural services, and then when the drawings are ready for bidding, the contractor presents the client with the same proposal as before, modified if necessary to account for any changes since the initial proposal.
Upon receipt of this proposal, the client has the option to hire my contractor or go through the open bidding process. This make sure that we keep our costs competitive, avoiding any possibility of price fixing or conflicts of interest.
We also have a project manager in the office that works full time on both the design end and the build end. He’s in the office working on drawings until they’re ready for building, whereupon he transitions and spends more of his time in the field than in the office. This allows us to provide a continuity of thought and design throughout the duration of project. When he’s in the office, my office pays him. When he’s in the field, the contractor pays him.
We’ve been evolving this system over a number of years now and it’s been a great way of keeping the office deeply involved with the construction process, while controlling costs from the very beginning.
Jim Hill, RA, LEED AP
Urban Pioneering Architecture
Jock. I’ve seen you post that design build is not legal in the past. I’m an owner and have worked in a design build format before, successfully. I inquired about the legality of this delivery method and what I was told is that the contractor can’t sell professional services, as they are not licensed, however that does not preclude the architect from the same. I am curious about this b/c we do work fairly regularly and naturally I’m all about doing it kosher. Please refer me to legislation you refer to. thanks.
I will go 5%!
What do the fees cover exactly?
I’m a GC who designs and builds. I let my clients choose their architects.
My design fees are built into my hard administration costs – not a percentage.
My percentage mark-ups are governed by standard AIA (American Institute of Architect) contract terms. They total 15%.
If you haven’t signed a contract, please contact me for a free consultation.
http://www.bgrnow.com
I meant architect and contractor fees (not brooklyn fees)
What is your fee Jock?
Everyone is different. You should know that design build is not legal in NYS.