William H. Asti, Architect

COMPENSATION

Compensation for services properly varies with the type of service as well as the size and complexity of a project. When design and construction are involved, experience has shown us that expenses are proportionately greater on smaller projects, and that building certain types of projects require more time and effort than others. For example, a percentage fee may be used on building projects based on the total construction cost, or if the project is held in abeyance, it may be computed on a reasonable cost estimate or lowest bona fide bid.

A fixed fee or stipulated sum plus expenses or reimbursement of all expenditures made in the interest of the project may also be utilized. When the extent of services are difficult to determine in advance, many times a multiple of direct personnel expense, or a fee which is a multiple of direct technical payroll is used. The multiplying factor may range from 2.5 upward. For services such as reports, opinions, consultation, testimony as an expert witness, and lectures, a per diem or hourly or a lump sum mutually agreed upon fixed sum may be applicable

Fees on the basis of percentage of construction costs.

When we utilize percentage fees on building design projects, the percentages are typically computed on a sliding scale for each of the following five classifications; simple, conventional, specialized, detailed, and interiors.

The simple or uncomplicated projects tend to have a high degree of repetition; Simple industrial buildings, warehouses, and parking structures. The conventional projects require normal attention to design and detail with moderate repetition; Multiple housing, office buildings, complex industrial buildings and schools, whereas the more specialized projects require a high degree of skill in design as well as complex scientific, mechanical or electrical needs and a minimum of repetition; Hospitals, medical facilities, research and transportation facilities.

Projects requiring a greater degree of detail and elaborate planning with no repetition include private residences, monuments, landscapes, restorations, and shops. Interior design and space planning projects include complete design of interiors including colors, texture, furniture and accessories as well as preparation of bid documents for competitive bidding.