LIVE Q&A SESSION 11:

October 15th, 2020: 5pm (Pacific Time – US & Canada)

Chat Transcript:
Where are you joining us from?
From David Yates

Chicago and Naples, Florida here
From Jacob Woloshin
Las Vegas!
From Nia
Chicago
From Natalie Goodman
Boulder, Colorado
From Stefanie Ohanlon
Sydney, Australia
From John McLennan
joining from Syd, AUS.
Thank you for hosting this
From Naama Blonder
Toronto!
From Michael Pye
Sydney, Australia
From Janine Holt
Hobart
From Jason Karam
Portland, OR / Tacoma, WA
From Ian Motley
Detroit
From Sally Turnbull
Kaikoura NZ
From Peta Heffernan
Hobart
From Sandra Ferrada
Aus. syd
From Donna Wetegrove
Austin Texas
From John Van Oort
John from Albany, NY
From Chad Brown
Brisbane Australia
From Joseph Duggan
DC are of Virginia
From vicente jiminian
New York City
From Tom Hines
Denton, Texas
From Minoti Hindupur
Sydney, Australia
From Namir Amso
This is Namir Amso from Auckland NZ
From Annette Smith
boca Raton Fl
From Shelly Ziegelman
Boston
From Youssef Gadalla
Melbourne
From Tanya Miller
Basalt, Colorado
From James Bate
Melbourne Australia
From Shanil Hameed
Alice Springs, Australia
From Nat Widera
Melbourne
From Ian Booth
Ian from Dunedin, NZ
From Sasha Varone
San Diego, California
From Stephen Lara
San Antonio, TEXAS!
From Martin Swann
Cambridge, Waikato N.Z
From Natalie Taleb
Toronto, Canada
From Jerzy Ryszkiewicz
Jerzy Ryszkiewicz, Staten Island, New York
From Peter Sarlos
sydney
From Elliott Dudnik
Evanston, Illinois
From William Driml
Brisbane, Australia
From Youssef Gadalla
Some clients ask for total fee from inception up to start of construction and yet we do not have a project to discuss with consultants? what to do ?
From William Driml
yes
From Youssef Gadalla
Is good idea to include all consultants in our fee?
From Michele Otazua
Many of our Clients are requesting two proposals for projects, a design-build proposal and design-bid-build proposal. Is there an average percentage differential (relating to design fees) between design-build and design-bid-build proposals?
From David Yates
Fee bullet points for initial inquiries, then proposal once the scope is determined.
Bump up initial fees so you can negotiate down (giving them a deal) to get what you want
From Youssef Gadalla
Echo
From Sandra Ferrada
thank you!
From Ian Motley
https://blueturtlemc.com/blog/the-best-method-for-calculating-design-fees/?preview_id=323&preview_nonce=d1b3397a50&preview=true&_thumbnail_id=335
From Youssef Gadalla
web link says (Sorry, you are not allowed to preview drafts.)
From Nuo Hogan
the link shows an error, “Sorry, you are not allowed to preview drafts.”
From David Yates
Link not working
From Sally Turnbull
That link doesn’t work
From Jason Karam
Link is not working for me neither
From Ian Booth
Copy & paste without the numberws
From Ian Motley
Sorry. Correct link: https://blueturtlemc.com/blog/the-best-method-for-calculating-design-fees/
From Namir Amso
Is there any recommended percentage to charge clients based on proposed construction cost based on consultations in structural engineering? Thank you.
From David Yates
That worked
YES!!!!!
From peter Goern
The problem with paying consultants as part of your fee then you become a bank for the client and usually can only pay the consultants once the client has paid you. It also increases your taxable turnover that then affects your PI premiums.
From David Yates
Yes. Break down big numbers so they can see what is the more complicated phase
From peter Goern
The problem with paying consultants as part of your fee then you become a bank for the client and usually can only pay the consultants once the client has paid you. It also increases your taxable turnover that then affects your PI premiums.
From Ian Motley
https://blueturtlemc.com/blog/which-fee-structure-is-best-for-architects/
From peter Goern
We have not had a fee commission based on a % fee for more than 20 years. It seems to be always a lump sum
From David Yates
Give them a range of fees!
From Youssef Gadalla
% fee is better for large projects
From Peter Sarlos
as architects we are accused of not being estimate savvy.  that from experience is generally a fallacy as cost increases generally arise from changes in  scope.  Hourly rates and fixed fee commissions result in the Architect being under paid causing some to shortcut exposing themselves to litigation
From Sandra Ferrada
lol!!
hahah
From David Yates
Hmmm….I like that
From John McLennan
Thank you for hosting this session and answering questions. This has been terrific.
From Shelly Ziegelman
Yes a retainer
From David Yates
Payment is commitment on their part
And all paid fees are not refundable
From Warren Lee
I don’t ask for a deposit because as a philosophy, I try to keep the path to a job proceeding (at all phases) as clear as possible.
From Paul Lucas
Really useful, thank you so much.
From Sandra Ferrada
ooh that sounds amazing!
From Naama Blonder
The training is amazing! Well recommended!
From John McLennan
Thank you.
From Youssef Gadalla
Thanks all
From Sandra Ferrada
😀 thanks guys!
From Natalie Goodman
Thank you!
From Kira Robson
Thank you!
From Annette Smith
thank you!! very informative
Questions answered:
Leon:
Is it best to use your institute’s client architect agreement for services or design your own?
Is the agreement universal? IE suitable for all clients- domestic, corporate interiors, and education facilitates.

Will:
I have a recurring issue… The client asks for a fee proposal for upfront design to Development Approval stage only but doesn’t want to spend a lot as they are self-funding the project at this stage. I provide a proposal including documentation & weight the fees towards the documentation side of things which the client accepts. After obtaining approval, the client sells the project & the new owner engages another firm to document the project or asks me to match a lower price.
How can I protect myself from losing all my profit from the job?

Di:
For Residential projects when you are dealing with mums and dads and it’s their first time working with an architect. Do you think an email indicating in brief, the general process/steps and fee allowances to be sent (as a draft) before issuing a formal fee proposal?

Nia:
I am early in my career. In school they did not teach about fees and proposals. Where do you get these numbers? Is there a source that is nationally and internationally recognized? How do you charge for specialty services that are not the norm?

Brenda (ASID,RID):
How to charge as the project manager on a remodel where you hire the subs but client pays them directly.  How to calculate hours involved when unknown.

Sasha:
Can you provide general percentage ranges of the overall estimated construction cost of a project that architectural fees (not including consultants/engineers) should be for the following project types:
– ground-up commercial building
– commercial tenant improvement
– multi-family residential development
– custom home

Alice:
We understand that every project is unique and has its own parameters that can affect fees, but we are just looking for industry standard ballpark ranges.
1. What is the Process for determining differentiators to resonate with scope of work and corresponding fees
2. What is best Fee model for Proposals?  Lump Sum Fee, Hourly, Percentage?  When is each model best applied?
3. There is a vast difference on how projects are approached, what deliverables and levels of service are rendered – what is best way to position Fee Proposals so the Client will look at/compare discriminatingly??

Jason Karam
Does the “success” fee act as a retainer essentially?

Youssef Gadalla
“Some clients ask for total fee from inception up to start of construction and yet we do not have a project to discuss with consultants? what to do? Is good idea to include all consultants in our fee?”

Michele Otazua
Many of our Clients are requesting two proposals for projects, a design-build proposal and design-bid-build proposal. Is there an average percentage differential (relating to design fees) between design-build and design-bid-build proposals?

Kira Robson
There seems to be a divide in opinion between Architects about whether we request a deposit from a new client before commencing any work on the project. What is your opinion on this?

Natalie Taleb
I have done great work in the past with other firms that I would like to use as experience in my own firm. What do you think is the best method to do that?

Naama Blonder
“Question not about how much we should charge: Would you ask the client what their expection/budget is? How would you do it without sounding desperate?”
References:
1. Fee Proposal Fundamentals
Click for details

2. Fee Proposal Workshop
Click for details

3. “The Best Method For Calculating Design Fees (Inc. Fee Benchmarking List)” Blog Post
Click to view

4. “Which Fee Structure Is Best For Architects?” Blog Post
Click to view

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