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#NU BLOG

Architects Fees London 2022

Architecture fees generally reflect the level of service provided and the quality of the completed project. Therefore, the end budget is calculated from the size, type and quality of the project.

Architects fees are usually negotiated at the start of each project except when fees are charged on a 'work on a time charge' basis until the budget can be estimated more accurately.

 

There are several options when it comes to architecture fees, depending on the company you are working with, but in London, charges are typically

  1. percentage of construction cost

  2. lump sum (NU uses this option)

  3. time charge / hourly rate

Let's dive deep into all options.


Percentage fee:


Percentage fees are based on the construction cost (excl. VAT + professional fees). The most significant advantage for the client is that this gives a reasonable starting point regarding the total architectural cost whilst allowing some flexibility if the project scope increases.


If anything changes in the estimated construction cost, the fee will be automatically adjusted. This estimated cost is redefined during the design process as well, providing a more precise way of adjusting fees.


Percentage fees are usually divided into monthly payments during each work stage.

Lump-sum fee:


This type of fee is very carefully and thoroughly calculated based on specific items of work.

The fees are renegotiated if the nature of the project changes significantly.


This approach is the most straightforward, we at Nu tend to use a fixed lump sum for fees to define the costs clearly.