May 6th, 2021: 11am (Eastern Time, US & Canada)
Chat Transcript:
Where are you joining us from?
Chamois Holschuh:
Vermont (USA)
Craig Vaughn:
Stephen Palmer-Hogan:
London, UK here
Alex Hatton:
Gordon Pape:
Toronto, Canada
Adrian Waters:
Donald Chin:
New Jersey
Tom Mullinax:
Minnesott Beah, NC
Paul Vick:
London UK
Victoria Coombs:
David King-Smith:
James Campbell:
Dorset, UK
Tom Hines:
Stephenville, Texas
Donna Richter:
Colorado USA
Craig Vaughn:
In the past I’ve done SD-10%, DD 15%, CD 45%, Bid-5% and CA-25%. With BIM I’ve moved more time up front, SD-20%, DD-25%, CD-25%
David King-Smith:
The cost of resource does not necessarily reflect the value that the service is providing – I find the challenge is in encouraging clients to recognise the VALUE of the service and your expertise at any given stage as opposed to simply ‘paying’ for the time spent providing it.
Craig Vaughn:
In the past, I’ve done SD-10%, DD-15%, CD 45%, Bid-5% and CA 25%. With BIM I’ve moved more time up front SD-20% DD-25% and CD-25%.
Stephen Palmer-Hogan:
We typically have a win rate of approx. 30-40% on fee proposals balanced across commercial and high-end residential projects in London for a medium sized practice. Typically we provide fixed fees which are based on resource needed + profit, and benchmarked against % rates with our scope of services and exclusions listed.
We have been getting as many, if not more job enquiries that than this time 2years ago (pre-Covid) although do not seem to be converting as many proposals as we normally do which suggests either clients not appointing, or competing practices undercutting fees to secure work which does not seem sustainable, or conclusive for a good client relationship when then trying to negotiate additional fee.
What advice do you have for practices in the above, and how best to differentiate your services to best demonstrate suitability for a project.
Valerie Steil ASID:
Too much– residential
Donna Richter:
I have enough and a lot of calls. I do res
Chamois Holschuh:
I answered too much. We do a variety of categories (single family, multifamily, commercial, etc). Our specialty is breweries, and we’ve had more inquiries than we can handle in this area.
Sejal Patel:
Am based in Kenya so very sector driven
Zoran Baros:
James Campbell:
Residential sector and I would like to expand into other sectors
Chamois Holschuh:
Shammy or sham-wah is fine!
Paul Vick:
In the past we have given a fixed fee against suggested different scopes.
Alex Hatton:
What if you don’t have a choice through the public sector procurement in the UK? This is creeping up more and more often?
Chamois Holschuh:
Thank you! Always learning from these sessions. Much appreciated.
James Campbell:
Stephen Palmer-Hogan:
Many thanks
Victoria Coombs:
Zoran Baros:
Brilliant. Thank you.
Paul Vick:
Questions answered:
Two Questions:
1. Have the fee percentages traditionally used for the different phases of Architectural work as in SD DD CD BN and CA changed  given the computerized out put?
2. Are they different for residential versus commercial work?
With various fee % or other guidance given as backdrop (spon’s, fees bureau, previously riba yellow book) – what is the right fee (before knowing what a potential client will pay)?
And how do you find out what may be competitive for the sector you are in?
My contract for residential work is a hefty retainer; hourly rate during design; fixed fee for construction documents.
Any changes during construction documents refer back to hourly rate.
Does this seem equitable to you?
I have provided most of my clients options for my Interior Design Service. I offer them an hourly rate or a flat rate which is based on the square foot of the project for the design.
What is your recommended rate for square foot that seems successful?
What time is a good time to present a three tier fee Structure option Of services (basic, Intermediate, premium) when you just have an enquiry?
Especially for a client that may be new to Architectural services. Particularly in a market with plan drawers in the current market?
Hi, I realise this might be a beginner question however:
When formatting the fee proposal, which would you give priority to: Clear and Concise, or Detailed and Explained? (with the deliverables and consulting information) Alternatively, what is the optimal balance between these two characteristics?
We met decades ago when you brought your seminars to the RIBA and I was the CPD Assessor. – How would you say your approach has developed in what you’ve learned from the UK.
Hello! It has been suggested that I present the interior design fee in relation to the construction budget. If the scope isn’t set/approved and concepts, materials, finishes, etc. aren’t established is this possible? Thx
Notwithstanding what you say about our resource and offer. Is it true to say that some sectors tend to be more profitable than others? How does one find them at any one time?
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