Overview
In this article, we cover two basic methods of fee calculation: project cost based and time based.
Following that, we go over a few common project conditions which may affect the Architect’s fees.
We have developed a digital fee calculator to help you work out a budget for Architect’s fees.
Project Based Fees
A project cost-based fee is appropriate when there is a well-defined scope of service for the architectural professional. Such fee is based on a budget for the works (the project value) for fee calculation purposes, and shall be adjusted on the final cost of the works.
Note that the project value is the cost estimate to build the building, and it is in itself not inclusive of professional fees.
In addition, projects with a higher complexity attract slightly higher professional rates. The SACAP Board Notice 91 OF 2020 (find it here) defines these as:
“Low complexity projects” means simple buildings or groups of buildings in an uncomplicated grouping with low impact on the environment: These are structures with low performance requirements. Structures of simple utilitarian character, design and detail. The structures are constructed utilizing standard low technology building methods. They require a minimum of mechanical and electrical services or equipment, and basic civil works infrastructure;
“Medium complexity projects” means buildings or groups of buildings in a relatively uncomplicated grouping with a medium impact on its environs: These are structures with medium performance requirements. The structures are of average character and design or detail. The structures require non-complex structural and civil works and an average level of mechanical or electrical equipment as could normally be handled by design-supply specialist contractors;
“High complexity projects” means a building or buildings in a large or complicated grouping with a significant impact on its environs: These are structures with high performance requirements and demanding a sophisticated level of design and detail content to respond to specialized requirements. Complex buildings will usually incorporate comparatively large or specialized mechanical, electrical and other specialist installations, or be of complex structural or civil design;
Time Based Fees
Where the scope of service is not clearly defined, or the service relates to small scale projects, or the service is of an unusual or specialized nature, a time-based fee is recommended to be used as the basis of remuneration. Where fees for architectural professional services are time based, such fees may be based on an hourly rate as set out in the guidelines professional fee board notice.
How to estimate project value?
A good starting point for estimating a project value is by talking to a builder or quantity surveyor, and asking them to provide the current building rate per square meter for the type of building you require. Note that this building rate will vary depending on the current market, exchange rates, and your choice of finishes, sanitary-ware, fittings and so on. Therefore it is wise to treat a square meter rate as a benchmark, and not as a fixed item.
No two projects are alike
Over and above the basic fee calculation methods outlined above, architectural projects can vary in scope and complexity, and as such there are guidelines around how fees are calculated in those specific situations. Below are the most common scenarios where Architectural fees are adjusted to suit. For the full list and more details for each scenario, check out SACAP Board Notice 91 OF 2020 here.
Guideline professional fees for alterations
An alteration is defined as a change in a building or facility that affects or could affect the usability of a building or facility or portion thereof.
The fee for work that includes alterations is based on the total project cost and increased for that portion of the work comprising or affected by alterations by 30% (130% of the fee).
Guideline professional fees for additions
Additions are defined as projects that increase, expand, or extend a facility’s gross floor area or height of a facility.
The fee for work associated with an addition to an existing building may not attract additional fees, except for that portion of work associated with the parts of the addition interfacing with the existing building. The fee for this latter work is increased by 30% (130% of the fee). Should it be necessary that the architectural professional survey, assess and/or prepare documentation for the existing building, the cost of this shall be charged on a time basis.
Guideline professional fees for services provided with respect to the restoration of buildings subject to heritage legislation
A heritage building is any structure older than 60 years. These structures are protected by the National Heritage Resources Act.
The fee for work that includes restoration of buildings subject to heritage legislation is based on the total project cost and increased for that portion of the work comprising or affected by heritage considerations by 40% (140% of the fee).
If your property is older than 60 years or your building is declared a Provincial Heritage Site you are required to submit a formal application to local authorities who have the necessary competencies for consideration and permitting in order to make any changes or renovations.
This includes:
- Demolition or partial demolition
- Destroying
- Damaging
- Defacing
- Excavating
- Altering or removing from its original position
- Subdividing, or
- Change the planning status of a provisionally protected or a heritage area and/ or alter or demolish any structure or part of a structure
Guideline professional fees for a project that includes repeated buildings
For a project consisting of a number of repeated buildings erected under a single building contract for a single client, the fee may be adjusted by agreement, subject to the architectural professional being retained for a full service and the repeated buildings being built on one site or a series of adjoining or closely related sites. For a full breakdown, check out SACAP Board Notice 91 OF 2020 here.
Guideline professional fees for an appointment where the architectural professional takes over work of another professional
The stage of completion shall be agreed upon, and an appropriate budget for the works agreed upon, and the fee for the work stages or the stage in which the service is commencing may be subject to an increase of 25%.
The Standard Architectural Services
A standard Architectural service is generally divided into 6 work stages, and fees are divided up like so:
Check out my blog post here to learn more about each Architectural work stage.
Architect’s Additional Services
In addition to the standard service, there are a number of additional services which may be added individually or in varying combinations and shall be provided by prior agreement between the client and the architectural professional.
The general categories for additional services are Special Design Services; Special Management Services; Special Studies; Special Submissions to Statutory Authorities; Work on Existing premises and Other services.
Check out my blog post here to learn more about each Additional Service.