April 17, 2007

HOAI / HOA - a simplified guide to Architect's fees in Austria (and Germany) - the Value of Innovation (IV).



Innovation Part IV: In the beginning client and architect have to reach an agreement on the level of difficulty:

(1-10): from a maybe simple shelter (level one) to a social housing project (level five), a railway-station or an hospital (level seven) to finally special buildings which need specialised knowledge (level 10).

Next the architect (or a commissioned consultant) has to estimate the gross building costs - and that's the tricky part. Usually you do it by counting surfaces /volumes of building parts and multiplying them by cost schedules, predicting the required mechanical/ electrical/ plumbing work (can be already 40% of the total costs) and having a feasible structural design, etc. Lucky you if you have an optimized work flow (or software) for this (usually it's done by drawingpolylines in AutoCad, counting them and add the values to Excel spreadsheets).

Knowing the level of difficulty and the estimate building costs the architect can pick the fee rate accordant the following list:

Finally we can estimate the architect's fee by using this formula:

HP = K x hP x t

(K..the cost estimation, hP..fee rate, t..proportion of design phases)

And remember - no deal without a special discount. As mentioned in one of the last posts 't' is affecting your fee if you're "only" the design-architect. In this case you don't gain much of the project's fees.

I imagine that elsewhere architect's fee are regulated more or less the same way:

Do the building costs really reflect the value of design achievements? Does it encourage good architecture? Does it award sustainable designs? And most important: Does it boosts innovation?

7 comment(s):

Anonymous said...

That system doesn't include any methods to assess the value of a pioneering design for a so called 'simple' building.
What if ad writers get paid according to the printing-costs??

Garden Furniture 247 said...

I agree with the above comment, I have been looking into this recently as I am looking to build.

Xavi said...

Excellent and interesting article!! Greetings from another Architectura blogger from Barcelona, Spain.
http://diasdearquitectura.blogspot.com

Anonymous said...

I don't really understand this formula.
Is "hp" expressed in percentage? Otherwise it would be really big number, correct?
By the way, very interesting article, and great blog site about architecture.

www.taskisla.com said...

We like it or not, we have to integrate architecture into the "common business" jargon.
That's being said. I use a hybrid system.
I use a very close chart for the business part.
Plus I calculate a percentage for the added value me or my team bring in to the project.
That's always more understandable by the client.
They know what they are paying for.

James said...

Great table:))

But what IS the services?

I'll draw a sketch on the napckin.

Very coplicated sketch.

Do I charge 15%?

Or I'll produce 126 sheets of drawings for mediocre basic house where every molding is drawn and every dorr knob installation detail is present. With all the schedule for all the imaginable parts.

How would that work?

Anonymous said...

Simple Question - is there an on-line guide to Architects Fees in Austria? If so great to know....anyone know? Thanks