The short answer. Architects usually charge for a custom home in one of three ways: a percentage of the construction cost, a fixed fee, or an hourly rate, and most bill in stages as the design moves forward. The total depends on the size and complexity of the house and on how much of the process the architect handles, especially construction.
Already have a project and want to talk numbers? Tell Paul about your site and budget
I typically will start on a project with an hourly fee and a not to exceed amount for the Schematic Design/Conceptual design phase and then develop a fixed fee, although some clients prefer to keep the hourly fee with benchmark phases. However I can also provide either a square footage fee, typically for new construction, or a percentage of construction cost if a client has a preference. No two projects or clients are exactly the same.
What are the three ways architects charge?
Percentage of construction cost. The fee is a set percentage of what the house costs to build. It is common on custom homes because the fee tracks the size and complexity of the work. The fee is usually estimated from the budget at the start and adjusted to the actual cost later, so it is worth asking how and when that adjustment happens.
Fixed fee. The architect agrees to a set price for a defined scope. You know the number from the start. The trade-off is that the scope must be written down carefully, because work outside it, such as a major redesign after drawings are done, is usually billed as an extra.
Hourly. You pay for time spent. Hourly billing suits small jobs, early studies, and work where the scope is hard to define, such as a lot feasibility study. On a full custom home it is less common, because neither side can predict the total well.
Many architects combine these: hourly for early studies, then a fixed fee or percentage for the full design.
What is included at each phase?
Fees are usually divided by phase, and each phase has a share of the total. The names vary from firm to firm, but the sequence on a custom home is broadly this:
- Early studies. Understanding the site, the budget, and what you want the house to do. Sometimes a few quick site plans or massing options.
- Schematic design. The first real design: floor plans, the overall form, and how the house sits on the lot.
- Design development. The design is refined. Materials, windows, structure, and major systems are decided, and the builder can give a more reliable price.
- Construction documents. The detailed drawings and specifications the builder builds from and the building department reviews.
- Permitting and bidding. Submitting drawings, answering plan review comments and, if you are comparing builders, helping you compare their bids.
- Construction. Site visits, answering the builder's questions, reviewing changes, and helping resolve problems as they come up.
I typically start with Schematic Design/Conceptual Design (SD) with floor plan option/s and site plan. I then will start to do massing studies with the 3d model and exterior elevations. Then Design Development (DD) to refine the design to include reflected ceiling plans and finish floor plans which also allows the General Contractor to develop a rough construction budget. Once this phase is complete and approved by the client, Construction Documents (CD) will further refine the Design Development drawings, adding details and finish, fixture and equipment (FF&E) specifications for additional information for the GC and the construction budget. Permitting documents are submitted to the local Government agency for review and approval. Once a permit is approved and a GC is selected, Construction can commence and Packman Architects is available for Construction Administration to review any shop drawings, construction phases and general overall questions related to the design intent of the project.
What makes an architect's fee go up or down?
A few things move the fee more than anything else:
- Size and complexity. A larger house with more rooms, more custom details, and more complex structure takes more drawing and more coordination.
- The site. A steep or irregular lot, a septic system that limits where the house can sit, or a historic district or homeowners association with design review all add work.
- How far the architect goes into construction. Some clients hire an architect for drawings only and let the builder take it from there. Others want the architect involved until the house is finished. The second costs more in fees, and puts the architect on hand when questions come up on site.
- Decisions and changes. A design that is settled early costs less to draw than one that is reworked after the construction drawings are done.
- Consultants. Structural engineers, civil engineers, surveyors, and other specialists may be included in the architect's fee or hired separately. Ask which.
The cost increase to the architectural fee typically occurs when there is an increase in the scope of work and the project parameters change after a phase has been completed, i.e. Schematic Design, Design Development and Construction Documents.
What does staying involved through construction add?
Most of the money in a custom home is spent during construction, and it is when many costly surprises surface. An architect who stays involved answers the builder's questions from the drawings, reviews changes before they are built, and catches problems while they are still cheap to fix.
Not all projects require Construction Administration services, which is why it is considered an Additional Service. However, in my experience, the hourly fee charged for this service can be invaluable to not only the client to make sure the design is implemented as intended but also for the General Contractor as a resource to answer any questions or provide additional information and details, whether through on site meetings, video calls and phone calls to keep the project on schedule and maintain clear communication with the entire project team.
How do you compare two architects' proposals?
Two fees can look far apart and cover very different work. When comparing, put the proposals side by side and ask:
- Is construction included? One proposal may stop at permit drawings, and another may run through completion.
- Are consultants included? If the structural engineer and surveyor are extra, the lower number may not be lower.
- How many design options and rounds of revisions are included? And what does an additional round cost?
- How is a percentage fee calculated? On the estimated budget, the builder's contract price, or the final cost?
- Who does the work? In a larger firm, the person who presents the proposal may not be the person who draws your house.
- What happens if the project pauses or stops? Most agreements bill for work done to date. Check.
A clear written scope protects both sides. If a proposal is vague about what is included, ask for the details before you sign.
Is the first conversation with an architect free?
Many architects offer a short first meeting without charge to learn about the project and see if they are the right fit. Some charge for a site visit or an early study.
At Packman Architects, yes. There is no charge for the first conversation or the first meeting, whether by phone, video, or in person, until a scope has been developed for your project. A phone conversation usually runs under thirty minutes; a meeting by video or in person usually runs 1 to 2 hours.
Where should you start?
Before you ask for a fee, gather what you know: the lot (or the lots you are considering), a rough budget for construction, a few photos of houses you like, and your timing. That lets an architect give you a proposal based on your project rather than a general number.
It also helps to know what you want the architect to do. Some owners want design and permit drawings only. Others want an architect involved until the house is finished. Say which you have in mind, or ask the architect to price both, so the proposals you compare cover the same work.
About the author
Paul Packman, NCARB, is President of Packman Architects in Brentwood, Tennessee. He is licensed in Tennessee, California, Oregon, and Utah.
From the first conversation through design, permitting, consultant coordination, and construction, he remains closely involved, helping clients navigate complex decisions while keeping their vision, priorities, and budget at the center of the project.
