Should an architect know if a design will fit within my budget?

Question

I'm a new STR investor and could use some advice about working with architects and contractors. I bought my first STR property and it's a cabin that needs a lot of work. I hired an architect to create the plans, and his plans are very nice, but he can't tell me if they are within my reno budget of $100K. He says I need a contractor to tell me that. So, I hired a contractor who says he has to have a full set of plans from the architect to give me a budget. I'm at a standstill here. Can anybody give me some advice about how to get past this? It seems strange to me that an architect would create plans without knowing if they fit within my budget. I'm a consultant and wouldn't create a plan that didn't work with my client's budget. Am I nuts? Appreciate any advice. Thanks!

Eric Teran · Answer

@Lisa Sall I’m an Architect and we cannot give you an exact price. An architect will give you a general idea of what something may be built for. If you have a $100k budget then they need to design towards this but it may go over or under. Of course, in today’s economy $100k six months ago got you a lot more than today.

As I design a project I let my clients know if the decisions/requests they are making will keep the project within budget or if it is starting to go over. If my client makes the decision to go over and then wants to cut cost then I charge them for this as I gave them a warning. If I am way off based on my direction then I will value engineer up to a point.

As mentioned above the economy has thrown things out of wack. A project six months ago may have been doable for $100k but may now cost $150k.

Pricing publication will not work as those will be out of date. You either need a construction manager or contractor on board sooner rather than later or pay the architect a lot more money to give an exact price. Coming up with an accurate estimate takes a lot of time. It is also impossible to have an accurate price until all the drawings are complete. There are so many factors that can change pricing that it isn’t fair to ask for accurate pricing until all the drawings are complete. For example, what type of framing members will be used or light fixtures or vanities and so on.

Basically, the architect should have an idea if your project will be somewhat near your budget but you will not get an accurate price until all the plans are complete. If it is way over what can be done to bring it back within reason. If the value engineering doesn’t satisfy then it is up to you if you are willing to raise your budget.

Jared W Smith · Answer

I echo what the other architects above posted (I am also an Architect). In today's environment, an architect cannot estimate exactly. The analysis, design and document creation takes time and things are fluctuating a lot in the past 2-3 years. Yes, we can get close and provide a range but not exact. @Lisa Sall

@JD Martin, yes this can be done but is an additional service for most architects and is often outsourced to a professional estimator. Otherwise an Architect typically not giving you a precise or fully accurate cost estimate.

The second part of the issue not brought up here is no budget is the exact cost. I have 17+ years in the architecture, design and construction industry. If your budget is $100K, you should have a min. of 10-15% in contingency for price fluctuations and construction unknowns. Not one project of hundreds I have been a part of has cost what was estimated as the cost. Even after Contractor has bid a detailed set of drawings. You are ALWAYS going to find issues on the site during construction, in the existing house, utilities problem, excavation issue, whatever.. Plus on larger projects, there's whats called "escalation to mid-point" meaning it's expected for the cost of construction to increase in cost to the mid-point of construction due to the market. This market is crazy right now, I yield to Contractor pricing even more so lately.

Sergey A. Petrov · Answer

I’ve worked with plenty of architects, contractors, project managers and other trades. I am with @Eric Teran here. Your architect will give you a general ballpark (maybe even a ROM estimate) but the numbers won’t be firmed up until the plans are complete and even then you’ll have a bunch of contingency line items and change orders. The more complicated the project the more variables you’ll have throughout the project

Scott E. · Answer

You don't need to find a new architect, you need to find a new contractor.

An architect should be able to give you a rough ballpark, but it's not their area of expertise to know exactly what construction costs are on any given moment. They are designing for a living, not hiring sub contractors.

I can walk any project with my general contractor, rattle off everything I want done to the place, and he will give me a detailed estimate within 2-3 days. No plans needed, just ideas.

Of course this is another story when you are doing new development but that does not sound like the case here. You're just remodeling a cabin.

Jim Adrian · Answer

In todays market.  NO!  Inflation is the #1 reason why architects cant give an estimate right now.   Rough Order of Magnitude (ROM) is the best we can do.  Also there is way too much work available for contractors.  They are able to pick and choose what they want to build, aka Name your price.     Inflation example:  Monday my curtainwall was $110 to $120 a square foot and Tuesday my price jumped to $140 to $150.  How can anyone budget or estimate a project?

Chris Seveney · Answer

@Lisa Sall

Architects should be able to give to provide you that information - at least a range. Find a new architect or tell him you are designing per X budget and after plans are complete if it’s over budget you are not paying for any redesign costs to value engineer then project.

The other option is to bring in a construction manager who can manage the architect and GC and they also could provide you a budget and manage the architect.

Jack Swank · Answer

An Architect can’t come up with cost. We get calls from architects asking for square footage pricing for their clients all the time.

Remodels are tough because the scope is so specific. An architect would have a tough  time coming up with the cost on a remodel.

Find a contractor to give you some guidance and maybe ballpark pricing on items for you to budget.

Bruce Woodruff · Answer

To get past this, you need to follow the usual procedures. And Consultants are not the same as Architects....

Bruce Woodruff · Answer

No, an Architect is not responsible or really able to give you pricing. It'd not their job, they have no training for it and you'd be foolish to even ask them for pricing. Are you going to ask your Contractor to draw your plans next?

Why is this a problem? Follow the usual procedure: 1) give your Architect your design and dream, they draw the plans until you're satisfied. 2) Then you give copies of the plans to a few GCs and ask them to bid them to an exact price (assuming you have been specific with your choices) 3) You choose a GC to do your project based on price and more importantly your feel for the guy.

Jon Martin · Answer

Can you please detail exactly what work you need done so it can give us an idea as to whether an architect is even required? "Remodel" can mean a lot of things, but unless you are actually adding new square footage outside of the existing structure then I'm not sure why you would need an architect. You don't need an architect to knock down or move around walls or replace cabinets.

In regards to adding new square footage, the rule of thumb numbers (taken with a grain of salt) I hear thrown around are around $150-200/SF in less expensive areas and $300+/SF in California and other high rent districts.

Should an architect know if a design will fit within my budget?

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