Introduction
November’s blog post, “Architectural Phases,” outlined the general organization of an architectural project from conception to completion. Because offered services and processes can vary from one Architect to the next, it is important for a client and Architect to establish expectations early-on. These expectations become contractual commitments when they are entered into the Owner-Architect Agreement: a legally binding document that fully and clearly defines the project and obligations of both parties and marks the official beginning of a project.
Contract Components
The Owner-Architect Agreement can vary from one architecture firm to the next, but there are three elements that must always be present: scope of services, schedule, and fee. The scope of services refers to the extent of architectural work to be performed by the Architect. The schedule refers to the estimated or predetermined amount of time required to complete the scope of services. The fee reflects the estimated number of hours the Architect will need to complete the scope of services. In some cases, specifically commercial architecture, the fee will be based on a flat rate rather than an hourly rate.
Both schedule and fee are intrinsically linked to the scope of services. Each Owner-Architect agreement is therefore carefully written to clearly define the architectural work requested by the Owner. The way the scope of services is organized in the contract can vary; most contracts will define the work in terms of phases, but some services may not require that distinction. Regardless, this section requires careful and thorough review by both the Owner and Architect to ensure that both parties understand and agree to the contractual work that is to be done. This allows the Architect to provide the anticipated project schedule and estimated associated fee to the Owner prior to starting work.
The project schedule can be handled in a few ways and can depend on the type of project delivery method the Owner pursues. For example, a design-build project, where the Architect and contractor have a contractual relationship, may progress differently than a design-bid-build project, where the Architect creates and releases the construction drawing package for contractor bids, and then the Owner hires their selected contractor to proceed with construction. This is just one example of what can impact a project schedule, but the most important thing to note regarding project schedules is that the Architect only has control over their own schedule of deliverables. They cannot be held responsible for regulatory reviews and approvals, product availability, or construction times, for example, as they have no authority over those components.
The price and presentation of the architectural fees will vary from contract to contract. As an Owner, it is important to educate oneself on the industry standards for these fees, which can vary slightly by phase and by total construction cost. Some contracts may reference industry standards while others may not, but there are sources online that carry this information in great detail – a few of which are provided for reference at the bottom of this page. It is very important to note that the fee provided in the contract, unless specifically noted as a fixed price, is an estimate: a well-educated estimate grounded in experience, yes, but an estimate nonetheless. It is impossible to predict with complete accuracy the amount of time needed to accomplish various design tasks. Therefore, it is critical for an Owner to plan for contingencies in each phase.
The scope of services, schedule, and fee are the three elements that must be included in every Owner-Architect Agreement (sometimes referred to as a proposal). But all proposals – all legal documents, in fact – also contain verbiage that addresses certain legal aspects such as liability, copyrights, and more. These components are typically compiled in their own section: the Standard Terms and Conditions. As with all contracts, it is important to understand the legal aspects of the agreement, so although this is a dense and wordy section, it is both important and informative to look through it.
Summary
All legal agreements require a dedicated effort and commitment from all parties involved. Clear communication from the start is crucial for success, so the contents of an official proposal should never be a surprise. At Ven Studio, we endeavor to make the architectural design process as smooth as possible for our clients, and that requires transparency and clarity. Check out the video below for a walkthrough of our own proposal!
Resources
Architectural Fees | Residential Architectural Fees
Home Advisor | Hire an Architect
Houzz | How to Hire the Right Architect