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.

The Australian Institute of Architects notes that architectural fees are influenced by scope, risk, and responsibility, which is why comparing fees between practices without understanding what is included can be misleading.

Why Architects’ Fees Can Feel Confusing

Most people don’t have a clear reference point for construction costs, nor an understanding of how design decisions directly affect them. When this is combined with different fee structures across practices, it’s easy to see why architects’ fees can feel confusing.

Unlike purchasing a finished product, architecture involves a staged process where decisions made early on can significantly influence cost, quality, and long-term performance.

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).

For larger construction budgets, percentage fees is typically less. Conversely, smaller projects often attract a higher percentage fee due to the time, complexity, and risk involved.

For many clients, this is also where the financial value of engaging an architect becomes clearer over the life of the project.

Why Smaller Projects Often Cost More (Percentage-wise)

Extensions and renovations usually require more time and consideration 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. This is assuming the architect is taking the project from concept through to completion on site, otherwise known as full architectural services as opposed to partial architectural services.

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 new build, renovation or an extension is a significant step. You are often contemplating a major financial investment before you can physically see the outcome, which is why asking the right questions early is so important.

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

Consumer guidance from Consumer Affairs Victoria recommends engaging appropriately qualified professionals early to avoid costly changes later in the process.

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 by clearly explaining why different stages of a project are charged in different ways.

Architecture is not a linear process. Some stages can be clearly defined and costed in advance, while others involve variables that are difficult to predict. For this reason, we structure our fees on a stage-by-stage basis, using a mix of fixed fees, percentage fees, and hourly rates to ensure fees are aligned with scope, risk, and responsibility.

Master Plan – We charge a fixed fee for the Master Plan because the scope of work is clearly defined. This stage allows you to test feasibility, clarify priorities, and understand likely budget implications before committing to the full project.

Feasibility Study – This stage is charged at hourly rates, as the level of investigation can vary significantly depending on site conditions, planning controls, and the complexity of the brief. Charging this way also gives you the flexibility to explore different options and scenarios without being constrained by a fixed scope at this early stage.

Existing Conditions Documentation – We generally offer a fixed fee, as the scope and time involved can be reasonably estimated once the project parameters are known.

Concept Stage, Design Development & Construction Documentation – These stages are charged as a percentage of the Cost of Works. As the design is developed and documented in detail, the architect’s responsibility, coordination role, and professional risk increase in proportion to the scale and complexity of the project.

Town Planning – Where required, preparation of planning documentation may be included as a fixed fee, while planning negotiations with council are charged at hourly rates due to the uncertainty and variable timeframes involved.

Builder Selection – When working with a preferred builder rather than a competitive tender process, this stage is charged at an hourly rate, reflecting the variable time involved in discussions, clarifications, and aligning scope, cost, and expectations.

Contract Administration – This stage is charged on an hourly basis, as the time required can vary depending on site conditions, builder performance, and project complexity during construction.

Where we charge hourly rates, we provide an estimated fee range to give clients clarity while allowing for the inherent variability of these stages. This approach ensures fees are fair, transparent, and proportionate, while giving clients flexibility and confidence as their project progresses.

For high-performance and low-energy homes, organisations such as the Australian Passivhaus Association highlight the additional coordination and technical input required during early design stages – something that is reflected in professional fees.

A Collaborative Start

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

This early stage allows priorities, constraints, and realistic cost ranges to be explored upfront, helping determine the most appropriate fee structure and level of service – particularly where architectural fees are bid or tailored to project risk and complexity.

During this phase, you are able to:

• 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 itself 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 and answer any questions.

If you’d like to discuss your project, please contact us to arrange an obligation free consultation.