Architect cost relative to project budget?

[Cody Anderlini]

Hi All,

Thank you for creating such a positive place for people to educate themselves, it’s much appreciated! First project here, bought some industrial property in cash about 60 days ago. Since the I have had it cleared, soil work done, survey done, civil engineer is almost complete and I am looking for an architect. I have received quotes that are all over the board, ranging from $11,000 - $54,000. The project consists of two steel structure buildings, 19,200sq’ total space. Curious if anybody out there has a general rule of thumb for how much an architect should cost relative to the total project budget, or any other data driven way of keeping subs honest?

I don’t believe it’s as simple as “you get what you pay for.” People see a 28 year old trying to develop property and are quick to have their hands out. I don’t mind paying for the right service, but I’m not a fan of leaving money on the table either.

[Seth Holmen]

Yes, it's based on complexity and size or project. Smaller projects often have a higher fee percentage based on total construction costs. That can range from 10%-20%. New construction is easier to estimate, but again depends on the type of building and complexity. Those fees range from 6%-15%.  I find myself in the 8% range fairly often.