Dan wrote:Cole_Construction wrote:
Thank you. I have a buddy of mine that lives in Chicago and he is getting 17% of the total construction costs. That is a lot in my mind.
Rakela wrote:
...residential, i have seen people calculate their fees in diff ways...
Cole,
Hmmm 17%??? Not impossible but not really typical either. If we all made that kind of money none of us would spend time gleaning "best practices" on this forum...we'd all be sippin' fruity drinks on a tropical island somewhere.
Back to your original question "...what are your flat rates for designing residential work?..." Obviously you're not asking about design only...surely you mean SD/DD/CD. What exactly is your friend providing for this fee and/or what kind of residential work does he do?
I've actually worked on some higher-end residential projects in the chicagoland area that commanded these kinds of fees. The projects required a substantial amount of time to complete, extensive detailing, never ending changes and alot of "hand-holding" with the clients.
You could potentially get these kinds of fees in Dallas...say, in the more exclusive Highland Park area. Is this the kind of work you're thinking about?
One of my last projects, was a 6000 sf house in Tyler, TX. I had 6 design meetings and it took about 2 years to complete. In all I charged them 7% of total costs which to me," wasn't enough." I deal with more high-end couples looking for a designer/CM/hand-holder, that can make a descision to save there lives. I am just a little confused on my fee at the moment.
BTW- I am really looking forward to using ArchiCad fulltime, but I just havent had enough time to learn all the in's and out's of it.
Vitruvius wrote:Great Post, my thoughts exactly.
I've been doing custom residential off and on for 20 years, across 3 continents and about 12 time zones. And it's impossible to do a decent residential project for a fee under 15% (assuming the project is US $400K +). A quality project needs a fee of about 18%+ to be viable at that scale. Keep in mind that these projects will run months through the design phase.
And contract admin is a per diem thingy on top of that.
On smaller projects (like under $100K) we've charged 25%+ and not made a sou. Won't go there again.
Even if you're the best designer ever, and a CAD gunslinger akin to Wyatt Earp, these projects move at the pace at which your client can digest all that stuff. Which is to say, they move at a snails pace. And a prevaricating, constipated, directionally confused snail at that.
So, yes you can do residential projects for under 15%. But that's only on the assumption you're doing it as a money spunking hobby akin to big yacht racing...
Wow! A half-million dollar home, therefore, would generate $75K or more in fees. If your hourly rate is $125 (established Architect), then the job took you 600 hours! 
That's a lot of Architecture for a $500K house (2000-4000 sq ft). How many of those hours were spent by the "drafting technician" that would not, in theory, be billed at $125 per hour?
Don't get me wrong, by all means get whatever the market allows. I'm just amazed that people can stay busy with those rates. Mr. Cole, I'm guessing that 6000sf home cost at least $750K. If you charged 7% and burned less than 450 hours, you did OK in my book.
Interesting topic!
That's a lot of Architecture for a $500K house (2000-4000 sq ft). How many of those hours were spent by the "drafting technician" that would not, in theory, be billed at $125 per hour?
Don't get me wrong, by all means get whatever the market allows. I'm just amazed that people can stay busy with those rates. Mr. Cole, I'm guessing that 6000sf home cost at least $750K. If you charged 7% and burned less than 450 hours, you did OK in my book.
Interesting topic!
Pete wrote:Your on the right track, Pete. It took me about 465 hours and the house did cost about $860k. I stay very busy, but remember I was acting as a design/build contractor for the house also a CM for the couple.
Wow! A half-million dollar home, therefore, would generate $75K or more in fees. If your hourly rate is $125 (established Architect), then the job took you 600 hours!
That's a lot of Architecture for a $500K house (2000-4000 sq ft). How many of those hours were spent by the "drafting technician" that would not, in theory, be billed at $125 per hour?
Don't get me wrong, by all means get whatever the market allows. I'm just amazed that people can stay busy with those rates. Mr. Cole, I'm guessing that 6000sf home cost at least $750K. If you charged 7% and burned less than 450 hours, you did OK in my book.
Interesting topic!
cole-construction:
if u charged 7% for that job....u only charged for architecture....the construction was a gift on u..........10% to 15% is the markup for gc's.
if u charged 7% for that job....u only charged for architecture....the construction was a gift on u..........10% to 15% is the markup for gc's.
Still looking?
