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E: studio [at] context [dot] net [dot] nz
How do we charge?
What are the costs of building?
How can you be sure costs don’t go over budget?
Most commonly, our architectural services are charged as a percentage fee of the total building cost. The fee is calculated over the full Architectural service: concept and developed design through to documentation, contract administration and the defects liability period.
The percentage varies depending on the project brief and estimated construction cost. For new homes and major renovations, the percentage range is usually between 9 to 12 percent of the construction cost.
Percentage fees are based on the New Zealand Institute of Architects ‘Guide to Architects Charges’, a copy of which can be viewed at www.nzia.co.nz.
For smaller projects, services can be charged on an hourly basis. Hourly rates apply to small projects or drafting jobs where the outcome is documentation for building consent purposes.
In general, renovations and additions are more expensive on a per square metre basis than building a new home from scratch. Based on our experience, the square metre rate for renovations and additions can be in the order of $1,800 to $3,500 per square metre, depending on the brief. For new homes, it can be less.
If you are looking to incorporate sustainable design principles and solutions into the design, there can be a higher cost involved (although simple sustainable design principles like positioning the house correctly are a matter of design, not cost). However, it is worth noting that the costs of creating a sustainable home are redeemable through energy savings over a five to ten year period.
At the end of the concept design stage, we recommend engaging a Quantity Surveyor to provide a cost plan for the project. We will organise this on your behalf.
The Quantity Surveyor is briefed to provide a cost plan for the design stage, documentation stage and construction stage. This cost plan gives you a firm indication of the construction cost and helps you manage costs through the various stages of the project.
At the time of building consent, we go to tender to get a fixed price offer from a building contractor. We negotiate contract terms with the successful tenderer to achieve the best value outcome for the project.
We have a strong track record (both in commercial and residential projects) in keeping projects to the Quantity Surveyor’s estimates. We ensure that the Quantity Surveyor’s cost plan is updated at the end of Developed Design stage. We find that building tenders generally fall in line with the Quantity Surveyor’s cost plan, ensuring that there are no surprises for you as the client.