Fees Flashcards
How does an architect get paid for its professional services? Describe the method or methods of payment.
Depending on the extent and scope of services required, the methods of payment are lump sum, percentage and hourly rate. Services may be based on one of these methods, or a combination of two or all of these.
How would you establish a fixed price fee offer for a potential client?
How would you establish a percentage fee offer for a potential client?
‐ Refer to similar size jobs that have been completed to obtain an approximate cost of the works.
‐ What are the services to be provided?
‐ Complexity and scale of the project.
‐ Calculate hours required to complete the work
‐ Overheads
‐ Profit (Acumen states 2.5 – 3%, but is more a business decision).
How do you establish hourly charge out rates for you and your staff?
Similar to above but also with a level of professional experience.
Once a fee has been agreed with a new client what should be done about the arrangements and detail of the agreed fees?
You would provide the client with a written copy of the fee agreement (CAA) which also includes Code of Professional Conduct, Insurance details
If your potential client telephones to advise the fees are all agreed and instructs you to proceed with the design work is it OK to accept this instruction? What must you do in response to the call?
Prior to commencing work as agreed with the client in the phone call, you would confirm the instruction to proceed in writing (email or letter) as a formal record of this.
What would you do in the event your potential client does not sign a fee agreement?
You would not begin work.
What should you do if your client proposes a non-standard fee agreement prepared by a lawyer?
Do not sign until you have had your legal representative review the agreement and inform the client that this will incur a cost to them.
Explain the risks of using a non‐standard agreement (it is hard to assess the risk because it has never been tested, as opposed to the Institutes CAA). Your fee may have to be increased to account for any additional risk.
Have your PII review the agreement and check for any warranties and certifications that would not be covered by your insurance policy. Understand how an agreement like this would affect your PII cover.
Your client agrees to a most generous fee arrangement but insists on using a non-standard fee agreement. This contains a requirement for you to warrant your services. Is this OK and what should you do before signing the document? Remember this is a great fee proposal and you stand to make a very comfortable profit from the commission.
You should never sign a warranty as your PII insurance may not cover this.
What are the requirements in the NSW Architects Act (including Regulations and Code of Conduct) regarding fee arrangements?
CAA to specify the cost of the service to be provided and the method of payment.
Describe the professional services provided by an architect at the Concept Design stage when using the AIA CA Agreement?
Firstly a written CAA agreement must be signed between client and architect. Review of Council DCP, LEP and any other regulations, analysis of site (through site visit and survey analysis), recommendation to client of required specialist consultants, prepare initial estimate of the Cost of Works (ideally using QS), spatial arrangement and form finding through sketches and physical/3D models, presentation of options in which to guide the DD stage, preliminary selection of materials and finishes. Meet with the client to review the design and refine the brief, and obtain approval for DD stage.
Describe the professional services provided by an architect at the Design Development stage when using the AIA CA Agreement?
Development of selected scheme from SD stage to include more detail and higher resolution of planning and form. Liaise with relevant consultants and coordinate their specialist input and design.
Update estimate of Cost of Works (QSD). Prepare drawings for development application submission to Council. Obtain client approval to move onto Contract documentation stage.
Describe the professional services provided by an architect at the Contract Documentation stage when using the AIA CA Agreement?
Liaise with and coordinate work of specialist consultants into the design. Prepare detailed drawings, schedules and specification for construction certificate (statutory approval), tender and construction.
Coordinate pre‐tender estimate of the Cost of Works (QS), provide recommendations to client on method of building contractor selection. Obtain client approval for submission of CC, contract documents and contractor selection.
Describe the professional services provided by an architect at the Contract Selection stage when using the AIA CA Agreement?
Be knowledgeable about contract types (such as ABIC, MBA, etc) but not not specify which one to use.
If a potential client requests you to provide Supervision of the works as part of your services during the construction phase how would you respond?
As the architect, your role during the administration of a contract is as the independent assessor. Architects do not supervise the construction as this is the role of the contractor on site.
