In our knowledge base article about outsourcing as a solution, we touched on the issue of high architect fees. Here’s what we had to say about our proposed solution, outsourcing:
“One of the main benefits of outsourcing is cost-cutting. How, exactly? Because, first of all, professionals abroad tend to charge less for equivalent services. Second, you don’t have to pay taxes, vacation time, sick days, insurance, or social contributions anymore. Third, there’s no infrastructure cost; each professional brings their own gear, know-how, and connections to the table. So, you can say goodbye to costly offices and maintenance costs. But there are also additional advantages to keep in mind. For instance, even the best workers have plenty of downtime — which you actually pay for! With outsourcing, you only pay for the real hours worked, not the idle moments that usually happen during office hours.”
And we say that because architects don’t just charge for their know-how, they also charge for many of their hidden business costs.
But, to tackle the issue straight-on, how much does an architect charge, and how does it change the price tag for your project?
Hourly Fees
Most architects and architectural firms charge by the hour. The cost? Typically, between $125 to $250 per hour. Even if you’re an architectural studio looking to outsource within North America, you can expect the vast majority to be between this range.
Another issue to consider is whether you’re working with an individual or a team. Principal architects will typically charge more than junior members. With remote architects—the most popular way of doing architectural outsourcing—the costs can go down by as much as 60%.
Now, an important part of cost-effective professional architects is that they’ve got the goods. After all, “professional” is the operative word here! So, also be wary of offers that seem too good to be true —accredited architects first and foremost!
By Percentage
Other architects or studios charge a total of the total building cost of the home or structure. For residential architecture, the cost is typically around 12% to 20% of a project, especially if we’re talking about remodels and additions.
Commercial architecture has a much brother range than it is for residential. The price usually ranges from 2.5% to 12% of the total building cost. Now, you may be forgiven for thinking these rates are much lower than for commercial buildings. But that’s because most commercial work often has a much larger scale than residential projects.
And where a particular project falls on this percentage rage is largely dependent on how complex the building is to finish. For example, a warehouse is a very simple building that may be on the lower side of the spectrum. Conversely, a huge multi-building complex with subtle detailing will be on the higher end.