Construction Costs and Fees · Oct 3, 03:53 PM
Construction costs in the DC area went up by about 50% between 2005 and 2007. This was based upon two primary factors: the rising cost of energy (and the consequent surcharges on most materials); and the increase in world-wide demand for materials fueled by China’s growth and natural disasters.
Clients ask us, shouldn’t prices be falling, with all we hear about homebuilders being out of work because of the mortgage crisis? The truth is that here in the DC area, most homeowners have not been affected by the crisis and are now taking advantage of the lower interest rates that the Fed is throwing at the problem. Because of this, local good contractors have not been affected by the nationwide recession and remain busy. We are watching things closely, and as best as we can tell, the rapid rise over the last two years has flattened out, and prices are holding steady, but not falling.
Most of the projects you will see shown on our website and in books like The Not So Big House would cost $250/square foot and above in 2010 dollars. These numbers certainly focus the mind to think smaller in terms of the footprint one is planning.
Fees
Our work on renovation/additions and energy retrofit projects is billed hourly. Fees for typical projects of $250,000 and above usually run around 12% of construction cost for all design work through completion of construction documents. These fees can run higher as a percentage of construction cost for smaller projects, due to declining economies of scale. Fees for consultation during the construction phase usually run between 1% and 2% of construction cost, depending upon complexity of the project, our familiarity with the contractor, and the amount of involvement the owner wishes us to have during this phase.
Occasionally clients come to us unsure whether to remodel or move. We have helped them in this decision-making process by doing quick studies and budget estimates of the various possibilities for their existing house. Sometimes this has led to a decision to move; at other times it has led to a decision to stay and add/renovate. Fees for this kind of consultation work are obviously much lower – usually in the range of several thousand dollars.
We don’t believe it is a good idea to select your architect on the basis of fee alone. When you compare architects’ fees, also look at their construction documents and compare the level of detail included in their drawings. You will generally find that fees are ususally in direct proportion to the amount of work that has gone into those drawings.
— David Peabody
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