New apartment construction process

[Ross Sib]

Hi,

I have a basic question on how to go about evaluating responses form architects. I never dealt with architects before. 

I have a 7000 sq.ft. lot with R-3 zoning. So I found an architect from a similar project development that I want to undertake (10x 1BR townhome units).  I just asked the architect to let me know if they can create plans for small apartment complex with 10x units +parking. They responded that the architectural fee for the 10 unit townhome project is $45,000. This is for architectural work only, and does not include the work of the other consultants (structural, mechanical, plumbing, electrical, etc.).

So without having any other information but these several sentences from this architect, what is the best way to evaluate the offer from an architect? I know that the architect is not interested in providing any more details of what they have in mind without knowing that they will be selected for the job. On the other hand, I have no idea if $45k  is a reasonable amount for this work. So this  is like a chicken-egg problem. I would appreciate if anyone can share their experience on dealing with architects on new apartment development. 

Thanks!

[Seth Holmen]

Fees are typically based on project type, complexity, sq ft, construction costs & how easy the client is to work with...  A percentage of estimated construction cost is fairly standard. This could range from   4% - 10%. The lower percentage is for lager projects $10M +. A higher fee is for smaller projects (less than $500k).  There are too many variations that could make this increase or decrease based on project complexity. 

As for comparing bids, you should start by providing the architects an RFP (Request for proposal). This is where you describe your project in great detail and what your expectations are of the architect. They will all bid off of the same information at this point. The should include a scope or work, what is included and not included. What the hourly rate for extras / changes would be. 

It's often best for the architect to include MEP & Structural engineering in their bid since they are required to work directly with them. This will save you some headaches later if you select engineers the architects don't like. Alternatively, Design/build could be a good option for this type of project. Find a good GC and have their subs do the MEP engineering and work directly with the architect. This is where you will find the most cost savings.