As an architect, you could specialize in working on residential properties, commercial properties, and more. In New Jersey, the demand for residential architects is greater. As a residential architect, you could design new homes, or update existing ones.
You could find yourself adding a master suite to an existing residential property, or updating the kitchen. You may even need to work on a basement. Before a homeowner approaches an architect to redesign their home, you can expect them to do their research. This means that you should be prepared for the design meeting. At the design meeting, among other things, you’ll also be talking to the client about your pay.
When you know how much architects generally charge for their services in New Jersey, you can better price your services.
How Much Do Architects Charge?
Many clients will have a fixed budget in their minds before they approach an architect. Despite this, depending on how much experience an architect has, they can ask for more money. How an architect structures their fee is dependent on several factors. Hiring an independent architect can be more budget friendly than approaching an architecture firm.
This is what you should know about pricing your architecture services in New Jersey.
1. Percentage Of Construction Costs
As an architect, you could charge a portion of the construction costs as your fee. Some architects charge as little as 5% of the construction costs, while others charge as much as 20%. There are architects who argue that charging a small percentage of the total construction costs is an ethical way of pricing their services.
When you charge your services in this manner, you ensure that your services are priced depending on the scope and the size of the project. Remember to offer clarity on what exactly constituted as a construction cost. Usually, if you’re actively working on a certain part of the construction, you can charge for it.
2. Hourly Fee
Some architects choose to charge per hour. It’s not uncommon for architects to charge anywhere between $150 to $250 every hour. The client is also billed through the course of the project. If you work for an architecture firm and have several years’ worth of experience, you can charge even more.
There are certain issues with this fee structure. You won’t know at the beginning, how many hours you’ll need to devote to the project. If you’re working on a larger project, then don’t charge the client an hourly fee. This is because the hours could eventually pile up, making it hard for the client to provide you with your payment. This applies to residential projects more than commercial ones.
3. Flat Rate
If you’re working on a smaller project, then you could provide the client with a flat rate. This is because it’ll be easier for you to predict how many hours it will take for you to complete the job. When a project is larger, you’ll be dealing with multiple variables. This makes it harder for you to predict how long you’ll be working on the project.
Before you provide the client with a flat rate, you’ll need to thoroughly evaluate the project at hand. You can ask the client to provide you with your fee in the form of installments. As you meet various milestones during the project’s course, the client can provide you with the pay for meeting each milestone.
You should also consider investing in errors and omissions insurance in New Jersey. This is because working as an architect in New Jersey exposes you to various risk factors, such as getting sued by clients. When you have errors and omissions insurance New Jersey, your career as well as your finances will be protected. To learn all about investing in errors and omissions insurance New Jersey, please click here.
4. Pricing Per Square Foot
Some architects price their services on the basis of every square foot that they work on. Depending on several factors, they could charge as little as $2 or as much as $15 for working on every square foot. Your rate will constitute not just your consultation, but your drawings, site visits, project management, administration, and more. It’s more common however, for architects to combine this method of pricing their services with their hourly rate.
Conclusion
There are several ways you can price your services as an architect. You could charge an hourly rate, a flat fee, a percentage of the construction, or even on a per square foot basis. During the consultation phase, work out what system of payment will be suitable not just for you, but for your client as well.