ᐅ Classification of Fixed-Price Architect Fee

Created on: 15 Feb 2017 16:52
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Pommes01
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Pommes01
15 Feb 2017 16:52
Hello,

we are currently in the planning phase of our construction project. It is a steep slope site, with costs estimated around 350,000–450,000 EUR. It has not yet been decided whether we will need 3 or 4 floors due to the gradient.

So far, we have consulted three local companies specializing in timber panel construction. Two of them are currently working on free initial designs in order to provide an offer. One company offers a preliminary planning phase with a partner architect before the construction phase. This includes the complete building permit planning for a flat fee of 5,800 EUR net (the price applies to all clients regardless of total costs). If you also award the construction contract to this company, 1,000 EUR will be deducted.

Can anyone provide an assessment of how this quoted amount compares to other architects’ fees?
11ant15 Feb 2017 17:12
The Fee Structure for Architects and Engineers (HOAI) can also be found online (.de). Overall construction costs and project complexity are key factors. I would always have the so-called "preliminary design" done by an architect I personally commission. This design is already to scale, meaning it uses room dimensions that can actually be built later, but it does not yet include details such as window connections or rafter positions. Only when moving toward the design and then the final construction planning does it make sense to involve an architect who is specifically familiar with the standards of a particular home manufacturer. Until the main features are firmly established, it is important to me that it’s MY architect (= my breadwinner / my anthem). After that, the other professional can take over.
So far, we have dealt with three regional timber frame construction companies.
The term "regional" should now be used with caution, as market concentration is moving in a direction similar to what is known from breweries. Several traditional brands are now under new ownership.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
wpic15 Feb 2017 17:51
The mentioned amount for service phases 1-4, including the building permit / planning permission application, cannot be aligned with the eligible net construction costs of approximately €295,000 to €375,000 (equivalent to gross construction costs of €350,000 to €450,000) according to HOAI. The gross planning fee of an architect who creates a custom design for the client, including up to 3 variants in the preliminary design, is at least 2.5 times higher.

The so-called "free" or very low-cost planning fees, which are not related to HOAI, are naturally refinanced by the construction company through the building implementation as part of a mixed calculation. Nothing is actually free or inexpensive there either.

For potential and always cost-conscious clients, such amounts may initially seem attractive. They should also be viewed as a bait offer. It should be clear that even the contract architect of a construction company cannot dedicate significant time to the design of your dream house for such a low fee. The result will reflect that. If you happen to like it…
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Pommes01
16 Feb 2017 10:10
So, what I understand is that this is considered a "too cheap" offer? Billing according to HOAI is generally standard, but I was a bit surprised since the fixed-price offer really applies to all interested parties, no matter how large their house will be. I also found out today that the price has now been raised to 6,800 EUR since 01.01.

The 2.5 times increase to almost 15,000 EUR is quite shocking to me, though.

I understand that the "free" design drafts are then offset again when placing the building contract. However, I am not obliged to sign with the construction company and would still have a completed building application for 6,800 EUR in hand. In terms of quality, you could check this in advance based on reference projects, right? This concerns a contract architect; maybe it would be interesting to see what they would charge if I inquired as an independent customer (i.e., not through the housebuilder)?
The "regional" aspect nowadays has to be taken with caution, as market concentration is moving in a direction similar to what you see with breweries. And some traditional brands are under new ownership.

Since all three companies build between 5 and 30 houses per year and not further than within a radius of 100 km (62 miles), I think you can safely call that regional 😉
11ant16 Feb 2017 12:23
Pommes01 schrieb:
Since all three companies build between 5 and 30 houses per year and operate within a radius of no more than 100 meters (330 feet), I think it’s safe to call them regional 😉

That is a very innovation-critical size. I could imagine that they are already lagging behind the current industry standards (for example, only allowing changes on a grid) and may no longer be competitive in ten years.

Prefab houses from manufacturers with discontinued operations are harder to sell.

By questionable regionality, I mean that major industry names from the 1980s and 1990s, which still have a “reputation” today and are recommended by former clients or interested buyers of that time to their children and in-laws, are now often owned by companies outside the original founding traditions, sometimes having acquired several such names from various federal states.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/