ᐅ Comparability of Costs: Architect vs. General Contractor

Hello dear forum,

We are currently in the planning phase for a single-family house. We have requested quotes from several general contractors and have also spoken with a very approachable architect. We would be happy to present our building project (BVH) in detail at a later stage!

Overall, we much prefer the transparency and approach of the architect compared to the initial consultation with the general contractor. We understand that over time, we will also speak with an architect/planner through the general contractor who will discuss details with us. We have thoroughly researched the advantages and disadvantages both in this forum and through various guides.

At this stage, our main focus is on comparing the cost estimates from the general contractors versus the architect. The general contractor states the costs as a fixed price (based on the building and scope of services description) plus our additional requests (extra electrical outlets, KfW standard, etc.). A rough total for the house including additional requests was, for example, 410,000 euros. This naturally also includes architectural/planning/engineering services according to the scope of work description.

Land leveling.
Discussions about your building project together with you during planning and construction meetings. Preparation of building permit/planning permission documents at a scale of 1:100 in the required number of copies for the authorities.
You will receive an additional set of plans for your personal records.
Development of working drawings (scale 1:50) as well as any necessary detailed drawings.
Creation of structural engineering plans (standard structural design for the respective house type) including any required building physics reports for thermal and fire protection.
Calculation of energy demand and preparation of the energy performance certificate. A copy will be provided for your records.
Preparation of public funding applications, if required.
Site management and construction supervision up to handover of the house.
Support during the warranty period.

When we first met with the architect, he took out a book labeled BKI to provide a rough estimate of the feasibility of the building project based on this data. He calculated roughly 3,000 euros per square meter and 150 square meters (1,615 square feet) of living space, resulting in a total of 450,000 euros.
The big question now is: Does this amount exclude his fees or do these average construction costs per square meter already include the services mentioned above? This might be a somewhat naive question, but it’s really unclear to us. Is there a list of costs that are included in these average rates?

We have an appointment with him next week for a more detailed cost assessment.

Thank you very much for your feedback, and I wish you a pleasant week.

askforafriend schrieb:

We are aware that over time you will also talk to an architect/designer when working with the general contractor,

It is possible to end up with a draftsman who is not only a construction drafter but also a fully qualified architect when working with the general contractor. However, even then, this person typically remains solely a planner who does not manage the construction themselves—and even if they do, their objectives are usually not the same as those of an independent (and self-paid) architect who supervises construction.

askforafriend schrieb:

Architectural/planning/engineering services according to the scope of work are, of course, included here.

The fee for an independent architect is based on the construction costs but is never included in them. This is less about transparency in not showing planning fees separately when working with a general contractor and more due to legal reasons (there are even general contractors who refer you directly to an architect). The scope of work is an important point, by the way: with an independent architect, you actively shape this scope, whereas with a general contractor you receive “predefined” scopes of work. The general rule is that deviating from the standard is considerably more expensive than actively and constructively (proactively) defining the standard from the outset.

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With a general contractor (GC), you get greater budget certainty through a fixed price. The GC earns their profit from the difference between the cost of construction and the sale price. The execution quality is often debated in the scope of work description—anything not specified is usually done as cheaply as possible or sometimes not at all.

With an architect, you receive a cost estimate and then commission the project. The estimate can differ from the actual bids, so there is less budget certainty at the start. However, you can react and adjust in a timely manner. The architect has an interest in a successful project and is generally more aligned with the client when defining the scope of work, allowing you to jointly set the conditions. This provides a certain level of quality assurance—unless the client insists on completing the design with the lowest-cost contractors.

You only know the final cost once the bids are concrete. With the architect, however, you will have already paid fees by that point.

Since both the general contractor and you/your architect hire craftsmen to deliver a specific service X, the price will usually be more or less the same.
Pros of using a general contractor: higher reliability
Cons of using a general contractor: standard solutions and rather inflexible
Pros of handling it yourself: custom home and flexible management
Cons of handling it yourself: requires strong self-discipline, as you tend to want more and more, but the budget is limited

nordanney schrieb:

Since both the general contractor and you/architect hire tradespeople to deliver a defined service X, the price will generally be more or less the same.

For comparability, this means:

General contractor: House 150 sqm (1,615 sq ft) at a fixed price of 410,000 euros.

Architect: Assuming they build the same, equivalent house with the same tradespeople (theoretically) as the general contractor, the calculation would be: architect’s fee (e.g., 50,000 euros) plus additional services like structural engineer etc. (e.g., 10,000 euros) plus the house for then 350,000 euros. This again totals 410,000 euros.

So, if we want to build the general contractor’s house with the architect, we would have to give them a budget of 350,000 euros, right?

Best regards

…basically yes, but it depends on the scope of work described by the general contractor. Everything that is not included or provided by the owner will be added on top of the 410k. On the other hand, the architect’s value is only an estimate. And as is often the case with estimates, some tend to underestimate or overestimate it 🙂 You won’t get an exact 1:1 comparison.