It’s important to note that the following discussion of architectural fees is specific to Tulsa and the South-Central region of the U.S. While fee structures may vary in other areas, this guide provides a breakdown of how architectural services are structured locally, including available service tiers and key budgeting considerations to help clients navigate their projects with confidence.
One of the most common questions clients ask when starting a commercial project is: "How much will architectural services cost?" While the answer varies depending on several factors, understanding how architectural fees are structured, the types of services included, and the importance of setting a comprehensive project budget can help clients make informed decisions. This guide breaks down the key elements of architectural fees for commercial projects, offering clarity on an often complex topic.
1. How Architectural Fees Are Structured
Architectural fees are generally calculated using one of the following methods:
Percentage of Construction Costs
Architects often charge a percentage of the total construction cost for Basic Services, typically ranging from 5% to 12% for commercial projects. Larger, less complex projects often fall on the lower end of the range, while smaller or highly specialized projects may command higher percentages.
Fixed Fee
For projects with a well-defined scope, architects may propose a fixed fee. This approach provides predictability for both parties and is often used for straightforward or repetitive project types.
Hourly Rate
In cases where the scope of work is unclear or evolving, architects may bill by the hour. This structure is common during early feasibility studies, smaller consultation projects, or ongoing advisory roles. Hourly rates vary depending on the architect’s experience and expertise.
2. Understanding Architectural Services
Architectural services are typically divided into three categories: Basic Services, Supplemental Services, and Additional Services.
Basic Services
Architectural services are traditionally divided into five key phases: Schematic Design, Design Development, Construction Documents, Bidding and Negotiation, and Construction Administration. However, the exact structure and number of phases can vary depending on the specific needs and goals of the project. Some projects may require fewer phases, while others may introduce additional stages to address unique complexities or specialized requirements.
- Schematic Design (SD): The initial phase focuses on defining the project vision, layout, and spatial relationships. Architects develop preliminary drawings and diagrams to establish the overall design direction.
- Design Development (DD): Building on the schematic design, this phase refines the plans with more detail, including material selections and coordination of structural, mechanical, electrical, and plumbing systems.
- Construction Documents (CD): Detailed technical drawings and specifications are created to guide construction, secure permits, and ensure contractor clarity.
- Bidding and Negotiation: The architect assists in soliciting contractor bids, reviewing proposals, and negotiating terms to align with the project’s budget and goals.
- Construction Administration (CA): During construction, the architect oversees progress to ensure alignment with design intent, construction documents, and quality standards.
While these five phases represent the traditional approach, they are adaptable. Smaller or straightforward projects may combine phases, while larger or more complex projects may introduce specialized stages such as Pre-Design, Programming, or Post-Occupancy Evaluations. Understanding this flexibility allows owners and architects to align project phases with specific needs, ensuring clarity, efficiency, and a successful outcome.
Supplemental and Additional Services
Architectural services often extend beyond the core Basic Services, and these are categorized into Supplemental Services and Additional Services. While both types can add significant value to a project, they differ in how they are included in the contract and their timing in the project lifecycle.
- Supplemental Services: These are services that the architect and the owner have agreed upon upfront and included in the original contract, with a clearly defined scope and cost. While they are not always part of a standard architectural agreement, they address specific project needs identified early in the planning phase.
- Additional Services: These are services that are not included in the original contract but become necessary during the project. They may arise due to unforeseen circumstances, changes in project scope, or evolving owner requirements. These services are typically added later through amendments or change orders.
Examples of Supplemental and Additional Services:
- Measured Drawings / Existing Conditions
- Feasibility Studies
- Condition Assessments
- Programming
- Conceptual Design
- Sustainability Consulting (e.g., LEED Certification)
- Historic Preservation Documentation
- Civil Engineering
- Landscape Architecture
- Food Service Consultants
- Acoustic Consultants
- Specialty Lighting Consultants
- Code/Life Safety Consultants
- Cost Estimating Consultant
- Furniture, Fixtures & Equipment (FF&E) Design
- Facility Maintenance Planning
- Post-Occupancy Evaluations
Understanding the distinction between these two service types ensures clarity in scope, prevents misunderstandings, and allows for more accurate budgeting and project management.
3. Key Factors Influencing Architectural Fees
Several factors impact the final cost of architectural services:
Project Complexity
Highly technical or unique designs (e.g., laboratories, hospitals, or historic renovations) require more intensive work, leading to higher fees.
Project Size
While larger projects have higher overall fees, the percentage charged may decrease slightly due to economies of scale.
Scope of Services
The extent of services—whether limited to basic services or including supplemental and additional services—will influence the overall cost.
Project Timeline
Accelerated schedules often require additional resources, overtime, and compressed design phases, increasing costs.
Location and Market Conditions
Local permitting processes, labor costs, and regional construction markets can all affect architectural fees.
4. The Importance of Establishing a Total Project Budget with Owner’s Contingency
Establishing a realistic total project budget from the outset is crucial for project success. This budget should include:
- Construction Costs: Direct costs for labor, materials, and contractor services.
- Architectural and Engineering Fees: Professional fees for architects, structural engineers, MEP engineers, etc.
- Permitting and Regulatory Fees: Costs associated with obtaining necessary approvals and permits.
- Owner's Contingency: A financial buffer (typically 5-10% of the total budget) to account for unforeseen expenses, design changes, or unexpected challenges during construction.
The Owner’s Contingency is particularly important because it allows flexibility without compromising the project’s overall scope or causing delays. Without a contingency, even minor issues can lead to significant financial strain and decision fatigue.
5. Why Architectural Fees Are an Investment, Not Just a Cost
Design Efficiency Saves Money
A well-thought-out design minimizes wasted space, optimizes energy performance, and reduces long-term maintenance costs.
Risk Mitigation
Architects help prevent costly construction errors and ensure compliance with building codes and safety standards.
Enhanced Value and Experience
Thoughtful architectural design creates spaces that enhance user experience, support productivity, and align with a company’s brand or user's identity.
6. Practical Tips for Managing Architectural Fees
- Define the Project Scope Early: A clear and well-defined scope helps avoid costly changes later.
- Understand the Fee Structure: Determine whether percentage, fixed, or hourly billing makes the most sense for your project.
- Plan for Contingencies: Include an owner’s contingency in your budget to account for the unexpected.
- Communicate Openly: Regular communication with your architect ensures alignment on goals, expectations, and budgets.
7. Build with Confidence
Architectural fees represent more than just the cost of drawings—they encompass expertise, problem-solving, risk management, and value creation. Investing in quality architectural services lays the foundation for a successful commercial project.
At Lilly Architects, we’re committed to providing clarity, transparency, and exceptional value throughout every phase of your project. Whether you're planning a small retail space or a complex multi-use development, our team is ready to guide you from vision to reality.
Let’s create something exceptional together—get in touch with us today!