Understanding Architects Fees
At Crew Architects, we believe that transparency leads to better relationships. That's why we're open about our fees and how they are structured, helping clients make informed decisions from the outset.
We're always looking for ways to improve. Through regular conversations with our clients and ongoing reviews of our processes, we continually refine our fee structure to make it as clear, straightforward and fair as possible. Our goal is to provide excellent value while making the architectural process easy to understand and navigate.
Fee Structure Alternatives
Percentage
For larger and more complex projects, our preferred approach is a percentage-based fee.
Architectural fees are calculated as a percentage of the final construction cost. As larger or more complex projects typically require greater design input, coordination and contract administration, the fee increases in line with the project's scale. Equally, if the project scope or construction cost is reduced, our fee will reduce accordingly.
Our percentage fees are informed by RIAS (Royal Incorporation of Architects in Scotland) guidance and vary depending on the project type, complexity and whether the work involves a new or existing building.
Pros
Fair and responsive - fees increase or decrease in line with the size and complexity of the project.
Flexible - accommodates project changes without requiring the entire fee proposal to be renegotiated.
Reflects the work involved - larger projects typically require more design, coordination and site involvement.
Cons
Less certainty at the outset - final fees depend on the eventual construction cost.
Changes in construction costs affect fees - fee levels may rise or fall as project costs evolve.
More difficult to forecast than fixed-fee arrangements, particularly during the early design stages.
Can be confusing and difficult to navigate - Fees may change as construction costs become more defined throughout the project. While this ensures the fee fairly reflects the work involved, it can be harder for clients to forecast costs and understand how changes during construction and any client supply items affect both the building budget and professional fees.
Fixed Fees
For smaller projects, or where the scope of work is clearly defined from the outset, we can offer a fixed fee for individual project stages or the project as a whole.
A fixed fee provides greater cost certainty, allowing clients to understand their architectural costs from the beginning. However, fixed fees are based on an agreed scope of work. If the project changes significantly or additional services are required, these may be charged separately, typically on an hourly basis.
Our fixed fees are informed by RIAS fee guidance and our experience delivering similar projects. To ensure our fees are fair and competitive, we carefully review timesheet data from comparable completed projects when preparing quotations.
Pros
Greater cost certainty – fees are agreed upfront, making budgeting and financial planning easier.
Simple and transparent – clients know what services are included and what the agreed fee will be.
Ideal for well-defined projects – works best where the scope and requirements are unlikely to change.
Cons
Less flexible - significant changes to the brief or project scope may result in additional fees.
Extras may be charged separately - work outside the agreed scope is typically charged at an hourly rate.
Can be less responsive to change - unlike percentage fees, the fee does not automatically adjust as the project evolves. We will always discuss any potential additional fees with you before undertaking work outside the agreed scope, ensuring there are no unexpected surprises.
Fixed Fees can be less competitive- fixed fees tend to be set at a higher compared to a percentage rate in order to accommodate any uncertainty.
Hourly Rate
For initial design work and feasibility studies, early-stage design advice, consultations, or projects where the scope of work is difficult to define at the outset, we may recommend an hourly rate fee arrangement.
This approach provides flexibility and allows clients to access architectural expertise without committing to a larger fee structure. It can be a particularly cost-effective option for small pieces of work, design reviews, planning advice, or exploratory studies where the level of input required is uncertain.
Hourly rates are also used for any additional services that fall outside the agreed scope of a fixed-fee or percentage-fee appointment. To ensure transparency and accurate billing, all members of the Crew team record detailed timesheets, allowing clients to see that fees directly reflect the time spent on their project.
Pros
Flexible and adaptable - ideal for projects where the scope of work is uncertain or likely to evolve.
Pay only for the time required - a cost-effective option for small pieces of work and one-off advice.
Quick to get started - no need to fully define the project scope before work begins.
Transparent - fees are based on the actual time spent working on your project.
Cons
Less cost certainty - the final fee depends on the amount of time required.
Costs can be harder to predict - particularly for complex projects or where the scope continues to develop.
Not always the most economical option for larger projects – fixed-fee or percentage-based arrangements may offer better value when requirements are well defined.
Requires ongoing monitoring - regular communication helps ensure expectations and budgets remain aligned.
Percentage Fees Explained
Crew uses fee scales provided by the RIAS (Royal Incorporation of Architects in Scotland).
Percentages are different for working on new and existing buildings. Similarly the use class of a building changes the percentage. The percentage changes relate to the assumed complexity and required time for each building type.
The fee charged by architects are calculated on an estimated construction budget for the project identified at the very beginning of the project and are usually based on costings prepared by a quantity surveyor of an initial design. As the project progresses, the architects fee and percentage is continually reviewed and may be adjusted either upward or downward depending on changes in the construction budget and the scope of work involved. Any changes are reported to the client.
Where the construction cost rises the associated percentage will lower accordingly. See the below examples-
Existing Buildings
Works to an existing residential project
Project with a construction cost of 100k = approx. 13.5% architects fees
Project with a construction cost of 500k = approx. 11.5% architects fees
New Buildings
Works to new residential building
Project with a construction cost of 100k = approx. 11.75% architects fees for our services.
Project with a construction cost of 500k = approx. 9.4% architects fees for our services.
You will note that new buildings have a lower percentage. This is due to new construction being less complex and contain less unknowns for the design team than working on existing buildings. The indicative fee percentage outlined is based as a percentage cost of the construction cost for the full architectural service. Should our services only be required upto Building Warrant stage then that sum would be halved.
Construction Cost and Development Cost
It is important to understand the difference between the total construction cost and total development cost. Our percentage fees are based on the total construction cost.
The total construction cost refers to the costs involved in the building process- how much it costs to physically build the design. Our fees are based on this cost before vat.
The total development cost encompasses all project-related costs such as additional services, professional fees (including all other consultants), VAT, and statutory approvals.
When a client discusses their budget, they are generally referring to their total development budget, which includes all the expenses related to the project, not just the construction costs. To determine the available construction budget, it's necessary to calculate it by subtracting all other costs such as professional fees, VAT, and statutory approvals from the total development budget.
VAT related costs
Our fees will be subject to vat set at the standard rate (20%).
Vat on existing buildings is normally standard rated for tax although there are exceptions. For the examples below the standard rate at 20% has been assumed. New dwellings, conversions, vacant dwellings and works to listed projects can be zero rated or reduced rated. Vat contributions can have a significant financial impact on any project.
To find out more on which projects qualify for exemptions please visit the following government link
https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section2
Payment cycle for percentage fees
We set our fee payment structure in-line with the amount of work that has been carried out within each section of the contract. Payment is invoiced after the completion of each stage.
The Conditions of Appointment of an Architect in Scotland outline reasonable stages in a traditional contract where payments can be made. The percentages specified indicate the portion of the total fee that is expected to be paid at the completion of each stage.
Preparing the Design
Stage 0 Preparation of the Brief
Stage 1 Briefing and Appraisal
Stage 2 Initial design = total for stages 0 to 2, hourly rate £90 per hr
Stage 3 To Planning Consent Application = 15 %
Stage 4a To Building Warrant Application = 20%
Preparing to Build
Stage 4b Technical Documentation and Tender Administration = 25 %
Progressing the Build
Stage 5 Construction and Contract Administration = £350 per week whilst on site
Stage 6 Post Completion Work, Handover and Close Out = 2 %
Typical percentages based of the total sum are shown along with stages where an hourly rate or weekly rate are charged. are shown but the payment structure can change as agreed within the conditions of appointment.
Stage 7, monitoring of building in use not shown.
The above does not account for additional services that are outlined in the contract. Additional services include carrying out a building survey and preparation of existing drawings, topographical surveys any visualisations/presentation and CDM principle designer services.
Additional Costs
The Conditions of Appointment of an Architect in Scotland has additional services listed that are not included in the percentage cost.
These are services that are often required in projects.
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Measured building survey
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Visualisations and presentation graphics
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CDM principle designer servicers (required on all jobs)
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Costing advice in absence of quantity surveyor
