The Mystery of Architects’ Fees: What You Need to Know

One of the first questions people ask when considering a renovation or new build is, “How much do architects charge?” It’s a reasonable question, and one that often comes with a fair bit of uncertainty. Architectural fees can seem opaque, largely because there isn’t a single standard way architects charge for their services.

Why architects’ fees can feel confusing

Most people don’t have a reference point for construction costs, nor an understanding of how design decisions directly affect them. Combine that with different fee structures across practices, and it’s easy to see why architect’s fees can feel mysterious.

Percentage-based fees explained

Traditionally, architects charge a percentage of the Cost of Works (the construction cost).

For example, if we assume a simple figure of 10%:

• A new build with a construction budget of $600,000 (excluding GST) would result in an architectural fee of $60,000 (excluding GST).

As construction budgets increase, percentage fees typically reduce. Conversely, smaller projects often attract a higher percentage fee.

Why smaller projects often cost more (percentage-wise)

Extensions and renovations usually require more effort than new builds. Working with existing buildings involves:

• Investigating existing conditions
• Resolving constraints
• Coordinating around what stays and what changes

As a result, standard percentage fees for extensions or alterations commonly range from 8% to 18% of the Cost of Works, depending on complexity and scope.

You’ll also find that percentage fees vary between practices based on what services are included.

What lower vs higher fees really mean

At the lower end of the fee range:

• The architect may provide a more limited design service
• Documentation may be less detailed
• Clients may be responsible for specifying joinery, finishes, fixtures and fittings
• You may work more directly with the builder

At the higher end:

• The architect designs and documents the project in detail
• Materials, finishes, fixtures and fittings are carefully selected
• The architect works closely with the builder through to completion

Higher fees don’t simply mean “more expensive”, they usually reflect a greater level of involvement, coordination and responsibility.

Hourly rates and hybrid fee structures

Some architects charge by the hour, which many clients find more familiar, as it’s common with other professionals such as lawyers and accountants.

Often, fee structures are combined. For example:

• An hourly rate may be used for the initial design stage
• If the project proceeds, the agreement may shift to a percentage-based fee

Hourly rates can be easier to grasp early on, especially when you’re still working out whether, and how, to proceed.

Why starting a project can feel daunting

Beginning a building project is a big leap. You’re often contemplating a significant financial investment, potentially the largest you’ve ever made, before you can physically see the result.

Unlike buying a car, you can’t take a custom-designed home or renovation for a test drive.

Our approach to fees at Jane Cameron Architects

At Jane Cameron Architects, we aim to remove as many barriers as possible at the beginning of the process.

For the Master Plan Stage, we can offer a fix fee.

Then to take the project from Concept Stage to completion on site, we charge a mixture of fixed,

• An hourly rate with a cost estimate for that stage, or
• A fixed fee

This allows you to commence your project without committing to the entire process upfront, and gives you time to confirm that we’re the right fit.

During the concept design phase, you’ll experience the different roles an architect plays, from creative problem solver, to careful budget manager, to steady guide keeping the project moving forward.

A collaborative start

All projects begin with freehand sketches. Pen and tracing paper allow us to quickly explore options, test ideas and give immediate feedback. It’s an efficient, collaborative process where you’re an active part of the design team.

This stage helps you:

• Understand how design decisions affect costs
• Develop confidence as an informed client
• Arrive at a realistic construction budget

By the time the concept design is complete, you have clarity, both on the project and on how fees are calculated, making any decision to proceed far more comfortable.

Let’s talk

If you’re considering a new build, renovation or extension and would like clarity around architectural fees, we’re happy to talk it through. If you’d like to discuss your project, please contact us for an obligation free consultation.