LIVE Q&A SESSION 17:

January 28th, 2021: 5pm (Eastern Time, US & Canada)

Chat Transcript:
Where are you joining us from?
From Cynthia Alander

Tampa, Florida
From han beh
Seattle, WA
From Chris Doktor
New Hampshire
From Gabriela Estrada
Toronto
From Deborah Ramos
TAMPA
From Steve Christopher
Peoria Illinois
From Todd Audsley
Western New York state
From Dale Lee
Atlanta
From David Fridlund
Los Angeles
From Bobby Morales, ICAA, AIBD
Orlando, FL
From EHSAN Jahani
CANADA
From Jennifer Campbell
Dallas,Texas
From Joanne Smith
Calgary, Alberta
From lida Mohammadi
Toronto
From Darryl Rewniak
Edmonton, Alberta
From Edwin Smart
Western New York State
From Mona Marbach
San Francisco
From Janine Mills
South Florida UsAt
From Eniko Plosz
London
From Eugen Wagner
Austin
From Chintan Virani
Windsor, Ontario
From Flavio Bernardo
London
From philip lenzen
tAMPA
From HITESH KHATRI
Toronto
From Christina Sarkees
Hello from West Hollywood, CA
From STEVEN HO
calgary
From Tom Mullinax
Minnesott Beach, NC
From Robert Hewitt
Sonoma Ca
From Amanda Morris
Silicon Valley
From Pramot Trakanrungroj
Phoenix, AZ
From Phil Mackay
New Zealand
From Beth Rosinsky
Minneapolis, MN
From Elisabeth Martin
New York
From Gwill Symons
Vancouver, Canada
From Nami Amso
Auckland NZ
From Diana Walker
houston Tx
From Don Lockenbach
MIAMI
From Michael Byrd
Jacksonville, fl
From Nebras Elrebate
Vermont
From Fred Moyer
Chicago
From David Hunter
Australia
From Tom Hines
Denton, Texas
From Daniel Sullivan
New Zealand
From Cathy Thompson
Fort Washington, MD
From Laura Blau
Philadelphia, PA
From Seung Park
Connecticut
From Chintan Virani
Windsor, Ontario
From Tarek Abdelhady
LA CA
From Ahmed Naibi Usman
Nigeria
From LYNN WITTICK
Orange County Ca
From O P
MIAMI
From Michael Bengis
Hopatcong, New Jersey
From Steven Lenchner
Quickbooks
From philip lenzen
I found it helpful to use Adobe Sign – I can see when they open it and they can digitally sign and it is sent to me to speed up the process
From Darryl Rewniak
How should we deal with questions related to : Identify any special need, risks or consideration that may not have been identified in the RFP. Is this why they should be hiring us. Why should we divulge our experience and then then hire someone else. How is the best way to respond?
From Steven Lenchner
Don’t ask, don’t get.
From Deborah Ramos
I often hear of charging per square foot but have never heard what the amount is typical
From Darryl Rewniak
We typically charge out 2.5 – 3.0 times our hourly rate (paid to staff) as this covers overhead and profit.
From Amanda Morris
@Allison – my firm charges the same way.
From Steven Lenchner
Statewhat you want and the stop talking. If you say anything afterhouask, you’ve given away your power.
From Blue Turtle Consulting
Mastermind Group for Interior Designers:
https://blueturtlemc.com/mastermind-group-for-interior-designers
From Blue Turtle Consulting
Mastermind Group for Architects: https://blueturtlemc.com/mastermind-group-for-architects
From Hesham Elfar
we still do
From Alan Crawford
I disagree
From Hesham Elfar
Construction Managers charge percentage of construction fee.
From Laura Blau
they also decide to do some work themselves and then want that deducted. of course who does the work does not change how much design is provided! we stopped 5 fee.
%fee
From David Lees
Percentage fees are used when we can with a backstop that they cannot be reduced if we have done the work and the tenders are lower than expected. Clients often inflate projects, so it stops awkward re-negotiation. Probably about 30-40% of our work.
From Alan Crawford
The architect needs to capable of working to provide a budget cost estimate of the construction which can be done with experience and then you can nail the % fee quite accurately. What they don’t like is uncertainty on the fee!
From Laura Blau
WE do a masterplannng fee and a chance to continue or not after that once the scope is clarified.
From Steven Lenchner
Isn’t it common to charge a fee for a proposal and then, if the proposal is accepted, to roll that fee into the project?
From Alan Crawford
One area that never gets discussed is the added financial value added to a project (before and after) and this is often a great incentive to negotiate a higher fee
From Carl Erickson
We NEVER EVER give away design work for free.  NEVER.  The conceptual design is the most valuable thing we do.
From Jennifer Campbell
ENGAGEMENT FEE!
From Elisabeth Martin
What recouorse do you have when a client gives your pre-design to another architect to use and you have put a copyright mark on the pre-design but you do not want to go through the costly court and legal system?
From Chris Doktor
Very helpful – thank you
From Amanda Morris
This was quite informative.  Thank you
From Steve Christopher
Awesome presentation and discussion! Thank you!
From Blue Turtle Consulting
Fee Proposal Workshop – Online Training:
https://blueturtlemc.com/feeproposalworkshop/
From Mona Marbach
Thank you !
From Nami Amso
Thank you very much Blue Turtle. Great efforts and excellent job.
From Cynthia Alander
Thank you both very much!
From Habib Chanzi
thanks
From Garnik Zarian
thanks
From lida Mohammadi
Thank you!
From HITESH KHATRI
Thank you
From Hjardeir Dunn
Thank you!
From Eniko Plosz
Thank you
From Todd Audsley
Thanks.
Questions answered:
Steve:
What are your thoughts regarding appropriate length and level of detail in a written proposal that balances scope definition and clarity without being too detailed to overwhelm the prospective client?

Dirk:
a. What tools do you use for fee calculation?
b. What tools (software) do you use for (often similar but never quite identical) proposal creation?

Tom:
Is it appropriate to charge a per-diem rate for the employee’s time-traveling portal-to-portal additional to the actual cost of the transportation, hotel, and car rental?  Expenses would be for more than four (4) hours away from the office location in-state, out-of-state, and out-of-the country.

Allison:
1) I charge both per hour and net + 30% on cost of goods at Trade. How are other’s charging?
2) How do you handle billing when you are overseeing a contractor and specifying all the materials?
3) How do you charge for retail purchases vs. trade sources?
4) How do you handle clients that want to shop the internet for the best deal?

Mike:
-how often do we over-promise
-how often do we under-price
-how many of our proposals are too long
-how best to collect feedback on your proposal
-how to identify how your competitors set fees

Michael:
Does anyone still use % of construction cost fees.

Anonymous Attendee
For early concept design proposals where clients are shopping around for big ideas is it common to see hourly not to exceed fees? Is that the norm?

Chris:
What’s the best way to manage expectations around extra meeting and additional rendering charges – during the project? OR, what’s the best way to manage expectations around these additional charges in the proposal stage?

Jennifer:
Do you recommend a contract along with the proposal, or does the proposal serve as a contract?

EHSAN:
When and how to bill challenging clients?

David:
Many projects have an undefined scope at the start. Wetry to do a scoping excercise to establish scope and fee.. How do you keep that brief rather than growing into a concept design. Ways through this minefield?

Christina:
Oftentimes, clients have their own contract agreements and don’t really care about the AIA contract.
References:
1. Mastermind Group for Architects:
Click for details

2. Mastermind Group for Interior Designers:
Click for details

3. Fee Proposal Workshop
Click for details

To Register for a future session Click here