RIBA Fees Calculator 66 Portland Place London W1B 1AD UK Tel +44 (0)20 7580 5533 Fax +44 (0)20 7255 1541 info@inst.riba.org www.architecture.com Public Information line 0906 302 0400* Registered Charity Number 210 566 VAT Registration Number 232 351 891 *call charged at 50p per minute
Introduction For many years some architects had been reliant upon showing their clients an RIBAbadged graph to demonstrate the legitimacy of their percentage fee proposals. These were first introduced in the 1970s, but do not represent or convey the range and complexity of the present day architect s services. It is highly recommended by the RIBA Practice Committee that architects should spend whatever time they need to carefully assess, formulate and present the details of the fee required for any job. The fee can then be explained and agreed with the client, and can form the basis of a transparent and successful relationship. This new RIBA Fee Calculator has been prepared by a team of RIBA Practice Committee members and RIBA staff to assist the smaller practice in preparing fee proposals for their clients. It consists of 1. The fees calculator, to assist the architect with preparing the build up of the fees for any project. This includes: - a guide to using the calculator, and notes to assist with the Microsoft Excel documents produced - a programme generator using the RIBA Plan of Work stages - two versions of a resource calculator, to allow the practice to structure and understand its own costs: one for projects up to 32 weeks and one for projects up to 156 weeks; 2. A worked example; 3. Typical client questions and model answers to provide a set of reliable answers to typical client questions about fees; 4. Practice pointers. Production of a fee proposal using this fee calculator takes time much more time than sticking a pin in a graph and hoping that it all works out. This method aims to ensure architects charge appropriately for their services so that few will lose money on a project and more will make and demonstrate a profit. Clients will understand better what is involved in the service and appreciate the professionalism that is demonstrated. I wish you all the fees you deserve! Jane Duncan RIBA Vice President Practice
Typical client questions and model answers This part of the RIBA Fees Calculator provides generic answers to some of the most common client questions. 1. We like your work but you seem expensive, can you reduce the fee? We can but only by reducing our service. We take the time to provide a professional service which others may not offer. Reducing the service may not be beneficial to you in the longer term. 2. As I have a very limited budget, why should I pay you so much? The fee we charge relates to the amount of work we will have to do. By reducing the scope of our services we may be able to reduce the fee but this could increase the risk to you. In our experience clients save on project cost by getting the design right before starting construction and not changing things during the build. Very often it turns out that this saving is greater than the amount clients spend on architects fees. 3. Do you ask for any payment in advance? As a rule the practice always asks for an initial payment from new clients to cover set up costs on the project. 4. Why do I pay you so much before construction starts on site? This is because a large amount of work has to be completed before we get to site and also where the major value is added. If you start building without going through a structured design process construction costs can easily spiral out of control and you will not have any safe indication of when your project will be finished. 5. Can we arrange the fee payments so we pay you more at the end? We need to be able to adequately resource the project, but what did you have in mind? Our time is mainly spent in the early stages of a project. If you want us to fund these there will be an additional cost. 6. When can I have cost certainty on the project? Absolute certainty on the overall cost of a project is very difficult to achieve. We can put mechanisms in place to help you manage your cost such as early estimates and well planned designs. Minimising changes keeps cost controlled and putting aside a contingency sum helps to cope with unplanned occurrences.
7. Can you manage the builder so that he stays on budget and on programme? We do our utmost to ensure the contractor works to specification and can advise on the appropriate contract to use. Your contract will be with the builder direct so we do not technically manage their operations. It is always our intention to do what we can to keep the project to programme and budget while monitoring quality on your behalf. 8. Can you manage the project? We can offer project management as an additional service if you need assistance beyond our usual role as lead consultant. 9. Does your fee include other costs, e.g. other consultant s fees, statutory fees? No, we can provide an indication of these costs but they do not form a part of our fee. 10. How often do you come to site to check on the work? This depends on the complexity of your project and which services you want us to carry out for you. We will discuss this with you and confirm requirements in our appointment and fee proposal. 11. How many options will you present to us? Once we have established a brief together with you we will have explored the nature of your project enough to narrow down all the options you may want to consider. We can help you understand what is required in your brief to make the best of your project. To use resources economically we suggest eliminating options positively during the early design stages. 12. Can we keep all of the designs? In terms of ownership of designs, our terms of appointment usually describe that the copyright for the design and all its options will remain with us. By paying us for our services you obtain a licence to use our drawings for the purpose of your project. 13. Can I have this all finished by Christmas? Which Christmas?
Practice pointers This part of the RIBA Fees Calculator provides some pointers to good practice. 1. One of the main complaints from clients is not having a clear understanding of the role and service the architect is engaged to provide. In order to establish the extent of your services from the outset it is vital that an appointment document is completed and signed by both parties. This will help make clear in writing what service you are providing and the conditions of your engagement. 2. By having a clear scope of works and deliverables you can begin to assess the time involved in carrying out the work and a fee which relates to the specific packages of work. 3. Separate out the fee for collating and submitting the planning application and tender documents from the rest of the relevant work stage. As you will have completed the bulk of the work in these stages invoice for this promptly to avoid waiting for potentially lengthy client deliberations and minor changes on the documents. 4. Clarify what is included and not included. Do not include printing, expenses or statutory fees such as planning within the fee. 5. Issue the client with a programme and cash flow forecast so that the client knows when to expect an invoice and can prepare his finances accordingly to assist prompt payment of your invoices. 6. Make sure your payment terms are 14 days and that you are being paid promptly. 7. Be prepared to stop work for non payment of fees. It is important to stand your ground. 8. Make sure you send out a letter for suspension of services for late payment. This warning letter should prompt the client to pay on time at the next invoice. If they are serial offenders this is a good record of their continued late payment if you do have to take them to court to recover monies. 9. Make sure you keep a good record of events through minutes, email and letters to support any verbal discussion. It is vital that any discussions are backed up in writing in the event of any dispute. 10. Make sure you follow the procedures for suspension of services as set out in your appointment.
11. Do not be afraid to chase in your final payment through the small claims courts. This is a relatively simple procedure and there is no need for you to get lawyers involved. 12. Close out the job. Make it clear when you have completed your services. December 2010