Hey,
I have a question about general payment practices within architecture.
We are planning an addition/kitchen renovation (essentially bumping out walls of current kitchen with flat roof). As part of this process, we hired an architect and gave them a ballpark budget to follow (~170K). They came back with absolutely beautiful plans, but I was worried they were going to cost us more because they added two new structures/additions.
We gave the plans to two of the prospective contractors and they both laughed and said it would be way over budget (some quotes as high as $300K). I talked to the architect and got them to reduce it to the original plans of just a single kitchen addition.
The architect just sent me a bill for about $600 for the new plans. It is short money in the scheme of the addition, but should I pay it? I kind of feel like this is their mistake.
I realize this all depends on contracts, etc. (and I will probably end up eating the costs) – but I am curious if this is normal.
Thanks in advance.
Replies
And what did the architect say when you asked “what the heck extra”?
All depends on the contract of course, but the AIA B101 is the most standardized contract between and owner and an architect. The sections below is what is "typical" for your situation.
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§ 6.3 In preparing estimates of the Cost of Work, the Architect shall be permitted to include contingencies for design, bidding, and price escalation; to determine what materials, equipment, component systems, and types of construction are to be included in the Contract Documents; to recommend reasonable adjustments in the program and scope of the Project; and to include design alternates as may be necessary to adjust the estimated Cost of the Work to meet the Owner’s budget. The Architect’s estimate of the Cost of the Work shall be based on current area, volume or similar conceptual estimating techniques. If the Owner requires a detailed estimate of the Cost of the Work, the Architect shall provide such an estimate, if identified as the Architect’s responsibility in Section 4.1.1, as a Supplemental Service.
§ 6.5 If at any time the Architect’s estimate of the Cost of the Work exceeds the Owner’s budget for the Cost of the Work, the Architect shall make appropriate recommendations to the Owner to adjust the Project’s size, quality, or budget for the Cost of the Work, and the Owner shall cooperate with the Architect in making such adjustments.
§ 6.6 If the Owner’s budget for the Cost of the Work at the conclusion of the Construction Documents Phase Services is exceeded by the lowest bona fide bid or negotiated proposal, the Owner shall
.1 give written approval of an increase in the budget for the Cost of the Work;
.2 authorize rebidding or renegotiating of the Project within a reasonable time;
.3 terminate in accordance with Section 9.5;
.4 in consultation with the Architect, revise the Project program, scope, or quality as required to reduce the Cost of the Work; or,
.5 implement any other mutually acceptable alternative.
§ 6.7 If the Owner chooses to proceed under Section 6.6.4, the Architect shall modify the Construction Documents as necessary to comply with the Owner’s budget for the Cost of the Work at the conclusion of the Construction Documents Phase Services, or the budget as adjusted under Section 6.6.1. If the Owner requires the Architect to modify the Construction Documents because the lowest bona fide bid or negotiated proposal exceeds the Owner’s budget for the Cost of the Work due to market conditions the Architect could not reasonably anticipate, the Owner shall compensate the Architect for the modifications as an Additional Service pursuant to Section 11.3; otherwise the Architect’s services for modifying the Construction Documents shall be without additional compensation. In any event, the Architect’s modification of the Construction Documents shall be the limit of the Architect’s responsibility under this Article 6.
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If I was the homeowner, I would be annoyed about the additional fee. But it's important to all involved that the scope and budget were discussed and agreed to before the design was started. You mentioned that the $170K figure was a ballpark number so it makes me wonder how solidified the budget was. 2x the initial budget though is quite a ways off so I would not hesitate to have a conversation with the Architect about the additional fees.
"They came back with absolutely beautiful plans, but ... they added two new structures/additions."
Is this what you asked the architect to do OR did the architect add this at his/her own volition?
If you did and this caused a significant increase in construction costs resulting in your request to revised his work, then the architects time should be compensated.
However, if the added scope (addition/structures) was incorporated into plans solely because of the architect's creative effort and was never brought to your attention, I'd say you have grounds to balk.
The architect's fee method of determination must be factored into the discussion. Did the architect (and you) agree to a fixed fee or a percentage of the construction cost?
If what you are saying was in the original contract of work, i.e. limited to the enlargement of the existing kitchen area and they came back with an additional structure or structures, it appears they went way beyond what was the original scope of work. The new plans should not cost you more. They went beyond the original scope without communicating it to you. It is either that or they got clients needs mixed up.
From my limited exposure to residential work involving architects, combined with my exposure to them in commercial work, they tend to allow their artistic creativity run wild until they are checked by either their client or the resulting costs. Just because THEY chose to get overly creative does not necessarily mean you should bear the cost.
I would definitely fight that if it's not something you requested and they took the initiative on their own. Some overage is probably to be expected, but that seems excessive and something you shouldn't have to pay for. Might depend on the contract as you stated, but I would want some clarification as to why it happened and why you're the one liable for the additional costs.